LCNB Stock Overview
LCNB Corp. operates as the financial holding company for LCNB National Bank that provides banking services in Ohio.
No risks detected for LCNB from our risk checks.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$15.36|
|52 Week High||US$20.69|
|52 Week Low||US$14.73|
|1 Month Change||-5.48%|
|3 Month Change||2.74%|
|1 Year Change||-12.68%|
|3 Year Change||-11.52%|
|5 Year Change||-26.33%|
|Change since IPO||134.95%|
Recent News & Updates
LCNB declares $0.20 dividend
LCNB (NASDAQ:LCNB) declares $0.20/share quarterly dividend, in line with previous. Forward yield 4.94% Payable Sept. 15; for shareholders of record Sept. 1; ex-div Aug. 31. See LCNB Dividend Scorecard, Yield Chart, & Dividend Growth.
LCNB GAAP EPS of $0.49 beats by $0.09, revenue of $18.69M beats by $4.41M
LCNB press release (NASDAQ:LCNB): Q2 GAAP EPS of $0.49 beats by $0.09. Revenue of $18.69M (+0.1% Y/Y) beats by $4.41M. Loans, Net Increased 4.2% Year-over-Year to $1.37 Billion. Total Deposits Increased 5.2% Year-over-Year to $1.66 Billion. Credit Quality Remains Strong with Total Nonperforming Loans Declining to $0.6 Million, or 0.04% of Total Loans.
LCNB: A Handsome 5%+ Yield But The TBV Is Under Pressure
LCNB is a small bank focusing on certain areas of Ohio. The local approach results in an exemplary quality level of the loan portfolio. The total amount of non-accruing assets is less than 0.1% of the loan portfolio and is backed by real estate assets. A solid performance in Q1, but the TBV was sliding due to the impact of higher interest rates on the securities portfolio. The bank also repurchased more than 8% of its shares above book value, which also had an impact on the TBV/share. Introduction LCNB (LCNB) is a small bank operating in certain areas of Ohio. Last time I looked at the bank I liked the dividend yield of in excess of 4% in combination with a robust loan book with very few loans past due. The share price has now fallen by approximately 15% since that previous article was published, so I wanted to have another look at the bank as its dividend yield has now increased to in excess of 5%. Data by YCharts The quarterly results were more than alright and LCNB’s dividend remains hedged My first stop when looking at a bank traditionally is the most recent income statement as that provides a good overview of how the bank is actually performing. Dividends are paid from earnings so having a solid earnings potential is likely one of the most important factors contributing to a healthy dividend policy. In the first quarter, LCNB’s interest income decreased just slightly, by a few hundred thousand dollar to $15.1M. Fortunately the interest expenses also decreased by in excess of 20% resulting in a net interest income of $14.2M which is just about 1% lower than in the first quarter of 2021, so that’s pretty good. LCNB Investor Relations It’s not difficult to understand the operating expenses continue to increase and we indeed see an increase in the non-interest expenses to $12.25M, an increase of approximately $750,000 compared to Q1 of last year. That’s entirely contributable to the higher salaries paid by LCNB as the bank saw its wage bill increase by about $0.8M. The combination of a slightly lower net interest income and a slightly higher net non-interest expense (up from $8M to $8.7M) caused the pre-tax income to decrease to $5.5M. That includes a $49,000 loan loss provision (compared to a $52,000 credit recorded in Q1 of last year). The net income was $4.5M for an EPS of $0.38. As the current quarterly dividend is still $0.20, the coverage ratio remains very strong considering the payout ratio is just under 53%. So looking at LCNB from an earnings perspective, the dividend appears to be safe. Especially considering the total amount of nonperforming assets continued to decrease. LCNB Investor Relations The total amount of non-accruing and past due loans came in at $3.74M, a decrease of 10% in the first quarter. As most of the non-accrual loans are secured by real estate (either CRE or residential real estate), LCNB will likely be able to recoup most of the investment. LCNB Investor Relations I also like the focus on the wealth management division and the assets under management increased to almost $1B. That sounds negligible but further down the road this could become ‘sticky’ revenue: if LCNB does a good job the AUM will continue to increase which will have a positive impact on the non-interest income. The fiduciary income is approximately $1.5M per quarter. LCNB Investor Relations The exposure to securities available for sale had a very negative impact on the book value So everything is looking good at first sight: the bank is trading at less than 10 times earnings and the healthy dividend makes LCNB attractive from both an income as well as a fundamental perspective. There’s just one element bothering me: the value destruction in the ‘securities available for sale’ portfolio. As interest rates fluctuate, the fair value of this portfolio changes. As these securities are marked as ‘available for sale’ the valuation increases and decreases don’t have to be recorded on the normal income statement, but they do show up on the comprehensive income statement.
|LCNB||US Banks||US Market|
Return vs Industry: LCNB exceeded the US Banks industry which returned -24.8% over the past year.
Return vs Market: LCNB exceeded the US Market which returned -22.1% over the past year.
|LCNB Average Weekly Movement||3.2%|
|Banks Industry Average Movement||3.4%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.7%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: LCNB is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: LCNB's weekly volatility (3%) has been stable over the past year.
About the Company
LCNB Corp. operates as the financial holding company for LCNB National Bank that provides banking services in Ohio. Its deposit products include checking accounts, demand deposits, savings accounts, NOW and money market deposits, as well as certificates of deposit. The company’s loan products comprise commercial and industrial, commercial and residential real estate, agricultural, construction, and small business administration loans; and residential mortgage loans that consists of loans for purchasing or refinancing personal residences, home equity lines of credit, and loans for commercial or consumer purposes secured by residential mortgages.
LCNB Fundamentals Summary
|LCNB fundamental statistics|
Is LCNB overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|LCNB income statement (TTM)|
|Cost of Revenue||US$0|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||1.80|
|Net Profit Margin||28.04%|
How did LCNB perform over the long term?See historical performance and comparison
5.2%Current Dividend Yield
Is LCNB undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 5/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for LCNB?
Other financial metrics that can be useful for relative valuation.
|What is LCNB's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does LCNB's PE Ratio compare to its peers?
|LCNB PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
ISBA Isabella Bank
PWOD Penns Woods Bancorp
HONT Honat Bancorp
RVSB Riverview Bancorp
Price-To-Earnings vs Peers: LCNB is good value based on its Price-To-Earnings Ratio (8.5x) compared to the peer average (10.9x).
Price to Earnings Ratio vs Industry
How does LCNB's PE Ratio compare vs other companies in the US Banks Industry?
Price-To-Earnings vs Industry: LCNB is good value based on its Price-To-Earnings Ratio (8.5x) compared to the US Banks industry average (9.5x)
Price to Earnings Ratio vs Fair Ratio
What is LCNB's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||8.5x|
|Fair PE Ratio||11x|
Price-To-Earnings vs Fair Ratio: LCNB is good value based on its Price-To-Earnings Ratio (8.5x) compared to the estimated Fair Price-To-Earnings Ratio (11x).
Share Price vs Fair Value
What is the Fair Price of LCNB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: LCNB ($15.36) is trading below our estimate of fair value ($35.16)
Significantly Below Fair Value: LCNB is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Insufficient data to show price forecast.
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How is LCNB forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
Future Growth Score1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LCNB's forecast earnings growth (4.1% per year) is above the savings rate (1.9%).
Earnings vs Market: LCNB's earnings (4.1% per year) are forecast to grow slower than the US market (14.8% per year).
High Growth Earnings: LCNB's earnings are forecast to grow, but not significantly.
Revenue vs Market: LCNB's revenue is expected to decline over the next 3 years (-9.8% per year).
High Growth Revenue: LCNB's revenue is forecast to decline over the next 3 years (-9.8% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if LCNB's Return on Equity is forecast to be high in 3 years time
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How has LCNB performed over the past 5 years?
Past Performance Score2/6
Past Performance Score 2/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LCNB has high quality earnings.
Growing Profit Margin: LCNB's current net profit margins (28%) are lower than last year (28.2%).
Past Earnings Growth Analysis
Earnings Trend: LCNB's earnings have grown by 11.3% per year over the past 5 years.
Accelerating Growth: LCNB's earnings growth over the past year (0.2%) is below its 5-year average (11.3% per year).
Earnings vs Industry: LCNB earnings growth over the past year (0.2%) underperformed the Banks industry 8.7%.
Return on Equity
High ROE: LCNB's Return on Equity (10.1%) is considered low.
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How is LCNB's financial position? (This company is analysed differently as a bank or financial institution)
Financial Health Score6/6
Financial Health Score 6/6
Allowance for Bad Loans
Low Risk Liabilities
Low Risk Deposits
Level of Bad Loans
Financial Position Analysis
Debt to Equity History and Analysis
Financial Institutions Analysis
Asset Level: LCNB's Assets to Equity ratio (9.4x) is low.
Allowance for Bad Loans: LCNB has a sufficient allowance for bad loans (972%).
Low Risk Liabilities: 97% of LCNB's liabilities are made up of primarily low risk sources of funding.
Loan Level: LCNB has an appropriate level of Loans to Assets ratio (72%).
Low Risk Deposits: LCNB's Loans to Deposits ratio (82%) is appropriate.
Level of Bad Loans: LCNB has an appropriate level of bad loans (0%).
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What is LCNB current dividend yield, its reliability and sustainability?
Dividend Score 5/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
|LCNB Dividend Yield vs Market|
|Market Bottom 25% (US)||1.7%|
|Market Top 25% (US)||4.7%|
|Industry Average (Banks)||3.4%|
|Analyst forecast in 3 Years (LCNB)||5.4%|
Notable Dividend: LCNB's dividend (5.21%) is higher than the bottom 25% of dividend payers in the US market (1.67%).
High Dividend: LCNB's dividend (5.21%) is in the top 25% of dividend payers in the US market (4.69%)
Stability and Growth of Payments
Stable Dividend: LCNB's dividends per share have been stable in the past 10 years.
Growing Dividend: LCNB's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (46.2%), LCNB's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years or that it will be covered by earnings.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Eric Meilstrup (54 yo)
Mr. Eric J. Meilstrup has been President of LCNB Corp. and LCNB National Bank since October 1, 2018 and has been Chief Executive Officer of both LCNB Corp. and LCNB National Bank since June 30, 2019. He se...
CEO Compensation Analysis
|Eric Meilstrup's Compensation vs LCNB Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||US$650k||US$340k|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||US$772k||US$315k|
|Sep 30 2020||n/a||n/a|
|Jun 30 2020||n/a||n/a|
|Mar 31 2020||n/a||n/a|
|Dec 31 2019||US$526k||US$275k|
|Sep 30 2019||n/a||n/a|
|Jun 30 2019||n/a||n/a|
|Mar 31 2019||n/a||n/a|
|Dec 31 2018||US$243k||US$170k|
|Sep 30 2018||n/a||n/a|
|Jun 30 2018||n/a||n/a|
|Mar 31 2018||n/a||n/a|
|Dec 31 2017||US$289k||US$147k|
|Sep 30 2017||n/a||n/a|
|Jun 30 2017||n/a||n/a|
|Mar 31 2017||n/a||n/a|
|Dec 31 2016||US$249k||US$139k|
|Sep 30 2016||n/a||n/a|
|Jun 30 2016||n/a||n/a|
|Mar 31 2016||n/a||n/a|
|Dec 31 2015||US$188k||US$129k|
Compensation vs Market: Eric's total compensation ($USD650.40K) is below average for companies of similar size in the US market ($USD1.69M).
Compensation vs Earnings: Eric's compensation has been consistent with company performance over the past year.
Experienced Management: LCNB's management team is seasoned and experienced (10.2 years average tenure).
Experienced Board: LCNB's board of directors are considered experienced (4.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
|20 May 22||BuyUS$16,690||Craig Johnson||Individual||1,000||US$16.69|
|16 May 22||BuyUS$2,496||Takeitha Lawson||Individual||158||US$15.80|
|05 May 22||BuyUS$48,960||Mary Bradford||Individual||3,000||US$16.32|
|03 May 22||BuyUS$49,340||William Kaufman||Individual||3,000||US$16.45|
|02 May 22||BuyUS$16,054||Steve Foster||Individual||1,000||US$16.05|
|29 Apr 22||BuyUS$16,380||Craig Johnson||Individual||1,000||US$16.38|
|25 Feb 22||BuyUS$3,715||Lawrence Mulligan||Individual||200||US$18.58|
|23 Feb 22||BuyUS$9,548||Eric Meilstrup||Individual||500||US$19.10|
|01 Feb 22||BuyUS$486,413||John C. Lame And Susan K. Lame Irrevocable Trust||Company||24,362||US$20.25|
|19 Jan 22||BuyUS$364,141||John C. Lame And Susan K. Lame Irrevocable Trust||Company||18,520||US$19.87|
|27 Dec 21||BuyUS$8,577||Susan Lame||Individual||27,575||US$20.11|
|20 Dec 21||BuyUS$27,598||John Lame||Individual||81,230||US$20.69|
|26 Oct 21||BuyUS$17,420||Anne Krehbiel||Individual||1,000||US$17.42|
|Owner Type||Number of Shares||Ownership Percentage|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
LCNB Corp.'s employee growth, exchange listings and data sources
- Name: LCNB Corp.
- Ticker: LCNB
- Exchange: NasdaqCM
- Founded: 1877
- Industry: Regional Banks
- Sector: Banks
- Implied Market Cap: US$174.417m
- Shares outstanding: 11.36m
- Website: https://www.lcnb.com
Number of Employees
- LCNB Corp.
- 2 North Broadway
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|LCNB||NasdaqCM (Nasdaq Capital Market)||Yes||Common Shares||US||USD||Nov 1995|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/28 00:00|
|End of Day Share Price||2022/09/28 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.