NasdaqCM:LCNB

Stock Analysis Report

Executive Summary

LCNB Corp. operates as the financial holding company for LCNB National Bank that provides commercial and personal banking services in Ohio.


Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has LCNB's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LCNB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.9%

LCNB

-9.0%

US Banks

-7.6%

US Market


1 Year Return

-1.2%

LCNB

1.2%

US Banks

10.2%

US Market

Return vs Industry: LCNB underperformed the US Banks industry which returned 2.3% over the past year.

Return vs Market: LCNB underperformed the US Market which returned 10.5% over the past year.


Shareholder returns

LCNBIndustryMarket
7 Day-1.9%-9.0%-7.6%
30 Day-6.0%-6.9%-4.5%
90 Day-9.1%-8.9%-0.6%
1 Year1.8%-1.2%4.1%1.2%12.5%10.2%
3 Year-18.8%-26.5%11.7%3.8%37.1%28.3%
5 Year30.8%10.1%58.4%40.5%60.8%43.2%

Price Volatility Vs. Market

How volatile is LCNB's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is LCNB undervalued compared to its fair value and its price relative to the market?

11.62x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LCNB ($16.61) is trading above our estimate of fair value ($15.9)

Significantly Below Fair Value: LCNB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LCNB is good value based on its PE Ratio (11.5x) compared to the Banks industry average (12.2x).

PE vs Market: LCNB is good value based on its PE Ratio (11.5x) compared to the US market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: LCNB is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: LCNB is good value based on its PB Ratio (0.9x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is LCNB forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

3.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LCNB's forecast earnings growth (3.9% per year) is above the savings rate (1.7%).

Earnings vs Market: LCNB's earnings (3.9% per year) are forecast to grow slower than the US market (13.2% 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 (-5.7% per year).

High Growth Revenue: LCNB's revenue is forecast to decline over the next 3 years (-5.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LCNB's Return on Equity is forecast to be low in 3 years time (8.4%).


Next Steps

Past Performance

How has LCNB performed over the past 5 years?

11.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LCNB has high quality earnings.

Growing Profit Margin: LCNB's current net profit margins (28.4%) are higher than last year (25.7%).


Past Earnings Growth Analysis

Earnings Trend: LCNB's earnings have grown by 11% per year over the past 5 years.

Accelerating Growth: LCNB's earnings growth over the past year (27.6%) exceeds its 5-year average (11% per year).

Earnings vs Industry: LCNB earnings growth over the past year (27.6%) exceeded the Banks industry 12%.


Return on Equity

High ROE: LCNB's Return on Equity (8.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is LCNB's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: LCNB has a low level of unsold assets or inventory.

Debt Coverage by Assets: LCNB's debt is not covered by short term assets (assets are 0.5x debt).


Financial Institutions Analysis

Asset Level: LCNB's level of assets compared to its equity is low.

Allowance for Bad Loans: LCNB has a sufficient allowance for bad loans.

Low Risk Liabilities: LCNB's liabilities are made up of primarily low risk sources of funding.

Loan Level: LCNB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: LCNB's loans are broadly funded by customer deposits.

Level of Bad Loans: LCNB has an appropriate level of bad loans (0.26%)


Next Steps

Dividend

What is LCNB's current dividend yield, its reliability and sustainability?

4.29%

Current Dividend Yield


Dividend Yield vs Market

company4.3%marketbottom25%1.5%markettop25%4.0%industryaverage3.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: LCNB's dividend (4.33%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: LCNB's dividend (4.33%) is in the top 25% of dividend payers in the US market (3.9%)


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

Dividend Coverage: With its reasonably low payout ratio (47.7%), 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 and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.6yrs

Average management tenure


CEO

Eric Meilstrup (51yo)

0.7yrs

Tenure

US$243,421

Compensation

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

Compensation vs Market: Eric's total compensation ($USD243.42K) is below average for companies of similar size in the US market ($USD1.11M).

Compensation vs Earnings: Eric's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Eric Meilstrup
President0.7yrsUS$243.42k0.081% $175.1k
Robert Haines
Executive VP & CFO12.1yrsUS$236.96k0.064% $138.4k
John Smiley
Executive VP & Columbus Market President1.8yrsUS$131.15k0.73% $1.6m
Anne Krehbiel
Secretary & Director9.8yrsUS$31.86k0.039% $84.0k
Matthew Layer
Executive VP & Chief Lending Officer12.1yrsUS$251.30k0.12% $258.7k
Lawrence Mulligan
Executive VP & COO0.8yrsno data0.020% $43.9k
Bradley Ruppert
Executive VP & Chief Investment Officer3.1yrsno data0.036% $78.9k
Connie Sears
Vice President of Human Resources and Vice President of Human Resources - LCNB National Bank0yrsno datano data
Bernard Wright
Senior Executive Vice President12.1yrsUS$154.51kno data
Timothy Sheridan
Chief Credit Officer and Senior Executive Vice President12.1yrsno datano data

7.6yrs

Average Tenure

52yo

Average Age

Experienced Management: LCNB's management team is seasoned and experienced (7.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Eric Meilstrup
President0.7yrsUS$243.42k0.081% $175.1k
Anne Krehbiel
Secretary & Director9.8yrsUS$31.86k0.039% $84.0k
Stephen Wilson
Director0yrsUS$27.90k0.47% $1.0m
Steve Foster
Director0yrsUS$485.13k0.26% $556.1k
William Kaufman
Director38.1yrsUS$24.75k0.57% $1.2m
William Huddle
Independent Director1.8yrsUS$22.64k1.4% $3.1m
Spencer Cropper
Chairman1yrsUS$30.38k1.05% $2.3m
Michael Johrendt
Director1.3yrsUS$5.63k1.16% $2.5m
John Kochensparger
Independent Director7.1yrsUS$30.88k1.14% $2.5m
Craig Johnson
Director0.7yrsno data0.0077% $16.8k

1.5yrs

Average Tenure

66yo

Average Age

Experienced Board: LCNB's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LCNB insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.6%.


Top Shareholders

Company Information

LCNB Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: LCNB Corp.
  • Ticker: LCNB
  • Exchange: NasdaqCM
  • Founded: 1877
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$217.338m
  • Shares outstanding: 12.94m
  • Website: https://www.lcnb.com

Number of Employees


Location

  • LCNB Corp.
  • 2 North Broadway
  • Lebanon
  • Ohio
  • 45036
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LCNBNasdaqCM (Nasdaq Capital Market)YesCommon SharesUSUSDNov 1995

Biography

LCNB Corp. operates as the financial holding company for LCNB National Bank that provides commercial and personal banking services in Ohio. The company’s deposit products include checking, NOW, savings, Christmas and vacation club, money market deposit, lifetime checking, and individual retirement accounts, as well as certificates of deposit. Its loan portfolio comprises commercial and industrial, commercial and residential real estate, agricultural, construction, small business administration, and residential mortgage loans. The company also offers consumer loans, such as automobile, boat, home improvement, and personal loans. In addition, it provides trust administrative, estate settlement, and fiduciary services; and investment management services for trusts, agency accounts, individual retirement accounts, and foundations/endowments. Further, the company offers investment services and products, including financial needs analysis, mutual funds, securities trading, annuities, and life insurance; and security brokerage services. Additionally, it provides safe deposit boxes, night depositories, cashier's checks, bank-by-mail, ATMs, cash and transaction services, debit cards, wire transfers, electronic funds transfer, utility bill collections, notary public service, personal computer-based cash management services, telephone banking, PC Internet banking, mobile banking, and other services for individuals and businesses. As of December 31, 2018, the company operated through 35 offices, including a main office in Warren County; branch offices in Warren, Butler, Clinton, Clermont, Fayette, Franklin, Hamilton, Montgomery, Preble, and Ross Counties; a loan production office in Franklin County; and an operations center in Warren County, Ohio, as well as 38 ATMs. LCNB Corp. was founded in 1877 and is headquartered in Lebanon, Ohio. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 00:57
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.