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

Fundamentals

Excellent balance sheet established dividend payer.


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


Market Performance


7 Day Return

2.2%

LCNB

2.7%

US Banks

0.5%

US Market


1 Year Return

-3.7%

LCNB

2.9%

US Banks

6.8%

US Market

Return vs Industry: LCNB underperformed the US Banks industry which returned 2.9% over the past year.

Return vs Market: LCNB underperformed the US Market which returned 6.8% over the past year.


Shareholder returns

LCNBIndustryMarket
7 Day2.2%2.7%0.5%
30 Day-1.5%1.1%-0.8%
90 Day-2.6%2.7%-0.9%
1 Year0.3%-3.7%5.8%2.9%9.2%6.8%
3 Year8.8%-2.0%52.0%41.5%45.6%36.2%
5 Year43.7%19.5%69.2%50.7%63.2%45.4%

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?

2.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LCNB ($17.58) is trading below our estimate of fair value ($18.11)

Significantly Below Fair Value: LCNB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: LCNB is good value based on its PE Ratio (12.5x) compared to the Banks industry average (12.5x).

PE vs Market: LCNB is good value based on its PE Ratio (12.5x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: LCNB is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: LCNB is good value based on its PB Ratio (1x) 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?

6.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LCNB's forecast earnings growth (6.6% per year) is above the savings rate (2.7%).

Earnings vs Market: LCNB's earnings (6.6% per year) are forecast to grow slower than the US market (14.6% 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 (-4.8% per year).

High Growth Revenue: LCNB's revenue is forecast to decline over the next 3 years (-4.8% 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


Next Steps

Past Performance

How has LCNB performed over the past 5 years?

10.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LCNB's earnings have grown by 10.1% per year over the past 5 years.

Accelerating Growth: LCNB's earnings growth over the past year (53.9%) exceeds its 5-year average (10.1% per year).

Earnings vs Industry: LCNB earnings growth over the past year (53.9%) exceeded the Banks industry 29.7%.


Return on Equity

High ROE: LCNB's Return on Equity (8.4%) is considered low.


Return on Assets

ROA vs Industry: LCNB has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate LCNB's Return on Capital Employed to determine if it has improved over the past 3 years.


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 0.6x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: LCNB has a low 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 (0.9%)


Next Steps

Dividend

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

3.87%

Current Dividend Yield


Dividend Yield vs Market

company3.9%marketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: LCNB's dividend (3.87%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: LCNB's dividend (3.87%) is in the top 25% of dividend payers in the US market (3.73%)

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 (47.5%), 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

What is the CEO of LCNB's salary, the management and board of directors tenure and is there insider trading?

11.8yrs

Average management tenure


CEO

Eric Meilstrup (51yo)

0.3yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

11.8yrs

Average Tenure

52yo

Average Age

Experienced Management: LCNB's management team is seasoned and experienced (11.8 years average tenure).


Board Age and Tenure

2.5yrs

Average Tenure

64.5yo

Average Age

Experienced Board: LCNB's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: LCNB insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

BuyUS$20,21023 Aug 19
Michael Johrendt
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,231
Max PriceUS$16.42
BuyUS$3,35715 Aug 19
Lawrence Mulligan
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares200
Max PriceUS$16.79
BuyUS$8,56609 Aug 19
Craig Johnson
EntityIndividual
Shares500
Max PriceUS$17.13
SellUS$25,26902 Aug 19
John Smiley
EntityIndividual
Role
Senior Key Executive
Executive VP & Columbus Market President
Shares1,384
Max PriceUS$18.26
SellUS$119,45302 Aug 19
William Huddle
EntityIndividual
Role
Member of the Board of Directors
Director
Shares6,546
Max PriceUS$18.26
SellUS$37,90030 Jul 19
John Smiley
EntityIndividual
Role
Senior Key Executive
Executive VP & Columbus Market President
Shares2,087
Max PriceUS$18.16
SellUS$68,80024 May 19
William Huddle
EntityIndividual
Role
Member of the Board of Directors
Director
Shares4,000
Max PriceUS$17.20
SellUS$85,60016 May 19
John Smiley
EntityIndividual
Role
Senior Key Executive
Executive VP & Columbus Market President
Shares5,000
Max PriceUS$17.12
SellUS$59,75010 May 19
William Huddle
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,495
Max PriceUS$17.10
SellUS$170,00007 May 19
John Smiley
EntityIndividual
Role
Senior Key Executive
Executive VP & Columbus Market President
Shares10,000
Max PriceUS$17.00
SellUS$125,80004 Mar 19
John Smiley
EntityIndividual
Role
Senior Key Executive
Executive VP & Columbus Market President
Shares7,400
Max PriceUS$17.00
SellUS$44,25228 Feb 19
John Smiley
EntityIndividual
Role
Senior Key Executive
Executive VP & Columbus Market President
Shares2,600
Max PriceUS$17.02
SellUS$102,96027 Feb 19
William Huddle
EntityIndividual
Role
Member of the Board of Directors
Director
Shares6,000
Max PriceUS$17.16
SellUS$2,19320 Feb 19
William Huddle
EntityIndividual
Role
Member of the Board of Directors
Director
Shares129
Max PriceUS$17.00
BuyUS$8,47504 Feb 19
Michael Miller
EntityIndividual
Shares500
Max PriceUS$16.95

Ownership Breakdown


Management Team

  • Eric Meilstrup (51yo)

    President

    • Tenure: 0.3yrs
    • Compensation: US$243.42k
  • Bernard Wright (70yo)

    Senior Executive Vice President

    • Tenure: 11.8yrs
    • Compensation: US$154.51k
  • Tim Sheridan

    Chief Credit Officer and Senior Executive Vice President

    • Tenure: 11.8yrs
  • Connie Sears

    Vice President of Human Resources and Vice President of Human Resources - LCNB National Bank

    • Tenure: 11.8yrs
  • Matt Layer (56yo)

    Executive VP & Chief Lending Officer

    • Tenure: 11.8yrs
    • Compensation: US$251.30k
  • Rob Haines (46yo)

    Executive VP & CFO

    • Tenure: 11.8yrs
    • Compensation: US$236.96k
  • Anne Krehbiel (63yo)

    Secretary & Director

    • Tenure: 9.5yrs
    • Compensation: US$31.86k
  • John Smiley (52yo)

    Executive VP & Columbus Market President

    • Tenure: 1.4yrs
    • Compensation: US$131.15k
  • Brad Ruppert (43yo)

    Executive VP & Chief Investment Officer

    • Tenure: 2.8yrs
  • Lawrence Mulligan

    Executive VP & COO

    • Tenure: 0.4yrs

Board Members

  • Steve Wilson (68yo)

    Director

    • Tenure: 0yrs
    • Compensation: US$27.90k
  • Steve Foster (66yo)

    Director

    • Tenure: 0yrs
    • Compensation: US$485.13k
  • William Kaufman (75yo)

    Director

    • Tenure: 37.8yrs
    • Compensation: US$24.75k
  • Eric Meilstrup (51yo)

    President

    • Tenure: 0.3yrs
    • Compensation: US$243.42k
  • Rhett Huddle (63yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$22.64k
  • Spencer Cropper (46yo)

    Chairman

    • Tenure: 0.7yrs
    • Compensation: US$30.38k
  • Anne Krehbiel (63yo)

    Secretary & Director

    • Tenure: 9.5yrs
    • Compensation: US$31.86k
  • Michael Johrendt (66yo)

    Director

    • Tenure: 0.9yrs
    • Compensation: US$5.63k
  • John Kochensparger (74yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$30.88k
  • Valerie Krueckeberg (49yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: US$28.89k

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$227.867m
  • Shares outstanding: 12.96m
  • 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, Ch ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:40
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.