NasdaqCM:LCNB

Stock Analysis Report

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Executive Summary

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

Rewards

Trading at 23% below our estimate of its fair value

Pays a high and reliable dividend of 5.04%

Risk Analysis

No risks detected for LCNB from our risk checks.


Snowflake Analysis

Flawless balance sheet 6 star 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

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


Market Performance


7 Day Return

1.5%

LCNB

3.9%

US Banks

-0.4%

US Market


1 Year Return

-21.1%

LCNB

-26.3%

US Banks

18.3%

US Market

Return vs Industry: LCNB exceeded the US Banks industry which returned -26.3% over the past year.

Return vs Market: LCNB underperformed the US Market which returned 18.3% over the past year.


Shareholder returns

LCNBIndustryMarket
7 Day1.5%3.9%-0.4%
30 Day8.4%12.0%6.6%
90 Day2.0%5.4%8.6%
1 Year-17.5%-21.1%-23.6%-26.3%21.0%18.3%
3 Year-21.6%-30.3%-16.3%-23.3%42.1%32.7%
5 Year7.8%-10.6%21.9%6.8%85.6%64.7%

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?

23.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LCNB ($14.28) is trading below our estimate of fair value ($18.53)

Significantly Below Fair Value: LCNB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LCNB is good value based on its PE Ratio (9.6x) compared to the US Banks industry average (10.2x).

PE vs Market: LCNB is good value based on its PE Ratio (9.6x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LCNB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LCNB's PB Ratio (0.8x) is in line with the US Banks industry average.


Next Steps

Future Growth

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

-3.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if LCNB's forecast earnings growth is above the savings rate (2.2%).

Earnings vs Market: Insufficient data to determine if LCNB's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LCNB's revenue is expected to decline over the next 3 years (-3.7% per year).

High Growth Revenue: LCNB's revenue is forecast to decline over the next 3 years (-3.7% 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?

12.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LCNB has high quality earnings.

Growing Profit Margin: LCNB's current net profit margins (28.1%) are lower than last year (29.5%).


Past Earnings Growth Analysis

Earnings Trend: LCNB's earnings have grown by 12.8% per year over the past 5 years.

Accelerating Growth: LCNB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LCNB had negative earnings growth (-0.6%) over the past year, making it difficult to compare to the Banks industry average (-3.2%).


Return on Equity

High ROE: LCNB's Return on Equity (8%) is considered low.


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


Financial Institutions Analysis

Asset Level: LCNB's Assets to Equity ratio (7.2x) is low.

Allowance for Bad Loans: LCNB has a sufficient allowance for bad loans (142%).

Low Risk Liabilities: 96% 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 (77%).

Low Risk Deposits: LCNB's Loans to Deposits ratio (93%) is appropriate.

Level of Bad Loans: LCNB has an appropriate level of bad loans (0.3%).


Next Steps

Dividend

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

5.04%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LCNB's dividend (5.04%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: LCNB's dividend (5.04%) is in the top 25% of dividend payers in the US market (4.56%)


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 (48.7%), LCNB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LCNB's dividends in 3 years are forecast to be covered by earnings (65.6% payout ratio).


Next Steps

Management

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

12.8yrs

Average management tenure


CEO

Eric Meilstrup (52 yo)

1.33yrs

Tenure

US$525,717

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 ($USD525.72K) is below average for companies of similar size in the US market ($USD1.24M).

Compensation vs Earnings: Eric's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Eric Meilstrup
President1.33yrsUS$525.72k0.084%
$ 155.9k
Robert Haines
Executive VP & CFO12.75yrsUS$356.21k0.064%
$ 117.6k
Michael Miller
Executive VP & Trust Department Head3.5yrsUS$263.46k0.056%
$ 103.6k
Anne Krehbiel
Secretary & Independent Director10.5yrsUS$42.85k0.039%
$ 71.4k
Matthew Layer
Executive VP & Chief Lending Officer12.75yrsUS$460.53k0.12%
$ 219.9k
Lawrence Mulligan
Executive VP & COO1.42yrsno data0.023%
$ 43.0k
Bradley Ruppert
Executive VP & Chief Investment Officer3.75yrsno data0.036%
$ 67.0k
Connie Sears
Vice President of Human Resources and Vice President of Human Resources - LCNB National Bankno datano datano data
Bernard Wright
Senior Executive Vice President12.75yrsUS$154.51kno data
Timothy Sheridan
Chief Credit Officer and Senior Executive Vice President12.75yrsno datano data
Brian Bausmith
Senior Vice Presidentno datano datano data
Ann Smith
Senior Vice President12.75yrsno datano data

12.8yrs

Average Tenure

54.5yo

Average Age

Experienced Management: LCNB's management team is seasoned and experienced (12.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Eric Meilstrup
President1.33yrsUS$525.72k0.084%
$ 155.9k
Anne Krehbiel
Secretary & Independent Director10.5yrsUS$42.85k0.039%
$ 71.4k
Stephen Wilson
Independent Director38.75yrsUS$38.38k0.49%
$ 896.7k
Steve Foster
Director15.75yrsUS$565.99k0.31%
$ 565.0k
William Kaufman
Director38.75yrsUS$33.90k0.57%
$ 1.0m
William Huddle
Independent Director2.42yrsUS$39.87k1.37%
$ 2.5m
Spencer Cropper
Independent Chairman1.67yrsUS$43.75k1.09%
$ 2.0m
Mary Bradford
Independent Director1.75yrsUS$39.37k0.015%
$ 28.6k
Michael Johrendt
Independent Director1.92yrsUS$36.88k1.16%
$ 2.1m
John Kochensparger
Independent Director7.75yrsUS$41.86k1.14%
$ 2.1m
Craig Johnson
Independent Director1.42yrsUS$22.76k0.039%
$ 71.4k

2.4yrs

Average Tenure

64yo

Average Age

Experienced Board: LCNB's board of directors are not considered experienced ( 2.4 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 bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


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$184.593m
  • Shares outstanding: 12.93m
  • 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 Analysis2020/10/26 00:41
End of Day Share Price2020/10/23 00:00
Earnings2020/09/30
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.