LCNB Corp. (LCNB) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

LCNB Corp. (LCNB) Financial Services Profile

LCNB Corp., established in 1877, is a regional bank holding company providing comprehensive financial services in Ohio, including deposit accounts, loans, and wealth management. With a dividend yield of 5.38% and a market capitalization of $273M, LCNB focuses on serving individuals and businesses through its network of 32 offices and 37 ATMs.

What Is the Investment Thesis for LCNB?

LCNB Corp. presents a stable investment opportunity within the regional banking sector, supported by its long-standing history and established presence in Ohio. With a P/E ratio of 11.10 and a dividend yield of 5.38%, LCNB offers potential value for income-focused investors. The company's diversified loan portfolio and range of financial services contribute to revenue stability. Growth catalysts include expanding digital banking services and strategic expansion within Ohio. However, potential risks include interest rate sensitivity and competition from larger regional and national banks. Maintaining a focus on community banking and customer relationships is crucial for sustaining its competitive edge.

Based on FMP financials and quantitative analysis

LCNB Key Highlights

Market capitalization of $273M, reflecting its position as a regional bank.

• P/E ratio of 11.10, indicating a potentially undervalued stock compared to its earnings.
• Profit margin of 18.5%, showcasing efficient operations and profitability.
• Gross margin of 72.5%, highlighting the effectiveness of its service offerings.
• Dividend yield of 5.38%, providing a substantial income stream for investors.

Who Are LCNB's Competitors?

LCNB is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are LCNB's Key Strengths?

Established presence in Ohio with a long history.

• Diversified portfolio of banking and financial services.
• Strong focus on community banking and customer relationships.
• Solid dividend yield providing income for investors.

What Are LCNB's Weaknesses?

Limited geographic footprint compared to larger regional banks.

• Potential sensitivity to interest rate fluctuations.
• Reliance on the Ohio economy.
• Smaller scale may limit investment in technology and innovation.

What Could Drive LCNB Stock Higher?

Expansion of digital banking services to enhance customer experience and attract new clients.

• Strategic initiatives to grow wealth management services and increase assets under management.
• Efforts to increase small business lending and support local economic development.

What Are the Key Risks for LCNB?

Financial-distress signal — its Altman Z-Score of -0.57 sits in the distress zone (elevated bankruptcy risk).

• Interest rate fluctuations impacting net interest margin and profitability.
• Economic downturns affecting loan demand and credit quality.
• Competition from larger regional and national banks.
• Regulatory changes increasing compliance costs and operational complexity.

What Are the Growth Opportunities for LCNB?

• Expansion of Digital Banking Services: LCNB can capitalize on the growing demand for digital banking by enhancing its online and mobile platforms. Investing in user-friendly interfaces, secure transaction capabilities, and personalized financial tools can attract and retain tech-savvy customers. The digital banking market is projected to reach $9 trillion by 2028, offering a significant opportunity for LCNB to increase its market share and improve customer engagement. Timeline: Ongoing.
• Strategic Branch Expansion within Ohio: LCNB can strategically expand its branch network in underserved areas within Ohio to increase its customer base and market presence. Identifying regions with strong economic growth and limited banking options can provide a competitive advantage. Each new branch can target specific customer segments, such as small businesses or retirees, with tailored products and services. Timeline: 2-3 years.
• Increased Focus on Wealth Management Services: LCNB can grow its wealth management business by offering comprehensive financial planning, investment advisory, and trust services to high-net-worth individuals and families. The wealth management market is expected to grow at a rate of 7% annually, driven by increasing affluence and demand for personalized financial advice. LCNB can leverage its existing customer relationships and local market knowledge to attract new clients. Timeline: Ongoing.
• Enhanced Small Business Lending: LCNB can expand its small business lending portfolio by offering tailored loan products and financial services to local businesses. Small businesses are a key driver of economic growth in Ohio, and LCNB can play a vital role in supporting their success. Providing flexible loan terms, competitive interest rates, and personalized advice can attract small business clients and foster long-term relationships. Timeline: Ongoing.
• Partnerships with Fintech Companies: LCNB can partner with fintech companies to offer innovative financial products and services to its customers. Collaborating with fintechs can enhance LCNB's digital capabilities, improve customer experience, and expand its product offerings. Potential partnerships include those focused on mobile payments, online lending, and financial wellness. Timeline: 1-2 years.

What Are LCNB's Competitive Advantages?

• Established local presence and brand recognition in Ohio.
• Long-standing customer relationships within the community.
• Diversified portfolio of banking and financial services.
• Strong understanding of the local market and economy.

What Does LCNB Do?

Founded in 1877 and headquartered in Lebanon, Ohio, LCNB Corp. operates as the financial holding company for LCNB National Bank. The bank provides a wide array of banking services to individuals and businesses across Ohio. LCNB's deposit products include checking, savings, money market accounts, and certificates of deposit, catering to diverse customer needs. Its loan portfolio encompasses commercial and industrial loans, commercial and residential real estate loans, agricultural loans, construction loans, and Small Business Administration (SBA) loans. The bank also offers residential mortgage loans, including those for purchasing or refinancing personal residences, home equity lines of credit, and loans secured by residential mortgages for commercial or consumer purposes. In addition to traditional banking services, LCNB provides consumer loans for automobiles, recreational vehicles, boats, home improvements, and personal needs. The company extends its services to include trust administration, estate settlement, and fiduciary services, as well as investment management for trusts, agency accounts, individual retirement accounts, and foundations/endowments. LCNB also offers investment services and products such as financial needs analysis, mutual funds, securities trading, annuities, and life insurance, alongside security brokerage services. LCNB operates 32 offices across multiple Ohio counties, including Warren, Butler, Clinton, Clermont, Fayette, Franklin, Hamilton, Montgomery, Preble, and Ross, supported by an operations center in Warren County and a network of 37 ATMs. The bank leverages technology to offer services such as online and mobile banking, enhancing customer convenience and accessibility.

What Products and Services Does LCNB Offer?

• Provides checking and savings accounts to individuals and businesses.
• Offers commercial, residential, and agricultural loans.
• Provides residential mortgage loans for home purchases and refinancing.
• Offers consumer loans for vehicles, home improvements, and personal needs.
• Provides trust administration, estate settlement, and fiduciary services.
• Offers investment management services for trusts and individual retirement accounts.
• Offers investment services and products, including mutual funds and annuities.
• Provides online and mobile banking services.

How Does LCNB Make Money?

• Generates revenue through interest income from loans.
• Earns fees from deposit accounts and other banking services.
• Generates revenue from trust and investment management services.
• Earns commissions from investment product sales.

What Industry Does LCNB Operate In?

LCNB Corp. operates within the regional banking sector, which is characterized by intense competition and evolving customer expectations. The industry is influenced by factors such as interest rate fluctuations, regulatory changes, and technological advancements. Regional banks like LCNB face competition from larger national banks and credit unions, requiring them to differentiate through personalized service and community focus. The market is seeing increased adoption of digital banking solutions, driving the need for banks to invest in technology to enhance customer experience and operational efficiency. The regional banking sector is projected to grow modestly, driven by local economic development and small business lending.

Who Are LCNB's Key Customers?

• Individuals seeking personal banking services.
• Small businesses requiring loans and financial services.
• Commercial clients needing commercial and industrial loans.
• High-net-worth individuals seeking wealth management services.

Over the past six months, LCNB Corp. insiders filed 4 SEC Form 4 transactions — 0 sales and 4 purchases. On net that is roughly 2K shares acquired (about $32K) — insiders putting money in tends to read as conviction.

Quarterly Financial Performance: LCNB Corp.

Revenue for LCNB Corp. came in at $31.7M during Q2 FY2026, a 5.2% improvement versus the preceding quarter. The company recorded net income of $7.5M, with diluted EPS of $0.53. Quarter-over-quarter revenue has been mixed, typical for a micro-cap company operating in Financial Services. Across the four most recent quarters, LCNB averaged $0.43 in diluted EPS.

LCNB Valuation & Market Position

With a $273M market cap, LCNB Corp. sits in the micro-cap segment of the market. Relative to its peer group, LCNB's quantitative score of 78/100 is roughly in line with the peer average of 82/100.

Return on equity for LCNB Corp. stands at 8.5%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.0%, showing how much profit it generates from its asset base. LCNB trades at a trailing price-to-earnings ratio of 11.10, below the Financial Services sector average of ~17.50x. Its free cash flow yield is 14.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.20 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 9.5%, the inverse of the P/E and a quick read on earnings relative to price.

LCNB Corp.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of -0.57 places it in the distress zone, a signal of elevated financial risk.

LCNB Corp. has beaten Wall Street's EPS estimate in 5 of its last 8 reported quarters — more hits than misses. Reported results have landed about 9.7% above estimates on average.

Company Profile

LCNB Corp. operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Lebanon, US. The company is led by CEO Eric J. Meilstrup. LCNB has traded publicly since 1999.

LCNB Financials

LCNB Latest News

LCNB Analyst Consensus

LCNB MoonshotScore

What Investors Ask About LCNB Corp. (LCNB) — Financial Services

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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