| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 51.47 | 201 |
| Intrinsic value (DCF) | 15.53 | -9 |
| Graham-Dodd Method | 3.41 | -80 |
| Graham Formula | 37.97 | 122 |
LCNB Corp. (NASDAQ: LCNB) is a regional financial holding company operating through its subsidiary, LCNB National Bank, providing comprehensive banking and financial services primarily in Ohio. Founded in 1877 and headquartered in Lebanon, Ohio, LCNB serves individuals and businesses with a range of deposit products, including checking, savings, and certificates of deposit, alongside diverse loan offerings such as commercial real estate, residential mortgages, and consumer loans. The bank also delivers trust and investment management services, including estate planning, retirement accounts, and brokerage services. With 32 branches and 37 ATMs across multiple Ohio counties, LCNB emphasizes community banking with modern digital solutions like mobile and online banking. Operating in the competitive regional banking sector, LCNB maintains a strong local presence, leveraging its long-standing reputation and personalized service to differentiate itself from larger national banks. Its conservative risk management and steady dividend payments make it a stable player in the financial services industry.
LCNB Corp. presents a conservative investment opportunity with steady regional banking operations in Ohio. The company benefits from a stable deposit base, diversified loan portfolio, and consistent profitability, as evidenced by its $13.5M net income in the latest fiscal year. Its low beta (0.623) suggests lower volatility compared to broader markets, appealing to risk-averse investors. However, its small market cap (~$205M) and regional focus limit growth scalability, exposing it to local economic risks. The dividend yield (~4.3% based on a $0.88 annual payout) is attractive, but investors should monitor interest rate sensitivity and competitive pressures from larger banks. LCNB’s strong liquidity ($36M cash) and disciplined lending practices mitigate downside risks, making it a potential candidate for income-focused portfolios.
LCNB competes in Ohio’s crowded regional banking landscape, where it differentiates through hyper-localized service and a community-focused approach. Its competitive advantage lies in deep customer relationships and agility in serving small businesses—a niche often underserved by national banks. However, its scale is a limitation; larger peers like Fifth Third Bancorp (FITB) and Huntington Bancshares (HBAN) benefit from broader geographic diversification, advanced digital platforms, and lower funding costs. LCNB’s loan portfolio is concentrated in commercial real estate and residential mortgages, which could face pressure in a rising-rate environment. Unlike fintech disruptors, LCNB lacks cutting-edge technology but compensates with trust-based personal service. Its conservative balance sheet (modest debt at $161M) ensures stability but may constrain aggressive expansion. The bank’s profitability metrics (e.g., ~16.6% net income margin) are solid for its size, though efficiency ratios lag behind top-tier regional players. To sustain competitiveness, LCNB must balance digital investment with its community banking ethos.