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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 52.9GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
8.0%
Sector: 8.5%
Dividend Analysis audit
INCOME
5.87%
Trailing Yield
$5.87
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
62%MID
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, LCNB CORP (LCNB) receives a "Hold" rating with a composite score of 51.4/100, ranked #767 out of 4446 stocks. Key factor scores: Quality 53/100, Value 70/100, Momentum 48/100. This is quantitative analysis only — not investment advice.
LCNB CORP (LCNB) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does LCNB CORP Do?
LCNB Corp. operates as the financial holding company for LCNB National Bank that provides banking services in Ohio. Its deposit products include checking accounts, demand deposits, savings accounts, NOW and money market deposits, as well as certificates of deposit. The company's loan products comprise commercial and industrial, commercial and residential real estate, agricultural, construction, and small business administration loans; and residential mortgage loans that consists of loans for purchasing or refinancing personal residences, home equity lines of credit, and loans for commercial or consumer purposes secured by residential mortgages. It also offers consumer loans, such as automobile, recreational vehicles, boat, home improvement, and personal loans. In addition, the company provides trust administration, estate settlement, and fiduciary services; and investment management services for trusts, agency accounts, individual retirement accounts, and foundations/endowments. Further, it offers investment services and products, including financial needs analysis, mutual funds, securities trading, annuities, and life insurance; and security brokerage services. Additionally, the company 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, cash management services, telephone banking, PC Internet banking, mobile banking, and other services for individuals and businesses. As of December 31, 2021, it operated 32 offices, including a main office in Warren County; branch offices in Warren, Butler, Clinton, Clermont, Fayette, Franklin, Hamilton, Montgomery, Preble, and Ross counties; and an operations center in Warren County, Ohio, as well as 37 ATMs. The company was founded in 1877 and is headquartered in Lebanon, Ohio. LCNB CORP (LCNB) is classified as a micro-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Eric J. Meilstrup and employs approximately 310 people, headquartered in LEBANON, Ohio. With a market capitalization of $226M, LCNB is one of the notable companies in the Financials sector.
LCNB CORP (LCNB) Stock Rating — Hold (April 2026)
As of April 2026, LCNB CORP receives a Hold rating with a composite score of 51.4/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.LCNB ranks #767 out of 4,446 stocks in our coverage universe. Within the Financials sector, LCNB CORP ranks #227 of 891 stocks, placing it in the upper half of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
LCNB Stock Price and 52-Week Range
LCNB CORP (LCNB) currently trades at $16.95. The stock lost $0.25 (1.5%) in the most recent trading session. The 52-week high for LCNB is $17.89, which means the stock is currently trading -5.2% from its annual peak. The 52-week low is $13.34, putting the stock 27.1% above its annual trough. Recent trading volume was 21K shares, suggesting relatively thin trading activity.
Is LCNB Overvalued or Undervalued? — Valuation Analysis
LCNB CORP (LCNB) carries a value factor score of 70/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 10.60x, compared to the Financials sector average of 14.88x — a discount of 29%. The price-to-book ratio stands at 0.85x, versus the sector average of 1.22x. The price-to-sales ratio is 2.24x, compared to 0.90x for the average Financials stock. On an enterprise value basis, LCNB trades at 12.73x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, LCNB CORP appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
LCNB CORP Profitability — ROE, Margins, and Quality Score
LCNB CORP (LCNB) earns a quality factor score of 53/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 8.0%, compared to the Financials sector average of 8.5%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 1.0% versus the sector average of 1.2%.
On a margin basis, LCNB CORP reports gross margins of 0.0%. The operating margin is 25.5% (sector: 21.8%). Net profit margin stands at 21.1%, versus 17.7% for the average Financials stock. Revenue growth is running at -2.5% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
LCNB Debt, Balance Sheet, and Financial Health
LCNB CORP has a debt-to-equity ratio of 38.0%, compared to the Financials sector average of 121.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 1.14x, suggesting adequate working capital coverage. Total debt on the balance sheet is $104M. Cash and equivalents stand at $28M.
LCNB has a beta of 0.62, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for LCNB CORP is 79/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
LCNB CORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, LCNB CORP reported revenue of $104M and earnings per share (EPS) of $1.63. Net income for the quarter was $22M. Gross margin was 0.0%. Operating income came in at $27M.
In FY 2025, LCNB CORP reported revenue of $103M and earnings per share (EPS) of $1.63. Net income for the quarter was $23M. Revenue grew -2.2% year-over-year compared to FY 2024. Operating income came in at $28M.
In Q3 2025, LCNB CORP reported revenue of $26M and earnings per share (EPS) of $0.49. Net income for the quarter was $7M. Revenue grew -0.4% year-over-year compared to Q3 2024. Operating income came in at $8M.
In Q2 2025, LCNB CORP reported revenue of $26M and earnings per share (EPS) of $0.41. Net income for the quarter was $6M. Revenue grew -3.8% year-over-year compared to Q2 2024. Operating income came in at $7M.
Over the past 8 quarters, LCNB CORP has demonstrated a growth trajectory, with revenue expanding from $27M to $104M. Investors analyzing LCNB stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
LCNB Dividend Yield and Income Analysis
LCNB CORP (LCNB) currently pays a dividend yield of 5.9%. At this yield, a $10,000 investment in LCNB stock would generate approximately $$587.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning LCNB offers above-average income for its sector. With a net margin of 21.1%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
LCNB Momentum and Technical Analysis Profile
LCNB CORP (LCNB) has a momentum factor score of 48/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 34/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 17/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
LCNB vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing LCNB against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full LCNB vs S&P 500 (SPY) comparison to assess how LCNB CORP stacks up against the broader market across all factor dimensions.
LCNB Next Earnings Date
No upcoming earnings date has been announced for LCNB CORP (LCNB) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy LCNB? — Investment Thesis Summary
LCNB CORP presents a balanced picture with arguments on both sides. The value score of 70/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 79/100) reduces downside risk.
In summary, LCNB CORP (LCNB) earns a Hold rating with a composite score of 51.4/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on LCNB stock.
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Institutional Research Dossier
LCNB CORP (LCNB) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on LCNB Corp (LCNB), driven by a mixed assessment of its financial performance and valuation. While the company exhibits attractive value metrics and stability, concerns regarding revenue growth and capital allocation temper our enthusiasm. The current valuation appears fair, reflecting both the company's strengths and weaknesses, warranting a neutral stance.
LCNB's strong profitability margins and low debt levels are counterbalanced by negative revenue growth and a relatively low investment score. The bank's focus on traditional banking services in Ohio provides stability but limits growth opportunities. Until LCNB demonstrates a clear path to sustainable revenue growth and improved capital allocation, we believe a Hold rating is appropriate.
Business Strategy & Overview
LCNB Corp operates as a community bank, primarily serving individuals and businesses in Ohio. Its core business revolves around traditional banking activities, including deposit-taking and lending. The bank offers a range of deposit products, such as checking, savings, and money market accounts, as well as certificates of deposit. On the lending side, LCNB provides commercial and industrial loans, commercial and residential real estate loans, agricultural loans, construction loans, and residential mortgages. The bank also offers consumer loans, including auto, recreational vehicle, and home improvement loans.
LCNB's strategic positioning is centered on building strong relationships with its local customer base. The bank emphasizes personalized service and local decision-making, differentiating itself from larger, national banks. This strategy is reflected in its branch network, which is concentrated in Ohio. The bank also offers trust and investment management services, providing a more comprehensive suite of financial products to its customers. These services include trust administration, estate settlement, investment management, and securities brokerage.
The bank's revenue generation is primarily driven by net interest income, which is the difference between the interest earned on loans and investments and the interest paid on deposits. LCNB also generates non-interest income from fees for services such as trust and investment management, as well as from service charges on deposit accounts. The bank's business model is sensitive to interest rate changes, as its net interest margin is affected by fluctuations in interest rates. A rising interest rate environment can benefit LCNB by increasing its net interest margin, while a falling rate environment can negatively impact its profitability.
LCNB's growth strategy appears to be focused on organic expansion within its existing market footprint. The company has not made any significant acquisitions in recent years, suggesting a preference for internal growth. This approach may limit the bank's growth potential compared to peers that are actively pursuing acquisitions. However, it also reduces the risk associated with integrating acquired businesses. The bank's investment score of 34/100 suggests that capital allocation and growth initiatives may be areas of concern for investors.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-2.5%
Sector: 9.4%
-126% VS SCTR
Economic Moat Analysis
LCNB's economic moat is likely narrow, stemming primarily from its established local presence and customer relationships within its Ohio market. Community banks often benefit from strong ties to their local communities, fostering customer loyalty and reducing customer churn. This local presence creates a barrier to entry for larger, national banks that may struggle to replicate the same level of personalized service and community involvement.
However, LCNB's moat is not particularly wide due to the commoditized nature of banking services. While customer relationships are valuable, they are not necessarily insurmountable. Customers can easily switch banks if they find better rates, lower fees, or more convenient services elsewhere. The rise of online banking and fintech companies has further intensified competition, making it easier for customers to access banking services from anywhere.
LCNB does not appear to possess significant cost advantages or efficient scale. The bank's operating margin of 25.5% is slightly above the sector average of 22.0%, but this difference is not substantial enough to create a significant competitive advantage. The bank's size and scale are relatively small compared to larger regional and national banks, limiting its ability to achieve economies of scale in areas such as technology and marketing.
The bank's intangible assets, such as its brand reputation, may contribute to its narrow moat. However, these intangible assets are not particularly strong or unique compared to other community banks. LCNB's brand is primarily recognized within its local market, limiting its ability to expand into new geographic areas. Overall, LCNB's economic moat is narrow, providing some protection against competition but not guaranteeing long-term sustainable profitability. The bank's ability to maintain and strengthen its customer relationships will be crucial to defending its market share in the face of increasing competition.
Financial Health & Profitability
LCNB's financial health presents a mixed picture. The company exhibits strong profitability margins, with a net margin of 21.1% and an operating margin of 25.5%, both exceeding the sector averages of 17.8% and 22.0%, respectively. This indicates efficient cost management and a profitable business model. However, revenue growth has been a concern, with a TTM revenue decline of 2.5% compared to the sector's growth of 9.3%. This suggests that LCNB is struggling to grow its top line, potentially due to increased competition or a lack of strategic initiatives.
The company's return on equity (ROE) of 8.0% is slightly below the sector average of 8.5%, indicating that LCNB is generating slightly less profit from shareholders' equity compared to its peers. The company's debt-to-equity (D/E) ratio of 38.00 is significantly lower than the sector average of 115.00, suggesting a conservative approach to leverage and a strong balance sheet. This lower leverage provides LCNB with financial flexibility and reduces its exposure to interest rate risk.
Analyzing the quarterly financial history reveals some concerning trends. While the most recent fiscal year (FY2025) shows improved net income compared to FY2024, the revenue growth remains sluggish. The operating margin has fluctuated significantly over the past few years, indicating potential volatility in the company's earnings. The sharp increase in net income from FY2024 to FY2025 is noteworthy, but it is important to assess whether this improvement is sustainable or driven by one-time factors.
The company's current ratio of 1.14 indicates sufficient liquidity to meet its short-term obligations. The free cash flow (FCF) of $41.26 million suggests that LCNB is generating ample cash from its operations, providing it with the resources to invest in growth initiatives or return capital to shareholders. However, the lack of FCF data in the quarterly history makes it difficult to assess the consistency of its cash flow generation. Overall, LCNB's financial health is characterized by strong profitability margins and a conservative balance sheet, but concerns regarding revenue growth and ROE warrant caution.
Valuation Assessment
LCNB's valuation appears attractive based on several key metrics. The company's price-to-earnings (P/E) ratio of 9.3x is significantly lower than the sector average of 15.5x, suggesting that the stock is undervalued relative to its earnings. Similarly, the enterprise value-to-EBITDA (EV/EBITDA) ratio of 2.8x is also lower than the sector average of 3.5x, further supporting the undervaluation thesis. These low multiples may reflect investor concerns about the company's revenue growth and ROE.
However, it is important to consider the company's growth prospects when assessing its valuation. LCNB's negative revenue growth of 2.5% suggests that the company's earnings may not grow significantly in the future. This lack of growth may justify the lower valuation multiples. The company's investment score of 34/100 also indicates that investors have concerns about its capital allocation and growth initiatives.
The company's free cash flow (FCF) yield, calculated as FCF per share divided by the share price, is relatively high, indicating that the company is generating a significant amount of cash relative to its market capitalization. This high FCF yield could be attractive to value investors seeking companies with strong cash flow generation. However, it is important to assess the sustainability of the company's FCF and whether it can be maintained in the future.
Overall, LCNB's valuation appears to be fair, reflecting both its strengths and weaknesses. The low P/E and EV/EBITDA multiples suggest that the stock is undervalued, but the negative revenue growth and low ROE warrant caution. The high FCF yield is a positive sign, but it is important to assess the sustainability of the company's cash flow generation. A Hold rating is appropriate, as the stock's valuation appears to be in line with its growth prospects and financial performance.
Risk & Uncertainty
LCNB faces several risks and uncertainties that could impact its financial performance and valuation. One of the primary risks is interest rate risk. As a traditional bank, LCNB's profitability is sensitive to changes in interest rates. A significant decline in interest rates could compress the bank's net interest margin, reducing its earnings. Conversely, a rapid increase in interest rates could negatively impact loan demand and increase the risk of loan defaults.
Another risk is competition from larger banks and fintech companies. The banking industry is becoming increasingly competitive, with larger banks offering a wider range of products and services and fintech companies disrupting traditional banking models. LCNB's smaller size and limited resources may make it difficult to compete effectively against these larger and more innovative players. The bank's reliance on its local market also exposes it to geographic concentration risk. A downturn in the Ohio economy could negatively impact the bank's loan portfolio and earnings.
Regulatory risk is also a concern for LCNB. The banking industry is heavily regulated, and changes in regulations could increase the bank's compliance costs or restrict its business activities. For example, changes in capital requirements or lending regulations could negatively impact the bank's profitability. Credit risk is another significant risk for LCNB. The bank's loan portfolio is exposed to the risk of loan defaults, particularly during economic downturns. The bank's ability to effectively manage its credit risk will be crucial to maintaining its financial stability.
Bulls Say / Bears Say
The Bull Case
BULL VIEWLCNB's low valuation multiples (P/E and EV/EBITDA) offer a compelling entry point for value investors seeking undervalued assets.
BULL VIEWThe bank's strong balance sheet and low debt levels provide financial flexibility and reduce its exposure to interest rate risk.
The Bear Case
BEAR VIEWLCNB's negative revenue growth indicates a lack of strategic initiatives and an inability to compete effectively in the evolving banking landscape.
BEAR VIEWThe bank's reliance on its local market exposes it to geographic concentration risk and limits its growth potential.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score LCNB and 4,400+ other equities.
LCNB CORP exhibits a 95% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
1.0%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
25.5%
Sector: 21.8%
Net Margin
Bottom-line profitability
21.1%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta+137%
Income Projection audit
A $10,000 investment would generate approximately $587 annually in dividends at the current trailing rate.
