Here's Why You Should Add LCNB Stock to Your Portfolio Now
LCNB Corp. LCNB is a solid bet now, given its underlying strength and healthy long-term prospects. Higher interest rates and a rise in loan balance augur well. Further, its sustainable capital deployment activities are likely to continue enhancing shareholder value.
Over the past 60 days, the Zacks Consensus Estimate for LCNB’s earnings has moved marginally upward for 2023 and 14.1% upward for 2024. Currently, the company carries a Zacks Rank #2 (Buy).
LCNB shares have lost 10.6% over the past three months against the industry’s rise of 9.7%.
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Mentioned below are a few factors that make LCNB stock a rewarding investment pick now
Earnings Growth: In the last three to five years, LCNB witnessed earnings per share growth of 5.4%. While its earnings are projected to decline 24.4% in 2023, the same is expected to rebound and grow 11% in 2024.
Revenue Growth: LCNB’s net revenues witnessed a CAGR of 4.2% over the last three years (2019-2022), driven by decent loan demand and solid deposit balances. Over the same time frame (2019-2022), loans and deposits saw a CAGR of 4.1% and 6.7%, respectively. Though total loans witnessed a sequential rise in the first quarter of 2023, the total deposit balance decreased.
While revenues are projected to decrease 3.5% in 2023, the same is expected to rebound and grow 20.2% in 2024 on an uptrend in loans and deposit balances and efforts to improve fee income.
Inorganic Growth: LCNB’s inorganic growth strategy also looks promising. Recently, it signed an agreement to acquire Cincinnati Bancorp, Inc. Management expects that the two institutions will provide more benefits, financial products and opportunities for Cincinnati Bancorp’s customers, and create the premier community banking institution in the Cincinnati/ Northern Kentucky market.
Steady Capital Deployments: LCNB’s capital deployment activities are encouraging. The company pays quarterly dividends on a regular basis. Considering the last day’s closing price of $15.02, its dividend yield currently stands at 5.59%. This is impressive compared with the industry average of 3.2% and attractive for income investors as it represents a steady income stream.
On May 10, LCNB announced a cash dividend of 21 cents per share for the second quarter of 2023. The dividend was paid on Jun 15, 2023, to shareholders of record as of Jun 1, 2023.
Additionally, In the first quarter of 2023, LCNB repurchased 107,028 shares at an average price of $17.00 per share. As of Mar 31, 2023, 407,932 shares remained available for future repurchases. This buyback program was announced in February.
Other Bank Stocks Worth a Look
A couple of other top-ranked stocks from the banking space are The Bancorp TBBK and CB Financial Services Inc. CBFV.
The Zacks Consensus Estimate for The Bancorp’s current-year earnings has been revised 6.5% upward over the past 30 days. In the past three months, TBBK’s shares have rallied 9.6%. Currently, TBBK sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CB Financial Services currently carries a Zacks Rank #2 at present. Earnings estimates for CBFV for 2023 have been revised 1.7% upward over the past 30 days. In the past three months, CBFV’s shares have lost 6.3%.
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The Bancorp, Inc. (TBBK) : Free Stock Analysis Report
LCNB Corporation (LCNB) : Free Stock Analysis Report
CB Financial Services, Inc. (CBFV) : Free Stock Analysis Report
