Overall Score

Bargaining Power Of Suppliers

Bank funding costs remain a meaningful input, but LCNB’s deposit franchise and low debt-to-assets ratio (4.7%) help limit supplier leverage.

Interest coverage is only modest at 1.08x, indicating funding costs still matter, though the bank’s cash position is strong at $16.59/share.

Bargaining Power Of Buyers

Customer switching costs in community banking remain moderate, with pricing pressure reflected in a price-to-book near 1.0x.

Net interest margin sensitivity persists, but profitability remains solid with net margin at 19.7% and ROE at 8.9%.

Threat Of New Entrants

Regulatory and capital requirements continue to create barriers to entry for new banks.

LCNB’s low valuation and established local footprint support incumbency, though the market remains accessible to well-capitalized regional entrants.

Threat Of Substitutes

Digital banking and non-bank financial products remain viable substitutes for deposits and lending.

However, LCNB’s strong gross margin of 73.9% and stable earnings suggest it retains relevance versus alternatives.

Intensity Of Rivalry

Community and regional banking competition remains active, keeping pricing and deposit competition elevated.

LCNB’s solid profitability and efficient cash generation help it compete, but the industry remains fragmented and rivalry is persistent.