In Timyan Bank Alert’s April 2024 post, “Shareholder Shenanigans at LCNB,” I discussed how shortcomings of the shareholder proposal I submitted wound up helping LCNB keep the proposal off their proxy.
Thank you for your support. Your comments are spot on.
Back in early 2020 when LCNB paid the greenmail to get rid of John Lame (I know, greenmail is illegal in Ohio, so they called it a unique opportunity that presented itself to repurchase stock at the market price) the bank could have fetched a low to even mid 20’s price. Two acquisitions later, the value is much less.
The takeout would have been $22, save for the markdown on the loan book from carrying value to fair value, on an after-tax basis. Those fair value measures have impacted the values of a lot banks besides LCNB.
Best wishes with your proxy question, Phil. Sadly, when bank insiders only own stock in the single digits, LCNB is just over 6%, they are more interested in maintaining their jobs than maximizing shareholder value. I think the bank could fetch $17 - $18/sh in a sale.
I wish I owned shares because I would have definitely voted FOR your proposal.
At least you have given me some homework. Thanks.
Thank you Margin!
Hello Dave!
Thank you for your support. Your comments are spot on.
Back in early 2020 when LCNB paid the greenmail to get rid of John Lame (I know, greenmail is illegal in Ohio, so they called it a unique opportunity that presented itself to repurchase stock at the market price) the bank could have fetched a low to even mid 20’s price. Two acquisitions later, the value is much less.
Best,
Phil
Phil,
The takeout would have been $22, save for the markdown on the loan book from carrying value to fair value, on an after-tax basis. Those fair value measures have impacted the values of a lot banks besides LCNB.
Best wishes with your proxy question, Phil. Sadly, when bank insiders only own stock in the single digits, LCNB is just over 6%, they are more interested in maintaining their jobs than maximizing shareholder value. I think the bank could fetch $17 - $18/sh in a sale.