- Net Income Available to Common
Shareholders of $2.0 million, an 18.6% year-over-year
increase
- Operating revenue up $406,000, an
increase of 3.3% from the second quarter of the prior year
- Nonperforming assets declined by
$6.8 million, a decrease of 24.6% from the second quarter a year
ago
LNB Bancorp, Inc. (NASDAQ: LNBB) (“LNB” or the “Company”) today
reported financial results for the second quarter 2014. Net income
available to common shareholders was $2.0 million, or $0.21 per
common share, compared to $1.7 million, or $0.18 per common share,
for the year ago quarter. For the first six months of 2014, net
income available to common shareholders was $3.6 million, or $0.37
per common share, compared to $2.6 million, or $0.29 per common
share for the first six months of last year.
Operating revenue, including net interest income on a fully
tax-equivalent basis ("FTE") plus noninterest income from
operations, was $12.6 million for the second quarter of 2014, an
increase of $406,000, or 3.3%, from the second quarter of the prior
year. The net interest margin (FTE) for the second quarter of 2014
was 3.27%, an increase of seven basis points from the 2013 second
quarter.
“Overall, we are very pleased with the second quarter results.
We’ve seen solid loan growth, improved credit quality and margin
improvement,” stated Daniel E. Klimas, president and chief
executive officer.
Gain on the sale of loans was $890,000 for the quarter, compared
to $587,000 for the second quarter of 2013. This increase is
primarily due to the gain on the sale of SBA (Small Business
Administration) loans, offsetting a decline in mortgage lending
activities.
Loan balances grew by 2.8% compared to the second quarter of
2013, led by the consumer loan and indirect auto loan portfolios.
Indirect auto loan production reached $41.0 million during the
quarter, driven by auto industry sales growth during the
period.
The Company continued to make progress on improving credit
quality as non-performing assets declined $6.8 million from the
same quarter in 2013. The ratio of non-performing assets to total
assets at June 30, 2014 was 1.69%, down from 2.28% at June 30,
2013.
The provision for loan losses was $893,000 in the second quarter
of 2014, down $157,000 from the 2013 second quarter, reflecting the
Company’s improvement in credit quality. Net charge-offs were
$960,000 for the second quarter of 2014, or 0.42% of average loans
(annualized), compared to $1.0 million, or 0.47% of average loans
(annualized), in the second quarter of 2013. “The credit quality
indicators continue to improve, resulting in a lower provision for
the second quarter,” stated Klimas.
Noninterest income was $3.3 million for the second quarter of
2014 compared to $3.1 million for the prior-year second quarter.
This year-over-year increase was driven primarily by gains on the
sale of loans.
Noninterest expense was $8.8 million for the second quarter of
2014 compared with $8.6 million for the second quarter of 2013, an
increase of 2.0%. Salaries and benefit costs were higher due to
additions of staff in revenue producing areas, while professional
fees were lower in the second quarter of 2014, as professional fees
for last year’s second quarter included the cost associated with
retiring the Company’s preferred shares. Noninterest expense as of
June 30, 2014 totaled $17.7 million, a $246,000 decrease from June
30, 2013.
The Company continues to maintain capital levels in excess of
the regulatory requirements to be categorized as “well capitalized”
with a total risk-based capital ratio of 12.41%, Tier 1 leverage
ratio of 8.77% and tangible common equity to tangible assets of
7.29% at June 30, 2014.
Total assets at June 30, 2014 were $1.24 billion, up $18.6
million, or 1.5%, from a year ago. Total deposits at June 30, 2014
were $1.05 billion, up $9.7 million, or 1.0%, from June 30,
2013.
About LNB Bancorp, Inc.
LNB Bancorp, Inc. is a $1.2 billion bank holding company. Its
major subsidiary, The Lorain National Bank, is a full-service
commercial bank, specializing in commercial, personal banking
services, residential mortgage lending and investment and trust
services. The Lorain National Bank and its Morgan Bank division
serve customers through 20 retail-banking locations and 28 ATMs in
Lorain, Erie, Cuyahoga and Summit counties. North Coast Community
Development Corporation is a wholly owned subsidiary of The Lorain
National Bank. For more information about LNB Bancorp, Inc., and
its related products and services or to view its filings with the
Securities and Exchange Commission, visit us at http://www.4lnb.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the "Safe Harbor" provisions of the Private
Securities Litigation Reform Act of 1995. Terms such as "will,"
"should," "plan," "intend," "expect," "continue," "believe,"
"anticipate" and "seek," as well as similar comments, are
forward-looking in nature. Actual results and events may differ
materially from those expressed or anticipated as a result of risks
and uncertainties which include but are not limited to: a worsening
of economic conditions or slowing of any economic recovery, which
could negatively impact, among other things, business activity and
consumer spending and could lead to a lack of liquidity in the
credit markets; changes in the interest rate environment which
could reduce anticipated or actual margins; increases in interest
rates or further weakening of economic conditions that could
constrain borrowers’ ability to repay outstanding loans or diminish
the value of the collateral securing those loans; market conditions
or other events that could negatively affect the level or cost of
funding, affecting the Company’s ongoing ability to accommodate
liability maturities and deposit withdrawals, meet contractual
obligations, and fund asset growth, and new business transactions
at a reasonable cost, in a timely manner and without adverse
consequences; changes in political conditions or the legislative or
regulatory environment, including new or heightened legal standards
and regulatory requirements, practices or expectations, which may
impede profitability or affect the Company’s financial condition
(such as, for example, the Dodd-Frank Act and rules and regulations
that have been or may be promulgated under the Act); persisting
volatility and limited credit availability in the financial
markets, particularly if market conditions limit the Company’s
ability to raise funding to the extent required by banking
regulators or otherwise; significant increases in competitive
pressure in the banking and financial services industries,
particularly in the geographic or business areas in which the
Company conducts its operations; limitations on the Company’s
ability to return capital to shareholders, including the ability to
pay dividends, and the dilution of the Company’s common shares that
may result from, among other things, any capital-raising or
acquisition activities of the Company; adverse effects on the
Company’s ability to engage in routine funding transactions as a
result of the actions and commercial soundness of other financial
institutions; general economic conditions becoming less favorable
than expected, continued disruption in the housing markets and/or
asset price deterioration, which have had and may continue to have
a negative effect on the valuation of certain asset categories
represented on the Company’s balance sheet; increases in deposit
insurance premiums or assessments imposed on the Company by the
FDIC; a failure of the Company’s operating systems or
infrastructure, or those of its third-party vendors, that could
disrupt its business; risks that are not effectively identified or
mitigated by the Company’s risk management framework; and
difficulty attracting and/or retaining key executives and/or
relationship managers at compensation levels necessary to maintain
a competitive market position; as well as the risks and
uncertainties described from time to time in the Company’s reports
as filed with the SEC. The Company undertakes no obligation to
update or clarify forward-looking statements, whether as a result
of new information, future events or otherwise.
CONSOLIDATED BALANCE SHEETS At June
30, 2014 At December 31, 2013
(unaudited) (Dollars in thousands except
share amounts) ASSETS Cash and due from Banks
$
40,968 $ 36,717 Federal funds sold and interest bearing
deposits in banks
6,827
15,555 Cash and cash equivalents
47,795
52,272 Securities Available for sale, at fair value
219,422 216,122
Total securities
219,422 216,122 Restricted stock
5,741 5,741 Loans held for sale
2,856 4,483 Loans:
Portfolio loans
907,365 902,299 Allowance for loan losses
(17,430 )
(17,505 ) Net loans
889,935 884,794
Bank premises and equipment, net
7,901 8,198 Other
real estate owned
1,016 579 Bank owned life insurance
19,704 19,362 Goodwill, net
21,582 21,582 Intangible
assets, net
390 457 Accrued interest receivable
3,572
3,621 Other assets
16,928
13,046 Total Assets
$ 1,236,842
$ 1,230,257 LIABILITIES
AND SHAREHOLDERS' EQUITY Deposits Demand and other
noninterest-bearing
$ 161,580 $ 148,961 Savings,
money market and interest-bearing demand
411,559 393,778
Certificates of deposit
475,799
502,850 Total deposits
1,048,938 1,045,589
Short-term borrowings
3,362 4,576 Federal Home Loan
Bank advances
46,813 46,708 Junior subordinated debentures
16,238 16,238 Accrued interest payable
688 789
Accrued taxes, expenses and other liabilities
10,315 4,901
Total Liabilities 1,126,354
1,118,801 Shareholders'
Equity
Preferred stock, Series A Voting, no par
value, authorized 150,000 shares at June 30, 2014 and December 31,
2013.
- -
Fixed rate cumulative preferred stock,
Series B, no par value, $1,000 liquidation value, no shares were
issued at June 30, 2014 and 7,689 shares authorized and issued at
December 31, 2013
- 7,689 Discount on Series B preferred stock
- (19 )
Common stock, par value $1 per share,
authorized 15,000,000 shares, issued shares 10,001,717 at June 30,
2014 and 10,001,717 at December 31, 2013
10,002 10,002 Additional paid-in capital
51,229
51,098 Retained earnings
57,367 53,966 Accumulated other
comprehensive income
(1,933 ) (5,188 ) Treasury
shares at cost, 336,745 shares at June 30, 2014 and 328,194 at
December 31, 2013
(6,177
) (6,092 )
Total Shareholders' Equity
110,488 111,456
Total Liabilities and Shareholders' Equity
$ 1,236,842
$ 1,230,257 Consolidated
Statements of Income (unaudited)
Three Months Ended
June 30,
Three Months Ended
June 30,
Six Months Ended
June 30,
Six Months Ended
June 30,
2014
2013
2014
2013
(Dollars in thousands except share and per share amounts)
Interest Income Loans
$ 9,188 $ 9,264 $ 18,116
$ 18,318 Securities: U.S. Government agencies and corporations
1,040 867 2,068 1,708 State and political subdivisions
310 298 613 586 Other debt and equity securities
67
138 184 222 Federal funds sold and short-term investments
7 9
24 16 Total interest
income
10,612 10,576 21,005 20,850
Interest
Expense Deposits
1,023 1,236 2,105 2,485 Federal Home
Loan Bank advances
157 157 312 311 Short-term borrowings
27 - 53 1 Junior subordinated debenture
169 174
338 340 Total
interest expense
1,376
1,567 2,808
3,137 Net Interest Income 9,236
9,009 18,197 17,713
Provision for Loan Losses
893 1,050
1,793 2,400
Net interest income after provision for loan losses
8,343
7,959 16,404 15,313
Noninterest Income Investment and
trust services
456 440 856 815 Deposit service charges
849 869 1,619 1,685 Other service charges and fees
738 808 1,491 1,639 Income from bank owned life insurance
173 170 342 338 Other income
106
232 257
553 Total fees and other income
2,322 2,519 4,565 5,030 Securities gains (losses), net
(5 ) - (5 ) 178 Gains on sale of loans
890 587
1,593 1,243 Gains (loss) on sale of other assets, net
44 (34
) 10
(47 ) Total noninterest income
3,251 3,072 6,163 6,404
Noninterest Expense
Salaries and employee benefits
4,510 4,224 9,105 9,251
Furniture and equipment
1,177 1,134 2,325 2,083 Net
occupancy
603 549 1,216 1,137 Professional fees
426
586 920 1,076 Marketing and public relations
390 349 790 638
Supplies, postage and freight
218 274 432 581
Telecommunications
162 175 313 337 Ohio Franchise tax
223 302 447 610 Intangible asset amortization
34 33
67 67 FDIC assessments
261 238 533 480 Other real estate
owned
37 48 61 125 Loan and collection expense
372
374 670 762 Other expense
385
336 778
756 Total noninterest expense
8,798 8,622
17,657 17,903
Income before income tax expense
2,796 2,409 4,910 3,814
Income tax expense
773
586 1,281
878 Net Income $
2,023 $ 1,823
$ 3,629 $
2,936 Dividends and accretion on preferred
stock
- 117
35 374
Net Income Available to Common Shareholders
$ 2,023
$ 1,706 $
3,594 $ 2,562
Net Income Per Common Share Basic
$
0.21 $ 0.18 $ 0.37 $ 0.29 Diluted
0.21 0.18 0.37 0.29
Dividends declared
0.01 0.01 0.02 0.02
Average Common
Shares Outstanding Basic
9,664,972 9,303,702 9,666,626
8,755,457 Diluted
9,682,444 9,223,678 9,683,634 8,659,122
LNB Bancorp, Inc. Supplemental Financial Information
(Unaudited - Dollars in thousands except Share and Per Share Data)
Three Months Ended Six
Months Ended
END OF PERIOD BALANCES
June 30,2014
March 31,2014
December 31,2013
June 30,2013
June 30,2014
June 30,2013
Cash and Cash Equivalents $ 47,795 $ 68,241 $ 52,272 $ 49,534 $
47,795 $ 49,534 Securities 219,422 217,510 216,122 228,766 219,422
228,766 Restricted stock 5,741 5,741 5,741 5,741 5,741 5,741 Loans
held for sale 2,856 1,811 4,483 3,423 2,856 3,423 Portfolio loans
907,365 910,189 902,299 882,896 907,365 882,896 Allowance for loan
losses
17,430 17,497
17,505 17,815
17,430 17,815 Net loans 889,935
892,692 884,794 865,081 889,935 865,081 Other assets
71,093 69,398
66,845 65,701
71,093 65,701 Total assets
$ 1,236,842 $
1,255,393 $ 1,230,257
$ 1,218,246 $
1,236,842 $ 1,218,246 Total
deposits 1,048,938 1,076,851 1,045,589 1,039,279 1,048,938
1,039,279 Other borrowings 66,413 66,723 67,522 64,704 66,413
64,704 Other liabilities
11,003
4,705 5,690
5,369 11,003
5,369 Total liabilities 1,126,354 1,148,279 1,118,801
1,109,352 1,126,354 1,109,352 Total shareholders' equity
110,488 107,114
111,456 108,894
110,488 108,894 Total liabilities
and shareholders' equity
$ 1,236,842
$ 1,255,393 $
1,230,257 $ 1,218,246
$ 1,236,842 $
1,218,246 AVERAGE BALANCES Assets: Total
assets $ 1,236,203 $ 1,234,380 $ 1,221,830 $ 1,233,694 $ 1,235,296
$ 1,214,767 Earning assets* $ 1,154,063 $ 1,150,500 1,137,943
1,147,869 1,152,291 1,130,676 Securities $ 223,198 $ 217,753
214,860 225,644 220,491 217,207 Portfolio loans 907,851 906,843
899,899 882,499 907,350 883,689 Liabilities and shareholders'
equity: - Total deposits $ 1,056,144 $ 1,055,980 $ 1,041,763 $
1,053,952 $ 1,056,062 $ 1,035,562 Interest bearing deposits 905,838
910,340 891,589 914,652 908,076 897,028 Interest bearing
liabilities 972,784 978,073 956,866 979,260 975,414 961,512 Total
shareholders' equity 108,624 106,681 109,814 110,619 107,657
110,518
INCOME STATEMENT Total Interest Income $
10,612 $ 10,393 $ 10,525 $ 10,576 $ 21,005 $ 20,850 Total Interest
Expense
1,376 1,432
1,490 1,567
2,808 3,137 Net interest income
9,236 8,961 9,035 9,009 18,197 17,713 Provision for loan losses 893
900 1,025 1,050 1,793 2,400 Other income 2,322 2,243 2,524 2,519
4,565 5,030 Net gain on sale of assets 929 669 732 553 1,598 1,374
Noninterest expense
8,798
8,859 8,983
8,622 17,657
17,903 Income before income taxes 2,796 2,114 2,283
2,409 4,910 3,814 Income tax expense
773
508 577 586
1,281 878 Net income 2,023
1,606 1,706 1,823 3,629 2,936 Preferred stock dividend and
accretion
- 35
163 117 35
374 Net income available to common shareholders
$ 2,023 $ 1,571
$ 1,543 $ 1,706
$ 3,594 $ 2,562
Common cash dividend declared and paid
$
97 $ 97 $
93 $ 93 $
194 $ 172 Net
interest income-FTE (1) $ 9,396 $ 9,117 $ 9,192 $ 9,169 $ 18,513 $
18,029 Total Operating Revenue (4) $ 12,647 $ 12,029 $ 12,448 $
12,241 $ 24,676 $ 24,433 Three Months Ended
Six Months Ended June 30, March 31, December 31,
June 30, June 30, June 30, 2014 2014
2013 2013 2014 2013
PER SHARE DATA Basic net income per
common share $ 0.21 $ 0.16 $ 0.16 $ 0.18 $ 0.37 $ 0.29 Diluted net
income per common share 0.21 0.16 0.16 0.18 0.37 0.29 Cash
dividends per common share 0.01 0.01 0.01 0.01 0.02 0.02 Book value
per common shares outstanding 11.43 11.08 10.73 10.36 11.43 10.36
Tangible book value per common shares outstanding** 9.49 8.81 8.45
8.35 9.49 8.06 Period-end common share market value 12.18 11.42
10.03 8.59 12.18 8.59 Market as a % of tangible book 128.36 %
129.69 % 118.69 % 102.90 % 128.36 % 106.58 % Basic average common
shares outstanding 9,664,972 9,668,297 9,379,355 9,303,702
9,666,626 8,755,457 Diluted average common shares outstanding
9,682,444 9,705,432 9,404,651 9,319,142 9,683,634 8,769,291 Common
shares outstanding 9,664,972 9,664,972 9,673,523 9,631,896
9,664,972 9,631,896
KEY RATIOS Return on average
assets (ROA) (2) 0.66 % 0.53 % 0.55 % 0.59 % 0.59 % 0.49 % Return
on average common equity (ROE) (2) 7.47 % 6.11 % 6.16 % 6.61 % 6.80
% 5.36 % Efficiency ratio 69.57 % 73.65 % 72.16 % 70.44 % 71.56 %
73.27 % Noninterest expense to average assets (2) 2.85 % 2.91 %
2.92 % 2.80 % 2.88 % 2.97 % Net interest margin (FTE) (1) 3.27 %
3.21 % 3.20 % 3.20 % 3.24 % 3.22 % Common stock dividend payout
ratio 4.79 % 6.18 % 6.10 % 5.46 % 5.38 % 6.83 % Common stock market
capitalization $ 117,719 $ 110,374 $ 97,025 $ 82,738 $ 117,719 $
82,738
ASSET QUALITY Allowance for Loan
Losses Allowance for loan losses, beginning of period $ 17,497
$ 17,505 $ 17,791 $ 17,806 17,505 17,637 Provision for loan losses
893 900 1,025 1,050 1,793 2,400 Charge-offs 1,033 998 1,570 1,667
2,032 3,095 Recoveries
73
90 259
626 164
873 Net charge-offs
960
908 1,311
1,041 1,868
2,222 Allowance for loan losses,
end of period
$ 17,430
$ 17,497 $
17,505 $ 17,815
$ 17,430 $
17,815 Nonperforming Assets
Nonperforming loans $ 19,907 $ 20,918 $ 21,986 $ 26,605 $ 19,907 $
26,605 Other real estate owned
1,016
979 579
1,149 1,016
1,149 Total nonperforming assets
$ 20,923 $
21,897 $ 22,565
$ 27,754 $
20,923 $ 27,754
Ratios Total nonperforming loans to total
loans 2.19 % 2.30 % 2.44 % 3.01 % 2.19 % 3.01 % Total nonperforming
assets to total assets 1.69 % 1.74 % 1.83 % 2.28 % 1.69 % 2.28 %
Net charge-offs to average loans (2) 0.42 % 0.41 % 0.58 % 0.47 %
0.42 % 0.51 % Provision for loan losses to average loans (2) 0.39 %
0.40 % 0.45 % 0.48 % 0.40 % 0.55 % Allowance for loan losses to
portfolio loans 1.92 % 1.92 % 1.94 % 2.02 % 1.92 % 2.02 % Allowance
to nonperforming loans 87.56 % 83.65 % 79.62 % 66.96 % 87.56 %
66.96 % Allowance to nonperforming assets 83.31 % 79.91 % 77.58 %
64.19 % 83.31 % 64.19 %
CAPITAL & LIQUIDITY
Period-end tangible common equity to assets** 7.29 % 6.90 % 6.77 %
6.49 % 7.29 % 6.49 % Average equity to assets 8.79 % 8.64 % 8.99 %
8.97 % 8.72 % 9.10 % Average equity to loans 11.96 % 11.76 % 12.20
% 12.53 % 11.86 % 12.51 % Average loans to deposits 85.96 % 85.88 %
86.38 % 83.73 % 85.92 % 85.33 % Tier 1 leverage ratio (3) 8.77 %
8.61 % 9.22 % 8.73 % 8.77 % 8.73 % Tier 1 risk-based capital ratio
(3) 11.17 % 10.90 % 11.63 % 11.36 % 11.17 % 11.36 % Total
risk-based capital ratio (3) 12.43 % 12.15 % 12.89 % 12.62 % 12.43
% 12.62 % (1) FTE -- fully tax equivalent at 34% tax rate
(2) Annualized (3) 6-30-14 ratio is estimated. (4) Net interest
income on a fully tax-equivalent basis ("FTE") plus noninterest
income from operations * Earning Assets includes Loans Held for
Sale
** Non-GAAP measures.
**Non-GAAP Financial Measures - Statements included in this
press release include non-GAAP financial measures. The Corporations
use of these non-GAAP financial measures, includes the period-end
tangible common equity to assets ratio, in their analysis of the
company's performance. Period-end tangible common equity excludes
preferred stock as well as goodwill and other intangible assets,
net, from total stockholders' equity. Management believes that
non-GAAP financial measures provide additional useful information
that allows readers to evaluate the ongoing performance of the
Corporation. Non-GAAP financial measures should not be considered
as an alternative to any measure of performance or financial
condition as promulgated under GAAP, and investors should consider
Corporation’s performance and financial condition as reported under
GAAP and all other relevant information when assessing the
performance or financial condition of the Company. Non-GAAP
financial measures have limitations as analytical tools, and
investors should not consider them in isolation or as a substitute
for analysis of the results or financial condition as reported
under GAAP.
LNB Bancorp, Inc.Peter R. Catanese, Senior Vice President,
440-244-7126
(MM) (NASDAQ:LNBB)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
(MM) (NASDAQ:LNBB)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024