- Net Income Available to Common
Shareholders of $2.3 million, an increase of 11.8% as compared to
the same quarter one year ago.
- Loan balances grew by $26.5 million
and deposits grew by $2.3 million as compared to the same quarter
one year ago.
- Nonperforming assets declined by
$4.4 million, a decrease of 21% from the second quarter a year ago.
No loan loss provision was taken for the quarter ended June 30,
2015.
- On June 16, 2015, LNB Bancorp
shareholders approved the merger with Northwest Bancshares. The
transaction is expected to close on August 14, 2015, subject to
customary closing conditions. Pre-tax merger related expenses of
$138,000 were incurred during the quarter ended June 30, 2015 and
$268,000 for the six month period in 2015.
LNB Bancorp, Inc. (NASDAQ: LNBB) (“LNB” or the “Company”) today
reported financial results for the second quarter 2015. Net income
available to common shareholders was $2.3 million or $0.23 per
common share, compared to $2.0 million, or $0.21 per common share,
for the year ago quarter. For the first six months of 2015, net
income available to common shareholders was $4.1 million, or $0.43
per common share, compared to $3.6 million, or $0.37 per common
share for the first six months of last year.
“LNB had a successful quarter on all fronts,” stated Daniel E.
Klimas, president and chief executive officer of LNB Bancorp. “We
grew loan balances, reduced non-performing loans and managed our
expenses well.”
Net interest income was $8.9 million for the second quarter of
2015, compared to $9.2 million in the second quarter of the prior
year, a decrease of 3.9%. The net interest margin, on a fully
taxable equivalent basis, for the second quarter of 2015 was 3.10%,
a decline of 17 basis points from the second quarter of 2014. The
continued low growth environment and sustained low rates coupled
with a change in the mix of the balance sheet contributed to the
margin compression.
Noninterest income was $3.1 million in the second quarter of
2015, compared to $3.3 million in the second quarter of the
previous year. The gain on sale of loans was $704,000 this
quarter.
Loan balances grew by $26.5 million or 2.9% compared to the
second quarter of 2014, led by the commercial and indirect auto
loan portfolios.
Noninterest expense was $8.9 million, compared to $8.8 million
in the second quarter of 2014.
In connection with the pending merger with Northwest Bancshares,
the Corporation recognized $138,000 in pre-tax merger-related
expense during the second quarter and $268,000 during the first six
months of 2015.
The Company continued to make progress on improving credit
quality in the second quarter of 2015, as non-performing assets
declined $4.4 million from the same quarter in 2014. The ratio of
non-performing assets to total assets at June 30, 2015 was 1.33%,
down from 1.69% at June 30, 2014.
No provision for loan losses was taken in the second quarter of
2015, as compared to a provision of $893,000 taken in the second
quarter of 2014, reflecting the Company’s improvement in credit
quality and net loss history. Net charge-offs were $868,000 for the
second quarter of 2015, or 0.37% of average loans (annualized),
compared to $960,000, or 0.42% of average loans (annualized), in
the second quarter of 2014.
Total assets at June 30, 2015 were $1.24 billion, unchanged from
June 30, 2014. Total deposits at June 30, 2015 were $1.05 billion,
unchanged from June 30, 2014. The Company continued to maintain
capital levels in excess of the regulatory requirements to be
categorized as “well capitalized”.
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 21 retail-banking locations and 30 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. In addition, expected cost savings,
synergies and other financial benefits from the anticipated merger
with Northwest Bancshares might not be realized within the expected
time frame and costs or difficulties relating to integration
matters and completion of the merger might be greater than
expected. The Company may have difficulty retaining key employees
during the pendency of the merger.
The Company undertakes no obligation to update or clarify
forwardlooking statements, whether as a result of new information,
future events or otherwise.
CONSOLIDATED BALANCE SHEETS At June
30, 2015 At December 31, 2014
(unaudited) (Dollars in thousands except
share amounts) ASSETS Cash and due from banks
$
30,810 $ 17,927 Federal funds sold and interest bearing
deposits in banks
2,291
6,215 Cash and cash equivalents
33,101
24,142 Securities available for sale, at fair value
208,243
217,572 Restricted stock
5,741 5,741 Loans held for sale
4,050 10,483 Loans: Portfolio loans
933,838 930,025
Allowance for loan losses
(15,929
) (17,416 )
Net loans
917,909
912,609 Bank premises and equipment, net
9,235 9,173 Other real estate owned
793 772 Bank
owned life insurance
19,835 19,757 Goodwill, net
21,582 21,582 Intangible assets, net
254 321 Accrued
interest receivable
3,512 3,635 Other assets
14,100 10,840
Total Assets $
1,238,355 $
1,236,627 LIABILITIES AND
SHAREHOLDERS' EQUITY Deposits Demand and other
noninterest-bearing
$ 148,939 $ 158,476 Savings,
money market and interest-bearing demand
459,951 436,271
Certificates of deposit
442,331
440,178 Total deposits
1,051,221 1,034,925
Short-term borrowings
635 10,611 Federal Home Loan
Bank advances
47,027 54,321 Junior subordinated debentures
16,238 16,238 Accrued interest payable
613 596
Accrued taxes, expenses and other liabilities
4,681 4,597
Total Liabilities 1,120,415
1,121,288 Shareholders'
Equity Fixed rate cumulative preferred stock, Series B, no par
value, $1,000 liquidation value, no shares were issued at June 30,
2015 and no shares were issued at December 31, 2014.
- -
Common stock, par value $1 per share,
authorized 15,000,000 shares, issued shares 10,008,169 at June 30,
2015 and 10,002,139 at December 31, 2014.
10,008 10,002 Additional paid-in capital
51,627
51,441 Retained earnings
64,096 60,568 Accumulated other
comprehensive loss
(1,430 ) (495 ) Treasury shares at
cost, 347,349 shares at June 30, 2015 and 336,745 at December 31,
2014
(6,361 )
(6,177 ) Total Shareholders'
Equity 117,940
115,339 Total Liabilities and Shareholders'
Equity $ 1,238,355
$ 1,236,627
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,
2015
2014
2015
2014
(Dollars in thousands except share and per share amounts)
Interest Income Loans
$ 9,008 $ 9,188 $ 17,932
$ 18,116 Securities: - U.S. Government agencies and corporations
890 1,040 1,829 2,068 State and political subdivisions
294 310 510 613 Other debt and equity securities
67
67 134 184 Federal funds sold and short-term investments
2 7
5 24 Total interest income
10,261 10,612 20,410 21,005
Interest Expense
Deposits
1,067 1,023 2,089 2,105 Federal Home Loan Bank
advances
138 157 279 312 Short-term borrowings
6 27 6
53 Junior subordinated debenture
170
169 339
338 Total interest expense
1,381 1,376
2,713 2,808 Net
Interest Income 8,880 9,236 17,697 18,197
Provision
for Loan Losses -
893 -
1,793 Net interest income after provision for
loan losses
8,880 8,343 17,697 16,404
Noninterest
Income Investment and trust services
450 456 872 856
Deposit service charges
777 849 1,545 1,619 Other service
charges and fees
716 738 1,382 1,491 Income from bank owned
life insurance
473 173 644 342 Other income (loss)
(2 )
106 96
257 Total fees and other income
2,414
2,322 4,539 4,565 Securities Gains (Loss), net
- (5 ) 192 (5
) Gains on sale of loans
704 890 1,364 1,593
Loss on sale of other assets, net
7 44
7 10 Total
noninterest income
3,125 3,251 6,102 6,163
Noninterest Expense Salaries and employee benefits
4,589 4,510 9,236 9,105 Furniture and equipment
1,325
1,177 2,611 2,325 Net occupancy
593 603 1,202 1,216
Professional fees
411 426 855 920 Marketing and public
relations
433 390 818 790 Supplies, postage and freight
154 218 415 432 Telecommunications
167 162 324 313
Ohio Financial tax
210 223 420 447 Intangible asset
amortization
34 34 67 67 FDIC assessments
232 261 455
533 Other real estate owned
28 37 35 61 Loan and collection
expense
297 372 612 670 Other expense
422 385
1,034 778 Total
noninterest expense
8,895
8,798 18,084
17,657 Income before income tax expense
3,110 2,796 5,715 4,910 Income tax expense
849 773
1,607 1,281 Net
Income $ 2,261
$ 2,023 $
4,108 $ 3,629
Dividends and accretion on preferred stock
- -
- 35 Net Income
Available to Common Shareholders $
2,261 $ 2,023
$ 4,108 $
3,594 Net Income Per Common Share
Basic
$ 0.23 $ 0.21 $ 0.43 $ 0.37 Diluted
0.23
0.21 0.42 0.37 Dividends declared
0.03 0.01 0.06 0.02
Average Common Shares Outstanding Basic
9,650,490
9,626,420
9,645,215 9,620,806 Diluted
9,751,825
9,643,892
9,741,560 9,637,814 LNB Bancorp, Inc.
Supplemental Financial Information (Unaudited - Dollars in
thousands except Share and Per Share Data)
Three Months Ended Six Months Ended
June
30, March 31, December 31, June 30,
June 30, June 30,
END OF PERIOD BALANCES 2015 2015
2014 2014
2015 2014 Cash and Cash Equivalents
$ 33,101 $ 64,920 $ 24,142 $ 47,795
$
33,101 $ 47,795 Securities
208,243 203,848 217,572
219,422
208,243 219,422 Restricted stock
5,741 5,741
5,741 5,741
5,741 5,741 Loans held for sale
4,050
4,652 3,646 2,856
4,050 2,856 Portfolio loans
933,838
924,403 930,025 907,365
933,838 907,365 Allowance for loan
losses
15,929 16,797
17,416 17,430
15,929 17,430 Net loans
917,909 907,606 912,609 889,935
917,909 889,935 Other
assets
69,311 69,682
72,917 71,093
69,311 71,093 Total assets
$ 1,238,355 $
1,256,449 $ 1,236,627
$ 1,236,842 $
1,238,355 $ 1,236,842
Total deposits
1,051,221 1,069,011 1,034,925 1,048,938
1,051,221 1,048,938 Other borrowings
63,900 63,849
81,170 66,413
63,900 66,413 Other liabilities
5,294 6,059
5,193 11,003
5,294 11,003 Total
liabilities
1,120,415 1,138,919 1,121,288 1,126,354
1,120,415 1,126,354 Total shareholders' equity
117,940 117,530
115,339 110,488
117,940 110,488 Total
liabilities and shareholders' equity
$
1,238,355 $ 1,256,449
$ 1,236,627 $
1,236,842 $
1,238,355 $ 1,236,842
AVERAGE BALANCES Assets: Total assets
$
1,256,363 $ 1,240,485 $ 1,233,457 $ 1,236,203
$
1,248,468 $ 1,235,296 Earning assets*
1,168,604
1,157,066 1,160,953 1,154,063
1,162,867 1,152,291 Securities
208,491 206,665 219,861 223,198
207,582 220,491
Portfolio loans
937,440 925,565 924,216 907,851
929,342 907,350 Liabilities and shareholders' equity: Total
deposits
$ 1,069,116 $ 1,052,598 $ 1,047,688 $
1,056,144
$ 1,060,903 $ 1,056,062 Interest bearing
deposits
903,926 881,380 876,897 905,838
892,716
908,076 Interest bearing liabilities
968,142 948,111 943,339
972,784
958,182 975,414 Total shareholders' equity
117,631 116,017 114,135 108,624
116,829 107,657
INCOME STATEMENT Total Interest Income
$
10,261 $ 10,149 $ 10,648 $ 10,612
$ 20,410 $
21,005 Total Interest Expense
1,381
1,332 1,370
1,376 2,713
2,808 Net interest income
8,880 8,817 9,278
9,236
17,697 18,197 Provision for loan losses
- - 600
893
- 1,793 Other income
2,414 2,125 2,435 2,322
4,539 4,565 Net gain on sale of assets
711 852 956
929
1,563 1,598 Noninterest expense
8,895 9,189
9,907 8,798
18,084 17,657 Income before
income taxes
3,110 2,605 2,162 2,796
5,715 4,910
Income tax expense
849
758 660 773
1,607 1,281 Net
income
2,261 1,847 1,502 2,023
4,108 3,629 Preferred
stock dividend and accretion
-
- - -
- 35 Net income available
to common shareholders
$
2,261 $ 1,847
$ 1,502 $ 2,023
$ 4,108 $
3,594 Common cash dividend declared and paid
$ 290 $
290 $ 290 $
97 $ 580
$ 194 Net interest income-FTE (1)
$ 9,029 $ 8,923 $ 9,436 $ 9,396
$
17,953 $ 18,513 Total Operating Revenue (4)
$
12,154 $ 11,900 $ 12,827 $ 12,647
$ 24,055 $
24,676 Three Months Ended Six Months Ended
June 30, March 31, December 31, June
30,
June 30, June 30,
2015
2015 2014 2014
2015 2014
PER
SHARE DATA Basic net income per common share
$
0.23 $ 0.19 $ 0.16 $ 0.21
$ 0.43 $ 0.37
Diluted net income per common share
0.23 0.19 0.15 0.21
0.43 0.37 Cash dividends per common share
0.03 0.03
0.03 0.01
0.06 0.02 Book value per common shares outstanding
12.21 12.17 11.93 11.43
12.21 11.43 Tangible book
value per common shares outstanding**
9.95 9.91 9.67 9.49
9.95 9.49 Period-end common share market value
18.50
17.84 18.03 12.18
18.50 12.18 Market as a % of tangible book
185.97 % 180.11 % 186.51 % 128.36 %
185.97
% 128.36 % Basic average common shares outstanding
9,650,490 9,639,880 9,626,842 9,626,420
9,645,215
9,620,806 Diluted average common shares outstanding
9,751,825 9,738,594 9,692,425 9,643,892
9,741,560
9,637,814 Common shares outstanding
9,660,820 9,657,660
9,665,394 9,664,972
9,660,820 9,664,972
KEY
RATIOS Return on average assets (2)
0.72 % 0.60 %
0.48 % 0.66 %
0.66 % 0.59 % Return on average common
equity (2)
7.71 % 6.46 % 5.22 % 7.47 %
7.09
% 6.80 % Efficiency ratio
73.19 % 77.22 %
77.24 % 69.57 %
75.18 % 71.56 % Noninterest expense
to average assets (2)
2.84 % 3.00 % 3.19 % 2.85 %
2.92 % 2.88 % Average equity to average assets
9.36 % 9.35 % 9.25 % 8.79 %
9.36 % 8.72
% Net interest margin (FTE) (1)
3.10 % 3.13 % 3.22 %
3.27 %
3.11 % 3.24 % Common stock dividend payout
ratio
12.94 % 15.82 % 19.36 % 4.79 %
14.09
% 5.38 % Common stock market capitalization
$
178,725 $ 172,293 $ 174,267 $ 117,719
$
178,725 $ 117,719
ASSET QUALITY
Allowance for Loan Losses Allowance for loan losses,
beginning of period
$ 16,797 $ 17,416 $ 17,432 $
17,497
$ 17,416 $ 17,505 Provision for loan losses
- - 600 893
- 1,793 Charge-offs
965 693 937
1,033
1,658 2,032 Recoveries
97
74 321
73 171
164 Net charge-offs
868 619
616 960
1,487 1,868
Allowance for loan losses, end of period
$ 15,929
$ 16,797 $
17,416 $ 17,430
$ 15,929
$ 17,430 Nonperforming
Assets Nonperforming loans
$ 15,681 $ 16,988 $
16,578 $ 19,907
$ 15,681 $ 19,907 Other real estate
owned
793 772
772 1,016
793
1,016 Total nonperforming assets
$ 16,474
$ 17,760 $
17,350 $ 20,923
$ 16,474
$ 20,923 Ratios
Total nonperforming loans to total loans
1.68 % 1.84
% 1.78 % 2.19 %
1.68 % 2.19 % Total nonperforming
assets to total assets
1.33 % 1.41 % 1.40 % 1.69 %
1.33 % 1.69 % Net charge-offs to average loans (2)
0.37 % 0.27 % 0.26 % 0.42 %
0.32 % 0.42
% Provision for loan losses to average loans (2)
0.00
% 0.00 % 0.26 % 0.39 %
0.00 % 0.40 % Allowance
for loan losses to portfolio loans
1.71 % 1.82 % 1.87
% 1.92 %
1.71 % 1.92 % Allowance to nonperforming
loans
101.58 % 98.88 % 105.05 % 87.56 %
101.58
% 87.56 % Allowance to nonperforming assets
96.69
% 94.58 % 100.38 % 83.31 %
96.69 % 83.31 %
CAPITAL & LIQUIDITY Period-end tangible common
equity to assets**
7.90 % 7.75 % 7.69 % 7.29 %
7.90 % 7.29 % Average equity to assets
9.36
% 9.35 % 9.25 % 8.79 %
9.36 % 8.72 % Average
equity to loans
12.55 % 12.53 % 12.35 % 11.96 %
12.57 % 11.86 % Average loans to deposits
87.68 % 87.93 % 88.21 % 85.96 %
87.60 %
85.92 % Tier 1 leverage ratio (3) 9.21 % 9.19 % 9.10 % 8.77 %
9.21 % 8.77 % Tier 1 risk-based capital ratio (3)
11.18 % 10.86 % 11.26 % 11.17 %
11.18 % 11.17 % Total
risk-based capital ratio (3) 12.43 % 12.11 % 12.51 % 12.43 %
12.43 % 12.43 % (1) FTE -- fully tax
equivalent at 34% tax rate (2) Annualized
(3) The June 30, 2015 and March 31, 2015
Tier I leverage ratio was prepared under Basel III capital
requirements, which were effective January 1, 2015. Prior year
ratios were prepared under Basel I requirements.
(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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150804005995/en/
LNB Bancorp, Inc.Peter R. Catanese, 440-244-7126Senior Vice
President
(MM) (NASDAQ:LNBB)
Historical Stock Chart
From May 2024 to Jun 2024
(MM) (NASDAQ:LNBB)
Historical Stock Chart
From Jun 2023 to Jun 2024