- On December 15, 2014, the
Corporation entered into an agreement with Northwest Bancshares to
be acquired and the transaction is expected to close during the
third quarter of 2015. Merger related expenses of $130,000 were
incurred during the quarter ended March 31, 2015.
- First quarter net income available
to common shareholders of $1.85 million, an increase of 17.6% as
compared to the same quarter one year ago.
- Non-performing assets declined by
$4.1 million, a decrease of 19% from the first quarter a year ago.
No loan loss provision taken for the quarter ended March 31,
2015.
- Entered the Stow, Ohio market, with
our 21st banking location.
LNB Bancorp, Inc. (NASDAQ: LNBB) (“LNB” or the “Company”) today
reported financial results for the first quarter 2015. Net income
available to common shareholders for the first quarter 2015 was
$1,847,000, or $0.19 per common share, compared to $1,571,000, or
$0.16 per common share, for the year-ago quarter.
Net interest income was $8.8 million for the first quarter of
2015, compared to $9.0 million in the first quarter of the prior
year, a decrease of 1.6%. The net interest margin, on a fully
taxable equivalent basis, for the first quarter of 2015 was 3.13%,
a decline of 8 basis points from the first quarter of 2014. The
decline can be attributed to the acceleration of the amortization
of premium on investment securities along with accelerated dealer
reserve on the indirect consumer portfolio.
Noninterest income was $3.0 million in the first quarter of
2015, compared to $2.9 million in the first quarter of the previous
year. “The gain on sale of loans was $660,000 this quarter. Our
gain on sale of mortgage loans increased as we saw an increased
level of loan volume in the quarter as compared to the first
quarter of 2014,” stated Daniel E. Klimas, president and chief
executive officer of LNB Bancorp. In addition, the bank had net
gains on the sale of securities of $192,000 this quarter.
Trust and Investment Management fee income was $422,000 in the
first quarter, an increase of 5.5% compared to the first quarter in
2014. “During the first quarter we saw a nice increase in new
relationships and we look to continue growing this business in
2015,” stated Daniel E. Klimas.
The Company continued to make progress on improving credit
quality in the first quarter of 2015, as non-performing assets
declined $4.1 million from the same quarter in 2014. The ratio of
non-performing assets to total assets at March 31, 2015 was 1.41%,
down from 1.74% at March 31, 2014.
No provision for loan losses was taken in the first quarter of
2015, as compared to a provision of $900,000 taken in the first
quarter of 2014, reflecting the Company’s improvement in credit
quality and net loss history. Net charge-offs were $619,000 for the
first quarter of 2015, or 0.27% of average loans (annualized),
compared to $908,000, or 0.41% of average loans (annualized), in
the first quarter of 2014.
Loan balances grew by $14.9 million or 1.7% compared to the
first quarter of 2014, led by the commercial and indirect auto loan
portfolios.
Noninterest expense was $9.2 million, compared to $8.9 million
in the first quarter of 2014. In the first quarter of 2015, in
connection with the pending merger with Northwest Bancshares, the
Corporation recognized $130,000 in merger-related expense. The
Company also recognized expense of $270,000 related to a
nonrecurring loss in branch operations.
Total assets at March 31, 2015 were $1.26 billion, little change
from March 31, 2014. Total deposits at March 31, 2015 were $1.07
billion, down $7.8 million, or 0.7%, from March 31, 2014. Effective
January 1, 2015, the Corporation became subject to the Basel III
capital framework and standardized approach for calculating
risk-weighted assets. At March 31, 2015, Basel III capital ratios
remain well in excess of applicable regulatory requirements, with
estimated total risk-based capital ratio of 12.11%, and a common
equity tier 1 risk-based capital ratio of 9.29%.
About LNB Bancorp, Inc.
LNB Bancorp, Inc. is a $1.27 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; 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, or errors or fraudulent behavior
of employees or third-parties, 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 proposed 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 requisite shareholder and regulatory
approvals for the proposed merger might not be obtained.
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
March 31, 2015 At December 31, 2014
(unaudited) (Dollars in thousands except
share amounts) ASSETS Cash and due from banks
$
37,297 $ 17,927 Federal funds sold and interest bearing
deposits in banks
27,623
6,215 Cash and cash equivalents
64,920
24,142 Securities available for sale, at fair value
203,848
217,572 Restricted stock
5,741 5,741 Loans held for sale
4,652 3,646 Loans: Portfolio loans
924,403 930,025
Allowance for loan losses
(16,797
) (17,416 )
Net loans
907,606
912,609 Bank premises and equipment, net
9,302 9,173 Other real estate owned
772 772 Bank
owned life insurance
19,928 19,757 Goodwill, net
21,582 21,582 Intangible assets, net
288 321 Accrued
interest receivable
3,611 3,635 Other assets
14,199 17,677
Total Assets $
1,256,449 $
1,236,627 LIABILITIES AND
SHAREHOLDERS' EQUITY Deposits Demand and other
noninterest-bearing
$ 153,758 $ 158,476 Savings,
money market and interest-bearing demand
460,282 436,271
Certificates of deposit
454,971
440,178 Total deposits
1,069,011 1,034,925
Short-term borrowings
637 10,611 Federal Home Loan
Bank advances
46,974 54,321 Junior subordinated debentures
16,238 16,238 Accrued interest payable
591 596
Accrued taxes, expenses and other liabilities
5,468 4,597
Total Liabilities 1,138,919
1,121,288 Shareholders'
Equity Fixed rate cumulative preferred stock, Series B, no par
value, $1,000 liquidation value, no shares were issued at March 31,
2015 and no shares were issued at December 31, 2014.
- -
Common stock, par value $1 per share, authorized 15,000,000 shares,
issued shares 10,005,009 at March 31, 2015
and 10,002,139 at December 31, 2014.
10,005 10,002 Additional paid-in capital
51,621
51,441 Retained earnings
62,125 60,568 Accumulated other
comprehensive income (loss)
140 (495 ) Treasury shares at
cost, 347,349 shares at March 31, 2015 and 336,745 at December 31,
2014
(6,361 )
(6,177 ) Total Shareholders'
Equity 117,530
115,339 Total Liabilities and Shareholders'
Equity $ 1,256,449
$ 1,236,627
Consolidated Statements of Income (unaudited)
Three Months Ended
Three Months Ended
March 31, March 31,
2015
2014 (Dollars in thousands except share and per share
amounts)
Interest Income Loans
$ 8,924 $ 8,928
Securities: U.S. Government agencies and corporations
939
1,028 State and political subdivisions
216 303 Other debt
and equity securities
67 117 Federal funds sold and
short-term investments
3
17 Total interest income
10,149 10,393
Interest Expense Deposits
1,022 1,082 Federal Home
Loan Bank advances
141 155 Short-term borrowings
- 26
Junior subordinated debenture
169
169 Total interest expense
1,332 1,432 Net
Interest Income 8,817 8,961
Provision for Loan
Losses - 900
Net interest income after provision for loan losses
8,817 8,061
Noninterest Income Investment and trust
services
422 400 Deposit service charges
768 770
Other service charges and fees
666 753 Income from bank
owned life insurance
171 169 Other income
98 151 Total fees
and other income
2,125 2,243 Securities gains, net
192 - Gains on sale of loans
660 703 Loss on sale of
other assets, net
-
(34 ) Total noninterest income
2,977 2,912
Noninterest Expense Salaries and employee
benefits
4,647 4,595 Furniture and equipment
1,286
1,148 Net occupancy
609 613 Professional fees
444 494
Marketing and public relations
385 400 Supplies, postage and
freight
261 214 Telecommunications
157 151 Ohio
Financial tax
210 224 Intangible asset amortization
33 33 FDIC assessments
223 272 Other real estate
owned
7 24 Loan and collection expense
315 298 Other
expense
612 393
Total noninterest expense
9,189
8,859 Income before income tax expense
2,605 2,114 Income tax expense
758 508 Net
Income $ 1,847
$ 1,606 Dividends and accretion on
preferred stock
- 35
Net Income Available to Common Shareholders
$ 1,847 $
1,571 Net Income Per Common Share
Basic
$ 0.19 $ 0.16 Diluted
0.19 0.16
Dividends declared
0.03 0.01
Average Common Shares
Outstanding Basic
9,639,880
9,615,128
Diluted
9,738,594
9,652,263
LNB Bancorp, Inc.
Supplemental Financial Information (Unaudited - Dollars in
thousands except Share and Per Share Data) Three Months
Ended
March 31, December 31, September 30, June 30, March
31,
END OF PERIOD BALANCES 2015
2014 2014 2014
2014 Cash and Cash Equivalents
$ 64,920 $ 24,142 $
36,167 $ 47,795 $ 68,241 Securities
203,848 217,572 218,847
219,422 217,510 Restricted stock
5,741 5,741 5,741 5,741
5,741 Loans held for sale
4,652 3,646 1,497 2,856 1,811
Portfolio loans
924,403 930,025 922,514 907,365 910,189
Allowance for loan losses
16,797
17,416 17,432
17,430 17,497 Net loans
907,606 912,609 905,082 889,935 892,692 Other assets
69,682 72,917
73,765 71,093
69,398 Total assets
$
1,256,449 $ 1,236,627
$ 1,241,099 $
1,236,842 $ 1,255,393 Total
deposits
1,069,011 1,034,925 1,056,784 1,048,938 1,076,851
Other borrowings
63,849 81,170 65,779 66,413 66,723 Other
liabilities
6,059
5,193 5,471
11,003 4,705 Total liabilities
1,138,919 1,121,288 1,128,034 1,126,354 1,148,279 Total
shareholders' equity
117,530
115,339 113,065
110,488 107,114 Total liabilities
and shareholders' equity
$
1,256,449 $ 1,236,627
$ 1,241,099 $
1,236,842 $ 1,255,393
AVERAGE BALANCES Assets: Total assets
$
1,240,485 $ 1,233,457 $ 1,228,769 $ 1,236,203 $ 1,234,380
Earning assets*
1,157,066 1,160,953 1,151,577 1,154,063
1,150,500 Securities
206,665 219,861 217,791 223,198 217,754
Portfolio loans
925,565 924,216 915,773 907,851 906,843
Liabilities and shareholders' equity: Total deposits
$
1,052,598 $ 1,047,688 $ 1,044,021 $ 1,056,143 $ 1,055,979
Interest bearing deposits
881,380 876,897 883,713 905,837
910,339 Interest bearing liabilities
948,111 943,339 951,143
972,784 978,073 Total shareholders' equity
116,017 114,135
111,394 108,624 106,681
INCOME STATEMENT Total
Interest Income
$ 10,149 $ 10,648 $ 10,350 $ 10,612 $
10,393 Total Interest Expense
1,332
1,370 1,374
1,376 1,432 Net interest income
8,817 9,278 8,976 9,236 8,961 Provision for loan losses
- 600 720 893 900 Other income
2,125 2,435 2,289
2,322 2,243 Net gain on sale of assets
852 956 1,072 929 669
Noninterest expense
9,189
9,907 8,818
8,798 8,859 Income before income
taxes
2,605 2,162 2,799 2,796 2,114 Income tax expense
758 660
713 773 508
Net income
1,847 1,502 2,086 2,023 1,606 Preferred stock
dividend and accretion
-
- - -
35 Net income available to common shareholders
$ 1,847 $
1,502 $ 2,086 $
2,023 $ 1,571 Common cash
dividend declared and paid
$
290 $ 290
$ 97 $ 97
$ 97 Net interest income-FTE (1)
$ 8,923 $ 9,436 $ 9,135 $ 9,396 $ 9,117 Total
Operating Revenue (4)
$ 11,900 $ 12,827 $ 12,496 $
12,647 $ 12,029 Three Months Ended
March 31,
December 31, September 30, June 30,
March 31,
2015
2014 2014 2014
2014
PER SHARE DATA Basic net income
per common share
$ 0.19 $ 0.16 $ 0.22 $ 0.21 $ 0.16
Diluted net income per common share
0.19 0.15 0.22 0.21 0.16
Cash dividends per common share
0.03 0.03 0.01 0.01 0.01
Book value per common shares outstanding
12.17 11.93 11.70
11.43 11.08 Tangible book value per common shares outstanding**
9.91 9.67 9.43 9.16 8.81 Period-end common share market
value
17.84 18.03 14.29 12.18 11.42 Market as a % of
tangible book
180.11 % 186.51 % 151.57 % 132.97 %
129.69 % Basic average common shares outstanding
9,639,880
9,626,842 9,626,536
9,626,420
9,615,128
Diluted average common shares outstanding
9,738,594
9,692,065
9,659,254
9,643,892
9,652,263
Common shares outstanding
9,657,660 9,665,394 9,665,394
9,664,972 9,664,972
KEY RATIOS Return on average
assets (2)
0.60
%
0.48 % 0.67 % 0.66 % 0.53 % Return on average common equity (2)
6.46
%
5.22 % 7.43 % 7.47 % 6.11 % Efficiency ratio
77.22 %
77.24 % 70.57 % 69.57 % 73.65 % Noninterest expense to average
assets (2)
3.00
%
3.19 % 2.85 % 2.85 % 2.91 % Average equity to average assets
9.35 % 9.25 % 9.07 % 8.79 % 8.64 % Net interest
margin (FTE) (1)
3.13
%
3.22 % 3.15 % 3.27 % 3.21 % Common stock dividend payout ratio
15.82 % 19.36 % 4.63 % 4.79 % 6.18 % Common stock
market capitalization
$ 172,293 $ 174,267 $ 138,118 $
117,719 $ 110,374
ASSET QUALITY Allowance
for Loan Losses Allowance for loan losses, beginning of period
$ 17,416 $ 17,432 $ 17,430 $ 17,497 $ 17,505
Provision for loan losses
- 600 720 893 900 Charge-offs
693 937 856 1,033 998 Recoveries
74 321
138 73
90 Net charge-offs
619 616
718 960
908 Allowance for loan losses, end of
period
$ 16,797
$ 17,416 $
17,432 $ 17,430
$ 17,497
Nonperforming Assets Nonperforming loans
$
16,988 $ 16,578 $ 18,193 $ 19,907 $ 20,918 Other real estate
owned
772 772
745 1,016
979 Total nonperforming assets
$ 17,760
$ 17,350 $
18,938 $ 20,923
$ 21,897
Ratios Total nonperforming loans to total loans
1.84
% 1.78 % 1.97 % 2.19 % 2.30 % Total nonperforming assets to
total assets
1.41 % 1.40 % 1.53 % 1.69 % 1.74 % Net
charge-offs to average loans (2)
0.27
%
0.26 % 0.31 % 0.42 % 0.41 % Provision for loan losses to average
loans (2)
0.00
%
0.26 % 0.31 % 0.39 % 0.40 % Allowance for loan losses to portfolio
loans
1.82 % 1.87 % 1.89 % 1.92 % 1.92 % Allowance to
nonperforming loans
98.88 % 105.05 % 95.82 % 87.56 %
83.65 % Allowance to nonperforming assets
94.58 %
100.38 % 92.05 % 83.31 % 79.91 %
CAPITAL &
LIQUIDITY Period-end tangible common equity to assets**
7.75 % 7.69 % 7.47 % 7.29 % 6.90 % Average equity to
assets
9.35 % 9.25 % 9.07 % 8.79 % 8.64 % Average
equity to loans
12.53 % 12.35 % 12.16 % 11.96 % 11.76
% Average loans to deposits
87.93 % 88.21 % 87.72 %
85.96 % 85.88 % Tier 1 leverage ratio (3) 9.19 % 9.10 % 9.01 % 8.77
% 8.61 % Tier 1 risk-based capital ratio (3) 10.86 % 11.26 % 11.09
% 11.17 % 10.90 % Total risk-based capital ratio (3) 12.11 % 12.51
% 12.34 % 12.42 % 12.15 %
(1) FTE -- fully tax equivalent at 34% tax rate
(2) Annualized
(3) The 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 Corporation
uses these non-GAAP financial measures, including the period-end
tangible common equity to assets ratio, in its analysis of the
Corporation's performance. Period-end tangible common equity
excludes preferred stock as well as goodwill and other intangible
assets, net, from total shareholders' 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, 440-244-7126Senior Vice
President
(MM) (NASDAQ:LNBB)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
(MM) (NASDAQ:LNBB)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024