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| 8-K - LNB BANCORP, INC. 8-K - LNB BANCORP INC | a50972061.htm |
Exhibit 99.1
LNB Bancorp, Inc. Reports Third Quarter 2014 Results
- Net Income Available to Common Shareholders of $2.1 million, a 48% year-over-year increase
- Loans increased by $15.1 million or 6.7% annualized during the quarter
- Improved asset quality and lower net charge-offs resulted in a reduced provision for loan losses
- 36% increase in noninterest income from higher gains on sale of loans and improved trust income
LORAIN, Ohio--(BUSINESS WIRE)--October 29, 2014--LNB Bancorp, Inc. (NASDAQ: LNBB) (“LNB” or the “Company”) today reported financial results for the third quarter 2014. Net income available to common shareholders for the quarter ending September 30, 2014 was $2.1 million, or $0.22 per common share, compared to $1.4 million, or $0.15 per common share, for the third quarter 2013, an increase of 48%, or 47% on a per common share basis. For the nine months ended September 30, 2014, net income available to common shareholders was $5.7 million, or $0.59 per common share, compared to $4.0 million, or $0.44 per common share for the year ago period. This represents an increase in net income available to common shareholders of $1.7 million, or 43%, and $0.15, or 34%, per common share.
Loan balances at September 30, 2014 increased by $31 million compared to the third quarter of 2013, led by the consumer and commercial loan portfolios. Loan balances grew by $15.1 million for the three month period ended September 30, 2014 compared to the second quarter of 2014 (linked quarter), resulting in an annualized growth rate of 6.7%.
The Company continued to make progress on improving credit quality as non-performing assets for the third quarter declined $7 million as compared to the same quarter in 2013. The ratio of non-performing assets to total assets at September 30, 2014, was 1.53%, down from 2.14% at September 30, 2013.
“Overall, we are very pleased with the third quarter results. We’ve seen solid loan growth and improvement in credit quality continued, reducing charge-offs and the provision for loan losses,” stated Daniel E. Klimas, president and chief executive officer.
Noninterest income was $3.4 million for the third quarter of 2014 compared to $2.5 million for the prior-year third quarter. This year-over-year increase was driven primarily by gains on the sale of SBA (Small Business Administration) and consumer loans and an increase in Trust Department revenues, which more than offset the decline in gains on the sale of mortgage loans and lower deposit and service charge fees.
Gain on the sale of loans was $1.1 million for the quarter, compared to $374,000 for the third quarter of 2013. This increase is primarily due to the gain on the sale of SBA loans as this initiative continued to contribute nicely to the Company’s operating performance.
The provision for loan losses was $720,000 in the third quarter of 2014, down $230,000, or 24%, from the 2013 third quarter, reflecting the Company’s improvement in credit quality and covering slightly more than net charge-offs for the quarter. Net charge-offs were $718,000 for the third quarter of 2014, or 0.31% of average loans (annualized), compared to $974,000, or 0.44% of average loans (annualized), in the third quarter of 2013. The allowance for loan losses was $17.4 million, or 1.89% of total loans, at September 30, 2014 compared with $17.8 million, or 2.00% of total loans, at September 30, 2013. The allowance for loan losses coverage of nonperforming loans at the end of the third quarter improved to 96% from 71% at the end of the same quarter a year ago. “The credit quality indicators continued to improve, resulting in a lower provision this past quarter,” stated Klimas.
Noninterest expense was $8.8 million for the third quarter of 2014 compared with $8.3 million for the third quarter of 2013, an increase of 6.0%. Salaries and benefits costs were higher due to additions of staff in revenue producing areas. Noninterest expense for the first nine months of 2014 totaled $26.5 million, a $271,000 decrease from the same period a year ago.
The Company continued to maintain capital levels in excess of the regulatory requirements to be categorized as “well capitalized” with a total risk-based capital ratio of 12.34%, Tier 1 leverage ratio of 9.01% and tangible common equity to tangible assets ratio of 7.47% at September 30, 2014.
Total assets at September 30, 2014 were $1.24 billion, up $31 million, or 2.5%, from September 30, 2013. Total deposits at September 30, 2014 were $1.06 billion, up $25 million, or 2.4%, from September 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 September 30, 2014 | At December 31, 2013 | |||||||
| (unaudited) | ||||||||
| (Dollars in thousands except share amounts) | ||||||||
| ASSETS | ||||||||
| Cash and due from Banks | $ | 29,804 | $ | 36,717 | ||||
| Federal funds sold and interest bearing deposits in banks | 6,363 | 15,555 | ||||||
| Cash and cash equivalents | 36,167 | 52,272 | ||||||
| Securities Available for sale, at fair value | 218,847 | 216,122 | ||||||
| Total securities | 218,847 | 216,122 | ||||||
| Restricted stock | 5,741 | 5,741 | ||||||
| Loans held for sale | 1,497 | 4,483 | ||||||
| Loans: | ||||||||
| Portfolio loans | 922,514 | 902,299 | ||||||
| Allowance for loan losses | (17,432 | ) | (17,505 | ) | ||||
| Net loans | 905,082 | 884,794 | ||||||
| Bank premises and equipment, net | 8,831 | 8,198 | ||||||
| Other real estate owned | 745 | 579 | ||||||
| Bank owned life insurance | 19,876 | 19,362 | ||||||
| Goodwill, net | 21,582 | 21,582 | ||||||
| Intangible assets, net | 356 | 457 | ||||||
| Accrued interest receivable | 3,714 | 3,621 | ||||||
| Other assets | 18,661 | 13,046 | ||||||
|
Total Assets |
$ | 1,241,099 | $ | 1,230,257 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Deposits | ||||||||
| Demand and other noninterest-bearing | $ | 153,952 | $ | 148,961 | ||||
| Savings, money market and interest-bearing demand | 451,150 | 393,778 | ||||||
| Certificates of deposit | 451,682 | 502,850 | ||||||
| Total deposits | 1,056,784 | 1,045,589 | ||||||
| Short-term borrowings | 2,674 | 4,576 | ||||||
| Federal Home Loan Bank advances | 46,867 | 46,708 | ||||||
| Junior subordinated debentures | 16,238 | 16,238 | ||||||
| Accrued interest payable | 674 | 789 | ||||||
| Accrued taxes, expenses and other liabilities | 4,797 | 4,901 | ||||||
| Total Liabilities | 1,128,034 | 1,118,801 | ||||||
| Shareholders' Equity | ||||||||
|
Preferred stock, Series A Voting, no par value, authorized 150,000 shares at September 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 September 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 10,002,139 at September 30, 2014 and 10,001,717 at December 31, 2013
|
10,002 | 10,002 | ||||||
| Additional paid-in capital | 51,336 | 51,098 | ||||||
| Retained earnings | 59,356 | 53,966 | ||||||
| Accumulated other comprehensive income (loss) | (1,452 | ) | (5,188 | ) | ||||
| Treasury shares at cost, 336,745 shares at September 30, 2014 and 328,194 at December 31, 2013 | (6,177 | ) | (6,092 | ) | ||||
| Total Shareholders' Equity | 113,065 | 111,456 | ||||||
| Total Liabilities and Shareholders' Equity | $ | 1,241,099 | $ | 1,230,257 | ||||
| Consolidated Statements of Income (unaudited) | |||||||||||||||
|
Three Months Ended |
Three Months Ended |
Nine Months Ended |
Nine Months Ended |
||||||||||||
| 2014 | 2013 | 2014 | 2013 | ||||||||||||
| (Dollars in thousands except share and per share amounts) | |||||||||||||||
| Interest Income | |||||||||||||||
| Loans | $ | 8,960 | $ | 8,973 | $ | 27,076 | $ | 27,291 | |||||||
| Securities: | |||||||||||||||
| U.S. Government agencies and corporations | 1,007 | 908 | 3,075 | 2,616 | |||||||||||
| State and political subdivisions | 311 | 301 | 924 | 887 | |||||||||||
| Other debt and equity securities | 66 | 115 | 250 | 337 | |||||||||||
| Federal funds sold and short-term investments | 6 | 7 | 30 | 23 | |||||||||||
| Total interest income | 10,350 | 10,304 | 31,355 | 31,154 | |||||||||||
| Interest Expense | |||||||||||||||
| Deposits | 1,026 | 1,200 | 3,131 | 3,685 | |||||||||||
| Federal Home Loan Bank advances | 158 | 158 | 470 | 469 | |||||||||||
| Short-term borrowings | 20 | - | 73 | 1 | |||||||||||
| Junior subordinated debenture | 170 | 171 | 508 | 511 | |||||||||||
| Total interest expense | 1,374 | 1,529 | 4,182 | 4,666 | |||||||||||
| Net Interest Income | 8,976 | 8,775 | 27,173 | 26,488 | |||||||||||
| Provision for Loan Losses | 720 | 950 | 2,513 | 3,350 | |||||||||||
| Net interest income after provision for loan losses | 8,256 | 7,825 | 24,660 | 23,138 | |||||||||||
| Noninterest Income | |||||||||||||||
| Investment and trust services | 425 | 363 | 1,281 | 1,178 | |||||||||||
| Deposit service charges | 850 | 923 | 2,469 | 2,608 | |||||||||||
| Other service charges and fees | 771 | 820 | 2,262 | 2,459 | |||||||||||
| Income from bank owned life insurance | 172 | 174 | 514 | 512 | |||||||||||
| Other income | 71 | (218 | ) | 328 | 335 | ||||||||||
| Total fees and other income | 2,289 | 2,062 | 6,854 | 7,092 | |||||||||||
| Securities gains (losses), net | - | - | (5 | ) | 178 | ||||||||||
| Gains on sale of loans | 1,056 | 374 | 2,649 | 1,617 | |||||||||||
| Gains (loss) on sale of other assets, net | 16 | 30 | 26 | (17 | ) | ||||||||||
| Total noninterest income | 3,361 | 2,466 | 9,524 | 8,870 | |||||||||||
| Noninterest Expense | |||||||||||||||
| Salaries and employee benefits | 4,649 | 4,200 | 13,754 | 13,451 | |||||||||||
| Furniture and equipment | 1,200 | 1,076 | 3,525 | 3,159 | |||||||||||
| Net occupancy | 568 | 564 | 1,784 | 1,701 | |||||||||||
| Professional fees | 421 | 337 | 1,341 | 1,413 | |||||||||||
| Marketing and public relations | 333 | 300 | 1,123 | 938 | |||||||||||
| Supplies, postage and freight | 243 | 228 | 675 | 809 | |||||||||||
| Telecommunications | 164 | 164 | 477 | 501 | |||||||||||
| Ohio Franchise tax | 224 | 304 | 671 | 914 | |||||||||||
| Intangible asset amortization | 34 | - | 101 | 102 | |||||||||||
| FDIC assessments | 255 | 293 | 788 | 773 | |||||||||||
| Other real estate owned | 5 | 155 | 66 | 280 | |||||||||||
| Loan and collection expense | 331 | 268 | 1,001 | 1,030 | |||||||||||
| Other expense | 391 | 412 | 1,169 | 1,133 | |||||||||||
| Total noninterest expense | 8,818 | 8,301 | 26,475 | 26,204 | |||||||||||
| Income before income tax expense | 2,799 | 1,990 | 7,709 | 5,804 | |||||||||||
| Income tax expense | 713 | 471 | 1,994 | 1,349 | |||||||||||
| Net Income | $ | 2,086 | $ | 1,519 | $ | 5,715 | $ | 4,455 | |||||||
| Dividends and accretion on preferred stock | - | 109 | 35 | 483 | |||||||||||
| Net Income Available to Common Shareholders | $ | 2,086 | $ | 1,410 | $ | 5,680 | $ | 3,972 | |||||||
| Net Income Per Common Share | |||||||||||||||
| Basic | $ | 0.22 | $ | 0.15 | $ | 0.59 | $ | 0.44 | |||||||
| Diluted | 0.22 | 0.15 | 0.59 | 0.44 | |||||||||||
| Dividends declared | 0.01 | 0.01 | 0.03 | 0.03 | |||||||||||
| Average Common Shares Outstanding | |||||||||||||||
| Basic | 9,626,536 | 9,213,170 | 9,622,737 | 8,840,945 | |||||||||||
| Diluted | 9,659,593 | 9,225,462 | 9,637,356 | 8,850,129 | |||||||||||
| LNB Bancorp, Inc. | |||||||||||||||||||||||||||||
| Supplemental Financial Information | |||||||||||||||||||||||||||||
| (Unaudited - Dollars in thousands except Share and Per Share Data) | |||||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
| END OF PERIOD BALANCES |
September 30, |
June 30, 2014 |
March 31, 2014 |
December 31, 2013 |
September 30, 2013 |
September 30, 2014 |
September 30, 2013 |
||||||||||||||||||||||
| Cash and Cash Equivalents | $ | 36,167 | $ | 47,795 | $ | 68,241 | $ | 52,272 | $ | 47,090 | $ | 36,167 | $ | 47,090 | |||||||||||||||
| Securities | 218,847 | 219,422 | 217,510 | 216,122 | 215,290 | 218,847 | 215,290 | ||||||||||||||||||||||
| Restricted stock | 5,741 | 5,741 | 5,741 | 5,741 | 5,741 | 5,741 | 5,741 | ||||||||||||||||||||||
| Loans held for sale | 1,497 | 2,856 | 1,811 | 4,483 | 2,110 | 1,497 | 2,110 | ||||||||||||||||||||||
| Portfolio loans | 922,514 | 907,365 | 910,189 | 902,299 | 891,300 | 922,514 | 891,300 | ||||||||||||||||||||||
| Allowance for loan losses | 17,432 | 17,430 | 17,497 | 17,505 | 17,791 | 17,432 | 17,791 | ||||||||||||||||||||||
| Net loans | 905,082 | 889,935 | 892,692 | 884,794 | 873,509 | 905,082 | 873,509 | ||||||||||||||||||||||
| Other assets | 73,765 | 71,093 | 69,398 | 66,845 | 66,762 | 73,765 | 66,762 | ||||||||||||||||||||||
| Total assets | $ | 1,241,099 | $ | 1,236,842 | $ | 1,255,393 | $ | 1,230,257 | $ | 1,210,502 | $ | 1,241,099 | $ | 1,210,502 | |||||||||||||||
| Total deposits | 1,056,784 | 1,048,938 | 1,076,851 | 1,045,589 | 1,032,245 | 1,056,784 | 1,032,245 | ||||||||||||||||||||||
| Other borrowings | 65,779 | 66,413 | 66,723 | 67,522 | 64,539 | 65,779 | 64,539 | ||||||||||||||||||||||
| Other liabilities | 5,471 | 11,003 | 4,705 | 5,690 | 5,757 | 5,471 | 5,757 | ||||||||||||||||||||||
| Total liabilities | 1,128,034 | 1,126,354 | 1,148,279 | 1,118,801 | 1,102,541 | 1,128,034 | 1,102,541 | ||||||||||||||||||||||
| Total shareholders' equity | 113,065 | 110,488 | 107,114 | 111,456 | 107,961 | 113,065 | 107,961 | ||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,241,099 | $ | 1,236,842 | $ | 1,255,393 | $ | 1,230,257 | $ | 1,210,502 | $ | 1,241,099 | $ | 1,210,502 | |||||||||||||||
| AVERAGE BALANCES | |||||||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||
| Total assets | $ | 1,228,769 | $ | 1,236,203 | $ | 1,234,380 | $ | 1,221,830 | $ | 1,213,502 | $ | 1,233,096 | $ | 1,214,339 | |||||||||||||||
| Earning assets* | 1,151,577 | 1,154,063 | 1,150,500 | 1,137,943 | 1,130,695 | 1,152,051 | 1,130,682 | ||||||||||||||||||||||
| Securities | 217,791 | 223,198 | 217,753 | 214,860 | 222,229 | 219,581 | 218,900 | ||||||||||||||||||||||
| Portfolio loans | 915,773 | 907,851 | 906,843 | 899,899 | 883,321 | 910,188 | 883,565 | ||||||||||||||||||||||
| Liabilities and shareholders' equity: | - | ||||||||||||||||||||||||||||
| Total deposits | $ | 1,044,021 | $ | 1,056,144 | $ | 1,055,980 | $ | 1,041,763 | $ | 1,036,149 | $ | 1,052,004 | $ | 1,035,760 | |||||||||||||||
| Interest bearing deposits | 883,713 | 905,838 | 910,340 | 891,589 | 896,937 | 899,866 | 896,997 | ||||||||||||||||||||||
| Interest bearing liabilities | 951,142 | 972,784 | 978,073 | 956,866 | 961,636 | 967,234 | 961,554 | ||||||||||||||||||||||
| Total shareholders' equity | 111,394 | 108,624 | 106,681 | 109,814 | 108,025 | 108,917 | 109,678 | ||||||||||||||||||||||
| INCOME STATEMENT | |||||||||||||||||||||||||||||
| Total Interest Income | $ | 10,350 | $ | 10,612 | $ | 10,393 | $ | 10,525 | $ | 10,304 | $ | 31,355 | $ | 31,154 | |||||||||||||||
| Total Interest Expense | 1,374 | 1,376 | 1,432 | 1,490 | 1,529 | 4,182 | 4,666 | ||||||||||||||||||||||
| Net interest income | 8,976 | 9,236 | 8,961 | 9,035 | 8,775 | 27,173 | 26,488 | ||||||||||||||||||||||
| Provision for loan losses | 720 | 893 | 900 | 1,025 | 950 | 2,513 | 3,350 | ||||||||||||||||||||||
| Other income | 2,289 | 2,322 | 2,243 | 2,524 | 2,062 | 6,854 | 7,092 | ||||||||||||||||||||||
| Net gain on sale of assets | 1,072 | 929 | 669 | 732 | 404 | 2,670 | 1,778 | ||||||||||||||||||||||
| Noninterest expense | 8,818 | 8,798 | 8,859 | 8,983 | 8,301 | 26,475 | 26,204 | ||||||||||||||||||||||
| Income before income taxes | 2,799 | 2,796 | 2,114 | 2,283 | 1,990 | 7,709 | 5,804 | ||||||||||||||||||||||
| Income tax expense | 713 | 773 | 508 | 577 | 471 | 1,994 | 1,349 | ||||||||||||||||||||||
| Net income | 2,086 | 2,023 | 1,606 | 1,706 | 1,519 | 5,715 | 4,455 | ||||||||||||||||||||||
| Preferred stock dividend and accretion | - | - | 35 | 163 | 109 | 35 | 483 | ||||||||||||||||||||||
| Net income available to common shareholders | $ | 2,086 | $ | 2,023 | $ | 1,571 | $ | 1,543 | $ | 1,410 | $ | 5,680 | $ | 3,972 | |||||||||||||||
| Common cash dividend declared and paid | $ | 97 | $ | 97 | $ | 97 | $ | 93 | $ | 93 | $ | 290 | $ | 265 | |||||||||||||||
| Net interest income-FTE (1) | $ | 9,135 | $ | 9,396 | $ | 9,117 | $ | 9,192 | $ | 8,934 | $ | 27,646 | $ | 26,962 | |||||||||||||||
| Total Operating Revenue (4) | $ | 12,496 | $ | 12,647 | $ | 12,029 | $ | 12,448 | $ | 11,400 | $ | 37,170 | $ | 35,832 | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | |||||||||||||||||||||||
| 2014 | 2014 | 2014 | 2013 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
| PER SHARE DATA | |||||||||||||||||||||||||||||
| Basic net income per common share | $ | 0.22 | $ | 0.21 | $ | 0.16 | $ | 0.16 | $ | 0.15 | $ | 0.59 | $ | 0.44 | |||||||||||||||
| Diluted net income per common share | 0.22 | 0.21 | 0.16 | 0.16 | 0.15 | 0.59 | 0.44 | ||||||||||||||||||||||
| Cash dividends per common share | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.03 | 0.03 | ||||||||||||||||||||||
| Book value per common shares outstanding | 11.70 | 11.43 | 11.08 | 10.73 | 10.62 | 11.70 | 10.62 | ||||||||||||||||||||||
| Tangible book value per common shares outstanding** | 9.43 | 9.16 | 8.81 | 8.45 | 8.25 | 9.43 | 8.25 | ||||||||||||||||||||||
| Period-end common share market value | 14.29 | 12.18 | 11.42 | 10.03 | 9.40 | 14.29 | 9.40 | ||||||||||||||||||||||
| Market as a % of tangible book | 151.57 | % | 132.97 | % | 129.69 | % | 118.69 | % | 113.93 | % | 151.57 | % | 113.93 | % | |||||||||||||||
| Basic average common shares outstanding | 9,626,536 | 9,664,972 | 9,668,297 | 9,379,355 | 9,213,170 | 9,622,737 | 8,840,945 | ||||||||||||||||||||||
| Diluted average common shares outstanding | 9,659,593 | 9,682,444 | 9,705,432 | 9,404,651 | 9,225,462 | 9,637,356 | 8,850,129 | ||||||||||||||||||||||
| Common shares outstanding | 9,665,394 | 9,664,972 | 9,664,972 | 9,673,523 | 9,303,702 | 9,665,394 | 9,303,702 | ||||||||||||||||||||||
| KEY RATIOS | |||||||||||||||||||||||||||||
| Return on average assets (ROA) (2) | 0.67 | % | 0.66 | % | 0.53 | % | 0.55 | % | 0.50 | % | 0.62 | % | 0.49 | % | |||||||||||||||
| Return on average common equity (ROE) (2) | 7.43 | % | 7.47 | % | 6.11 | % | 6.16 | % | 5.58 | % | 7.02 | % | 5.43 | % | |||||||||||||||
| Efficiency ratio | 70.57 | % | 69.57 | % | 73.65 | % | 72.16 | % | 72.82 | % | 71.23 | % | 73.13 | % | |||||||||||||||
| Noninterest expense to average assets (2) | 2.85 | % | 2.85 | % | 2.91 | % | 2.92 | % | 2.71 | % | 2.87 | % | 2.89 | % | |||||||||||||||
| Net interest margin (FTE) (1) | 3.15 | % | 3.27 | % | 3.21 | % | 3.20 | % | 3.13 | % | 3.21 | % | 3.19 | % | |||||||||||||||
| Common stock dividend payout ratio | 4.63 | % | 4.79 | % | 6.18 | % | 6.10 | % | 6.54 | % | 5.08 | % | 6.83 | % | |||||||||||||||
| Common stock market capitalization | $ | 138,118 | $ | 117,719 | $ | 110,374 | $ | 97,025 | $ | 87,455 | $ | 138,118 | $ | 87,455 | |||||||||||||||
| ASSET QUALITY | |||||||||||||||||||||||||||||
| Allowance for Loan Losses | |||||||||||||||||||||||||||||
| Allowance for loan losses, beginning of period | $ | 17,430 | $ | 17,497 | $ | 17,505 | $ | 17,791 | $ | 17,815 | 17,505 | 17,637 | |||||||||||||||||
| Provision for loan losses | 720 | 893 | 900 | 1,025 | 950 | 2,513 | 3,350 | ||||||||||||||||||||||
| Charge-offs | 856 | 1,033 | 998 | 1,570 | 1,354 | 2,888 | 4,449 | ||||||||||||||||||||||
| Recoveries | 138 | 73 | 90 | 259 | 380 | 302 | 1,253 | ||||||||||||||||||||||
| Net charge-offs | 718 | 960 | 908 | 1,311 | 974 | 2,586 | 3,196 | ||||||||||||||||||||||
| Allowance for loan losses, end of period | $ | 17,432 | $ | 17,430 | $ | 17,497 | $ | 17,505 | $ | 17,791 | $ | 17,432 | $ | 17,791 | |||||||||||||||
| Nonperforming Assets | |||||||||||||||||||||||||||||
| Nonperforming loans | $ | 18,193 | $ | 19,907 | $ | 20,918 | $ | 21,986 | $ | 24,976 | $ | 18,193 | $ | 24,976 | |||||||||||||||
| Other real estate owned | 745 | 1,016 | 979 | 579 | 951 | 745 | 951 | ||||||||||||||||||||||
| Total nonperforming assets | $ | 18,938 | $ | 20,923 | $ | 21,897 | $ | 22,565 | $ | 25,927 | $ | 18,938 | $ | 25,927 | |||||||||||||||
| Ratios | |||||||||||||||||||||||||||||
| Total nonperforming loans to total loans | 1.97 | % | 2.19 | % | 2.30 | % | 2.44 | % | 2.80 | % | 1.97 | % | 2.80 | % | |||||||||||||||
| Total nonperforming assets to total assets | 1.53 | % | 1.69 | % | 1.74 | % | 1.83 | % | 2.14 | % | 1.53 | % | 2.14 | % | |||||||||||||||
| Net charge-offs to average loans (2) | 0.31 | % | 0.42 | % | 0.41 | % | 0.58 | % | 0.44 | % | 0.38 | % | 0.48 | % | |||||||||||||||
| Provision for loan losses to average loans (2) | 0.31 | % | 0.39 | % | 0.40 | % | 0.45 | % | 0.43 | % | 0.37 | % | 0.51 | % | |||||||||||||||
| Allowance for loan losses to portfolio loans | 1.89 | % | 1.92 | % | 1.92 | % | 1.94 | % | 2.00 | % | 1.89 | % | 2.00 | % | |||||||||||||||
| Allowance to nonperforming loans | 95.82 | % | 87.56 | % | 83.65 | % | 79.62 | % | 71.23 | % | 95.82 | % | 71.23 | % | |||||||||||||||
| Allowance to nonperforming assets | 92.05 | % | 83.31 | % | 79.91 | % | 77.58 | % | 68.62 | % | 92.05 | % | 68.62 | % | |||||||||||||||
| CAPITAL & LIQUIDITY | |||||||||||||||||||||||||||||
| Period-end tangible common equity to assets** | 7.47 | % | 7.29 | % | 6.90 | % | 6.77 | % | 6.46 | % | 7.47 | % | 6.46 | % | |||||||||||||||
| Average equity to assets | 9.07 | % | 8.79 | % | 8.64 | % | 8.99 | % | 8.90 | % | 8.83 | % | 9.03 | % | |||||||||||||||
| Average equity to loans | 12.16 | % | 11.96 | % | 11.76 | % | 12.20 | % | 12.23 | % | 11.97 | % | 12.41 | % | |||||||||||||||
| Average loans to deposits | 87.72 | % | 85.96 | % | 85.88 | % | 86.38 | % | 85.25 | % | 86.52 | % | 85.31 | % | |||||||||||||||
| Tier 1 leverage ratio (3) | 9.01 | % | 8.77 | % | 8.61 | % | 9.22 | % | 8.95 | % | 9.01 | % | 8.95 | % | |||||||||||||||
| Tier 1 risk-based capital ratio (3) | 11.09 | % | 11.17 | % | 10.90 | % | 11.63 | % | 12.40 | % | 11.09 | % | 12.40 | % | |||||||||||||||
| Total risk-based capital ratio (3) | 12.34 | % | 12.43 | % | 12.15 | % | 12.89 | % | 12.65 | % | 12.34 | % | 12.65 | % | |||||||||||||||
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(1) |
FTE -- fully tax equivalent at 34% tax rate |
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(2) |
Annualized |
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(3) |
9-30-14 ratio is estimated. |
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(4) |
Net interest income on a fully tax-equivalent basis ("FTE") plus noninterest income from operations |
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* |
Earning Assets includes Loans Held for Sale |
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** |
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.
CONTACT:
LNB Bancorp, Inc.
Peter R. Catanese, Senior Vice
President, 440-244-7126