LSB Corp. (LSBX, Financial) filed Quarterly Report for the period ended 2010-09-30.
Lsb Corp. has a market cap of $93.9 million; its shares were traded at around $20.825 with a P/E ratio of 17.1 and P/S ratio of 2.2. The dividend yield of Lsb Corp. stocks is 1.7%. Lsb Corp. had an annual average earning growth of 1.5% over the past 10 years.LSBX is in the portfolios of Jim Simons of Renaissance Technologies LLC.
amounts due according to the contractual terms of the loan agreement. Impaired loans totaled $8.5 million and $7.3 million at September 30, 2010 and December 31, 2009, respectively, with specific reserves of $117,000 and $415,000, respectively. Of the $8.5 million in impaired loans, $1.6 million represent modifications on residential, owner-occupied properties at September 30, 2010. Additionally, one construction loan for residential condominiums with a balance of $1.3 million and four commercial rentals from the same project with an aggregate balance of $1.3 million were modified at a lower interest rate as the project experienced a slow down in sales activity during the winter months of 2009. This construction loan and related rental units totaled $2.6 million at September 30, 2010, down from a combined balance of $4.9 million in December 2009 and $4.1 million as of June 30, 2010, are included in the accruing loan portfolio. The Company does not have collateral concerns and the loans remained current on their respective payment status. The remaining impaired loans are reported as nonaccrual loans in the table below in their respective loan category. All of the impaired loans at September 30, 2010, have been measured using either the fair value of the collateral method or the estimated cash flow method. The Company had impaired loans totaling $4.6 million at September 30, 2009, with specific reserves of $50,000.
Deposits decreased by $17.7 million during the first nine months of 2010 to $475.1 million at September 30, 2010, from $492.8 million at December 31, 2009. Core deposits, consisting of NOW accounts, demand deposit accounts, savings accounts and money market accounts, increased $10.3 million, or 4.1%, amounting to $262.7 million at September 30, 2010, compared to $252.4 million at December 31, 2009. Savings accounts experienced an increase of $10.3 million from December 31, 2009, to $101.0 million at September 30, 2010, primarily due to higher-rate promotional accounts. NOW and demand deposit accounts increased $4.3 million and $4.1 million, respectively, from December 31, 2009, to $25.0 million and $38.5 million, respectively, at September 30, 2010. Money market accounts decreased $8.5 million to $98.2 million at September 30, 2010. Term deposits, comprised of brokered and retail certificates of deposit, decreased $27.9 million, or 11.6%, totaling $212.5 million at September 30, 2010, versus $240.4 million at December 31, 2009. Retail certificates of deposit decreased $13.6 million to $197.5 million at September 30, 2010, while brokered certificates of deposit decreased $14.4 million to $15.0 million at September 30, 2010. The decrease in brokered deposits reflects maturities of $14.4 million.
Borrowed funds consist of long-term Federal Home Loan Bank of Boston (FHLBB) advances, securities sold under agreements to repurchase and subordinated debt. Total borrowed funds amounted to $235.6 million at September 30, 2010, compared to $259.1 million at December 31, 2009, a decrease of $23.5 million or 9.1%. Short-term borrowings increased $619,000 from December 31, 2009, while long-term FHLBB borrowed funds decreased $24.1 million due to maturing advances totaling $28.0 million and $5.0 million in prepayments. Wholesale repurchase agreements remained stable at $40.0 million at both September 30, 2010 and December 31, 2009. In October 2009, the Bank entered into a subordinated debt agreement for $6.0 million on an unsecured basis with a final maturity in October 2016. The subordinated agreement calls for a fixed interest rate of 8.5% and equal annual principal payments of $1.2 million commencing on the third anniversary of the agreement. The entire amount of the subordinated debt was included as part of the Banks Tier 2 capital for regulatory purposes at both September 30, 2010 and December 31, 2009. The Company reduced its borrowing position with a view toward lessening the Companys exposure to rate fluctuations that may occur in the coming year.
Non-interest income increased $166,000 or 15.1% for the three months ended September 30, 2010, compared to the same period in 2009, to $1.3 million in 2010 compared to income of $1.1 million in 2009. The largest factor in the increase in 2010 was the increase in gains on sales of securities which increased $116,000 to $688,000 from $572,000 in the third quarter of 2010 versus 2009, respectively. Deposit account fees decreased slightly to $249,000 from $253,000 for the three months ended September 30, 2010 and 2009, respectively. Loan servicing fees increased by $42,000 to $76,000 from $34,000 for the three months ended September 30, 2010 and 2009, respectively, due to the increase in late, prepayment document and modification fees on loans and the absence of amortization of serviced loan fees. Income on bank-owned life insurance remained stable at $116,000 for the three months ended September 30, 2010 from $115,000 for the same period in 2009. Other income increased $11,000 or 9.0% to $133,000 from $122,000 for the three months ended September 30, 2010 and 2009, respectively, due to an increase in ATM and debit card fees.
Non-interest expenses increased $958,000, or 29.3%, during the third quarter of 2010 to $4.2 million versus $3.3 million for the same period of 2009 primarily resulting from merger expenses of $475,000 incurred in 2010 related to our pending acquisition by Peoples United and an increase in salaries and benefits of $454,000, or 27.6%, to $2.1 million from $1.6 million in the third quarter of 2010 and 2009, respectively, due primarily to increases in bonuses, medical and dental insurance coupled with a reduction in deferred salaries resulting from fewer loan closings in 2010. Occupancy and equipment expense increased $65,000, or 18.2%, to $422,000 in the third quarter of 2010 from $357,000 in the same period of 2009 due mainly to an increase in depreciation due to the opening of the newly relocated Lawrence and Methuen, Massachusetts branches coupled with depreciation of obsolete equipment amounting to $17,000 and an increase in rent expense of $23,000. Data processing expense decreased $21,000, or 9.2%, to $207,000 from $228,000 in the third quarters of 2010 and 2009, respectively, due primarily to a decrease of $19,000 in computer software and license fees. Professional fees decreased $42,000, or 37.2%, to $71,000 in the third quarter of 2010 from $113,000 in the third quarter of 2009 due primarily to a decrease in audit fees resulting from the Companys exemption from the Sarbanes-Oxley reporting requirements. Marketing expenses decreased $49,000, or 42.2%, to $67,000 from $116,000 in 2010 and 2009, respectively, due primarily to a reduction in direct mail expenses. OREO expense totaled $184,000 in the three months ended September 30, 2010 compared to $4,000 in the same period of 2009 primarily due to several years of unpaid real estate taxes on foreclosed properties. FDIC deposit insura
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Lsb Corp. has a market cap of $93.9 million; its shares were traded at around $20.825 with a P/E ratio of 17.1 and P/S ratio of 2.2. The dividend yield of Lsb Corp. stocks is 1.7%. Lsb Corp. had an annual average earning growth of 1.5% over the past 10 years.LSBX is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
The Company recorded third quarter 2010 net income available to common shareholders of $1.1 million, or $0.25 per diluted common share, compared to $1.3 million, or $0.30 per diluted common share, for the third quarter of 2009. The largest factors affecting the quarterly results were the $518,000 improvement in net interest income, the increase in the provision for loan losses totaling $750,000 and $400,000 in the third quarter of 2010 versus 2009, merger expenses of $475,000 incurred in 2010 relating to our pending acquisition by Peoples United partially offset by gains on sales of investments totaling $688,000 and $572,000 in the third quarter of 2010 and 2009, respectively, as well as the preferred stock dividend and accretion of $215,000 in the third quarter of 2009.amounts due according to the contractual terms of the loan agreement. Impaired loans totaled $8.5 million and $7.3 million at September 30, 2010 and December 31, 2009, respectively, with specific reserves of $117,000 and $415,000, respectively. Of the $8.5 million in impaired loans, $1.6 million represent modifications on residential, owner-occupied properties at September 30, 2010. Additionally, one construction loan for residential condominiums with a balance of $1.3 million and four commercial rentals from the same project with an aggregate balance of $1.3 million were modified at a lower interest rate as the project experienced a slow down in sales activity during the winter months of 2009. This construction loan and related rental units totaled $2.6 million at September 30, 2010, down from a combined balance of $4.9 million in December 2009 and $4.1 million as of June 30, 2010, are included in the accruing loan portfolio. The Company does not have collateral concerns and the loans remained current on their respective payment status. The remaining impaired loans are reported as nonaccrual loans in the table below in their respective loan category. All of the impaired loans at September 30, 2010, have been measured using either the fair value of the collateral method or the estimated cash flow method. The Company had impaired loans totaling $4.6 million at September 30, 2009, with specific reserves of $50,000.
Deposits decreased by $17.7 million during the first nine months of 2010 to $475.1 million at September 30, 2010, from $492.8 million at December 31, 2009. Core deposits, consisting of NOW accounts, demand deposit accounts, savings accounts and money market accounts, increased $10.3 million, or 4.1%, amounting to $262.7 million at September 30, 2010, compared to $252.4 million at December 31, 2009. Savings accounts experienced an increase of $10.3 million from December 31, 2009, to $101.0 million at September 30, 2010, primarily due to higher-rate promotional accounts. NOW and demand deposit accounts increased $4.3 million and $4.1 million, respectively, from December 31, 2009, to $25.0 million and $38.5 million, respectively, at September 30, 2010. Money market accounts decreased $8.5 million to $98.2 million at September 30, 2010. Term deposits, comprised of brokered and retail certificates of deposit, decreased $27.9 million, or 11.6%, totaling $212.5 million at September 30, 2010, versus $240.4 million at December 31, 2009. Retail certificates of deposit decreased $13.6 million to $197.5 million at September 30, 2010, while brokered certificates of deposit decreased $14.4 million to $15.0 million at September 30, 2010. The decrease in brokered deposits reflects maturities of $14.4 million.
Borrowed funds consist of long-term Federal Home Loan Bank of Boston (FHLBB) advances, securities sold under agreements to repurchase and subordinated debt. Total borrowed funds amounted to $235.6 million at September 30, 2010, compared to $259.1 million at December 31, 2009, a decrease of $23.5 million or 9.1%. Short-term borrowings increased $619,000 from December 31, 2009, while long-term FHLBB borrowed funds decreased $24.1 million due to maturing advances totaling $28.0 million and $5.0 million in prepayments. Wholesale repurchase agreements remained stable at $40.0 million at both September 30, 2010 and December 31, 2009. In October 2009, the Bank entered into a subordinated debt agreement for $6.0 million on an unsecured basis with a final maturity in October 2016. The subordinated agreement calls for a fixed interest rate of 8.5% and equal annual principal payments of $1.2 million commencing on the third anniversary of the agreement. The entire amount of the subordinated debt was included as part of the Banks Tier 2 capital for regulatory purposes at both September 30, 2010 and December 31, 2009. The Company reduced its borrowing position with a view toward lessening the Companys exposure to rate fluctuations that may occur in the coming year.
Non-interest income increased $166,000 or 15.1% for the three months ended September 30, 2010, compared to the same period in 2009, to $1.3 million in 2010 compared to income of $1.1 million in 2009. The largest factor in the increase in 2010 was the increase in gains on sales of securities which increased $116,000 to $688,000 from $572,000 in the third quarter of 2010 versus 2009, respectively. Deposit account fees decreased slightly to $249,000 from $253,000 for the three months ended September 30, 2010 and 2009, respectively. Loan servicing fees increased by $42,000 to $76,000 from $34,000 for the three months ended September 30, 2010 and 2009, respectively, due to the increase in late, prepayment document and modification fees on loans and the absence of amortization of serviced loan fees. Income on bank-owned life insurance remained stable at $116,000 for the three months ended September 30, 2010 from $115,000 for the same period in 2009. Other income increased $11,000 or 9.0% to $133,000 from $122,000 for the three months ended September 30, 2010 and 2009, respectively, due to an increase in ATM and debit card fees.
Non-interest expenses increased $958,000, or 29.3%, during the third quarter of 2010 to $4.2 million versus $3.3 million for the same period of 2009 primarily resulting from merger expenses of $475,000 incurred in 2010 related to our pending acquisition by Peoples United and an increase in salaries and benefits of $454,000, or 27.6%, to $2.1 million from $1.6 million in the third quarter of 2010 and 2009, respectively, due primarily to increases in bonuses, medical and dental insurance coupled with a reduction in deferred salaries resulting from fewer loan closings in 2010. Occupancy and equipment expense increased $65,000, or 18.2%, to $422,000 in the third quarter of 2010 from $357,000 in the same period of 2009 due mainly to an increase in depreciation due to the opening of the newly relocated Lawrence and Methuen, Massachusetts branches coupled with depreciation of obsolete equipment amounting to $17,000 and an increase in rent expense of $23,000. Data processing expense decreased $21,000, or 9.2%, to $207,000 from $228,000 in the third quarters of 2010 and 2009, respectively, due primarily to a decrease of $19,000 in computer software and license fees. Professional fees decreased $42,000, or 37.2%, to $71,000 in the third quarter of 2010 from $113,000 in the third quarter of 2009 due primarily to a decrease in audit fees resulting from the Companys exemption from the Sarbanes-Oxley reporting requirements. Marketing expenses decreased $49,000, or 42.2%, to $67,000 from $116,000 in 2010 and 2009, respectively, due primarily to a reduction in direct mail expenses. OREO expense totaled $184,000 in the three months ended September 30, 2010 compared to $4,000 in the same period of 2009 primarily due to several years of unpaid real estate taxes on foreclosed properties. FDIC deposit insura
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