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LNB Bancorp Inc. Reports Operating Results (10-Q)

May 14, 2010 | About:
10qk

10qk

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LNB Bancorp Inc. (LNBB) filed Quarterly Report for the period ended 2010-03-31.

Lnb Bancorp Inc. has a market cap of $42.1 million; its shares were traded at around $5.73 with and P/S ratio of 0.6. The dividend yield of Lnb Bancorp Inc. stocks is 0.8%.

Highlight of Business Operations:

Net income was $1,331 for the first quarter of 2010. Net income available to common shareholders was $1,012 and earnings per diluted common share for the first quarter of 2010 were $0.14. This compares to $1,018 or $.14 per diluted common share for the first quarter of 2009.

First quarter 2010 net interest income totaled $9,779, compared to $8,898 for the first quarter of 2009. Net interest income on a fully taxable equivalent basis for the first quarter of 2010 was $9,904, a 9.81% increase compared with $9,019 for the first quarter of 2009. The increase in net interest income was driven largely by the effect of lower market interest rates on the funding side while average earning assets decreased 1.02% compared to the prior year. As a result, the first quarter 2010 net interest margin improved 36 basis points to 3.69%, up from 3.33% one year ago.

During the first quarter of 2010, overall loan demand was weak as total loans ended the quarter at $792,585 compared to $803,197 at December 31, 2009. Total assets for the first quarter ended at $1,158,763 compared to $1,149,509 at the end of 2009. Total deposits grew to $979,052 at the end of the first quarter of 2010, up from $971,433 at December 31, 2009. The growth in deposits came in the form of core deposits improving liquidity while reducing costs.

Given the current economic conditions the Corporation continues to work through asset quality challenges. At March 31, 2010 the Corporations non-performing assets totaled $44,374 or 3.83% of total assets compared to $40,101 or 3.49% at December 31, 2009. As a result of the increase, the allowance for possible loan losses increased from $18,792 at December 31, 2009 to $19,183 at March 31, 2010. The allowance to total loans at March 31, 2010 equals 2.42% compared to 2.34% at December 31, 2009.

Net interest income, before provision for loan losses, was $9,779 for the first quarter of 2010 compared to $8,898 during the same quarter of 2009. Adjusting for tax-exempt income, net interest income FTE, before provision for loan losses, for the first quarter of 2010 and 2009 was $9,904 and $9,019, respectively. The net interest margin FTE, determined by dividing tax equivalent net interest income by average earning assets, was 3.69% for the three months ended March 31, 2010 compared to 3.33% for the three months ended March 31, 2009.

Average earning assets for the first quarter of 2010 were $1,088,093. This was a decrease of $11,217 or 1.02% compared to the same quarter last year. Given the extended period of lower market interest rates, the yield on average earning assets was 5.00% in the first quarter of 2010 compared to 5.40% for the same period last year. The yield on average loans during the first quarter of 2010 was 5.49%. This was 35 basis points lower than that of the first quarter of 2009 at 5.84%. Interest income from securities was $2,601 (FTE) for the three months ended March 31, 2010, compared to $3,002 during the first quarter of 2009. The yield on average securities was 4.12% and 4.85% for these periods, respectively.

Read the The complete Report

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