LNB Bancorp Inc. (LNBB, Financial) filed Quarterly Report for the period ended 2009-06-30.
LNB Bancorp Inc. is a financial holding company. LNB Bancorp Inc. has a market cap of $50.4 million; its shares were traded at around $6.895 with a P/E ratio of 17.7 and P/S ratio of 0.7. The dividend yield of LNB Bancorp Inc. stocks is 5.2%.
Second quarter earnings were significantly impacted by higher credit cost as the Corporation provided $2,484 for possible loan losses. The provision for the second quarter on a per share basis equaled $.34 compared to $.25 for the first quarter of 2009 and $.64 per share for the second quarter of 2008. Net charge-offs of $1,081 for the quarter were down $805 from $1,886 for the first quarter of the year, however the collateral value of problem loans continued to decline leading to the higher provision. For the six month period, the provision for loan losses equaled $.59 and $.70 for 2009 and 2008, respectively. By comparison, the provision expense for the year ended December 31, 2007 was $2,225 or $.32 per share.
Net interest income on the fully tax-equivalent basis (FTE) for the quarter ended June 30, 2009 was $9,274 compared to $8,244 for the same period one year ago. The net interest margin declined from 3.35% in the second quarter of 2008 to 3.28% in 2009 as the yield on earning assets dropped from 5.92% in 2008 to 5.13% in 2009, or 79 basis points. During the same period the cost of interest bearing liabilities fell from 2.86% in 2008 to 2.11% in 2009, a decline of 75 basis points. Total loans averaged $808,436 for the second quarter of 2009 compared to $764,690 in 2008. Installment loans and home equity lines of credit accounted for a significant portion of the growth, installments increased $20,508 and home equities $19,105, commercial loans for the same period increased $12,992. Mortgage loans decreased by $8,859 as the Corporation continues to sell new production to Freddie Mac rather than adding them to the loan portfolio. During the second quarter, $15,944 of mortgage loans were sold. Over the past year the Corporation has seen a strong continued growth in deposits, primarily time deposits, in both consumer and public funds, reducing its reliance on non-core funding alternatives.
During the second quarter of 2009, the Corporation accrued an additional $550 for a FDIC special assessment bringing FDIC expense to $976 for the quarter compared to $37 one year ago, a difference of $939 or $.13 per share. For the six months ended June 30, 2009, FDIC expense was $1,289 compared to $61 in 2008, an increase of $1,228 or $.17 per share. The higher FDIC expense is a result of an increase in the assessment rate that took effect during the first quarter of 2009 and a special assessment imposed during the second quarter of 2009. Total noninterest expense for the second quarter of 2009 was $9,480, including $976 of FDIC expense, compared to $8,840, including $37 of FDIC expense, for the same period of 2008 and for the first half of 2009 was $17,840, including $1,289 of FDIC expense compared to $17,362, including $61of FDIC expense for 2008. Total noninterest expense excluding FDIC expense had decreased for both the quarter and year-to-date periods compared to 2008. The Corporation continues to be extremely diligent in controlling noninterest expenses. The Corporations efficiency ratio for the second quarter of 2009 was 75.73% compared to 77.56% for the same period of 2008 and for the first half of 2009, was 73.13% compared to 77.69% for the first half of 2008. Excluding FDIC expense, the efficiency ratio for the second quarter of 2009 was 67.93% and the first half of 2009 was 67.85%. The efficiency ratio excluding FDIC expense for the second quarter of 2008 was 77.23% and for the first half of 2008 was 77.42%.
Interest income FTE from loans was $23,011 for the first six months of 2009, and $24,583 for the first half of 2008. The yield on loans for the first half of 2009 and 2008 was 5.74% and 6.47%, respectively. Average loans increased $44,488, or 5.83%, over the same period 2008. Average installment loans (primarily indirect auto loans) increased $20,111 and average commercial loans increased $11,547 when comparing the first six months of 2009 to the first six months of 2008.
Interest expense was $10,847 for the first six months of 2009 compared to $13,898 for the first six months of 2008. Average interest-bearing liabilities increased $90,385, or 10.21%, to $975,838 for the first half of 2009 as compared to $885,453 for the first half 2008. Interest expense from deposits for the first half of the year was $9,504 in 2009 and $11,907 in 2008. Average interest-bearing deposits for the first half of 2009 increased $103,525 over the same period in 2008. The cost of deposits for the first half of 2009 decreased 92 basis points in comparison to the first half of 2008. During the six month period ending June 30, 2009, average brokered time deposits decreased $6,140 while average consumer time deposits increased $103,449 in comparison to the same period in 2008.
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LNB Bancorp Inc. is a financial holding company. LNB Bancorp Inc. has a market cap of $50.4 million; its shares were traded at around $6.895 with a P/E ratio of 17.7 and P/S ratio of 0.7. The dividend yield of LNB Bancorp Inc. stocks is 5.2%.
Highlight of Business Operations:
Net income was $516 for the second quarter of 2009, and $1,833 for the six months ended June 30, 2009. Net income available to common shareholders for the second quarter of 2009 was $197, or $0.03 per diluted common share. Net income available to common shareholders for the six months ended June 30, 2009 was $1,215, or $0.17 per diluted common share. This compares to a net loss of $1,135, or $.16 per diluted share, for the second quarter of 2008 and net income of $312, or $.04 per diluted share, for the six months ended June 30, 2008.Second quarter earnings were significantly impacted by higher credit cost as the Corporation provided $2,484 for possible loan losses. The provision for the second quarter on a per share basis equaled $.34 compared to $.25 for the first quarter of 2009 and $.64 per share for the second quarter of 2008. Net charge-offs of $1,081 for the quarter were down $805 from $1,886 for the first quarter of the year, however the collateral value of problem loans continued to decline leading to the higher provision. For the six month period, the provision for loan losses equaled $.59 and $.70 for 2009 and 2008, respectively. By comparison, the provision expense for the year ended December 31, 2007 was $2,225 or $.32 per share.
Net interest income on the fully tax-equivalent basis (FTE) for the quarter ended June 30, 2009 was $9,274 compared to $8,244 for the same period one year ago. The net interest margin declined from 3.35% in the second quarter of 2008 to 3.28% in 2009 as the yield on earning assets dropped from 5.92% in 2008 to 5.13% in 2009, or 79 basis points. During the same period the cost of interest bearing liabilities fell from 2.86% in 2008 to 2.11% in 2009, a decline of 75 basis points. Total loans averaged $808,436 for the second quarter of 2009 compared to $764,690 in 2008. Installment loans and home equity lines of credit accounted for a significant portion of the growth, installments increased $20,508 and home equities $19,105, commercial loans for the same period increased $12,992. Mortgage loans decreased by $8,859 as the Corporation continues to sell new production to Freddie Mac rather than adding them to the loan portfolio. During the second quarter, $15,944 of mortgage loans were sold. Over the past year the Corporation has seen a strong continued growth in deposits, primarily time deposits, in both consumer and public funds, reducing its reliance on non-core funding alternatives.
During the second quarter of 2009, the Corporation accrued an additional $550 for a FDIC special assessment bringing FDIC expense to $976 for the quarter compared to $37 one year ago, a difference of $939 or $.13 per share. For the six months ended June 30, 2009, FDIC expense was $1,289 compared to $61 in 2008, an increase of $1,228 or $.17 per share. The higher FDIC expense is a result of an increase in the assessment rate that took effect during the first quarter of 2009 and a special assessment imposed during the second quarter of 2009. Total noninterest expense for the second quarter of 2009 was $9,480, including $976 of FDIC expense, compared to $8,840, including $37 of FDIC expense, for the same period of 2008 and for the first half of 2009 was $17,840, including $1,289 of FDIC expense compared to $17,362, including $61of FDIC expense for 2008. Total noninterest expense excluding FDIC expense had decreased for both the quarter and year-to-date periods compared to 2008. The Corporation continues to be extremely diligent in controlling noninterest expenses. The Corporations efficiency ratio for the second quarter of 2009 was 75.73% compared to 77.56% for the same period of 2008 and for the first half of 2009, was 73.13% compared to 77.69% for the first half of 2008. Excluding FDIC expense, the efficiency ratio for the second quarter of 2009 was 67.93% and the first half of 2009 was 67.85%. The efficiency ratio excluding FDIC expense for the second quarter of 2008 was 77.23% and for the first half of 2008 was 77.42%.
Interest income FTE from loans was $23,011 for the first six months of 2009, and $24,583 for the first half of 2008. The yield on loans for the first half of 2009 and 2008 was 5.74% and 6.47%, respectively. Average loans increased $44,488, or 5.83%, over the same period 2008. Average installment loans (primarily indirect auto loans) increased $20,111 and average commercial loans increased $11,547 when comparing the first six months of 2009 to the first six months of 2008.
Interest expense was $10,847 for the first six months of 2009 compared to $13,898 for the first six months of 2008. Average interest-bearing liabilities increased $90,385, or 10.21%, to $975,838 for the first half of 2009 as compared to $885,453 for the first half 2008. Interest expense from deposits for the first half of the year was $9,504 in 2009 and $11,907 in 2008. Average interest-bearing deposits for the first half of 2009 increased $103,525 over the same period in 2008. The cost of deposits for the first half of 2009 decreased 92 basis points in comparison to the first half of 2008. During the six month period ending June 30, 2009, average brokered time deposits decreased $6,140 while average consumer time deposits increased $103,449 in comparison to the same period in 2008.
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