Exhibit 99
FOR IMMEDIATE RELEASE
Contacts:
W. John Fuller
Marketing and Investor Relations
Tel: (440) 978-7643
LNB BANCORP, INC. ANNOUNCES FIRST QUARTER FINANCIAL RESULTS
LORAIN, Ohio — April 29, 2005 —LNB Bancorp, Inc.(NASDAQ: LNBB), today announced financial results for the first quarter ended March 31, 2005.
For the quarter ended March 31, 2005, LNB Bancorp reported net income of $1,571,000 or $.24 per diluted share, compared with first quarter 2004 net income of $2,256,000, or $.34 per diluted share.
“Despite operating in a sluggish local economy, we were very pleased to see appreciable revenue gains in the first quarter. At the same time, we also experienced proportionally higher expense increases that resulted in an overall disappointing quarterly performance,” said Daniel E. Klimas, president and chief executive officer of LNB Bancorp.
“The focus of management and all of the associates of the Company is to build upon this positive revenue momentum while instilling an improved expense management culture,” said Klimas, who joined LNBB as president and chief executive officer in February this year.
Net interest income for the first quarter this year was $7,332,000, a $486,000, or 7.10 percent increase from the same quarter a year ago. “A more favorable rate environment helped us post healthy increases in commercial and home equity loans which resulted in the first net interest margin increase we have seen in two years,” said Klimas. The net interest margin for the first quarter this year was 4.12 percent, compared to 4.06 percent in the first quarter a year ago. Noninterest income was also up modestly on the strength of mortgage banking revenue and gains on the sale of loans.
“Asset quality continues to be a focus of the Company and we continue to review the portfolio and upgrade underwriting and other procedures as needed,” said Klimas. In the first quarter of 2005, net charge-offs were $240,000, or .17 percent of average loans annualized. This was down $196,000, or 45 percent from the same period last year. The provision for loan losses was $399,000 for the quarter, down 24 percent from the same period in 2004. Nonperforming loans were $6.6 million at March 31, 2005, representing a $1.7 million increase over December 31, 2004. This increase was primarily related to two commercial credits and does not reflect a general deterioration in the quality of the portfolio. The allowance for loan losses was $7,545,000 and $7,386,000 at March 31, 2005 and December 31, 2004, respectively.
Noninterest expense increased $1.7 million, or 28 percent, for the first quarter 2005 compared to the same quarter a year ago. The increases are attributable to salaries and benefit costs, marketing and public relations and net occupancy expenses.
Portfolio loans increased 8.3 percent in the first quarter 2005 to $574 million, compared to a year ago and represented a 1 percent gain over year-end 2004 portfolio loans. Commercial loans, which represent 61 percent of the Company’s portfolio, increased by $50 million, or 16.2 percent, in the first quarter over the comparable period a year ago and $16 million, or 4.7 percent, versus the quarter ended December 31, 2004. Consumer loans, which include installment, home equity and loans purchased from another financial institution, increased $9 million, or 7.6 percent, in the first quarter this year compared to the same quarter a year ago.
Total deposits increased 8.7 percent in the first quarter as compared to the same period in 2004. The Company also showed a $3.6 million increase in deposits for the first quarter compared to year-end 2004. Normally the first quarter of the year is a period of weak deposit growth; however time deposits were particularly strong in the quarter.
Total assets increased to $781.1 million, or 4.5 percent at March 31, 2005, compared to the same period a year ago. Capital ratios continue to be strong and the cash dividends declared per share remained at $.18 per share in the first quarter this year.
About LNB Bancorp, Inc.
LNB Bancorp, Inc., is a $781 million financial holding company with two wholly owned subsidiaries: The Lorain National Bank and Charleston Insurance Agency, Inc. and a 49-percent owned subsidiary, Charleston Title Agency, LLC. LNB Mortgage LLC and North Coast Community Development Corporation are wholly owned subsidiary of The Lorain National Bank. Brokerage services are provided by the bank through an agreement with Online Brokerage Services. 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.
This press release contains forward-looking statements based on current expectations that are covered under the “safe-harbor” provisions of the Securities Litigation Reform Act of 1995. Certain forward-looking statements, which involve inherent risks and uncertainties, are described in LNB Bancorp’s filings with the Securities and Exchange Commission. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include fluctuations in interest rates, inflation, government regulations, and economic conditions and competition in the geographic and business areas in which LNB Bancorp, Inc. conducts its operations.
