Exhibit 99.1
LNB Bancorp, Inc. Reports Fourth Quarter and Full Year 2013 Results
- Fourth quarter 2013 net income available to common shareholders of $1.5 million, up 16% from a year-ago.
- Full year 2013 net income available to common shareholders of $5.5 million, up 14% from last year
- Loan balances increased by $19.8 million, or 2% over prior year
- Nonperforming assets declined by $6.6 million, or 23%, from 2012
- Announced redemption of all outstanding Fixed Rate Cumulative Perpetual Preferred Stock, Series B
LORAIN, Ohio--(BUSINESS WIRE)--January 30, 2014--LNB Bancorp, Inc. (NASDAQ: LNBB) (“LNB” or the “Company”) today reported financial results for the fourth quarter and the full year ended December 31, 2013. For the fourth quarter 2013, net income was $1.7 million compared to $1.6 million for the fourth quarter of 2012. Net income available to common shareholders was $1.5 million for the fourth quarter of 2013, or $0.16 per common share, compared to $1.3 million, or $0.17 per common share, for the year-ago quarter.
“We are pleased to report another year of improved operating performance,” stated Daniel E. Klimas, president and chief executive officer of LNB Bancorp. “We continue to make progress on improving credit quality. Non-performing assets declined $3.4 million in the fourth quarter and $6.6 million in the year 2013 compared to the same period in 2012. The ratio of non-performing assets to total assets at December 31, 2013, was 1.83%, down from 2.48% at the end of 2012.”
Noninterest income for the year was $12.1 million, up $379,000 compared to 2012. This includes service charges, and the sale of mortgage and commercial loans. “We implemented our focused SBA initiative in the fourth quarter. This initiative resulted in a gain on sale of SBA loans of $531,000 in the fourth quarter of 2013. We are excited about the opportunities that this new sales strategy presents for 2014”, said Klimas.
Net income for the year ended December 31, 2013 was $6.2 million, compared with net income of $6.1 million for 2012. Net income available to common shareholders for 2013 was $5.5 million, or $0.61 per common share, compared to $4.8 million for 2012, or $0.61 per common share.
Fourth Quarter Review
Net income for the fourth quarter of 2013 was $1.7 million, up $67,000, or 4%, from the fourth quarter of 2012, primarily as a result of a lower loan loss provision expense and net gains from sale of mortgage and commercial loans.
Operating revenue, including net interest income on a fully tax-equivalent basis ("FTE") plus noninterest income from operations, was $12.4 million for the fourth quarter of 2013, which was $267,000 less than the fourth quarter of the prior year. The net interest margin (FTE) for the fourth quarter of 2013 was 3.20%, a decline of 10 basis points from the 2012 fourth quarter.
Noninterest income was $3.3 million for the fourth quarter of 2013 compared to $3.4 million for the prior-year fourth quarter. Noninterest expense was $9 million for the fourth quarter of 2013 compared with $8.6 million for the fourth quarter of 2012, an increase of 4%.
The provision for loan losses was $1.0 million in the fourth quarter of 2013, down $775,000 from the 2012 fourth quarter, reflecting the Company’s improvement in credit quality. Net charge-offs were $1.3 million for the fourth quarter of 2013, or 0.58% of average loans (annualized), compared to $1.75 million, or 0.79% of average loans (annualized) in the fourth quarter of 2012.
The Company is focused on active capital management and is committed to maintaining strong capital levels while supporting balance sheet growth and enhancing returns to the Company’s shareholders. During the fourth quarter of 2013, the Company issued a notice to redeem all of the outstanding shares of its Fixed Rate Cumulative Perpetual Preferred Stock, Series B (“Series B Preferred Stock”), and on January 17, 2014 completed the repurchase and redemption of the Series B Preferred Stock for an aggregate price of $9,147,000, plus approximately $74,000 of accrued but unpaid dividends. As a result of the repurchase and redemption the Company expects to save approximately $777,500 in dividends that otherwise would have been payable on the Series B Preferred Stock during 2014. The Series B Preferred Stock was originally issued by LNB in December 2008 as part of the U.S. Department of the Treasury’s Capital Purchase Program. The Treasury sold all of the Series B Preferred Stock to private investors through a modified Dutch auction that was completed in June 2012.
In connection with the retirement of Series B Preferred Stock, the Company completed the sale of 367,321 newly issued common shares to certain institutional investors, other third-party investors and certain directors of LNB in a private placement in December 2013 for approximately $3.68 million in gross proceeds. LNB retired the Series B Preferred Stock using the proceeds of the private placement along with cash from approximately $3,000,000 in borrowings under a line of credit with an unaffiliated financial institution and from LNB’s accumulated earnings and excess capital.
Full Year 2013 Review
Total assets at December 31, 2013 were $1.23 billion, up $52 million from 2012. Portfolio loans grew $19.8 million to $902 million at December 31, 2013, an increase of 2% from 2012. Total deposits at December 31, 2013 were $1.05 billion compared with $1.0 billion at 2012 year end.
Net interest income on a fully tax-equivalent basis (FTE) for 2013 was $36.2 million compared to $39.1 million for 2012. The net interest margin was 3.19% for 2013 compared to 3.49% for 2012.
Noninterest income for 2013 was $12.1 million, compared to $11.7 million for 2012.
Noninterest expense was $35.2 million in 2013, up slightly from $34.9 million in 2012.
The company continues to aggressively manage credit quality. During 2013, nonperforming assets declined by nearly $6.6 million, or 23%, to $22.6 million. For 2013, nonperforming assets comprised 1.83 % of total assets, compared to 2.48% of total assets, for 2012.
Net charge-offs were $4.5 million for 2013, or 0.51 % of average loans, compared to $6.7 million in 2012, or 0.77% of average loans.
The allowance for loan losses was $17.5 million at December 31, 2013, or 1.94% of total loans, compared to $17.6 million at December 31, 2012, or 2.0% of total loans. For the year 2013, the provision for loan losses was $4.4 million compared to the 2012 provision of $7.2 million.
All regulatory ratios continue to exceed the threshold for “well-capitalized.” As of December 31, 2013 Tier 1 leverage ratio totaled 9.22%, Tier 1 risk-based capital ratio totaled 11.64% and Total risk-based capital ratio totaled 12.90%. Tangible Common Equity improved by 79 basis points to 6.77%.
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, funding any repurchase or redemption of the Company’s outstanding preferred stock; 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 December 31, 2013 | | At December 31, 2012 |
| | (unaudited) | | |
| | (Dollars in thousands except share amounts) |
| ASSETS | | | | |
| Cash and due from banks | | $ | 36,717 | | | $ | 24,139 | |
| Federal funds sold and interest bearing deposits in banks | | | 15,555 | | | | 6,520 | |
| Cash and cash equivalents | | | 52,272 | | | | 30,659 | |
| Securities available for sale, at fair value | | | 216,122 | | | | 203,763 | |
| Restricted stock | | | 5,741 | | | | 5,741 | |
| Loans held for sale | | | 4,483 | | | | 7,634 | |
| Loans: | | | | |
| Portfolio loans | | | 902,299 | | | | 882,548 | |
| Allowance for loan losses | | | (17,505 | ) | | | (17,637 | ) |
| Net loans | | | 884,794 | | | | 864,911 | |
| Bank premises and equipment, net | | | 8,198 | | | | 8,721 | |
| Other real estate owned | | | 579 | | | | 1,366 | |
| Bank owned life insurance | | | 19,362 | | | | 18,611 | |
| Goodwill, net | | | 21,582 | | | | 21,582 | |
| Intangible assets, net | | | 457 | | | | 594 | |
| Accrued interest receivable | | | 3,621 | | | | 3,726 | |
| Other assets | | | 13,046 | | | | 10,946 | |
| Total Assets | | $ | 1,230,257 | | | $ | 1,178,254 | |
| | | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | |
| Deposits | | | | |
| Demand and other noninterest-bearing | | $ | 148,961 | | | $ | 139,894 | |
| Savings, money market and interest-bearing demand | | | 393,778 | | | | 377,287 | |
| Certificates of deposit | | | 502,850 | | | | 482,411 | |
| Total deposits | | | 1,045,589 | | | | 999,592 | |
| Short-term borrowings | | | 4,576 | | | | 1,115 | |
| Federal Home Loan Bank advances | | | 46,708 | | | | 46,508 | |
| Junior subordinated debentures | | | 16,238 | | | | 16,238 | |
| Accrued interest payable | | | 789 | | | | 882 | |
| Accrued taxes, expenses and other liabilities | | | 4,901 | | | | 3,775 | |
| Total Liabilities | | | 1,118,801 | | | | 1,068,110 | |
| Shareholders' Equity | | | | |
Preferred stock, Series A Voting, no par value, authorized 150,000 shares at December 31, 2013 and December 31, 2012. | | | - | | | | - | |
Fixed rate cumulative preferred stock, Series B, no par value, $1,000 liquidation value, 7,689 shares authorized and issued at December 31, 2013 and 18,880 shares at December 31, 2012. | | | 7,689 | | | | 18,880 | |
| Discount on Series B preferred stock | | | (19 | ) | | | (65 | ) |
Common stock, par value $1 per share, authorized 15,000,000 shares, issued shares 10,001,717 at December 31, 2013 and 8,272,548 at December 31, 2012. | | | 10,002 | | | | 8,273 | |
| Additional paid-in capital | | | 51,098 | | | | 39,141 | |
| Retained earnings | | | 53,966 | | | | 48,767 | |
| Accumulated other comprehensive income (loss) | | | (5,188 | ) | | | 1,240 | |
| Treasury shares at cost, 328,194 shares at December 31, 2013 and at December 31, 2012 | | | (6,092 | ) | | | (6,092 | ) |
| Total Shareholders' Equity | | | 111,456 | | | | 110,144 | |
| Total Liabilities and Shareholders' Equity | | $ | 1,230,257 | | | $ | 1,178,254 | |
| | | | | | | | |
| Consolidated Statements of Income (unaudited) |
| | | | | | | | |
| | Three Months Ended December 31, | | Three Months Ended December 31, | | Twelve Months Ended December 31, | | Twelve Months Ended December 31, |
| | 2013 | | 2012 | | 2013 | | 2012 |
| | (Dollars in thousands except share and per share amounts) |
| Interest Income | | | | | | | | |
| Loans | | $ | 9,118 | | $ | 9,556 | | | $ | 36,409 | | $ | 39,794 | |
| Securities: | | | | | | | | |
| U.S. Government agencies and corporations | | | 971 | | | 991 | | | | 3,587 | | | 4,677 | |
| State and political subdivisions | | | 304 | | | 290 | | | | 1,191 | | | 1,157 | |
| Other debt and equity securities | | | 127 | | | 75 | | | | 464 | | | 285 | |
| Federal funds sold and short-term investments | | | 5 | | | 8 | | | | 28 | | | 35 | |
| Total interest income | | | 10,525 | | | 10,920 | | | | 41,679 | | | 45,948 | |
| Interest Expense | | | | | | | | |
| Deposits | | | 1,153 | | | 1,336 | | | | 4,838 | | | 5,944 | |
| Federal Home Loan Bank advances | | | 159 | | | 224 | | | | 628 | | | 865 | |
| Short-term borrowings | | | 6 | | | 1 | | | | 7 | | | 1 | |
| Junior subordinated debenture | | | 172 | | | 171 | | | | 683 | | | 699 | |
| Total interest expense | | | 1,490 | | | 1,732 | | | | 6,156 | | | 7,509 | |
| Net Interest Income | | | 9,035 | | | 9,188 | | | | 35,523 | | | 38,439 | |
| Provision for Loan Losses | | | 1,025 | | | 1,800 | | | | 4,375 | | | 7,242 | |
| Net interest income after provision for loan losses | | | 8,010 | | | 7,388 | | | | 31,148 | | | 31,197 | |
| Noninterest Income | | | | | | | | |
| Investment and trust services | | | 377 | | | 373 | | | | 1,555 | | | 1,563 | |
| Deposit service charges | | | 901 | | | 953 | | | | 3,509 | | | 3,811 | |
| Other service charges and fees | | | 820 | | | 768 | | | | 3,279 | | | 3,082 | |
| Income from bank owned life insurance | | | 240 | | | 241 | | | | 752 | | | 742 | |
| Other income (loss) | | | 186 | | | 263 | | | | 521 | | | 877 | |
| Total fees and other income | | | 2,524 | | | 2,598 | | | | 9,616 | | | 10,075 | |
| Securities gains, net | | | - | | | 143 | | | | 178 | | | 189 | |
| Gains on sale of loans | | | 707 | | | 659 | | | | 2,324 | | | 1,575 | |
| Gain (loss) on sale of other assets, net | | | 25 | | | (24 | ) | | | 8 | | | (92 | ) |
| Total noninterest income | | | 3,256 | | | 3,376 | | | | 12,126 | | | 11,747 | |
| Noninterest Expense | | | | | | | | |
Salaries and employee benefits | | | 4,607 | | | 4,535 | | | | 18,058 | | | 16,768 | |
| Furniture and equipment | | | 1,075 | | | 1,078 | | | | 4,234 | | | 4,060 | |
| Net occupancy | | | 609 | | | 543 | | | | 2,310 | | | 2,207 | |
| Professional fees | | | 457 | | | 561 | | | | 1,870 | | | 2,034 | |
| Marketing and public relations | | | 278 | | | 277 | | | | 1,216 | | | 1,231 | |
| Supplies, postage and freight | | | 236 | | | 308 | | | | 1,045 | | | 1,091 | |
| Telecommunications | | | 168 | | | 195 | | | | 669 | | | 731 | |
| Ohio Franchise tax | | | 299 | | | 305 | | | | 1,213 | | | 1,232 | |
| FDIC assessments | | | 266 | | | 172 | | | | 1,039 | | | 1,304 | |
| Other real estate owned | | | 102 | | | 156 | | | | 382 | | | 570 | |
| Loan and collection expense | | | 397 | | | 99 | | | | 1,427 | | | 1,150 | |
| Other expense | | | 489 | | | 405 | | | | 1,724 | | | 2,525 | |
| Total noninterest expense | | | 8,983 | | | 8,634 | | | | 35,187 | | | 34,903 | |
| Income before income tax expense | | | 2,283 | | | 2,130 | | | | 8,087 | | | 8,041 | |
| Income tax expense | | | 577 | | | 491 | | | | 1,926 | | | 1,934 | |
| Net Income | | $ | 1,706 | | $ | 1,639 | | | $ | 6,161 | | $ | 6,107 | |
| Dividends and accretion on preferred stock | | | 163 | | | 310 | | | | 646 | | | 1,266 | |
| Net Income Available to Common Shareholders | | $ | 1,543 | | $ | 1,329 | | | $ | 5,515 | | $ | 4,841 | |
| | | | | | | | |
| Net Income Per Common Share | | | | | | | | |
| Basic | | $ | 0.16 | | $ | 0.17 | | | $ | 0.61 | | $ | 0.61 | |
| Diluted | | | 0.16 | | | 0.17 | | | | 0.61 | | | 0.61 | |
| Dividends declared | | | 0.01 | | | 0.01 | | | | 0.04 | | | 0.04 | |
| Average Common Shares Outstanding | | | | | | | | |
| Basic | | | 9,379,355 | | | 7,944,354 | | | | 9,050,901 | | | 7,939,433 | |
| Diluted | | | 9,404,651 | | | 7,949,118 | | | | 9,070,890 | | | 7,943,918 | |
| | | | | | | | | | | | | | |
| LNB Bancorp, Inc. |
| Supplemental Financial Information |
| (Unaudited - Dollars in thousands except Share and Per Share Data) |
| | | | | | | | | | | | | | |
| | Three Months Ended | | Twelve Months Ended |
| | December 31, | | September 30, | | June 30, | | March 31, | | December 31, | | December 31, | | December 31, |
| END OF PERIOD BALANCES | | 2013 | | 2013 | | 2013 | | 2013 | | 2012 | | 2013 | | 2012 |
| Cash and Cash Equivalents | | $ | 52,272 | | $ | 47,090 | | $ | 49,534 | | $ | 54,954 | | $ | 30,659 | | $ | 52,272 | | $ | 30,659 |
| Securities | | | 216,122 | | | 215,290 | | | 228,766 | | | 223,173 | | | 203,763 | | | 216,122 | | | 203,763 |
| Restricted stock | | | 5,741 | | | 5,741 | | | 5,741 | | | 5,741 | | | 5,741 | | | 5,741 | | | 5,741 |
| Loans held for sale | | | 4,483 | | | 2,110 | | | 3,423 | | | 6,250 | | | 7,634 | | | 4,483 | | | 7,634 |
| Portfolio loans | | | 902,299 | | | 891,300 | | | 882,896 | | | 889,931 | | | 882,548 | | | 902,299 | | | 882,548 |
| Allowance for loan losses | | | 17,505 | | | 17,791 | | | 17,815 | | | 17,806 | | | 17,637 | | | 17,505 | | | 17,637 |
| Net loans | | | 884,794 | | | 873,509 | | | 865,081 | | | 872,125 | | | 864,911 | | | 884,794 | | | 864,911 |
| Other assets | | | 66,845 | | | 66,762 | | | 65,701 | | | 68,940 | | | 65,546 | | | 66,845 | | | 65,546 |
| Total assets | | $ | 1,230,257 | | $ | 1,210,502 | | $ | 1,218,246 | | $ | 1,231,183 | | $ | 1,178,254 | | $ | 1,230,257 | | $ | 1,178,254 |
| Total deposits | | | 1,045,589 | | | 1,032,245 | | | 1,039,279 | | | 1,049,176 | | | 999,592 | | | 1,045,589 | | | 999,592 |
| Other borrowings | | | 67,522 | | | 64,539 | | | 64,704 | | | 64,684 | | | 63,861 | | | 67,522 | | | 63,861 |
| Other liabilities | | | 5,690 | | | 5,757 | | | 5,369 | | | 7,118 | | | 4,657 | | | 5,690 | | | 4,657 |
| Total liabilities | | | 1,118,801 | | | 1,102,541 | | | 1,109,352 | | | 1,120,978 | | | 1,068,110 | | | 1,118,801 | | | 1,068,110 |
| Total shareholders' equity | | | 111,456 | | | 107,961 | | | 108,894 | | | 110,205 | | | 110,144 | | | 111,456 | | | 110,144 |
| Total liabilities and shareholders' equity | | $ | 1,230,257 | | $ | 1,210,502 | | $ | 1,218,246 | | $ | 1,231,183 | | $ | 1,178,254 | | $ | 1,230,257 | | $ | 1,178,254 |
| | | | | | | | | | | | | | |
| AVERAGE BALANCES | | | | | | | | | | | | | | |
| Assets: | | | | | | | | | | | | | | |
| Total assets | | $ | 1,221,830 | | $ | 1,213,502 | | $ | 1,233,694 | | $ | 1,195,630 | | $ | 1,198,845 | | $ | 1,216,228 | | $ | 1,196,003 |
| Earning assets* | | | 1,137,943 | | | 1,130,695 | | | 1,147,869 | | | 1,113,292 | | | 1,124,703 | | | 1,132,514 | | | 1,117,487 |
| Securities | | | 214,860 | | | 222,229 | | | 225,644 | | | 207,791 | | | 224,876 | | | 217,882 | | | 226,826 |
| Portfolio loans | | | 899,899 | | | 883,321 | | | 882,499 | | | 884,893 | | | 883,228 | | | 887,866 | | | 869,454 |
| Liabilities and shareholders' equity: | | | | | | | | | | | | | | |
| Total deposits | | $ | 1,041,763 | | $ | 1,036,149 | | $ | 1,053,952 | | $ | 1,016,968 | | $ | 1,013,808 | | $ | 1,037,273 | | $ | 1,011,511 |
| Interest bearing deposits | | | 891,589 | | | 896,937 | | | 914,652 | | | 879,208 | | | 870,551 | | | 895,634 | | | 874,434 |
| Interest bearing liabilities | | | 956,866 | | | 961,636 | | | 979,260 | | | 943,566 | | | 935,239 | | | 960,372 | | | 939,519 |
| Total shareholders' equity | | | 109,814 | | | 108,025 | | | 110,619 | | | 110,416 | | | 116,573 | | | 109,712 | | | 115,423 |
| | | | | | | | | | | | | | |
| INCOME STATEMENT | | | | | | | | | | | | | | |
| Total Interest Income | | $ | 10,525 | | $ | 10,304 | | $ | 10,576 | | $ | 10,274 | | $ | 10,920 | | $ | 41,679 | | $ | 45,948 |
| Total Interest Expense | | | 1,490 | | | 1,529 | | | 1,567 | | | 1,570 | | | 1,732 | | | 6,156 | | | 7,509 |
| Net interest income | | | 9,035 | | | 8,775 | | | 9,009 | | | 8,704 | | | 9,188 | | | 35,523 | | | 38,439 |
| Provision for loan losses | | | 1,025 | | | 950 | | | 1,050 | | | 1,350 | | | 1,800 | | | 4,375 | | | 7,242 |
| Other income | | | 2,524 | | | 2,062 | | | 2,519 | | | 2,511 | | | 2,598 | | | 9,616 | | | 10,075 |
| Net gain on sale of assets | | | 732 | | | 404 | | | 553 | | | 821 | | | 778 | | | 2,510 | | | 1,672 |
| Noninterest expense | | | 8,983 | | | 8,301 | | | 8,622 | | | 9,281 | | | 8,634 | | | 35,187 | | | 34,903 |
| Income before income taxes | | | 2,283 | | | 1,990 | | | 2,409 | | | 1,405 | | | 2,130 | | | 8,087 | | | 8,041 |
| Income tax expense | | | 577 | | | 471 | | | 586 | | | 292 | | | 491 | | | 1,926 | | | 1,934 |
| Net income | | | 1,706 | | | 1,519 | | | 1,823 | | | 1,113 | | | 1,639 | | | 6,161 | | | 6,107 |
| Preferred stock dividend and accretion | | | 163 | | | 109 | | | 117 | | | 257 | | | 310 | | | 646 | | | 1,266 |
| Net income available to common shareholders | | $ | 1,543 | | $ | 1,410 | | $ | 1,706 | | $ | 856 | | $ | 1,329 | | $ | 5,515 | | $ | 4,841 |
| Common cash dividend declared and paid | | $ | 93 | | $ | 93 | | $ | 93 | | $ | 79 | | $ | 79 | | $ | 358 | | $ | 317 |
| | | | | | | | | | | | | | |
| Net interest income-FTE (1) | | $ | 9,192 | | $ | 8,934 | | $ | 9,169 | | $ | 8,860 | | $ | 9,339 | | $ | 36,156 | | $ | 39,050 |
| Total Operating Revenue (4) | | $ | 12,448 | | $ | 11,400 | | $ | 12,241 | | $ | 12,192 | | $ | 12,715 | | $ | 48,282 | | $ | 50,797 |
| | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | Twelve Months Ended |
| | December 31, | | September 30, | | June 30, | | March 31, | | December 31, | | December 31, | | December 31, |
| | | 2013 | | 2013 | | 2013 | | 2013 | | 2012 | | 2013 | | 2012 |
| PER SHARE DATA | | | | | | | | | | | | | | |
| Basic net income per common share | | $ | 0.16 | | | $ | 0.15 | | | $ | 0.18 | | | $ | 0.10 | | | $ | 0.17 | | | $ | 0.61 | | | $ | 0.61 | |
| Diluted net income per common share | | | 0.16 | | | | 0.15 | | | | 0.18 | | | | 0.10 | | | | 0.17 | | | | 0.61 | | | | 0.61 | |
| Cash dividends per common share | | | 0.01 | | | | 0.01 | | | | 0.01 | | | | 0.01 | | | | 0.01 | | | | 0.04 | | | | 0.04 | |
| Book value per common shares outstanding | | | 10.73 | | | | 10.62 | | | | 10.36 | | | | 10.87 | | | | 11.50 | | | | 10.73 | | | | 11.50 | |
| Tangible book value per common shares outstanding** | | | 8.45 | | | | 8.25 | | | | 8.35 | | | | 8.49 | | | | 8.70 | | | | 8.45 | | | | 8.70 | |
| Period-end common share market value | | | 10.03 | | | | 9.40 | | | | 8.59 | | | | 8.31 | | | | 5.90 | | | | 10.03 | | | | 5.90 | |
| Market as a % of tangible book | | | 118.69 | % | | | 113.93 | % | | | 102.90 | % | | | 97.93 | % | | | 67.82 | % | | | 118.69 | % | | | 67.82 | % |
| Basic average common shares outstanding | | | 9,379,355 | | | | 9,303,702 | | | | 9,303,702 | | | | 8,201,120 | | | | 7,944,354 | | | | 9,050,901 | | | | 7,939,433 | |
| Diluted average common shares outstanding | | | 9,404,651 | | | | 9,323,657 | | | | 9,319,142 | | | | 8,212,038 | | | | 7,949,556 | | | | 9,070,890 | | | | 7,943,918 | |
| Common shares outstanding | | | 9,673,523 | | | | 9,303,702 | | | | 9,303,702 | | | | 9,303,702 | | | | 7,944,354 | | | | 9,673,523 | | | | 7,944,354 | |
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| KEY RATIOS | | | | | | | | | | | | | | |
| Return on average assets (2) | | | 0.55 | % | | | 0.50 | % | | | 0.59 | % | | | 0.38 | % | | | 0.54 | % | | | 0.51 | % | | | 0.51 | % |
| Return on average common equity (2) | | | 6.16 | % | | | 5.58 | % | | | 6.61 | % | | | 4.09 | % | | | 5.59 | % | | | 5.62 | % | | | 5.29 | % |
| Efficiency ratio | | | 72.16 | % | | | 72.82 | % | | | 70.44 | % | | | 76.12 | % | | | 67.90 | % | | | 72.88 | % | | | 68.71 | % |
| Noninterest expense to average assets (2) | | | 2.92 | % | | | 2.71 | % | | | 2.80 | % | | | 3.15 | % | | | 2.87 | % | | | 2.89 | % | | | 2.92 | % |
| Average equity to average assets | | | 8.99 | % | | | 8.90 | % | | | 8.97 | % | | | 9.23 | % | | | 9.72 | % | | | 9.02 | % | | | 9.65 | % |
| Net interest margin (FTE) (1) | | | 3.20 | % | | | 3.13 | % | | | 3.20 | % | | | 3.23 | % | | | 3.30 | % | | | 3.19 | % | | | 3.49 | % |
| Common stock dividend payout ratio | | | 6.10 | % | | | 6.61 | % | | | 5.46 | % | | | 9.59 | % | | | 5.88 | % | | | 6.56 | % | | | 6.56 | % |
| Common stock market capitalization | | $ | 97,025 | | | $ | 87,455 | | | $ | 79,919 | | | $ | 77,314 | | | $ | 46,872 | | | $ | 97,025 | | | $ | 46,872 | |
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| ASSET QUALITY | | | | | | | | | | | | | | |
| Allowance for Loan Losses | | | | | | | | | | | | | | |
| Allowance for loan losses, beginning of period | | $ | 17,791 | | | $ | 17,815 | | | $ | 17,806 | | | $ | 17,637 | | | $ | 17,587 | | | | 17,637 | | | | 17,063 | |
| Provision for loan losses | | | 1,025 | | | | 950 | | | | 1,050 | | | | 1,350 | | | | 1,800 | | | | 4,375 | | | | 7,242 | |
| Charge-offs | | | 1,570 | | | | 1,354 | | | | 1,667 | | | | 1,428 | | | | 2,201 | | | | 6,019 | | | | 7,578 | |
| Recoveries | | | 259 | | | | 380 | | | | 626 | | | | 247 | | | | 451 | | | | 1,512 | | | | 910 | |
| Net charge-offs | | | 1,311 | | | | 974 | | | | 1,041 | | | | 1,181 | | | | 1,750 | | | | 4,507 | | | | 6,668 | |
| Allowance for loan losses, end of period | | $ | 17,505 | | | $ | 17,791 | | | $ | 17,815 | | | $ | 17,806 | | | $ | 17,637 | | | $ | 17,505 | | | $ | 17,637 | |
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| Nonperforming Assets | | | | | | | | | | | | | | |
| Nonperforming loans | | $ | 21,986 | | | $ | 24,977 | | | $ | 26,605 | | | $ | 28,514 | | | $ | 27,796 | | | $ | 21,986 | | | $ | 27,796 | |
| Other real estate owned | | | 579 | | | | 951 | | | | 1,149 | | | | 1,215 | | | | 1,366 | | | | 579 | | | | 1,366 | |
| Total nonperforming assets | | $ | 22,565 | | | $ | 25,928 | | | $ | 27,754 | | | $ | 29,729 | | | $ | 29,162 | | | $ | 22,565 | | | $ | 29,162 | |
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| Ratios | | | | | | | | | | | | | | |
| Total nonperforming loans to total loans | | | 2.44 | % | | | 2.80 | % | | | 3.01 | % | | | 3.20 | % | | | 3.15 | % | | | 2.44 | % | | | 3.15 | % |
| Total nonperforming assets to total assets | | | 1.83 | % | | | 2.14 | % | | | 2.28 | % | | | 2.41 | % | | | 2.48 | % | | | 1.83 | % | | | 2.48 | % |
| Net charge-offs to average loans (2) | | | 0.58 | % | | | 0.44 | % | | | 0.47 | % | | | 0.54 | % | | | 0.79 | % | | | 0.51 | % | | | 0.77 | % |
| Provision for loan losses to average loans (2) | | | 0.45 | % | | | 0.43 | % | | | 0.48 | % | | | 0.62 | % | | | 0.81 | % | | | 0.49 | % | | | 0.83 | % |
| Allowance for loan losses to portfolio loans | | | 1.94 | % | | | 2.00 | % | | | 2.02 | % | | | 2.00 | % | | | 2.00 | % | | | 1.94 | % | | | 2.00 | % |
| Allowance to nonperforming loans | | | 79.62 | % | | | 71.23 | % | | | 66.96 | % | | | 62.45 | % | | | 63.45 | % | | | 79.62 | % | | | 63.45 | % |
| Allowance to nonperforming assets | | | 77.58 | % | | | 68.62 | % | | | 64.19 | % | | | 59.89 | % | | | 60.48 | % | | | 77.58 | % | | | 60.48 | % |
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| CAPITAL & LIQUIDITY | | | | | | | | | | | | | | |
| Period-end tangible common equity to assets** | | | 6.77 | % | | | 6.64 | % | | | 6.49 | % | | | 6.53 | % | | | 5.98 | % | | | 6.77 | % | | | 5.98 | % |
| Average equity to assets | | | 8.99 | % | | | 8.90 | % | | | 8.97 | % | | | 9.23 | % | | | 9.72 | % | | | 9.02 | % | | | 9.65 | % |
| Average equity to loans | | | 12.20 | % | | | 12.23 | % | | | 12.53 | % | | | 12.48 | % | | | 13.20 | % | | | 12.36 | % | | | 13.28 | % |
| Average loans to deposits | | | 86.38 | % | | | 85.25 | % | | | 83.73 | % | | | 87.01 | % | | | 87.12 | % | | | 85.60 | % | | | 85.96 | % |
| Tier 1 leverage ratio (3) | | | 9.22 | % | | | 8.95 | % | | | 8.73 | % | | | 8.88 | % | | | 8.79 | % | | | 9.22 | % | | | 8.79 | % |
| Tier 1 risk-based capital ratio (3) | | | 11.63 | % | | | 11.40 | % | | | 11.36 | % | | | 11.05 | % | | | 11.21 | % | | | 11.63 | % | | | 11.21 | % |
| Total risk-based capital ratio (3) | | | 12.89 | % | | | 12.65 | % | | | 12.62 | % | | | 12.31 | % | | | 12.47 | % | | | 12.89 | % | | | 12.47 | % |
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| (1) FTE -- fully tax equivalent at 34% tax rate |
| (2) Annualized |
(3) 12-31-13 ratio is estimated. |
| (4) Net interest income on a fully tax-equivalent basis ("FTE") plus noninterest income from operations |
| * Earning Assets includes Loans Held for Sale |
| * * Non-GAAP measures. |
CONTACT:
LNB Bancorp, Inc.
Peter R. Catanese, Senior Vice President, 440-244-7126
