Exhibit 99.1
LNB Bancorp, Inc. Reports Second Quarter 2015 Results:
LORAIN, Ohio--(BUSINESS WIRE)--August 4, 2015--LNB Bancorp, Inc. (NASDAQ: LNBB) (“LNB” or the “Company”) today reported financial results for the second quarter 2015. Net income available to common shareholders was $2.3 million or $0.23 per common share, compared to $2.0 million, or $0.21 per common share, for the year ago quarter. For the first six months of 2015, net income available to common shareholders was $4.1 million, or $0.43 per common share, compared to $3.6 million, or $0.37 per common share for the first six months of last year.
“LNB had a successful quarter on all fronts,” stated Daniel E. Klimas, president and chief executive officer of LNB Bancorp. “We grew loan balances, reduced non-performing loans and managed our expenses well.”
Net interest income was $8.9 million for the second quarter of 2015, compared to $9.2 million in the second quarter of the prior year, a decrease of 3.9%. The net interest margin, on a fully taxable equivalent basis, for the second quarter of 2015 was 3.10%, a decline of 17 basis points from the second quarter of 2014. The continued low growth environment and sustained low rates coupled with a change in the mix of the balance sheet contributed to the margin compression.
Noninterest income was $3.1 million in the second quarter of 2015, compared to $3.3 million in the second quarter of the previous year. The gain on sale of loans was $704,000 this quarter.
Loan balances grew by $26.5 million or 2.9% compared to the second quarter of 2014, led by the commercial and indirect auto loan portfolios.
Noninterest expense was $8.9 million, compared to $8.8 million in the second quarter of 2014.
In connection with the pending merger with Northwest Bancshares, the Corporation recognized $138,000 in pre-tax merger-related expense during the second quarter and $268,000 during the first six months of 2015.
The Company continued to make progress on improving credit quality in the second quarter of 2015, as non-performing assets declined $4.4 million from the same quarter in 2014. The ratio of non-performing assets to total assets at June 30, 2015 was 1.33%, down from 1.69% at June 30, 2014.
No provision for loan losses was taken in the second quarter of 2015, as compared to a provision of $893,000 taken in the second quarter of 2014, reflecting the Company’s improvement in credit quality and net loss history. Net charge-offs were $868,000 for the second quarter of 2015, or 0.37% of average loans (annualized), compared to $960,000, or 0.42% of average loans (annualized), in the second quarter of 2014.
Total assets at June 30, 2015 were $1.24 billion, unchanged from June 30, 2014. Total deposits at June 30, 2015 were $1.05 billion, unchanged from June 30, 2014. The Company continued to maintain capital levels in excess of the regulatory requirements to be categorized as “well capitalized”.
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 21 retail-banking locations and 30 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, any capital-raising or acquisition activities of the Company; 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. In addition, expected cost savings, synergies and other financial benefits from the anticipated merger with Northwest Bancshares might not be realized within the expected time frame and costs or difficulties relating to integration matters and completion of the merger might be greater than expected. The Company may have difficulty retaining key employees during the pendency of the merger.
The Company undertakes no obligation to update or clarify forwardlooking statements, whether as a result of new information, future events or otherwise.
| CONSOLIDATED BALANCE SHEETS | ||||||||
| At June 30, 2015 | At December 31, 2014 | |||||||
| (unaudited) | ||||||||
| (Dollars in thousands except share amounts) | ||||||||
| ASSETS | ||||||||
| Cash and due from banks | $ | 30,810 | $ | 17,927 | ||||
| Federal funds sold and interest bearing deposits in banks | 2,291 | 6,215 | ||||||
| Cash and cash equivalents | 33,101 | 24,142 | ||||||
| Securities available for sale, at fair value | 208,243 | 217,572 | ||||||
| Restricted stock | 5,741 | 5,741 | ||||||
| Loans held for sale | 4,050 | 10,483 | ||||||
| Loans: | ||||||||
| Portfolio loans | 933,838 | 930,025 | ||||||
| Allowance for loan losses | (15,929 | ) | (17,416 | ) | ||||
| Net loans | 917,909 | 912,609 | ||||||
| Bank premises and equipment, net | 9,235 | 9,173 | ||||||
| Other real estate owned | 793 | 772 | ||||||
| Bank owned life insurance | 19,835 | 19,757 | ||||||
| Goodwill, net | 21,582 | 21,582 | ||||||
| Intangible assets, net | 254 | 321 | ||||||
| Accrued interest receivable | 3,512 | 3,635 | ||||||
| Other assets | 14,100 | 10,840 | ||||||
| Total Assets | $ | 1,238,355 | $ | 1,236,627 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Deposits | ||||||||
| Demand and other noninterest-bearing | $ | 148,939 | $ | 158,476 | ||||
| Savings, money market and interest-bearing demand | 459,951 | 436,271 | ||||||
| Certificates of deposit | 442,331 | 440,178 | ||||||
| Total deposits | 1,051,221 | 1,034,925 | ||||||
| Short-term borrowings | 635 | 10,611 | ||||||
| Federal Home Loan Bank advances | 47,027 | 54,321 | ||||||
| Junior subordinated debentures | 16,238 | 16,238 | ||||||
| Accrued interest payable | 613 | 596 | ||||||
| Accrued taxes, expenses and other liabilities | 4,681 | 4,597 | ||||||
| Total Liabilities | 1,120,415 | 1,121,288 | ||||||
| Shareholders' Equity | ||||||||
| Fixed rate cumulative preferred stock, Series B, no par value, $1,000 liquidation value, no shares were issued at June 30, 2015 and no shares were issued at December 31, 2014. | - | - | ||||||
Common stock, par value $1 per share, authorized 15,000,000 shares, issued shares 10,008,169 at June 30, 2015 and 10,002,139 at December 31, 2014. | 10,008 | 10,002 | ||||||
| Additional paid-in capital | 51,627 | 51,441 | ||||||
| Retained earnings | 64,096 | 60,568 | ||||||
| Accumulated other comprehensive loss | (1,430 | ) | (495 | ) | ||||
| Treasury shares at cost, 347,349 shares at June 30, 2015 and 336,745 at December 31, 2014 | (6,361 | ) | (6,177 | ) | ||||
| Total Shareholders' Equity | 117,940 | 115,339 | ||||||
| Total Liabilities and Shareholders' Equity | $ | 1,238,355 | $ | 1,236,627 | ||||
| Consolidated Statements of Income (unaudited) | |||||||||||||||
| Three Months Ended June 30, | Three Months Ended June 30, | Six Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
| (Dollars in thousands except share and per share amounts) | |||||||||||||||
| Interest Income | |||||||||||||||
| Loans | $ | 9,008 | $ | 9,188 | $ | 17,932 | $ | 18,116 | |||||||
| Securities: | - | ||||||||||||||
| U.S. Government agencies and corporations | 890 | 1,040 | 1,829 | 2,068 | |||||||||||
| State and political subdivisions | 294 | 310 | 510 | 613 | |||||||||||
| Other debt and equity securities | 67 | 67 | 134 | 184 | |||||||||||
| Federal funds sold and short-term investments | 2 | 7 | 5 | 24 | |||||||||||
| Total interest income | 10,261 | 10,612 | 20,410 | 21,005 | |||||||||||
| Interest Expense | |||||||||||||||
| Deposits | 1,067 | 1,023 | 2,089 | 2,105 | |||||||||||
| Federal Home Loan Bank advances | 138 | 157 | 279 | 312 | |||||||||||
| Short-term borrowings | 6 | 27 | 6 | 53 | |||||||||||
| Junior subordinated debenture | 170 | 169 | 339 | 338 | |||||||||||
| Total interest expense | 1,381 | 1,376 | 2,713 | 2,808 | |||||||||||
| Net Interest Income | 8,880 | 9,236 | 17,697 | 18,197 | |||||||||||
| Provision for Loan Losses | - | 893 | - | 1,793 | |||||||||||
| Net interest income after provision for loan losses | 8,880 | 8,343 | 17,697 | 16,404 | |||||||||||
| Noninterest Income | |||||||||||||||
| Investment and trust services | 450 | 456 | 872 | 856 | |||||||||||
| Deposit service charges | 777 | 849 | 1,545 | 1,619 | |||||||||||
| Other service charges and fees | 716 | 738 | 1,382 | 1,491 | |||||||||||
| Income from bank owned life insurance | 473 | 173 | 644 | 342 | |||||||||||
| Other income (loss) | (2 | ) | 106 | 96 | 257 | ||||||||||
| Total fees and other income | 2,414 | 2,322 | 4,539 | 4,565 | |||||||||||
| Securities Gains (Loss), net | - | (5 | ) | 192 | (5 | ) | |||||||||
| Gains on sale of loans | 704 | 890 | 1,364 | 1,593 | |||||||||||
Loss on sale of other assets, net | 7 | 44 | 7 | 10 | |||||||||||
| Total noninterest income | 3,125 | 3,251 | 6,102 | 6,163 | |||||||||||
| Noninterest Expense | |||||||||||||||
| Salaries and employee benefits | 4,589 | 4,510 | 9,236 | 9,105 | |||||||||||
| Furniture and equipment | 1,325 | 1,177 | 2,611 | 2,325 | |||||||||||
| Net occupancy | 593 | 603 | 1,202 | 1,216 | |||||||||||
| Professional fees | 411 | 426 | 855 | 920 | |||||||||||
| Marketing and public relations | 433 | 390 | 818 | 790 | |||||||||||
| Supplies, postage and freight | 154 | 218 | 415 | 432 | |||||||||||
| Telecommunications | 167 | 162 | 324 | 313 | |||||||||||
| Ohio Financial tax | 210 | 223 | 420 | 447 | |||||||||||
| Intangible asset amortization | 34 | 34 | 67 | 67 | |||||||||||
| FDIC assessments | 232 | 261 | 455 | 533 | |||||||||||
| Other real estate owned | 28 | 37 | 35 | 61 | |||||||||||
| Loan and collection expense | 297 | 372 | 612 | 670 | |||||||||||
| Other expense | 422 | 385 | 1,034 | 778 | |||||||||||
| Total noninterest expense | 8,895 | 8,798 | 18,084 | 17,657 | |||||||||||
| Income before income tax expense | 3,110 | 2,796 | 5,715 | 4,910 | |||||||||||
| Income tax expense | 849 | 773 | 1,607 | 1,281 | |||||||||||
| Net Income | $ | 2,261 | $ | 2,023 | $ | 4,108 | $ | 3,629 | |||||||
| Dividends and accretion on preferred stock | - | - | - | 35 | |||||||||||
| Net Income Available to Common Shareholders | $ | 2,261 | $ | 2,023 | $ | 4,108 | $ | 3,594 | |||||||
| Net Income Per Common Share | |||||||||||||||
| Basic | $ | 0.23 | $ | 0.21 | $ | 0.43 | $ | 0.37 | |||||||
| Diluted | 0.23 | 0.21 | 0.42 | 0.37 | |||||||||||
| Dividends declared | 0.03 | 0.01 | 0.06 | 0.02 | |||||||||||
| Average Common Shares Outstanding | |||||||||||||||
| Basic | 9,650,490 | 9,626,420 | 9,645,215 | 9,620,806 | |||||||||||
| Diluted | 9,751,825 | 9,643,892 | 9,741,560 | 9,637,814 | |||||||||||
| LNB Bancorp, Inc. | ||||||||||||||||||
| Supplemental Financial Information | ||||||||||||||||||
| (Unaudited - Dollars in thousands except Share and Per Share Data) | ||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||
| June 30, | March 31, | December 31, | June 30, | June 30, | June 30, | |||||||||||||
| END OF PERIOD BALANCES | 2015 | 2015 | 2014 | 2014 | 2015 | 2014 | ||||||||||||
| Cash and Cash Equivalents | $ | 33,101 | $ | 64,920 | $ | 24,142 | $ | 47,795 | $ | 33,101 | $ | 47,795 | ||||||
| Securities | 208,243 | 203,848 | 217,572 | 219,422 | 208,243 | 219,422 | ||||||||||||
| Restricted stock | 5,741 | 5,741 | 5,741 | 5,741 | 5,741 | 5,741 | ||||||||||||
| Loans held for sale | 4,050 | 4,652 | 3,646 | 2,856 | 4,050 | 2,856 | ||||||||||||
| Portfolio loans | 933,838 | 924,403 | 930,025 | 907,365 | 933,838 | 907,365 | ||||||||||||
| Allowance for loan losses | 15,929 | 16,797 | 17,416 | 17,430 | 15,929 | 17,430 | ||||||||||||
| Net loans | 917,909 | 907,606 | 912,609 | 889,935 | 917,909 | 889,935 | ||||||||||||
| Other assets | 69,311 | 69,682 | 72,917 | 71,093 | 69,311 | 71,093 | ||||||||||||
| Total assets | $ | 1,238,355 | $ | 1,256,449 | $ | 1,236,627 | $ | 1,236,842 | $ | 1,238,355 | $ | 1,236,842 | ||||||
| Total deposits | 1,051,221 | 1,069,011 | 1,034,925 | 1,048,938 | 1,051,221 | 1,048,938 | ||||||||||||
| Other borrowings | 63,900 | 63,849 | 81,170 | 66,413 | 63,900 | 66,413 | ||||||||||||
| Other liabilities | 5,294 | 6,059 | 5,193 | 11,003 | 5,294 | 11,003 | ||||||||||||
| Total liabilities | 1,120,415 | 1,138,919 | 1,121,288 | 1,126,354 | 1,120,415 | 1,126,354 | ||||||||||||
| Total shareholders' equity | 117,940 | 117,530 | 115,339 | 110,488 | 117,940 | 110,488 | ||||||||||||
| Total liabilities and shareholders' equity | $ | 1,238,355 | $ | 1,256,449 | $ | 1,236,627 | $ | 1,236,842 | $ | 1,238,355 | $ | 1,236,842 | ||||||
| AVERAGE BALANCES | ||||||||||||||||||
| Assets: | ||||||||||||||||||
| Total assets | $ | 1,256,363 | $ | 1,240,485 | $ | 1,233,457 | $ | 1,236,203 | $ | 1,248,468 | $ | 1,235,296 | ||||||
| Earning assets* | 1,168,604 | 1,157,066 | 1,160,953 | 1,154,063 | 1,162,867 | 1,152,291 | ||||||||||||
| Securities | 208,491 | 206,665 | 219,861 | 223,198 | 207,582 | 220,491 | ||||||||||||
| Portfolio loans | 937,440 | 925,565 | 924,216 | 907,851 | 929,342 | 907,350 | ||||||||||||
| Liabilities and shareholders' equity: | ||||||||||||||||||
| Total deposits | $ | 1,069,116 | $ | 1,052,598 | $ | 1,047,688 | $ | 1,056,144 | $ | 1,060,903 | $ | 1,056,062 | ||||||
| Interest bearing deposits | 903,926 | 881,380 | 876,897 | 905,838 | 892,716 | 908,076 | ||||||||||||
| Interest bearing liabilities | 968,142 | 948,111 | 943,339 | 972,784 | 958,182 | 975,414 | ||||||||||||
| Total shareholders' equity | 117,631 | 116,017 | 114,135 | 108,624 | 116,829 | 107,657 | ||||||||||||
| INCOME STATEMENT | ||||||||||||||||||
| Total Interest Income | $ | 10,261 | $ | 10,149 | $ | 10,648 | $ | 10,612 | $ | 20,410 | $ | 21,005 | ||||||
| Total Interest Expense | 1,381 | 1,332 | 1,370 | 1,376 | 2,713 | 2,808 | ||||||||||||
| Net interest income | 8,880 | 8,817 | 9,278 | 9,236 | 17,697 | 18,197 | ||||||||||||
| Provision for loan losses | - | - | 600 | 893 | - | 1,793 | ||||||||||||
| Other income | 2,414 | 2,125 | 2,435 | 2,322 | 4,539 | 4,565 | ||||||||||||
| Net gain on sale of assets | 711 | 852 | 956 | 929 | 1,563 | 1,598 | ||||||||||||
| Noninterest expense | 8,895 | 9,189 | 9,907 | 8,798 | 18,084 | 17,657 | ||||||||||||
| Income before income taxes | 3,110 | 2,605 | 2,162 | 2,796 | 5,715 | 4,910 | ||||||||||||
| Income tax expense | 849 | 758 | 660 | 773 | 1,607 | 1,281 | ||||||||||||
| Net income | 2,261 | 1,847 | 1,502 | 2,023 | 4,108 | 3,629 | ||||||||||||
| Preferred stock dividend and accretion | - | - | - | - | - | 35 | ||||||||||||
| Net income available to common shareholders | $ | 2,261 | $ | 1,847 | $ | 1,502 | $ | 2,023 | $ | 4,108 | $ | 3,594 | ||||||
| Common cash dividend declared and paid | $ | 290 | $ | 290 | $ | 290 | $ | 97 | $ | 580 | $ | 194 | ||||||
| Net interest income-FTE (1) | $ | 9,029 | $ | 8,923 | $ | 9,436 | $ | 9,396 | $ | 17,953 | $ | 18,513 | ||||||
| Total Operating Revenue (4) | $ | 12,154 | $ | 11,900 | $ | 12,827 | $ | 12,647 | $ | 24,055 | $ | 24,676 | ||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||
| June 30, | March 31, | December 31, | June 30, | June 30, | June 30, | |||||||||||||||||||
| 2015 | 2015 | 2014 | 2014 | 2015 | 2014 | |||||||||||||||||||
| PER SHARE DATA | ||||||||||||||||||||||||
| Basic net income per common share | $ | 0.23 | $ | 0.19 | $ | 0.16 | $ | 0.21 | $ | 0.43 | $ | 0.37 | ||||||||||||
| Diluted net income per common share | 0.23 | 0.19 | 0.15 | 0.21 | 0.43 | 0.37 | ||||||||||||||||||
| Cash dividends per common share | 0.03 | 0.03 | 0.03 | 0.01 | 0.06 | 0.02 | ||||||||||||||||||
| Book value per common shares outstanding | 12.21 | 12.17 | 11.93 | 11.43 | 12.21 | 11.43 | ||||||||||||||||||
| Tangible book value per common shares outstanding** | 9.95 | 9.91 | 9.67 | 9.49 | 9.95 | 9.49 | ||||||||||||||||||
| Period-end common share market value | 18.50 | 17.84 | 18.03 | 12.18 | 18.50 | 12.18 | ||||||||||||||||||
| Market as a % of tangible book | 185.97 | % | 180.11 | % | 186.51 | % | 128.36 | % | 185.97 | % | 128.36 | % | ||||||||||||
| Basic average common shares outstanding | 9,650,490 | 9,639,880 | 9,626,842 | 9,626,420 | 9,645,215 | 9,620,806 | ||||||||||||||||||
| Diluted average common shares outstanding | 9,751,825 | 9,738,594 | 9,692,425 | 9,643,892 | 9,741,560 | 9,637,814 | ||||||||||||||||||
| Common shares outstanding | 9,660,820 | 9,657,660 | 9,665,394 | 9,664,972 | 9,660,820 | 9,664,972 | ||||||||||||||||||
| KEY RATIOS | ||||||||||||||||||||||||
| Return on average assets (2) | 0.72 | % | 0.60 | % | 0.48 | % | 0.66 | % | 0.66 | % | 0.59 | % | ||||||||||||
| Return on average common equity (2) | 7.71 | % | 6.46 | % | 5.22 | % | 7.47 | % | 7.09 | % | 6.80 | % | ||||||||||||
| Efficiency ratio | 73.19 | % | 77.22 | % | 77.24 | % | 69.57 | % | 75.18 | % | 71.56 | % | ||||||||||||
| Noninterest expense to average assets (2) | 2.84 | % | 3.00 | % | 3.19 | % | 2.85 | % | 2.92 | % | 2.88 | % | ||||||||||||
| Average equity to average assets | 9.36 | % | 9.35 | % | 9.25 | % | 8.79 | % | 9.36 | % | 8.72 | % | ||||||||||||
| Net interest margin (FTE) (1) | 3.10 | % | 3.13 | % | 3.22 | % | 3.27 | % | 3.11 | % | 3.24 | % | ||||||||||||
| Common stock dividend payout ratio | 12.94 | % | 15.82 | % | 19.36 | % | 4.79 | % | 14.09 | % | 5.38 | % | ||||||||||||
| Common stock market capitalization | $ | 178,725 | $ | 172,293 | $ | 174,267 | $ | 117,719 | $ | 178,725 | $ | 117,719 | ||||||||||||
| ASSET QUALITY | ||||||||||||||||||||||||
| Allowance for Loan Losses | ||||||||||||||||||||||||
| Allowance for loan losses, beginning of period | $ | 16,797 | $ | 17,416 | $ | 17,432 | $ | 17,497 | $ | 17,416 | $ | 17,505 | ||||||||||||
| Provision for loan losses | - | - | 600 | 893 | - | 1,793 | ||||||||||||||||||
| Charge-offs | 965 | 693 | 937 | 1,033 | 1,658 | 2,032 | ||||||||||||||||||
| Recoveries | 97 | 74 | 321 | 73 | 171 | 164 | ||||||||||||||||||
| Net charge-offs | 868 | 619 | 616 | 960 | 1,487 | 1,868 | ||||||||||||||||||
| Allowance for loan losses, end of period | $ | 15,929 | $ | 16,797 | $ | 17,416 | $ | 17,430 | $ | 15,929 | $ | 17,430 | ||||||||||||
| Nonperforming Assets | ||||||||||||||||||||||||
| Nonperforming loans | $ | 15,681 | $ | 16,988 | $ | 16,578 | $ | 19,907 | $ | 15,681 | $ | 19,907 | ||||||||||||
| Other real estate owned | 793 | 772 | 772 | 1,016 | 793 | 1,016 | ||||||||||||||||||
| Total nonperforming assets | $ | 16,474 | $ | 17,760 | $ | 17,350 | $ | 20,923 | $ | 16,474 | $ | 20,923 | ||||||||||||
| Ratios | ||||||||||||||||||||||||
| Total nonperforming loans to total loans | 1.68 | % | 1.84 | % | 1.78 | % | 2.19 | % | 1.68 | % | 2.19 | % | ||||||||||||
| Total nonperforming assets to total assets | 1.33 | % | 1.41 | % | 1.40 | % | 1.69 | % | 1.33 | % | 1.69 | % | ||||||||||||
| Net charge-offs to average loans (2) | 0.37 | % | 0.27 | % | 0.26 | % | 0.42 | % | 0.32 | % | 0.42 | % | ||||||||||||
| Provision for loan losses to average loans (2) | 0.00 | % | 0.00 | % | 0.26 | % | 0.39 | % | 0.00 | % | 0.40 | % | ||||||||||||
| Allowance for loan losses to portfolio loans | 1.71 | % | 1.82 | % | 1.87 | % | 1.92 | % | 1.71 | % | 1.92 | % | ||||||||||||
| Allowance to nonperforming loans | 101.58 | % | 98.88 | % | 105.05 | % | 87.56 | % | 101.58 | % | 87.56 | % | ||||||||||||
| Allowance to nonperforming assets | 96.69 | % | 94.58 | % | 100.38 | % | 83.31 | % | 96.69 | % | 83.31 | % | ||||||||||||
| CAPITAL & LIQUIDITY | ||||||||||||||||||||||||
| Period-end tangible common equity to assets** | 7.90 | % | 7.75 | % | 7.69 | % | 7.29 | % | 7.90 | % | 7.29 | % | ||||||||||||
| Average equity to assets | 9.36 | % | 9.35 | % | 9.25 | % | 8.79 | % | 9.36 | % | 8.72 | % | ||||||||||||
| Average equity to loans | 12.55 | % | 12.53 | % | 12.35 | % | 11.96 | % | 12.57 | % | 11.86 | % | ||||||||||||
| Average loans to deposits | 87.68 | % | 87.93 | % | 88.21 | % | 85.96 | % | 87.60 | % | 85.92 | % | ||||||||||||
| Tier 1 leverage ratio (3) | 9.21 | % | 9.19 | % | 9.10 | % | 8.77 | % | 9.21 | % | 8.77 | % | ||||||||||||
| Tier 1 risk-based capital ratio (3) | 11.18 | % | 10.86 | % | 11.26 | % | 11.17 | % | 11.18 | % | 11.17 | % | ||||||||||||
| Total risk-based capital ratio (3) | 12.43 | % | 12.11 | % | 12.51 | % | 12.43 | % | 12.43 | % | 12.43 | % | ||||||||||||
| (1) FTE -- fully tax equivalent at 34% tax rate |
| (2) Annualized |
(3) The June 30, 2015 and March 31, 2015 Tier I leverage ratio was prepared under Basel III capital requirements, which were effective January 1, 2015. Prior year ratios were prepared under Basel I requirements. |
| (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. |
** Non-GAAP Financial Measures - Statements included in this press release include non-GAAP financial measures. The Corporations use of these non-GAAP financial measures, includes the period-end tangible common equity to assets ratio, in their analysis of the company's performance. Period-end tangible common equity excludes preferred stock as well as goodwill and other intangible assets, net, from total stockholders' equity. Management believes that non-GAAP financial measures provide additional useful information that allows readers to evaluate the ongoing performance of the Corporation. Non-GAAP financial measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider Corporation’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the results or financial condition as reported under GAAP.
CONTACT:
LNB Bancorp, Inc.
Peter R. Catanese, 440-244-7126
Senior Vice President
