1
Form 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2001
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number: 0-13203
LNB Bancorp, Inc.
(Exact name of the registrant as specified on its charter)
Ohio 34-1406303
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
457 Broadway, Lorain, Ohio 44052 - 1769
(Address of principal executive offices) (Zip Code)
(440) 244 - 6000
Registrant's telephone number, including area code
Not Applicable
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months,
and (2) has been subject to such requirements for the past 90 days.
YES X NO
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Outstanding at April 27, 2001: 4,213,047 shares
Class of Common Stock: $1.00 par value
2
LNB Bancorp, Inc.
Quarterly Report on Form 10-Q
Quarter Ended March 31, 2001
Part I - Financial Information
Item 1 - Financial Statements
Interim financial information required by Regulation 210.10-01 of
Regulation S-X is included in this Form 10-Q as referenced below:
Page
Number(s)
Condensed Consolidated Balance Sheets 3
Condensed Consolidated Statements of Income 5
Condensed Consolidated Statements
of Cash Flows 7
Notes to Condensed Consolidated Financial
Statements 9
Item 2 - Management's Discussion and Analysis
of Financial Condition and Results of
Operations 13
Item 3 - Quantitative and Qualitative Disclosures
about Market Risk 19
Part II - Other Information
Item 1 - Legal Proceedings 20
Item 2 - Changes in Securities 20
Item 3 - Defaults upon Senior Securities 20
Item 4 - Submission of matters to a Vote of
Security Holders 20
Item 5 - Other Information 21
Item 6 - Exhibits and Reports on Form 8-K 21
Signatures 22
Exhibit Index 23
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FORM 10-Q LNB BANCORP, INC.
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
MARCH 31, DECEMBER 31,
CONDENSED CONSOLIDATED BALANCE SHEETS 2001 2000
------------- --------------
(Unaudited) (See Note 1)
ASSETS:
Cash and due from banks $ 22,130,000 $ 22,011,000
Federal funds sold and
short-term investments 3,117,000 3,125,000
Securities:
Available for sale, at fair value 89,686,000 79,518,000
Held to maturity, at cost (fair
value $37,534,000 and $43,982,000,
respectively) 37,363,000 44,431,000
Federal Home Loan Bank, Federal Reserve
Bank and other equity stock, at cost 3,263,000 3,152,000
-------------- --------------
Total securities 130,312,000 127,101,000
-------------- --------------
Loans:
Portfolio loans 442,515,000 442,132,000
Loans available for sale 8,815,000 9,008,000
-------------- --------------
Total loans 451,330,000 451,140,000
Reserve for loan losses (5,045,000) (5,250,000)
-------------- --------------
Net loans 446,285,000 445,890,000
-------------- --------------
Bank premises and equipment, net 11,041,000 11,251,000
Intangible assets 3,753,000 3,847,000
Accrued interest receivable 3,818,000 4,694,000
Other assets 4,728,000 4,093,000
Other foreclosed assets 175,000 98,000
-------------- --------------
TOTAL ASSETS $625,359,000 $622,110,000
============== ==============
STATEMENT CONTINUED ON NEXT PAGE
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STATEMENT CONTINUED FROM PREVIOUS PAGE
LIABILITIES AND STOCKHOLDERS' EQUITY:
Deposits:
Demand and other noninterest-bearing
deposits $ 79,849,000 $ 83,093,000
Savings, Market Access and passbook
accounts 223,362,000 219,618,000
Certificates of deposit 205,178,000 193,380,000
-------------- --------------
Total deposits 508,389,000 496,091,000
-------------- --------------
Securities sold under repurchase agreements
and other short-term borrowings 27,617,000 39,391,000
Federal Home Loan Bank advances, short-term 18,395,000 16,095,000
Federal Home Loan Bank advances, long-term 5,950,000 8,250,000
Accrued interest payable 1,923,000 1,901,000
Accrued taxes, expenses, and
other liabilities 4,847,000 3,857,000
------------- --------------
Total liabilities 567,121,000 565,585,000
-------------- --------------
Shareholders' equity:
Preferred stock, no par value: Shares
authorized 1,000,000, and shares
outstanding, none
Common stock $1.00 par: Shares authorized
15,000,000, Shares issued 4,313,047 and
4,313,047, respectively and Shares
outstanding 4,213,047 and 4,211,047,
respectively 4,313,000 4,313,000
Additional capital 24,336,000 24,336,000
Retained earnings 31,537,000 30,584,000
Accumulated other comprehensive income 952,000 192,000
Treasury stock at cost, 100,000 shares (2,900,000) (2,900,000)
-------------- --------------
Total shareholders' equity 58,238,000 56,525,000
-------------- --------------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $625,359,000 $622,110,000
============== ==============
See notes to unaudited condensed consolidated financial statements.
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FORM 10-Q LNB BANCORP, INC.
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
THREE MONTHS ENDED
CONDENSED CONSOLIDATED STATEMENTS MARCH 31,
OF INCOME (UNAUDITED) ----------------------------
2001 2000
INTEREST INCOME: ----------------------------
Interest and fees on loans:
Taxable $ 9,833,000 $ 9,022,000
Tax-exempt 3,000 5,000
Interest and dividends on securities:
U.S. Treasury securities 30,000 156,000
U.S. Government agencies and corporations 1,673,000 1,559,000
States and political subdivisions 72,000 61,000
Other debt and equity securities 72,000 97,000
Interest on Federal funds sold and other
interest-bearing instruments 41,000 39,000
------------- ------------
TOTAL INTEREST INCOME 11,724,000 10,939,000
------------- ------------
INTEREST EXPENSE:
Interest on Deposits:
Time certificates of $100,000 and over 778,000 612,000
Other deposits 3,401,000 2,960,000
Interest on securities sold under
repurchase agreements and other
short-term borrowings 396,000 436,000
Interest on Federal Home Loan Bank
advances 328,000 376,000
------------- ------------
TOTAL INTEREST EXPENSE 4,903,000 4,384,000
------------- ------------
NET INTEREST INCOME 6,821,000 6,555,000
Provision for loan losses 450,000 300,000
NET INTEREST INCOME AFTER PROVISION ------------- ------------
FOR LOAN LOSSES 6,371,000 6,255,000
------------- ------------
OTHER INCOME:
Investment and Trust Services Division income 558,000 502,000
Service charges on deposit accounts 799,000 762,000
Other service charges, exchanges and fees 644,000 655,000
Gains from sales of securities 23,000 -0-
Other operating income 19,000 14,000
------------- ------------
TOTAL OTHER INCOME 2,043,000 1,933,000
STATEMENT CONTINUED ON NEXT PAGE
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STATEMENT CONTINUED FROM PREVIOUS PAGE
OTHER EXPENSES:
Salaries and employee benefits 2,600,000 2,492,000
Net occupancy expense of premises 386,000 386,000
Furniture and equipment expenses 519,000 573,000
Supplies and postage 275,000 208,000
Ohio franchise tax 162,000 169,000
Credit card and merchant expenses 282,000 250,000
Other operating expenses 1,175,000 1,122,000
------------- ------------
TOTAL OTHER EXPENSES 5,399,000 5,200,000
------------- ------------
INCOME BEFORE INCOME TAXES 3,015,000 2,988,000
INCOME TAXES 1,009,000 1,008,000
------------- ------------
NET INCOME $ 2,006,000 $ 1,980,000
============= ============
PER SHARE DATA:
BASIC EARNINGS PER SHARE $ .48 $ .48
======= =======
DILUTED EARNINGS PER SHARE $ .48 $ .48
======= =======
DIVIDENDS DECLARED PER SHARE $ .25 $ .24
======= =======
See notes to unaudited condensed consolidated financial statements.
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FORM 10-Q LNB BANCORP, INC.
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
THREE MONTHS ENDED
CONDENSED CONSOLIDATED STATEMENTS MARCH 31,
OF CASH FLOWS (UNAUDITED) ----------------------------
2001 2000
CASH FLOWS FROM OPERATING ACTIVITIES: ----------------------------
Interest received $12,603,000 $11,370,000
Other income received 1,962,000 2,028,000
Interest paid (4,881,000) (4,285,000)
Cash paid for salaries and
employee benefits (3,211,000) (2,623,000)
Net occupancy expense of premises paid (306,000) (306,000)
Furniture and equipment expenses paid (181,000) (212,000)
Cash paid for supplies and postage (275,000) (208,000)
Cash paid for other operating expenses (1,249,000) (667,000)
Federal income taxes paid -0- (250,000)
------------- -------------
NET CASH PROVIDED BY OPERATING
ACTIVITIES 4,462,000 4,847,000
------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of securities
held to maturity 7,000,000 -0-
Proceeds from maturities of securities
available for sale 13,915,000 4,000,000
Purchases of securities held to maturity (442,000) (78,000)
Purchases of securities available
for sale (23,140,000) (5,941,000)
Net (increase) in loans made to customers (896,000) (8,591,000)
Purchases of bank premises and equipment
and intangible assets (224,000) (701,000)
Proceeds from liquidation of other
foreclosed assets 296,000 96,000
Purchases of other foreclosed assets (247,000) -0-
------------- -------------
NET CASH USED IN INVESTING ACTIVITIES (3,738,000) (11,215,000)
------------- -------------
STATEMENT CONTINUED ON NEXT PAGE
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STATEMENT CONTINUED FROM PREVIOUS PAGE
CASH FLOWS FROM FINANCING ACTIVITIES:
Net (decrease) increase in demand and
other noninterest-bearing deposits (3,244,000) 13,611,000
Net increase in savings and
passbook deposits 3,744,000 6,478,000
Net increase in certificates of deposit 11,798,000 25,050,000
Net (decrease) in securities sold
under repurchase agreements and other
short-term borrowings (2,774,000) (36,802,000)
Proceeds from Federal Home Loan
Bank advances -0- -0-
Payment on Federal Home Loan advances (9,000,000) (10,000,000)
Proceeds from exercise of stock options -0- -0-
Dividends paid (1,137,000) (1,031,000)
------------- -------------
NET CASH (USED) BY FINANCING ACTIVITIES (613,000) (2,694,000)
------------- -------------
NET INCREASE(DECREASE) IN CASH AND
CASH EQUIVALENTS 111,000 (9,062,000)
CASH AND CASH EQUIVALENTS AT BEGINNING
OF YEAR 25,136,000 37,343,000
------------- -------------
CASH AND CASH EQUIVALENTS AT END OF
QUARTER $25,247,000 $28,281,000
============= =============
RECONCILIATION OF NET INCOME TO
NET CASH PROVIDED BY OPERATING ACTIVITIES:
NET INCOME $2,006,000 $1,980,000
Adjustments to reconcile net income to net
cash provided by operating activities:
Gain on sale of investments & loans 29,000 -0-
Depreciation and amortization 418,000 441,000
Amortization of intangible assets 94,000 100,000
Amortization of deferred loan fees
and costs, net 112,000 163,000
Provision for loan losses 450,000 300,000
Decrease in accrued interest receivable 876,000 456,000
(Increase) in other assets (613,000) (169,000)
Increase in accrued interest payable 22,000 99,000
Increase in accrued taxes,
expenses and other liabilities 1,104,000 1,364,000
Others, net (36,000) 113,000
-------------- -------------
NET CASH PROVIDED BY OPERATING ACTIVITIES $4,462,000 $4,847,000
============== ==============
See notes to unaudited condensed consolidated financial statements.
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FORM 10-Q LNB Bancorp, Inc.
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INTRODUCTION
The following areas of discussion pertain to the unaudited condensed
consolidated balance sheets of LNB Bancorp, Inc. (The Parent Company)
and its wholly-owned subsidiaries, Lorain National Bank (The Bank) and
Charleston Insurance Agency, Inc. and a 49% interest in Charleston Title
insurance Agency, LLC., at March 31, 2001, compared to December 31, 2000 and
the results of its operations and cash flows for the three months ended March
31, 2001 compared to the same period in 2000. The term "the Corporation"
refers to LNB Bancorp, Inc. and its wholly-owned subsidiaries. It is the
intent of this discussion to provide the reader with a more thorough
understanding of the unaudited condensed consolidated financial statements
and should be read in conjunction with those unaudited condensed consolidated
financial statements and the Corporation's December 31, 2000 Annual Report.
LNB Bancorp, Inc. is not aware of any trends, events, or uncertainties
that might have a material effect on the soundness of operations;
neither is LNB Bancorp, Inc. aware of any proposed recommendations by
regulatory authorities which would have a similar effect if implemented.
In an effort to take advantage of the recently passed Gramm-Leach-Bliley Act,
otherwise known as the financial modernization act, LNB Bancorp, Inc. has
applied for, and received, one of the first charters as a financial holding
company. The Act enables financial holding companies to engage in business
activities previously unavailable to them. The Corporation will also be able
to offer new products and services as they are developed and approved by
regulators. LNB Bancorp, Inc. is strategically reviewing its new business
opportunities under the Gramm-Leach-Bliley Act.
BASIS OF PRESENTATION
The unaudited condensed consolidated balance sheet as of March 31, 2001, the
unaudited condensed consolidated statements of income and cash flows for the
three months ended March 31, 2001 and 2000 are prepared in accordance with
generally accepted accounting principles. Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted.
The above mentioned statements reflect all normal and recurring adjustments
which are, in the opinion of Management, necessary for a fair presentation of
the financial position and the results of operations for the interim periods
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presented.
The consolidated balance sheet at December 31, 2000 has been taken from
the audited Financial Statements and condensed. It is suggested that
these condensed consolidated financial statements be read in conjunction with
the financial statements and notes thereto included in the Corporation's
December 31, 2000 Annual Report to Shareholders.
The results of operations for the period ended March 31, 2001 are not
necessarily indicative of the operating results for the full year.
RESERVE FOR LOAN LOSSES
Because some loans may not be repaid in full, a reserve for loan losses is
recorded. This reserve is increased by provisions charged to earnings and is
reduced by loan charge-offs, net of recoveries. Estimating the risk of loss
on any loan is necessarily subjective. Accordingly, the reserve is
maintained by Management at a level considered adequate to cover loan losses
that are currently anticipated based on Management's evaluation of several
key factors including information about specific borrower situations, their
financial position and collateral values, current economic conditions,
changes in the mix and levels of the various types of loans, past charge-off
experience and other pertinent information. The reserve for loan losses is
based on estimates using currently available information, and ultimate losses
may vary from current estimates due to changes in circumstances. These
estimates are reviewed periodically and, as adjustments become necessary,
they are reported in earnings in the periods in which they become known.
While Management may periodically allocate portions of the reserve for
specific problem situations, the entire reserve is available for any charge-
offs that may occur. Charge-offs are made against the reserve for loan
losses when Management concludes that it is probable that all or a portion of
a loan is uncollectible. After a loan is charged-off, collection efforts
continue and future recoveries may occur.
A loan is considered impaired, based on current information and events, if it
is probable that the Bank will be unable to collect the scheduled payments of
principal or interest when due according to the contractual terms of the loan
agreement. The measurement of impaired loans is generally based on the
present value of the expected future cash flows discounted at the loans
initial effective interest rate, except that all collateral-dependent loans
are measured for impairment based on the fair value of the collateral. If
the loan valuation is less than the recorded value of the loan, an impairment
reserve is established for the difference. The impairment reserve is
established by either an allocation of the reserve for loan losses or by a
provision for loan losses, depending upon the adequacy of the reserve for
loan losses.
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RECLASSIFICATIONS
Certain 2000 amounts have been reclassified to conform to 2001 presentation.
2. EARNINGS PER SHARE
Earnings per share is calculated as follows:
For the Quarter ended March 31, 2001
Income Shares Per-Share
(Numerator) (Denominator) Amount
Net Income $2,006,000
Basic EPS
Income available to
common shareholders $2,006,000 4,211,047 $ .48
=====
Effect of Dilutive Securities
Incentive Stock Options -0- 4,674
---------- ---------
Diluted EPS
Income available to common
shareholders + assumed
conversions $2,006,000 4,215,721 $ .48
========== ========= =====
For the Quarter ended March 31, 2000
Income Shares Per-Share
(Numerator) (Denominator) Amount
Net Income $1,980,000
Basic EPS
Income available to
common shareholders $1,980,000 4,127,161 $ .48
=====
Effect of Dilutive Securities
Incentive Stock Options -0- 3,581
---------- ---------
Diluted EPS
Income available to common
shareholders + assumed
conversions $1,980,000 4,130,742 $ .48
========== ========= =====
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3. COMPREHENSIVE INCOME
The Corporation's comprehensive income for the quarters ended March 31, 2001
and 2000 are as follows:
For the quarters ended March 31,
2001 2000
--------------------------------
Net income $2,006,000 $1,980,000
Other comprehensive income:
Unrealized gain(loss) on
securities available for
sale, net of tax (benefit)of
$392,000 and $(207,000) 760,000 (137,000)
------------ ------------
Comprehensive Income $2,766,000 $1,843,000
============ ============
4. DIVIDEND REINVESTMENT AND CASH STOCK PURCHASE PLAN
The Board of Directors adopted a dividend reinvestment and cash stock
purchase plan on November 18, 1997. Under the plan, the first dividend
reinvestment and cash stock purchase date was April 1, 1998. The plan
allows shareholders to elect to use their quarterly cash dividends to
purchase shares of LNB Bancorp, Inc. common stock. Additionally, cash can be
contributed directly to the plan for the purchase of shares of common stock
with a quarterly limit of $5,000.
The dividend reinvestment plan authorized the sale of 150,000 shares of
the Corporation's authorized but previously unissued common shares to
shareholders who choose to invest all or a portion of their cash dividends
plus additional cash payments. No shares were issued by the Corporation
pursuant to the plan in the first quarter of 2001. In the first quarter of
2001 stock was purchased in the open market at the then current market price.
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PART I - FINANCIAL INFORMATION
ITEM 2 - MANAGEMENT'S DISCUSSION & ANALYSIS OF FINANCIAL
CONDITION & RESULTS OF OPERATIONS
FORWARD-LOOKING STATEMENTS
Certain statements contained herein are not based on historical facts and are
"forward-looking statements" within the meaning of Section 21A of the
Securities Exchange Act of 1934. Forward-looking statements which are based
on various assumptions (some of which are beyond the Corporation's control),
may be identified by reference to a future period or periods, or by the use
of forward-looking terminology, such as "may," "will," "believe," "expect,"
"estimate," "anticipate," "continue," or similar terms or variations on those
terms, or the negative of these terms. Actual results could differ
materially from those set forth in forward-looking statements, due to a
variety of factors, including, but not limited to, those related to the
economic environment, particularly in the market areas in which the company
operates, competitive products and pricing, fiscal and monetary policies of
the U.S. Government, changes in government regulations affecting financial
institutions, including regulatory fees and capital requirements, changes in
prevailing interest rates, acquisitions and the integration of acquired
businesses, credit risk management, asset/liability management, the financial
and securities markets and the availability of and costs associated with
sources of liquidity.
The Corporation does not undertake, and specifically disclaims any
obligation, to publicly release the result of any revisions which may be made
to any forward-looking statements to reflect the occurrence of anticipated or
unanticipated events or circumstances after the date of such statements.
FINANCIAL CONDITION
Total assets of the Corporation increased $3,249,000 during the first
quarter, to $625,359,000. Federal funds sold and other interest-bearing
investments decreased by $8,000 during the first quarter of 2001.
The total securities portfolio increased $3,211,000 ending the first quarter
at $130,312,000. At March 31, 2001 gross unrealized gains (losses) in the
held to maturity securities portfolio were approximately $247,000 and
$(76,000), respectively.
Net loans increased $395,000 during the first quarter to $446,285,000
at March 31, 2001. This modest increase was a result of weak loan demand in
our market. Commercial loan growth was particularly strong, showing first
quarter increases of $5,769,000. Consumer and Mortgage loans decreased by
$4,362,000 and $1,217,000, respectively, during the first quarter of 2001.
The consumer loan portfolio has decreased because the bank has decided to
allow some run-off of the indirect automobile credits while mortgages
decreased due to the seasonality factors.
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The reserve for loan losses ended the quarter at $5,045,000 supported by a
provision for loan losses of $450,000, recoveries of $36,000 and loan charge-
offs of $691,000. The reserve for loan losses as a percentage of ending loans
was 1.12% at March 31, 2001 and 1.16% at December 31, 2000. Corporate
management believes that the reserve for loan losses as a percentage of
ending loans at March 31, 2001 remains at an appropriate level. The ratio of
the reserve for loan losses to nonperforming assets increased slightly to
258.9% as of March 31, 2001 from 226.6% at December 31, 2000. Corporate
management believes that the current level of the reserve for loan losses is
adequate based upon quantitative analysis of identified risks and analysis of
historical trends.
The level of nonperforming assets decreased by $369,000 during the first
quarter of 2001. This decrease is the result of a decrease in nonaccrual
loans of $495,000 as well as by an increase in other foreclosed assets owned
in the amount of $126,000. The decrease in nonaccrual loans is due to
decreases in nonaccrual principal balances of $326,000 which have been paid
off or brought current, loans charged-off in the amount of $283,000 and
liquidations of nonaccrual loans of $109,000 and increases in nonaccrual
principal balances of $403,000 which includes one large commercial loan
credit of $147,000 and 26 small consumer loan credits. The decrease in
nonaccrual loans in the first quarter of 2001 was due primarily to one
commercial loan customer and 21 personal loan customers. The increase in
Other Foreclosed Assets resulted from the acquisition of one residential
property in the amount of $175,000.
The level of nonperforming assets remains at relatively low levels and
Corporate management believes nonperforming assets are well collateralized.
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The table below presents the level of nonperforming assets at the end of the
last four calendar quarters.
Amounts in thousands 03/31/01 12/31/00 09/31/00 06/30/00
-------- -------- -------- --------
Nonperforming Assets:
Nonaccrual $1,724 $2,219 $1,702 $ 626
Restructured 0 0 0 0
Other Foreclosed Assets 224 98 47 247
------ ------ ------ ------
Total Nonperforming Assets $1,948 $2,317 $1,749 $ 873
====== ====== ====== ======
Reserve for loan losses
to nonperforming assets 258.9% 226.6% 296.4% 557.6%
====== ====== ====== ======
Accruing loans past due
90 days $ 112 $ 306 $ 197 $ 437
====== ====== ====== ======
Potential problem loans are those loans identified on management's watch list
in which Management has some doubt as to the borrower's ability to comply
with the present repayment terms and loans which Management is actively
monitoring due to changes in the borrower's financial condition. At March 31,
2001, potential problem loans totaled $4,365,000, an increase of $441,000
from the December 31, 2000 balance. The increase in the watch list from
June 30, 2000 to September 30, 2000 was due to a weakened steel industry.
The Bank has a few commercial loan customers that subcontract to the steel
industry. They were placed on the watch list for tracking purposes.
The Corporation's credit policies are reviewed and modified on an ongoing
basis in order to remain suitable for the management of credit risk within
the loan portfolio as conditions change. At March 31, 2001 there are no
significant concentrations of credit in the loan portfolio.
The Corporation had outstanding loan and credit commitments to make loans
totaling $114,342,000 and $95,893,000 at March 31, 2001 and 2000,
respectively. The increase in outstanding loan commitments results in part
from an increase in the unused portion of home equity lines of credits from
home equity loan sale programs during 2000 plus increase in loan demand
during the first quarter of 2001. Mortgage and commercial construction loan
demand is expected to increase in the second quarter of 2001 as seasonal
weather conditions improve and the construction season begins. Consumer loan
demand is expected to increase in the second quarter for home improvement and
automobile loans as weather conditions improve.
Total deposits increased $12,298,000 during the first quarter to
$508,389,000. Noninterest-bearing deposits decreased to $79,849,000, at
March 31, 2001 for a decrease of $3,244,000, while interest-bearing deposits
increased to $428,540,000 for an increase of $15,542,000. Federal funds
16
purchased and securities sold under agreements to repurchase decreased
$2,774,000 during the first quarter of 2001. Due to the volatility of
customer repurchase agreements, most funds generated by repurchase activity
enter the Corporation's earning assets as short-term investments.
LIQUIDITY
Liquidity measures a corporation's ability to generate cash or otherwise
obtain funds at reasonable prices to fund commitments to borrowers as well as
the demand of depositors and debt holders. Principal internal sources of
liquidity for the Corporation and the Bank are cash and cash equivalents,
Federal funds sold, and the maturity structures of investment securities and
portfolio loans. Securities and loans available for sale provide another
source of liquidity through the cash flows of these interest bearing assets
as they mature or are sold.
The Corporation continues to maintain a relatively liquid position in order
to take advantage of interest rate fluctuations. As of March 31, 2001 short-
term security investments with maturities of one year or less totaled
$15,715,000 which represented 12.1% of total securities. Adding cash and due
from banks of $22,130,000 and Federal Funds sold and other short-term
investments of $3,117,000, total liquid assets represented 6.6% of total
assets. The Corporation's subsidiary bank has established short-term lines
of credit at correspondent banks, the Federal Home Loan Bank and the Federal
Reserve Bank of Cleveland in the amounts of $13,000,000, $30,000,000 and
$26,000,000, respectively.
CAPITAL RESOURCES
LNB Bancorp, Inc. continues to maintain a strong capital position. Total
shareholders' equity increased to $58,238,000, at March 31, 2001. The
increase resulted primarily from $2,006,000 of net income generated from the
first quarter of operations less a cash dividend payable to shareholders of
$1,053,000. The decrease in interest rates experienced in the first quarter
of 2001 has caused an increase in the overall market value of available for
sale securities which resulted in an increase of shareholders' equity by
$760,000 for the quarter ended March 31, 2001. As of March 31, 2001, the LNB
Bancorp, Inc. held 100,000 shares of common stock as treasury stock. LNB
Bancorp, Inc. purchased 2,004 of these shares in 1998 and 97,996 shares in
1997 for a total cost of $2,900,000.
The Corporation continues to monitor growth to stay within the constraints
established by the regulatory authorities. Under Federal banking
regulations, an institution is deemed to be well-capitalized if it has a
Risk-based Tier 1 capital ratio of 6.00 percent or greater, a Risk-based
Total capital ratio of 10.00 percent or greater and a Leverage ratio of
5.00 percent or greater. The Corporation's Risk-based capital and Leverage
ratios have exceeded the ratios for a well-capitalized financial institution
for all periods presented. The Corporation's capital and leverage ratios as
17
of March 31, 2001 and 2000 follow together with those ratios required for the
Corporation to be considered well capitalized.
MARCH 31,
---------------------
2001 2000
------- -------
Tier I capital ratio 11.99% 11.87%
Required Tier I capital ratio 4.00% 4.00%
Total capital ratio 13.12% 13.03%
Required total capital ratio 8.00% 8.00%
Leverage ratio 8.67% 8.21%
Required leverage ratio 3.00% 3.00%
On an ongoing basis the Corporation analyzes acquisition opportunities in
markets which are adjacent to or within the Corporation's current
geographical market. Corporate management believes that it's current capital
resources are sufficient to support any foreseeable acquisition activity.
RESULTS OF OPERATIONS
Interest and fees on loans increased $809,000 when compared to the first
quarter of 2000. This was the result of the impact of increases in the loan
portfolio of $190,000 plus increases in rates. Interest and dividends on
securities was $1,847,000 for the first quarter of 2001 for a decrease of
$26,000 over the same period in 2000. The first quarter decrease in interest
and dividends on securities results from a net increase in the securities
portfolio of $3,211,000 which was more than offset by decreases in the
average yield of the securities portfolio. Interest and dividends on
securities represented 15.7% of total interest income at March 31, 2001
compared to 17.1% at March 31, 2000. Interest on Federal funds sold and other
interest-bearing instruments was $-0- at March 31, 2001 compared to $39,000
at March 31, 2000. The decrease resulted from lower average balances invested
in this form of financial instrument.
Total interest expense increased by $519,000 when compared to the first
quarter of 2000. The interest expense increase was fueled by an increase in
interest expense from certificates of deposit greater than $100,000 in the
amount of $166,000, plus increases in deposit account interest of $441,000
offset in part by decreases in securities sold under repurchase agreements
and federal funds purchased of $41,000.
Total other income increased by $110,000 when compared to the first quarter
of 2000. This increase resulted from increases in Investment and Trust
Services Division Income of $56,000, increases in service charges of $37,000
and increases in other service charges, exchanges and fees of $12,000.
The Corporation continuously monitors noninterest expenses for greater
profitability. The entire staff is geared to improving productivity at all
levels. Noninterest expense for the quarter ended March 31, 2001 was
18
$5,399,000, 3.8% more than the first quarter of 2000. This increase was
due primarily to increases in salary expenses, supplies and postage and
credit card and merchant expenses.
The effective tax rate was 33.5% and 33.7% during the first quarter of 2001
and 2000, respectively. Net income was $2,006,000 and $1,980,000 for the
quarters ended March 31, 2001 and 2000, respectively. Net income per basic
and diluted share was $.48 and $.48 for the quarters ended March 31, 2001 and
2000, respectively.
IMPACTS OF ACCOUNTING AND REGULATORY PRONOUNCEMENTS
Corporate management is not aware of any current recommendations by the
Financial Accounting Standards Board or by regulatory authorities which, if
they were implemented, would have a material effect on the liquidity, capital
resources or operations of the Corporation.
19
PART I - OTHER INFORMATION
ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Market Risk
Market risk is the risk of loss in a financial instrument arising from
adverse changes in market indices such as interest rates, foreign exchange
rates and equity prices. The Corporation's principal market risk exposure
is interest rate risk, with no material impact on earnings from changes in
foreign exchange rates or equity prices. There have been no material
changes in the asset and liability mix of the Corporation since December
31, 2000, which would impact the Corporation's level of market risk.
Interest rate risk is the exposure to changes in market interest rates.
Interest rate sensitivity is the relationship between market interest
rates and net interest income due to the repricing characteristics of
assets and liabilities. The Corporation monitors the interest rate
sensitivity of its on - and - off balance sheet positions by examining its
near-term sensitivity and its longer term gap position. Corporate
management has determined no significant changes in the Corporation's
interest rate risk profile since December 31, 2000.
With the Federal Reserve Board's recent announcements to decrease the
rates by 150 basis points during the first quarter of 2001, the Corporation
anticipates a decrease in the net interest margin during 2001. The amount
of the decrease will be determined, in part, by any rate reductions resulting
from actions of the Federal Open Market Committee. Also, Corporate
management does not anticipate any significant changes in the Corporation's
market risk of interest rate risk portfolio.
20
PART II - OTHER INFORMATION
ITEM 1 - Legal Proceedings
None
ITEM 2 - Changes in Securities
See item 4, (c), (1)
ITEM 3 - Defaults Upon Senior Securities
None
ITEM 4 - Submission of Matters to a Vote of Security Holders
(a) LNB Bancorp Inc.'s 2001 Annual Meeting of Shareholders
was held on April 17, 2001.
(b) Proxies were solicited by LNB Bancorp Inc.`s management
pursuant to Regulation 14 under the Securities Exchange
Act of 1934, there was no solicitation in opposition to
management's nominees for election to the board of
directors as listed in the proxy statement, and all
such nominees were elected to the classes in the proxy
statement pursuant to the vote of the shareholders.
(c) Other matters voted upon
(1)Election of directors to serve as Class II Directors
until April 20, 2004 Annual Meeting of Shareholders as
follows:
ABSTAIN/ BROKER
FOR AGAINST WITHHELD NON-VOTES
Daniel P. Batista 3,533,822 -0- 33,738 645,487
David M. Koethe 3,540,559 -0- 27,001 645,487
Stanley G. Pijor 3,535,505 -0- 32,055 645,487
Eugene M. Sofranko 3,541,541 -0- 26,019 645,487
Leo Weingarten 3,521,288 -0- 46,273 645,487
The total number of shares of LNB Bancorp, Inc. Common Stock,
$1.00 par value, outstanding as of March 5, 2001, the record
date of the Annual Meeting, was 4,213,047.
21
(2)Amendment of Articles of Incorporation - To amend the Articles
of Incorporation to add provisions requiring a fair price and
supermajority vote of shareholders for certain business
combinations. (These provisions are already contained in LNB
Bancorp's Amended Code of Regulations. This is a technical
amendment to address the requirements of Ohio law.)
ABSTAIN/ BROKER
FOR AGAINST WITHHELD NON-VOTES
2,261,271 879,866 36,125 1,035,785
Proposal (2), Amendment of Articles of Incorporation, did not
receive the required sixty-six and two-thirds percentage of
affirmative votes needed for ratification, therefore, the
amendment was defeated. In the opinion of the Bancorp's legal
counsel, the defeat of this proposed amendment has no impact.
It was to be a technical revision.
ITEM 5 - Other Information
(a) The Notice of the Annual Meeting to Shareholders and Proxy
Statement (dated March 19, 2001) was previously filed as
Exhibit 22 to the Bancorp's 2000 Annual Report on Form 10-K.
ITEM 6 - Exhibits and Reports on Form 8-K
(a) Exhibit (11) - Computation of Shares Used for Earnings
Per Share Calculations.
(b) Exhibit (13) - First Quarter Report to Shareholders of
LNB Bancorp, Inc. - March 31, 2001 - EDGAR Version.
(c) Reports on Form 8-K
There were no reports on Form 8-K filed for the three
months ended March 31, 2001.
Also, see the Exhibit Index which is found on the next page
of this Form.
22
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
LNB BANCORP, INC.
(registrant)
/s/ Gregory D. Friedman
Date: May 15, 2001 --------------------------
Gregory D. Friedman, CPA
Executive Vice President and
Chief Financial Officer
/s/ Mitchell J. Fallis
Date: May 15, 2001 --------------------------
Mitchell J. Fallis, CPA
Vice President and
Chief Accounting Officer
23
LNB Bancorp, Inc.
Form 10-Q
Exhibit Index
Pursuant to Item 601 (a) of Regulation S-K
S-K Reference Exhibit
Number
(11) Computation of Shares Used for Earnings Per Share
Calculations. Footnote 2 Earnings Per Share on
Page 11 of this Form 10-Q is incorporated by
Reference.
(12) First Quarter Report to Shareholders of LNB Bancorp, Inc.
- March 31, 2001 - EDGAR Version
24
LNB Bancorp, Inc.
Exhibit to Form 10 - Q
(For the three months ended March 31, 2001)
S - K Reference Number (13)
First Quarter Report to Shareholders of
LNB Bancorp, Inc. - March 31, 2001
EDGAR Version
DESCRIPTION:
Three sided pamphlet:
Outside cover: white with blue stripe across the top with two pictures
of LNB Employees and Ohio Read Students
First Quarter Report
March 31, 2001
(Logo)LNB
Bancorp, Inc.
Inside contains:
Message to shareholders,
Unaudited EDGAR version Consolidated Balance Sheets for period ending
March 31, 2001 and March 31, 2000, respectively,
Unaudited EDGAR version Consolidated Statements of Income for the Three
Months ended March 31, 2001 and March 31, 2000, respectively,
LNB Investment Center to provide investments and insurance
Banking Centers, ATMs and Investment Center
25
Outside cover description:
White background with blue stripe across top with two pictures of LNB
Employees with Ohio Reads Students
Front Cover:
First Quarter Report
March 31, 2001
(Logo)LNB
Bancorp, Inc
26
Inside of front cover:
Message to Shareholders
It's a pleasure, once again, to report on the progress of LNB Bancorp, Inc.,
and its subsidiary companies after the first quarter of 2001. As of March
31, 2001, LNB Bancorp, Inc. achieved growth in earnings, dividends, assets,
loans, deposits and shareholders' equity.
We are pleased to announce that earnings increased 1.3% for the first quarter
of 2001, compared to the same quarter one year ago, increasing to $2,006,000,
up from last year's $1,980,000. Earnings for 2001 were higher than a year
ago because of higher net interest income and noninterest income, offset in
part by higher loan loss provision and operating expenses. Increases in net
interest income was the net result of commercial loan growth which was
partially offset by a higher cost of funds. Basic and diluted earnings per
share for the first quarter of 2001 and 2000 remained constant at $.48.
Cash dividends declared per share for the first quarter of 2001 increased 4%
compared to the same quarter last year. The first quarter cash dividends
declared per share in 2001 increased by $.01 to $.25 per share, up from $.24
per share in 2000.
Consolidated assets increased 4.2% to $625.4 million at March 31, 2001, up
$25.1 million from March 31, 2000. Net loans grew by $23.2 million from one
year ago to $446.3 million at March 31, 2001, for a 5.5% increase. Commercial
loan growth accounted for almost all of total loan growth during the 12
months ended March 31, 2001.
Total deposits increased 1.3% to $508.4 million at March 31, 2001, up $6.4
million from one year ago. Increases in deposits resulted from increases in
Market Access accounts offset inpart by decreases in demand and certificates
of deposit accounts. Lorain National Bank operates 22 banking centers and 28
ATMs in nine local communities.
Total shareholders' equity increased by $6.3 million during the twelve months
ended March 31, 2001 for a 12.1% increase. Total shareholders' equity was
$58.2 million or $13.83 per share at March 31, 2001, compared to $51.9
million or $12.31 per share at March 31, 2000. The percentage of
shareholders' equity to assets reached 9.3% at March 31, 2001.
We would like to welcome and congratulate our newly elected member to the
Board of Directors, Lee C. Howley, president of Howley and Company. Mr.
Howley brings extensive personal experience from the telecommunication
industry and health-care-related real estate and service industries, as well
as Board of Director experience in the real estate holding industry.
We are pleased to report on the recent opening of our 22nd banking center in
Elyria, the Elyria United Methodist Village, located at 807 West Avenue,
27
Elyria, Ohio. We look forward to serving the residents and employees at our
newest banking center location.
We appreciate and thank you for your continued support and look forward to
addressing you after the completion of our second quarter of operations.
/s/ Stanley G. Pijor /s/ Gary C. Smith
--------------------- ------------------
Stanley G. Pijor Gary C. Smith
Chairman of the Board President and Chief
Executive Officer
NET INCOME millions of dollars
(A Net Income graph follows in printed version with income on the y-axis
and years 1997 through 2001 on the x-axis. The graph is a vertical bar
graph. The co-ordinates, by year, which are presented in the table below
are plotted on the previously described grid.)
DIVIDENDS PER SHARE dollars*
(A Dividends Per Share graph follows in printed version with dividends on
the y-axis and years 1997 through 2001 on the x-axis. The graph is a
vertical bar graph. The co-ordinates, by year, which are presented in the
table below are plotted on the previously described grid.)
BASIC EARNINGS PER SHARE dollars*
(A Basic Earnings Per Share graph follows in printed version with earnings
per share on the y-axis and years 1997 through 2001 on the x-axis. The
graph is a vertical bar graph. The co-ordinates, by year, which are
presented in the table below are plotted on the previously described
grid.)
Basic Earnings
Net Income Dividends Per Share Per Share
Year millions of dollars dollars* dollars*
2001 $2,006 $0.25 $0.48
2000 $1,980 $0.24 $0.48
1999 $1,833 $0.21 $0.43
1998 $1,678 $0.19 $0.40
1997 $1,525 $0.16 $0.36
*Adjusted for stock dividends and splits
28
Consolidated Balance Sheets
March 31, 2001 2000
- ----------------------------------------------------------------------
ASSETS:
Cash and Due from Banks. . . . . . . . . . .$ 22,130,000 $ 24,547,000
Federal Funds Sold and Short-term Investments 3,117,000 3,734,000
Federal Home Loan Bank and Federal
Reserve Bank Stock, at Cost . . . . . . . . 3,203,000 2,996,000
Securities Held to Maturity, at Cost . . . . 43,777,000 44,869,000
Securities Available for Sale, at Fair Value 83,332,000 77,258,000
Loans. . . . . . . . . . . . . . . . . . . . 451,330,000 427,845,000
Reserve for Loan Losses. . . . . . . . . . . (5,045,000) (4,790,000)
---------------------------
NET LOANS. . . . . . . . . . . . . . . . . . 446,285,000 423,055,000
---------------------------
Premises, Equipment and Intangible
Assets (net). . . . . . . . . . . . . . . . 14,794,000 15,640,000
Accrued Interest Receivable and
Other Assets. . . . . . . . . . . . . . . . 8,721,000 8,166,000
---------------------------
TOTAL ASSETS . . . . . . . . . . . . . . . .$625,359,000 $600,265,000
---------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY:
Noninterest-Bearing Deposits . . . . . . . .$ 79,849,000 $ 94,265,000
Interest-Bearing Deposits. . . . . . . . . . 428,540,000 407,705,000
---------------------------
TOTAL DEPOSITS . . . . . . . . . . . . . . . 508,389,000 501,970,000
---------------------------
Securities Sold under Repurchase Agreements
and Other Short-term Borrowings . . . . . . 27,617,000 15,320,000
Federal Home Loan Bank Advances. . . . . . . 24,345,000 24,345,000
Accrued Interest, Taxes, Expenses and
Other Liabilities . . . . . . . . . . . . . 6,764,000 6,726,000
---------------------------
TOTAL LIABILITIES. . . . . . . . . . . . . . 567,115,000 548,361,000
---------------------------
Preferred Stock. . . . . . . . . . . . . . . -0- -0-
Common Stock . . . . . . . . . . . . . . . . 4,313,000 4,227,000
Additional Capital . . . . . . . . . . . . . 24,336,000 22,685,000
Retained Earnings. . . . . . . . . . . . . . 31,543,000 29,045,000
Accumulated Other Comprehensive Income(Loss) 952,000 (1,153,000)
Treasury Stock, at Cost. . . . . . . . . . . (2,900,000) (2,900,000)
---------------------------
TOTAL SHAREHOLDERS' EQUITY . . . . . . . . . 58,244,000 51,904,000
---------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $625,359,000 $600,265,000
---------------------------
29
TOTAL ASSETS millions of dollars
(A Total Assets graph follows in printed version with assets on the y-axis
and years 1997 through 2001 on the x-axis. The graph is a vertical bar
graph. The co-ordinates, by year, which are presented in the table below
are plotted on the previously described grid.)
TOTAL SHAREHOLDERS' EQUITY millions of dollars
(A Total Shareholders' Equity graph follows in printed version with
shareholder's equity on the y-axis and years 1997 through 2001 on the
x-axis. The graph is a vertical bar graph. The co-ordinates, by year,
which are presented in the table below are plotted on the previously
described grid.)
Total Shareholders'
Total Assets Equity
Year millions of dollars millions of dollars
2001 $625.4 $58.2
2000 $600.3 $51.9
1999 $560.6 $49.2
1998 $490.0 $45.8
1997 $445.5 $45.0
(LOGO) LNB
Bancorp, Inc.
30
Consolidated Statements of Income
Three Months Ended March 31, 2001 2000
- ----------------------------------------------------------------------
INTEREST INCOME:
Interest and Fees on Loans. . . . . . . . . . $ 9,836,000 $ 9,027,000
Interest and Dividends on Securities. . . . . 1,847,000 1,873,000
Interest on Federal Funds Sold and
Short-term Investments . . . . . . . . . . . 41,000 39,000
-------------------------
TOTAL INTEREST INCOME . . . . . . . . . . . . 11,724,000 10 939,000
-------------------------
INTEREST EXPENSE:
Interest on Deposits. . . . . . . . . . . . . 4,179,000 3,572,000
Interest on Securities Sold under Repurchase Agreements
and Other Short-term Borrowings. . . . . . . 396,000 436,000
Interest on Federal Home Loan Bank Advances . 328,000 376,000
-------------------------
TOTAL INTEREST EXPENSE. . . . . . . . . . . . 4,903,000 4,384,000
-------------------------
NET INTEREST INCOME . . . . . . . . . . . . . 6,821,000 6,555,000
Provision for Loan Losses . . . . . . . . . . 450,000 300,000
-------------------------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES. . . . . . . . . . . . . . . 6,371,000 6,255,000
-------------------------
OTHER INCOME:
Investment and Trust Services Division Income 558,000 502,000
Fees and Service Charges. . . . . . . . . . . 1,443,000 1,417,000
Gains From Sales of Loans, Securities
and Buildings. . . . . . . . . . . . . . . . 23,000 -0-
Other Operating Income. . . . . . . . . . . . 19,000 14,000
-------------------------
TOTAL OTHER INCOME. . . . . . . . . . . . . . 2,043,000 1,933,000
-------------------------
OTHER EXPENSES:
Salaries and Employee Benefits. . . . . . . . 2,600,000 2,492,000
Net Occupancy Expense of Premises . . . . . . 386,000 386,000
Furniture and Equipment Expenses. . . . . . . 519,000 573,000
Supplies and Postage. . . . . . . . . . . . . 275,000 208,000
Ohio Franchise Tax. . . . . . . . . . . . . . 162,000 169,000
Other Operating Expenses. . . . . . . . . . . 1,457,000 1,372,000
-------------------------
TOTAL OTHER EXPENSES. . . . . . . . . . . . . 5,399,000 5,200,000
-------------------------
INCOME BEFORE INCOME TAXES. . . . . . . . . . 3,015,000 2,988,000
-------------------------
Income Taxes. . . . . . . . . . . . . . . . . 1,009,000 1,008,000
-------------------------
31
NET INCOME. . . . . . . . . . . . . . . . . . $ 2,006,000 $ 1,980,000
-------------------------
PER SHARE DATA:
BASIC EARNINGS PER SHARE. . . . . . . . . . . $.48 $.48
-------------------------
DILUTED EARNINGS PER SHARE. . . . . . . . . . $.48 $.48
-------------------------
DIVIDENDS DECLARED PER SHARE. . . . . . . . . $.25 $.24
-------------------------
Logos for LNBB NASDAQ LISTED, FDIC Insured, Federal Home Loan Bank System,
and Equal Housing Lender
32
Inside of back cover
LNB Investment Center to provide investments and insurance
Color photo in middle top of page of Financial Advisor Robert A. Carino
(Logo) LNB
Investment
Center
"Lorain National Bank... now makes
available a wide range of investment
products and services including stock
brokerage and mutual funds."
LNB Bancorp, Inc. has announced the availability of alternative investment
and insurance products and services through its subsidiaries to be marketed
under the brand LNB Investment Center.
Lorain National Bank, through an affiliation with Raymond James Financial
Services, Inc. Member NASD/SIPC, of St. Petersburg, Florida, now makes
available a wide range of investment products and services including stock
brokerage and mutual funds.
Our Charleston Insurance Agency Inc., subsidiary will provide customers with
insurance-related products including life, accident and health, and non-
variable annuities.
"Customers no longer need to consider any other source to meet all their
financial services needs," said Gary C. Smith, president and chief executive
officer of LNB Bancorp, Inc. and Lorain National Bank. "Regardless of our
customers' financial profiles, LNB Investment Center will market our
subsidiaries' products and services that span the entire financial services
spectrum."
Thomas P. Ryan, president and chief executive officer of Charleston Insurance
Agency, Inc., announced the hiring of financial advisor Robert A. Carino to
administer the sale of investment and insurance products. Carino is a 17-
year veteran of the financial services industry and most recently served as
an independent representative of Raymond James Financial Services, Inc. in
Norwalk.
As an LNB Investment Center financial advisor, Carino will provide customers
with a wide variety of Raymond James investment products while all non-
variable insurance products are made available through Charleston Insurance.
For now, Carino will work out of our downtown Lorain offices, however; he
will be providing service to customers of all 22 bank locations. These
product offerings were made available as a result of the enactment of the
Gramm-Leach-Bliley Financial Modernization Act.
Carino was most recently in charge of the Investment Sales Department of
33
Raymond James Financial Services, Inc. at Citizens National Bank of Norwalk.
In addition, he has held positions in investment sales and insurance at
Pierre Smith & Co., Parker & Hunter Co. and the former Central Trust Bank of
Lorain. He received a B.A. degree in Business Administration from Point Park
College in Pittsburgh, Pennsylvania and has taken numerous continuing
education courses on investments and insurance. He is a resident of
Vermilion.
34
Back Cover:
White background with black lettering and blue stripe across top of the page
Three column format
Banking Centers, ATMs and Investment Center
**ATM service available wherever you see this symbol
Lorain Banking Centers Amherst Banking Center
**Main **Amherst
457 Broadway 1175 Cleveland Avenue
Lorain, Ohio 44052 Amherst, Ohio 44001
(440) 244-7185 (440) 988-4423
**Sixth Street Drive-In Avon Lake Banking Center
200 Sixth Street **Avon Lake
Lorain, Ohio 44052 240 Miller Road
(440) 244-7242 Avon Lake, Ohio 44012
(440) 933-2186
**Cooper-Foster Park Road
1920 Cooper-Foster Park Road Elyria Banking Centers
Lorain, Ohio 44053 **Ely Square
(440) 282-1252 124 Middle Avenue
Elyria, Ohio 44035
**Kansas Avenue (440) 323-4621
1604 Kansas Avenue
Lorain, Ohio 44052 **Cleveland Street
(440) 288-9151 801 Cleveland Street
Elyria, Ohio 44035
**Oberlin Avenue (440) 365-8397
3660 Oberlin Avenue
Lorain, Ohio 44053 **Lake Avenue
(440) 282-9196 42935 North Ridge Road
Elyria Township, Ohio 44035
**Pearl Avenue (440) 233-7196
2850 Pearl Avenue
Lorain, Ohio 44055 **Midway Mall
(440) 277-1103 6395 Midway Mall Blvd
Elyria, Ohio 44035
**West Park Drive (440) 324-6530
2130 West Park Drive
Lorain, Ohio 44053 **Elyria United Methodist Village
(440) 989-3131 807 West Avenue
Elyria, Ohio 44035
(440) 323-6488
35
Village of LaGrange Banking Center **Dad's Sunoco
**Village of LaGrange 7580 Leavitt Road
546 North Center Street State Route 58
Village of LaGrange, Ohio 44050 Amherst, Ohio 44001
(440) 355-6734
**Fligner's Supermarket
Oberlin Banking Centers 1846 Broadway
**Kendal at Oberlin* Lorain, Ohio 44052
600 Kendal Drive
Oberlin, Ohio 44074 **Gateway Plaza
(440) 774-5400 3451 Colorado Avenue
Lorain, Ohio 44052
**Oberlin
40 East College Street **Lakeland Medical Center
Oberlin, Ohio 44074 3700 Kolbe Road
(440) 775-1361 Lorain, Ohio 44053
Olmsted Township Banking Centers **Lorain County Community College
**Olmsted Township 1005 North Abbe Road
27095 Bagley Road Elyria, Ohio 44035
Olmsted Township, Ohio 44138
(440) 235-4600 **Lowe's Home
Improvement Warehouse
The Renaissance 620 Midway Boulevard
26376 John Road Elyria, Ohio 44035
Olmsted Township, Ohio 44138
(440) 427-0041 **Mobile ATM
2130 West Park Drive
Vermilion Banking Center Lorain, Ohio 44035
**Vermilion
4455 East Liberty Avenue Other Offices
Vermilion, Ohio 44089 Executive
(440) 967-3124 457 Broadway
Lorain, Ohio 44052
Westlake Banking Centers (440) 244-7123
**Crossings of Westlake
30210 Detroit Road Branch Administration
Westlake, Ohio 44145 457 Broadway
(440) 892-9696 Lorain, Ohio 44052
(440) 244-7253
Westlake Village
28550 Westlake Village Drive Commercial, Consumer
Westlake, Ohio 44145 and Mortgage Loans
(440) 808-0229 457 Broadway
Lorain, Ohio 44052
ATMs (440) 244-7220
**Captain Larry's Marathon (440) 244-7272
1317 State Route 60 (440) 244-7216
Vermilion, Ohio 44089
36
Credit Cards Charleston Insurance Agency, Inc.
2130 West Park Drive 457 Broadway
Lorain, Ohio 44053 Lorain, Ohio 44052
(440) 989-3348 (440) 244-7158
Customer Service Interent: www.4LNB.com
2130 West Park Drive
Lorain, Ohio 44053 (Logo) LNB
(440) 989-3348 Bancorp, Inc.
(800) 860-1007
Human Resources
2130 West Park Drive
Lorain, Ohio 44053
(440) 989-3139
Operations
2130 West Park Drive
Lorain, Ohio 44053
(440) 989-3315
Purchasing
2150 West Park Drive
Lorain, Ohio 44053
(440) 989-3327
Investment and Trust Services
457 Broadway
Lorain, Ohio
(440) 244-7226
All Other Offices Not Listed
Toll Free (800) 860-1007
Lorain (440) 244-6000
Telebanker
Telebanker (440) 245-4562
Telebanker (800) 610-9033
Investment Center
LNB Investment Center
457 Broadway
Lorain, Ohio 44052
(440) 244-7158
(800) 845-2152