LNB Bancorp, Inc. (NASDAQ: LNBB) today reported net income for the three months ended March 31, 2010 of $1,331,000, or $.14 per diluted share, compared with $1,317,000, or $.14 per diluted share reported for the same period a year ago.
“We are pleased that our pre-provision core earnings* increased by 10 percent in the first quarter of 2010, compared with the first quarter a year ago, as we saw improvement once again in net interest income and net interest margin,” said Daniel E. Klimas, president and chief executive officer of LNB Bancorp, Inc. “Such a strong core earnings performance provides a solid foundation for the future.
“We continue to take significant reserves to provide for additional losses in our credit portfolio amid this difficult economic environment,” said Klimas.
Key Performance MeasuresNet interest income on a fully taxable equivalent basis for the first quarter of 2010 was $9,904,000, a 9.8 percent increase compared with $9,019,000 for the first quarter a year ago. The increase in net interest income was driven largely by the effect of lower market interest rates on the funding side while average earning assets decreased 1.02 percent on a year over year basis. As a result, the first quarter 2010 net interest margin improved 36 basis points to 3.69 percent, up from 3.33 percent one year ago. The provision for loan losses totaled $2,109,000 for the quarter ended March 31, 2010 compared to $1,809,000 for the same period one year ago and $3,657,000 in the fourth quarter of 2009. Noninterest income was $2,651,000 for the first quarter of 2010, compared to $2,857,000 for the first quarter of 2009. Trust fees, electronic banking fees and other fees increased year over year. Gains on the sale of loans were down $62,000, or 24.41 percent compared to the first quarter of last year. Gains on the sale of securities were down nearly $299,000 in the first quarter of 2010, compared to the first quarter of 2009.