LNB Bancorp, Inc. (NASDAQ: LNBB) today reported net income for the three months ended June 30, 2010 of $1,243,000, or $0.12 per diluted share, compared with $516,000, or $0.03 per diluted share reported for the same period a year ago.
For the first six months of 2010, net income was $2,574,000, or $0.26 per diluted share, compared with $1,833,000, or $0.17 per diluted share for the first half of 2009.
“We are pleased to report another quarter of profitability sustained by strong core earnings growth and revenue increases,” said Daniel E. Klimas, president and chief executive officer of LNB Bancorp, Inc. “Pre-provision core earnings* increased 25.43 percent in the second quarter of 2010 compared to the same quarter in 2009. While the economic environment continues to pose challenges, net interest income increased 5.95 percent and our net interest margin continued to strengthen when compared to the same period a year ago.”
Noninterest expense showed a 5.51 percent decline for the quarter ended June 30, 2010 compared to the same period one year ago which included a special assessment from the Federal Deposit Insurance Corporation (FDIC).“While the past two quarters have produced heartening results, we continue to take significant reserves to provide for additional losses in our credit portfolio as the economic environment continues to be challenging,” said Klimas. “Our focus remains fixed on building revenues and aggressively managing our assets.” Pre-provision core earnings* equaled $3,635,000 for the second quarter compared to $2,898,000 for the second quarter one year ago, an increase of 25.43 percent. For the first six months of 2010, pre-provision core earnings* totaled $7,372,000 compared to $6,293,000 for the first six months of 2009, an increase of 17.2 percent. Key Performance Measures Net interest income on a fully taxable equivalent basis for the second quarter of 2010 was $9,826,000, a 5.95 percent increase compared with $9,274,000 for the second quarter a year ago. For the first half of 2010, net interest income on a fully tax equivalent basis was $19,728,000, compared to $18,293,000 for the same period in 2009, an increase of 7.84 percent. The net interest margin for the second quarter of 2010 was 3.61 percent, compared with 3.28 percent for the second quarter of 2009. It represented a modest decline from 3.69 percent in the first quarter of 2010. Noninterest income for the second quarter of 2010 was $2,896,000, an improvement from the $2,651,000 in the first quarter of 2010, but down from the $3,244,000 in the second quarter of 2009. For the first six months of 2010, noninterest income was $5,547,000, compared to $6,101,000 for the first six months of 2009.