LNB Bancorp, Inc. (NASDAQ: LNBB) today reported net income available to common shareholders for the three months ended September 30, 2010 of $2,410,000, or $0.32 per diluted share, compared with a net loss of $4,695,000, or $0.64 per diluted share for the same period a year ago.
For the first nine months of 2010, net income was $4,347,000, or $0.59 per diluted share, compared to a net loss the same period last year of $3,480,000, or $0.48 per diluted share.
Third quarter 2010 net income included an after-tax gain of $1,436,500, or $0.20 per share, from the exchange and retirement of $4,250,000 million of LNB’s trust preferred securities for LNB common shares. The exchanges were completed in transactions on or prior to August 31, 2010.
“We are encouraged by another strong quarter of solid core earnings performance in a continuing sluggish economy,” said Daniel E. Klimas, president and chief executive officer of LNB Bancorp. “Additionally, the exchange of trust preferred securities for common shares completed in August strengthened the Company’s tangible common equity.“In the third quarter, asset quality showed signs of improvement which is testimony to our aggressive asset management strategy,” said Klimas. “We still face a challenging economy and will continue to focus on growing our business while managing our credit quality.” Pre-provision core earnings* equaled $3,438,000 for the third quarter of 2010 compared to $3,965,000 for the third quarter one year ago. For the first nine months of 2010, pre-provision core earnings* totaled $10,810,000 compared to $10,258,000 for the first nine months of 2009, an increase of 5.38 percent. Key Performance Measures Net interest income on a fully taxable equivalent basis for the third quarter of 2010 was $9,498,000 compared with $9,714,000 for the third quarter a year ago. For the first nine months of 2010, net interest income on a fully tax equivalent basis was $29,226,000, compared to $28,006,000 for the same period in 2009. The net interest margin on a fully tax equivalent basis for the third quarter of 2010 was 3.49 percent, an improvement from 3.30 percent for the third quarter of 2009. Noninterest income for the third quarter of 2010 was $5,044,000, compared with $3,124,000 for the same quarter a year ago. The increase was primarily due to the gain from the exchange of trust preferred securities. For the first nine months of 2010, noninterest income was $10,591,000 compared to $9,225,000 for the nine-month period a year ago.