LNB Bancorp, Inc. (NASDAQ:LNBB) today reported financial results for the fourth quarter and full year ended December 31, 2010.
Net income for the year ended December 31, 2010 was $5,365,000 compared with a net loss of $2,001,000 for 2009. Net income available to common shareholders totaled $4,089,000 compared to a loss of $3,257,000 for 2009 and on a per share basis was $0.55 for 2010 versus a loss of $0.45 per share for 2009.
“We are pleased to report a strong profitable year for 2010 after two years of economic challenge,” said Daniel E. Klimas, president and chief executive officer of LNB Bancorp, “Our core business remains strong with solid gains in net interest income and noninterest income over the past year.” Net interest income showed a 2.3 percent improvement and noninterest income, which includes the gain on the extinguishment of debt, grew 15.2 percent in 2010 over 2009.
“While challenges continue in terms of asset quality and slow economic growth in the region, we remain optimistic that we have been able to weather the worst of the slowdown and we believe we have emerged as a strong community bank with a solid balance sheet and opportunities for further revenue growth as we look ahead,” said Klimas.“With early signs of economic improvement, the Company has made strategic investments in personnel in the second half of 2010 to take advantage of enhanced revenue opportunities in commercial and small business lending,” said Klimas. Net income for the fourth quarter of 2010 was $61,000 compared to $542,000 for the fourth quarter 2009. “The Company’s core earnings were strong in the fourth quarter and normal operating expenses were well contained,” said Klimas. Net income was negatively impacted by an increased provision for loan loss as well as elevated expenses related to loan workout and collections. During the fourth quarter of 2010 the Company provided $3,931,000 to the allowance for possible loan losses. “These additions to our allowance for possible loan losses are prudent measures that reflect the continued deterioration in appraised values of real estate collateral,” said Klimas.