LNB Bancorp, Inc. (NASDAQ: LNBB) today reported net income for the three months ended March 31, 2011 of $1,130,000.
“The solid profitability in the first quarter of 2011 continues to demonstrate the Company’s core business strength,” said Daniel E. Klimas, president and chief executive officer of LNB Bancorp, Inc., who pointed to healthy increases in both portfolio loans and total deposits and solid core performances in fee income generation.
“All of this points to the fact that our business strategy is working in the face of continued economic challenges,” said Klimas. “We continue to aggressively manage our credit portfolio and focus on building revenue.”
Net income available to common shareholders for the three months ended March 31, 2011 was $811,000, or $0.10 per diluted share, compared to net income of $1,012,000, or $0.14 per diluted share reported for the same period a year ago. For the fourth quarter of 2010, the Company reported a net loss of $258,000, or $0.03 per diluted share.Key Performance Measures Net interest income on a fully tax equivalent basis for the first quarter of 2011 was $9,739,000, compared to $9,904,000 for the first quarter a year ago. The continued lower interest rate environment reduced the yield on the Company’s investment portfolio, which negatively affects the net interest margin. The first quarter 2011 net interest margin on a fully tax-equivalent basis was 3.63 percent, down slightly from 3.69 percent one year ago, but improved from 3.59 percent at the end of the fourth quarter 2010. The provision for loan losses for the quarter ended March 31, 2011 totaled $2,100,000, essentially flat from $2,109,000 for the first quarter of 2010 and notably down from $3,931,000 in the fourth quarter of 2010. Noninterest income which is traditionally weak in the first quarter totaled $3,071,000 compared to $2,651,000 for the first quarter of 2010. While the first quarter of 2011 included a gain on the sale of securities totaling $412,000, other fees which include ATM fees and merchant/debit card fees showed improvement year over year. Trust income, gain on the sale of mortgage loans and service charges on deposits were down from a year ago, the latter being negatively impacted by new federal regulations regarding certain bank overdraft fees and charges.