LNB Bancorp, Inc. (NASDAQ: LNBB) (“LNB” or the “Company”) today reported financial results for the quarter ended March 31, 2012. Net income was $1.5 million, up $0.38 million or 33.2 percent, from the $1.13 million reported for the first quarter of 2011. Net income available to common shareholders was $1.19 million, or $0.15 per common share, compared to $0.81 million, or $0.10 per common share, for the year-ago quarter, an increase of $0.05 per share, or 46.9 percent.
“We reported another strong quarter of earnings growth,” stated Daniel E. Klimas, president and chief executive officer of LNB Bancorp. “We are pleased with the increased level of loan activity in our communities; this past quarter, we booked nearly $30 million of commercial loans. This is a positive sign of economic recovery as well as a reflection of the success of our business initiatives and the new commercial bankers that we hired in 2010 in anticipation of this activity.”
“We continue to reduce the level of problem loans and their associated costs. The impact of improved asset quality is reflected explicitly in our reduced provision expense and throughout our income statement in the form of reduced administrative expenses.”
“We look forward to a continuation of these slowly improving conditions. The business climate in our markets supports our growing confidence in the bank’s ability to capitalize on opportunities. With strong core earnings and $44 million in cash and cash equivalents as of March 31, we have the liquidity and capital strength to manage continued loan growth.”First Quarter Review LNB has made progress over the past year in several key performance areas. Asset quality, tangible and regulatory capital levels, loan growth and profitability have all benefited from management attention and an improved economy. Operating revenue, including net interest income on a fully tax-equivalent basis (“FTE”) plus noninterest income from operations, was $12.4 million for the first quarters of both 2011 and 2012. Net interest income (FTE) contributed $9.8 million of operating revenue for the first quarter of 2012, also virtually unchanged from the year-ago level; a two basis points decline in the 2012 net interest margin (FTE) to 3.61 percent was offset by a 0.4 percent increase in average earning assets year-over-year.
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