This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

7 Cheapest Bank Takeout Target Stocks From KBW (Update 2)

4. LNB Bancorp

Shares of LNB Bancorp (LNBB - Get Report) of Lorain, Ohio, closed at $6.12 Friday, returning 31% year-to-date, following a 5% decline last year.

The shares trade for 73% of tangible book value, and for eight times the consensus 2013 earnings estimate of 74 cents. The consensus 2012 EPS estimate is 61 cents.

LNB Bancorp owes $25.2 million in TARP money. The U.S. Treasury on Monday initiated a second round of auctions of TARP preferred shares, for a group of seven banks, including LNB Bancorp. Bidding for the government-held preferred shares will end at 6:30PM, Eastern Standard Time, on Wednesday.

The company had $1.2 billion in total assets as of March 31 and reported first-quarter net income available to common shareholders of $1.2 million, or 15 cents a share, compared to $811 thousand, or 10 cents a share, in the fourth quarter, and $1.1 million, or 15 cents a share, in the first quarter of 2011. LNB Bancorp's first-quarter ROA was 0.51%, and the ROA has ranged from 0.24% to 0.57% over the past five quarters, according to Thomson Reuters Bank Insight.

KBW analyst John Barber on May 20 initiated his firm's coverage of LNB Bancorp with a "Market Perform" rating and a $7.00 price target, saying that TARP remains an overhang, and the increase in the dividend rate on preferred shares held by the government "from 5% to 9% in December 2013 represents a significant earnings event."

Barber said that he expects "LNB to continue building capital as our current estimates assume the company organically increases its tangible common equity (TCE) ratio over 6% by mid-2013 from 5.7% in 1Q12," adding that he believes "the company will be patient in its approach towards redeeming TARP; however, all strategic options remain on the table."

Interested in more on LNB Bancorp? See TheStreet Ratings' report card for this stock.

5 of 8

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
FFKY $3.90 0.00%
AF $13.05 0.00%
BSRR $16.52 0.00%
BANR $46.31 0.00%
EVBS $6.24 0.00%


DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs