LNB Bancorp, Inc. (NASDAQ: LNBB) (“LNB” or the “Company”) today reported financial results for the quarter ended June 30, 2012. Net income was $1.44 million, up $726,000 or 101.9 percent, from the $712,000 reported for the second quarter of 2011. Net income available to common shareholders was $1.12 million, or $0.14 per common share, compared to $394,000, or $0.05 per common share, for the year-ago quarter, an increase of $0.09 per share. For the first six months of 2012, net income was $2.94 million, up $1.1 million or 59.7 percent, from the prior year. Net income available to common shareholders was $2.3 million, or $0.29 per common share, compared to $1.2 million for the 2011 six-month period, or $0.15 per common share, an increase of $0.14 per share, or 93.3 percent.
“Our ongoing efforts to improve asset quality and grow the balance sheet have contributed to a fourth consecutive quarter of stronger earnings,” stated Daniel E. Klimas, president and chief executive officer of LNB Bancorp. “While we are pleased with a doubling of net income year over year, the one-time costs associated with two recently completed initiatives lowered our earnings this past quarter.
“The first of these projects was the U.S. Treasury’s sale of our TARP preferred stock to private investors through an auction process. We expect that this transfer to private investors will expand the potential alternatives for repaying the TARP preferred stock and is a helpful step toward our intention to retire the entire issue of preferred stock in an appropriate timeframe. In addition, we recently repurchased the warrants for common stock that were held by the Treasury as part of the TARP program.
“We also completed the conversion of our bank operating system for both retail and commercial customers. As in any conversion, we’ve had some issues, but we are working to resolve them. We anticipate that this investment will provide better information and convenience for our customers, and efficiencies to the bank. Our commitment to technology complements our personal service capabilities. In today’s banking environment, all customers have come to expect a high level of efficiency. However, the service factor continues to differentiate a community bank like Lorain National from our large-bank competitors.”
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