LNB Bancorp, Inc. (NASDAQ: LNBB) (“LNB” or the “Company”) today reported financial results for the first quarter 2014. Net income available to common shareholders for the first quarter 2014 was $1,571,000, or $0.16 per common share, compared to $856,000, or $0.10 per common share, for the year-ago quarter which included Supplemental Executive Retirement Plan (SERP) compensation expense of $455,000, net of tax. Excluding the SERP expense, the adjusted net income available to common shareholders totaled $1,311,000 in the first quarter of 2013. The adjusted net income available to common shareholders increased $260,000, or 19.8%, from the first quarter 2013 to the first quarter 2014.
“Gain on the sale of loans was $703,000 for the quarter, compared to $656,000 for the first quarter of 2013. This increase is primarily due to the gain on the sale of SBA (Small Business Administration) loans of $495,000, offset by a decline in mortgage loan sales. We continue to see strong results from our new SBA Lending Group. Since the group’s inception in the fourth quarter of 2013, they have generated over $12 million in loans to medical, dental, veterinary and funeral home businesses. Our new SBA Lending income exceeded the reduction of our fee income from mortgage loan sales. Our mortgage fee income has declined as the market transitioned from heavy refinance volume to a lower level of activity based primarily on purchases,” stated Daniel E. Klimas, president and chief executive officer of LNB Bancorp.
Net interest income was $9.0 million for the first quarter of 2014, compared to $8.7 million in the first quarter of the prior year, an increase of 3.0%. The net interest margin (FTE) for the first quarter of 2014 was 3.21%, a decline of 2 basis points from the first quarter of 2013.
Loan balances grew by 2.2% compared to the first quarter of 2013, led by the commercial and indirect auto loan portfolios.