LNB Bancorp, Inc. (NASDAQ: LNBB) ("LNB" or the "Company") today reported financial results for the fourth quarter and the full year ended December 31, 2014. Net income available to common shareholders for the quarter ending December 31, 2014 was $1.5 million, or $0.15 per diluted share, compared to $1.5 million, or $0.16 per diluted share, for the fourth quarter 2013. On December 15, 2014, LNB entered into a definitive merger agreement with Northwest Bancshares, Inc. During the quarter, the Company incurred merger related expenses of $.8 million or $.6 million after tax. Excluding merger related expenses of $.6 million after tax, net income available to common shareholders was $2.1 million during the quarter, a 36% increase year-over-year.

"We are very pleased with the fourth quarter results. We saw solid loan growth and continued improvement in credit quality, which reduced charge-offs and the provision for loan losses," stated Daniel E. Klimas, president and chief executive officer.

Loan balances at December 31, 2014 increased by $28 million compared to December 31, 2013, led by the consumer and commercial loan portfolios.

The Company continued to make progress on improving credit quality as non-performing assets for the fourth quarter declined $5.2 million as compared to the same quarter in 2013. The ratio of non-performing assets to total assets at December 31, 2014, was 1.40%, down from 1.83% at December 31, 2013.

Fourth Quarter Review

Noninterest income was $3.4 million for the fourth quarter of 2014 compared to $3.3 million for the prior-year fourth quarter. This year-over-year increase was driven primarily by gains on the sale of SBA (Small Business Administration) and consumer loans, an increase in Trust Department revenues and income from bank owned life insurance, which more than offset a decline in deposit and service charge fees.

Gain on the sale of loans was $1.0 million for the quarter, compared to $.7 million for the fourth quarter of 2013. This increase is primarily due to the gain on the sale of SBA loans as this initiative continued to contribute nicely to the Company's operating performance.

The provision for loan losses was $.6 million in the fourth quarter of 2014, down $.4 million, or 41%, from the 2013 fourth quarter, reflecting the Company's improvement in credit quality. Net charge-offs were $.6 million for the fourth quarter of 2014, or 0.26% of average loans (annualized), compared to $1.3 million, or 0.58% of average loans (annualized), in the fourth quarter of 2013. The allowance for loan losses was $17.4 million, or 1.87% of total loans, at December 31, 2014 compared with $17.5 million, or 1.94% of total loans, at December 31, 2013. The allowance for loan losses coverage of nonperforming loans at the end of the fourth quarter improved to 105% from 80% at the end of the same quarter a year ago. "The credit quality indicators continued to improve, resulting in a lower provision for the fourth quarter of 2014," stated Klimas.

Noninterest expense was $9.9 million for the fourth quarter of 2014 compared with $9.0 million for the fourth quarter of 2013, an increase of 10%. The increase in noninterest expense was largely in part due to the merger related costs incurred of $.8 million or $.6 million after tax.

Full Year 2014 Review

For the year ended December 31, 2014, net income available to common shareholders was $7.2 million, or $0.74 per common share, compared to $5.5 million, or $0.61 per common share for the year 2013. This represents an increase in net income available to common shareholders of $1.7 million, or 31%, and $0.13, or 21%, per common share. Excluding merger related expenses, the annual net income available to common shareholders was $7.8 million, up 42% compared to net income during 2013.

Net interest income on a fully tax-equivalent basis (FTE) for 2014 was $37.1 million compared to $36.2 million for 2013. The net interest margin was 3.21% for 2014 compared to 3.19% for 2013.

Noninterest income for 2014 was $12.9 million, compared to $12.1 million for 2013.

Noninterest expense for 2014 totaled $36.4 million, a $1.2 million increase from the total of $35.2 million for 2013.

During 2014, nonperforming assets declined $5.2 million, or 23%, to $17.4 million. For 2014, nonperforming assets comprised 1.40% of total assets, compared to 1.83% of total assets for 2013.

Net charge-offs were $3.2 million for 2014, or 0.35% of average loans, compared to $4.5 million in 2013, or 0.51% of average loans.

The allowance for loan losses was $17.4 million at December 31, 2014, or 1.87% of total loans, compared to $17.5 million at December 31, 2013, or 1.94% of total loans. For the year 2014, the provision for loan losses was $3.1 million compared to the 2013 provision of $4.4 million.

The Company continued to maintain capital levels in excess of the regulatory requirements to be categorized as "well capitalized" with a total risk-based capital ratio of 12.51%, Tier 1 leverage ratio of 9.10% and tangible common equity to tangible assets ratio of 7.69% at December 31, 2014.

Total assets at December 31, 2014 were $1.24 billion, up $6 million, or 0.5%, from December 31, 2013. Total deposits at December 31, 2014 were $1.03 billion, down $11 million, or 1.0%, from December 31, 2013.

About LNB Bancorp, Inc.

LNB Bancorp, Inc. is a $1.2 billion bank holding company. Its major subsidiary, The Lorain National Bank, is a full-service commercial bank, specializing in commercial, personal banking services, residential mortgage lending and investment and trust services. The Lorain National Bank and its Morgan Bank division serve customers through 21 retail-banking locations and 30 ATMs in Lorain, Erie, Cuyahoga and Summit counties. North Coast Community Development Corporation is a wholly owned subsidiary of The Lorain National Bank. For more information about LNB Bancorp, Inc., and its related products and services or to view its filings with the Securities and Exchange Commission, visit us at http://www.4lnb.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Terms such as "will," "should," "plan," "intend," "expect," "continue," "proposed", "believe," "anticipate" and "seek," as well as similar comments, are forward-looking in nature. Actual results and events may differ materially from those expressed or anticipated as a result of risks and uncertainties which include but are not limited to: a worsening of economic conditions or slowing of any economic recovery, which could negatively impact, among other things, business activity and consumer spending and could lead to a lack of liquidity in the credit markets; changes in the interest rate environment which could reduce anticipated or actual margins; increases in interest rates or further weakening of economic conditions that could constrain borrowers' ability to repay outstanding loans or diminish the value of the collateral securing those loans; market conditions or other events that could negatively affect the level or cost of funding, affecting the Company's ongoing ability to accommodate liability maturities and deposit withdrawals, meet contractual obligations, and fund asset growth, and new business transactions at a reasonable cost, in a timely manner and without adverse consequences; changes in political conditions or the legislative or regulatory environment, including new or heightened legal standards and regulatory requirements, practices or expectations, which may impede profitability or affect the Company's financial condition (such as, for example, the Dodd-Frank Act and rules and regulations that have been or may be promulgated under the Act); persisting volatility and limited credit availability in the financial markets, particularly if market conditions limit the Company's ability to raise funding to the extent required by banking regulators or otherwise; significant increases in competitive pressure in the banking and financial services industries, particularly in the geographic or business areas in which the Company conducts its operations; limitations on the Company's ability to return capital to shareholders, including the ability to pay dividends, and the dilution of the Company's common shares that may result from, among other things, any capital-raising or acquisition activities of the Company; adverse effects on the Company's ability to engage in routine funding transactions as a result of the actions and commercial soundness of other financial institutions; general economic conditions becoming less favorable than expected, continued disruption in the housing markets and/or asset price deterioration, which have had and may continue to have a negative effect on the valuation of certain asset categories represented on the Company's balance sheet; increases in deposit insurance premiums or assessments imposed on the Company by the FDIC; a failure of the Company's operating systems or infrastructure, or those of its third-party vendors, that could disrupt its business; risks that are not effectively identified or mitigated by the Company's risk management framework; and difficulty attracting and/or retaining key executives and/or relationship managers at compensation levels necessary to maintain a competitive market position; as well as the risks and uncertainties described from time to time in the Company's reports as filed with the SEC. The Company undertakes no obligation to update or clarify forward looking statements, whether as a result of new information, future events or otherwise.

In addition, expected cost savings, synergies and other financial benefits from the proposed merger with Northwest Bancshares might not be realized within the expected time frame and costs or difficulties relating to integration matters might be greater than expected. The requisite shareholder and regulatory approvals for the proposed merger might not be obtained.

Important Additional Information and Where to Find It

In connection with the proposed merger with Northwest Bancshares, Inc., Northwest Bancshares, Inc. will file with the SEC a Registration Statement on Form S-4 that will include a Proxy Statement of LNB Bancorp, Inc. and a Prospectus of Northwest Bancshares, Inc. as well as other relevant documents concerning the proposed transaction. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. SHAREHOLDERS OF LNB BANCORP, INC. ARE URGED TO READ THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS REGARDING THE MERGER WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.

A free copy of the Proxy Statement/Prospectus, as well as other filings containing information about Northwest Bancshares, Inc. and LNB Bancorp, Inc., may be obtained at the SEC's Internet site ( http://www.sec.gov). You will also be able to obtain these documents, free of charge, from Northwest Bancshares, Inc. at www.northwestsavingsbank.com under the heading "Investor Relations" and then under "SEC Filings" or from LNB Bancorp, Inc. by accessing LNB Bancorp, Inc.'s website at www.4lnb.com under the heading "Investor Relations" and then under "SEC Filings." Copies of the Proxy Statement/Prospectus can also be obtained, free of charge, by directing a request to Northwest Bancshares, Inc., 100 Liberty Street, Warren, Pennsylvania 16365, Attention: Investor Relations, Telephone: (814) 726-2140 or to LNB Bancorp, Inc., 457 Broadway, Lorain, Ohio 44052, Attention: Investor Relations, Telephone: (440) 244-7317.

LNB Bancorp, Inc. and Northwest Bancshares, Inc. and certain of their directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of LNB Bancorp, Inc. in connection with the proposed merger. Information about the directors and executive officers of LNB Bancorp, Inc. and their ownership of LNB Bancorp, Inc. common stock is set forth in the proxy statement for LNB Bancorp, Inc.'s 2014 annual meeting of shareholders, as filed with the SEC on Schedule 14A on March 11, 2014. Information about the directors and executive officers of Northwest Bancshares, Inc. is set forth in the proxy statement for Northwest Bancshares, Inc. 2014 annual meeting of shareholders, as filed with the SEC on a Schedule 14A on March 5, 2014. Additional information regarding the interests of those participants and other persons who may be deemed participants in the transaction may be obtained by reading the Proxy Statement/Prospectus regarding the proposed merger when it becomes available. Free copies of this document may be obtained as described in the preceding paragraph.
CONSOLIDATED BALANCE SHEETS
   
At December 31, 2014 At December 31, 2013
(unaudited)
(Dollars in thousands except share amounts)
ASSETS
Cash and due from banks $ 17,927 $ 36,717
Federal funds sold and interest bearing deposits in banks   6,215     15,555  
Cash and cash equivalents 24,142 52,272
Securities available for sale, at fair value 217,572 216,122
Restricted stock 5,741 5,741
Loans held for sale 3,646 4,483
Loans:
Portfolio loans 930,025 902,299
Allowance for loan losses   (17,416 )   (17,505 )
Net loans   912,609     884,794  
Bank premises and equipment, net 9,173 8,198
Other real estate owned 772 579
Bank owned life insurance 19,757 19,362
Goodwill, net 21,582 21,582
Intangible assets, net 321 457
Accrued interest receivable 3,635 3,621
Other assets   17,677     13,046  
Total Assets $ 1,236,627   $ 1,230,257  
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Demand and other noninterest-bearing $ 158,476 $ 148,961
Savings, money market and interest-bearing demand 436,271 393,778
Certificates of deposit   440,178     502,850  
Total deposits   1,034,925     1,045,589  
Short-term borrowings 10,611 4,576
Federal Home Loan Bank advances 54,321 46,708
Junior subordinated debentures 16,238 16,238
Accrued interest payable 596 789
Accrued taxes, expenses and other liabilities   4,597     4,901  
Total Liabilities   1,121,288     1,118,801  
Shareholders' Equity

Preferred stock, Series A Voting, no par value, authorized 150,000 shares at December 31, 2014 and December 31, 2013
- -
Fixed rate cumulative preferred stock, Series B, no par value, $1,000 liquidation value, no shares were issued at December 31, 2014 and 7,689 shares at December 31, 2013 - 7,689
Discount on Series B preferred stock - (19 )
Common stock, par value $1 per share, authorized 15,000,000 shares, issued shares 10,002,139 at December 31, 2014 and 10,001,717 at December 31, 2013 10,002 10,002
Additional paid-in capital 51,441 51,098
Retained earnings 60,568 53,966
Accumulated other comprehensive income (loss) (495 ) (5,188 )
Treasury shares at cost, 336,745 shares at December 31, 2014 and 328,194 shares at December 31, 2013   (6,177 )   (6,092 )
Total Shareholders' Equity   115,339     111,456  
Total Liabilities and Shareholders' Equity $ 1,236,627   $ 1,230,257  
 

Consolidated Statements of Income (unaudited)
       
Three Months Ended

December 31,
Three Months Ended

December 31,
Twelve Months Ended

December 31,
Twelve Months Ended

December 31,
2014 2013 2014 2013
(Dollars in thousands except per share data)
Interest Income
Loans $ 9,243 $ 9,118 $ 36,319 $ 36,409
Securities:
U.S. Government agencies and corporations 1,022 971 4,097 3,587
State and political subdivisions 311 304 1,235 1,191
Other debt and equity securities 68 127 318 464
Federal funds sold and short-term investments   4     5   34     28
Total interest income 10,648 10,525 42,003 41,679
Interest Expense
Deposits 1,028 1,153 4,159 4,838
Federal Home Loan Bank advances 157 159 627 628
Short-term borrowings 13 6 86 7
Junior subordinated debenture   172     172   680     683
Total interest expense   1,370     1,490   5,552     6,156
Net Interest Income 9,278 9,035 36,451 35,523
Provision for Loan Losses   600     1,025   3,113     4,375
Net interest income after provision for loan losses 8,678 8,010 33,338 31,148
Noninterest Income
Investment and trust services 404 377 1,685 1,555
Deposit service charges 840 901 3,309 3,509
Other service charges and fees 752 820 3,014 3,279
Income from bank owned life insurance 374 240 888 752
Other income   65     186   393     521
Total fees and other income 2,435 2,524 9,289 9,616
Securities gains (losses), net - - (5 ) 178
Gains on sale of loans 963 707 3,612 2,324
Gain (loss) on sale of other assets, net   (7 )   25   19     8
Total noninterest income 3,391 3,256 12,915 12,126
Noninterest Expense
Salaries and employee benefits 5,046 4,607 18,800 18,058
Furniture and equipment 1,190 1,075 4,715 4,234
Net occupancy 555 609 2,339 2,310
Professional fees 1,222 457 2,563 1,870
Marketing and public relations 302 278 1,425 1,216
Supplies, postage and freight 271 236 946 1,045
Telecommunications 163 168 640 669
Ohio Franchise tax 129 299 800 1,213
Intangible asset amortization 35 36 136 137
FDIC assessments 191 266 979 1,039
Other real estate owned 44 102 110 382
Loan and collection expense 398 397 1,399 1,427
Other expense   361     453   1,530     1,587
Total noninterest expense   9,907     8,983   36,382     35,187
Income before income tax expense 2,162 2,283 9,871 8,087
Income tax expense   660     577   2,654     1,926
Net Income $ 1,502   $ 1,706 $ 7,217   $ 6,161
Dividends and accretion on preferred stock   -     163   35     646
Net Income Available to Common Shareholders $ 1,502   $ 1,543 $ 7,182   $ 5,515
 
Net Income Per Common Share
Basic $ 0.16 $ 0.16 $ 0.75 $ 0.61
Diluted 0.15 0.16 0.74 0.61
Dividends declared 0.03 0.01 0.06 0.04
Average Common Shares Outstanding
Basic 9,626,842 9,288,745 9,623,772 8,953,815
Diluted 9,692,425 9,302,458 9,656,774 8,966,088
 

LNB Bancorp, Inc.
Supplemental Financial Information
(Unaudited - Dollars in thousands except per share data)
             
Three Months Ended Twelve Months Ended
December 31, September 30, June 30, March 31, December 31, December 31, December 31,
END OF PERIOD BALANCES   2014   2014   2014   2014   2013 2014   2013
Cash and Cash Equivalents $ 24,142 $ 36,167 $ 47,795 $ 68,241 $ 52,272 $ 24,142 $ 52,272
Securities 217,572 218,847 219,422 217,510 216,122 217,572 216,122
Restricted stock 5,741 5,741 5,741 5,741 5,741 5,741 5,741
Loans held for sale 3,646 1,497 2,856 1,811 4,483 3,646 4,483
Portfolio loans 930,025 922,514 907,365 910,189 902,299 930,025 902,299
Allowance for loan losses   17,416   17,432   17,430   17,497   17,505   17,416   17,505
Net loans 912,609 905,082 889,935 892,692 884,794 912,609 884,794
Other assets   72,917   73,765   71,093   69,398   66,845   72,917   66,845
Total assets $ 1,236,627 $ 1,241,099 $ 1,236,842 $ 1,255,393 $ 1,230,257 $ 1,236,627 $ 1,230,257
Total deposits 1,034,925 1,056,784 1,048,938 1,076,851 1,045,589 1,034,925 1,045,589
Other borrowings 81,170 65,779 66,413 66,723 67,522 81,170 67,522
Other liabilities   5,193   5,471   11,003   4,705   5,690   5,193   5,690
Total liabilities 1,121,288 1,128,034 1,126,354 1,148,279 1,118,801 1,121,288 1,118,801
Total shareholders' equity   115,339   113,065   110,488   107,114   111,456   115,339   111,456
Total liabilities and shareholders' equity $ 1,236,627 $ 1,241,099 $ 1,236,842 $ 1,255,393 $ 1,230,257 $ 1,236,627 $ 1,230,257
 
AVERAGE BALANCES
Assets:
Total assets $ 1,233,457 $ 1,228,769 $ 1,236,203 $ 1,234,380 $ 1,221,830 $ 1,233,187 $ 1,216,228
Earning assets* 1,160,953 1,151,577 1,154,063 1,150,500 1,137,943 1,154,295 1,132,514
Securities 219,861 217,791 223,198 217,753 214,860 219,652 217,882
Portfolio loans 924,216 915,773 907,851 906,843 899,899 914,137 887,866
Liabilities and shareholders' equity:
Total deposits $ 1,047,688 $ 1,044,021 $ 1,056,144 $ 1,055,980 $ 1,041,763 $ 1,050,916 $ 1,037,273
Interest-bearing deposits 876,897 883,713 905,838 910,340 891,589 894,077 895,634
Interest-bearing liabilities 943,339 951,142 972,784 978,073 956,866 961,211 960,372
Total shareholders' equity 114,135 111,394 108,624 106,681 109,814 110,232 109,712
 
INCOME STATEMENT
Total Interest Income $ 10,648 $ 10,350 $ 10,612 $ 10,393 $ 10,525 $ 42,003 $ 41,679
Total Interest Expense   1,370   1,374   1,376   1,432   1,490   5,552   6,156
Net interest income 9,278 8,976 9,236 8,961 9,035 36,451 35,523
Provision for loan losses 600 720 893 900 1,025 3,113 4,375
Other income 2,435 2,289 2,322 2,243 2,524 9,289 9,616
Net gain on sale of assets 956 1,072 929 669 732 3,626 2,510
Noninterest expense   9,907   8,818   8,798   8,859   8,983   36,382   35,187
Income before income taxes 2,162 2,799 2,796 2,114 2,283 9,871 8,087
Income tax expense   660   713   773   508   577   2,654   1,926
Net income 1,502 2,086 2,023 1,606 1,706 7,217 6,161
Preferred stock dividend and accretion   -   -   -   35   163   35   646
Net income available to common shareholders $ 1,502 $ 2,086 $ 2,023 $ 1,571 $ 1,543 $ 7,182 $ 5,515
Common cash dividend declared and paid $ 290 $ 97 $ 97 $ 97 $ 93 $ 580 $ 358
 
Net interest income-FTE (1) $ 9,436 $ 9,135 $ 9,396 $ 9,117 $ 9,192 $ 37,084 $ 36,156
Total Operating Revenue (4) $ 12,827 $ 12,496 $ 12,647 $ 12,029 $ 12,448 $ 49,999 $ 48,282
 

  Three Months Ended   Twelve Months Ended
December 31,   September 30,   June 30,   March 31,   December 31, December 31,   December 31,
    2014   2014   2014   2014   2013 2014   2013
PER SHARE DATA
Basic net income per common share $ 0.16 $ 0.22 $ 0.21 $ 0.16 $ 0.16 $ 0.75 $ 0.61
Diluted net income per common share 0.15 0.22 0.21 0.16 0.16 0.75 0.61
Cash dividends per common share 0.03 0.01 0.01 0.01 0.01 0.06 0.04
Book value per common shares outstanding 11.93 11.70 11.43 11.08 10.73 11.93 10.73
Tangible book value per common shares outstanding** 9.67 9.43 9.16 8.81 8.45 9.67 8.45
Period-end common share market value 18.03 14.29 12.18 11.42 10.03 18.03 10.03
Market as a % of tangible book 186.51 % 151.57 % 132.97 % 129.69 % 118.69 % 186.51 % 118.69 %
Basic average common shares outstanding 9,626,842 9,626,536 9,664,972 9,668,297 9,288,745 9,623,772 8,953,815
Diluted average common shares outstanding 9,692,425 9,659,593 9,682,444 9,705,432 9,302,458 9,656,774 8,966,088
Common shares outstanding 9,665,394 9,665,394 9,664,972 9,664,972 9,673,523 9,665,394 9,673,523
 
KEY RATIOS
Return on average assets (2) 0.48 % 0.67 % 0.66 % 0.53 % 0.55 % 0.59 % 0.51 %
Return on average common equity (2) 5.22 % 7.43 % 7.47 % 6.11 % 6.16 % 6.55 % 5.62 %
Efficiency ratio 77.24 % 70.57 % 69.57 % 73.65 % 72.16 % 72.77 % 72.88 %
Noninterest expense to average assets (2) 3.19 % 2.85 % 2.85 % 2.91 % 2.92 % 2.95 % 2.89 %
Average equity to average assets 9.25 % 9.07 % 8.79 % 8.64 % 8.99 % 8.94 % 9.02 %
Net interest margin (FTE) (1) 3.22 % 3.15 % 3.27 % 3.21 % 3.20 % 3.21 % 3.19 %
Common stock dividend payout ratio 19.36 % 4.63 % 4.79 % 6.18 % 6.10 % 8.04 % 6.56 %
Common stock market capitalization $ 174,267 $ 138,118 $ 117,719 $ 110,374 $ 97,025 $ 174,267 $ 97,025
 
 
ASSET QUALITY
Allowance for Loan Losses
Allowance for loan losses, beginning of period $ 17,432 $ 17,430 $ 17,497 $ 17,505 $ 17,791 $ 17,505 $ 17,637
Provision for loan losses 600 720 893 900 1,025 3,113 4,375
Charge-offs 937 856 1,033 998 1,570 3,825 6,019
Recoveries   321     138     73     90     259     623     1,512  
Net charge-offs   616     718     960     908     1,311     3,202     4,507  
Allowance for loan losses, end of period $ 17,416   $ 17,432   $ 17,430   $ 17,497   $ 17,505   $ 17,416   $ 17,505  
 
Nonperforming Assets
Nonperforming loans $ 16,578 $ 18,193 $ 19,907 $ 20,918 $ 21,986 $ 16,578 $ 21,986
Other real estate owned   772     745     1,016     979     579     772     579  
Total nonperforming assets $ 17,350   $ 18,938   $ 20,923   $ 21,897   $ 22,565   $ 17,350   $ 22,565  
 
Ratios
Total nonperforming loans to total loans 1.78 % 1.97 % 2.19 % 2.30 % 2.44 % 1.78 % 2.44 %
Total nonperforming assets to total assets 1.40 % 1.53 % 1.69 % 1.74 % 1.83 % 1.40 % 1.83 %
Net charge-offs to average loans (2) 0.26 % 0.31 % 0.42 % 0.41 % 0.58 % 0.35 % 0.51 %
Provision for loan losses to average loans (2) 0.26 % 0.31 % 0.39 % 0.40 % 0.45 % 0.34 % 0.49 %
Allowance for loan losses to portfolio loans 1.87 % 1.89 % 1.92 % 1.92 % 1.94 % 1.87 % 1.94 %
Allowance to nonperforming loans 105.05 % 95.82 % 87.56 % 83.65 % 79.62 % 105.05 % 79.62 %
Allowance to nonperforming assets 100.38 % 92.05 % 83.31 % 79.91 % 77.58 % 100.38 % 77.58 %
 
CAPITAL & LIQUIDITY
Period-end tangible common equity to assets** 7.69 % 7.47 % 7.29 % 6.90 % 6.77 % 7.69 % 6.77 %
Average equity to assets 9.25 % 9.07 % 8.79 % 8.64 % 8.99 % 8.94 % 9.02 %
Average equity to loans 12.35 % 12.16 % 11.96 % 11.76 % 12.20 % 12.06 % 12.36 %
Average loans to deposits 88.21 % 87.72 % 85.96 % 85.88 % 86.38 % 86.98 % 85.60 %
Tier 1 leverage ratio (3) 9.10 % 9.01 % 8.77 % 8.61 % 9.22 % 9.10 % 9.22 %
Tier 1 risk-based capital ratio (3) 11.26 % 11.09 % 11.17 % 10.90 % 11.63 % 11.26 % 11.63 %
Total risk-based capital ratio (3) 12.51 % 12.34 % 12.43 % 12.15 % 12.89 % 12.51 % 12.89 %
 
(1) FTE -- fully tax equivalent at 34% tax rate
(2) Annualized

(3) 12-31-14 ratio is estimated.
(4) Net interest income on a fully tax-equivalent basis ("FTE") plus noninterest income from operations
* Earning Assets includes Loans Held for Sale

** Non-GAAP measures.

**Non-GAAP Financial Measures - Statements included in this press release include non-GAAP financial measures. The Company's management uses these non-GAAP financial measures, including the period-end tangible common equity to assets ratio, in analyzing the Company's performance. Period-end tangible common equity excludes preferred stock as well as goodwill and other intangible assets, net, from total stockholders' equity. Management believes that these non-GAAP financial measures provide additional useful information to investors in evaluating the ongoing performance of the Company. Non-GAAP financial measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the Company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the results or financial condition as reported under GAAP.

Copyright Business Wire 2010