LNB Bancorp, Inc., Reports Record 2002 First-Quarter Earnings; EPS Up 4% From Year-Ago Record on 10% Higher Revenues.Business Editors LORAIN, Ohio--(BUSINESS WIRE)--April 16, 2002 LNB LNB Low Noise Block LNB Laredo National Bank (Texas) LNB Low Noise Block downconverter (satellite television) LNB Low NOx Burner LNB Lubbock National Bank (Texas) BANCORP, INC inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. . (Nasdaq:LNBB), today announced improved financial results for the first quarter ended March 31, 2002, with earnings reaching the highest level for any first quarter in the organization's history. LNB Bancorp, Inc., parent financial holding company of The Lorain National Bank The Lorain National Bank is a full service bank headquartered in Lorain, Ohio. As of 2002 the bank had total assets of $691 Million US Dollars and today has twenty branches and 24 ATMs [1] [2]. , reported 2002 first-quarter earnings of $2,105,000, an increase of five percent from the previous first-quarter record of $2,006,000 set last year. Basic and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the 2002 first quarter were $.49 compared with $.47 for the year-ago period, an increase of four percent. The 2001 per-share amounts have been adjusted to reflect the two percent stock dividend of July 2, 2001. Net interest income increased four percent during the 2002 first quarter compared with last year's first quarter. Solid growth in commercial and consumer loans plus the downward repricing Repricing To change the price of an asset. In derivatives, it sometimes refers to the exchange of options of with different strike prices. repricing of interest-bearing liabilities contributed to the net interest income increase. Excluding gains on sales of securities of $275,000, noninterest income grew by 17 percent in 2002's first quarter, led by increases in service charges of 15 percent; other service charges, exchanges and fees of 13 percent; card-related income of 17 percent; and increases in Investment and Trust Services Division income of three percent. Net revenues generated during the quarter were $9,721,000, an increase of 10 percent from 2001 first-quarter net revenues of $8,864,000. Commenting on the stronger results, Gary C. Smith, LNB Bancorp's President and Chief Executive Officer, stated: "Despite the recent economic climate, we succeeded in generating higher revenues and earnings versus last year's record quarter. We believe our results under less-than-favorable conditions were largely due to maintaining focus on exercising prudent planning and enhancing operating efficiencies. Asset quality, capital management, and revenue diversification are absolute components of our corporate strategy." The Bancorp reported that annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. return on average assets for the 2002 first quarter was 1.29 percent, compared with 1.31 percent for 2001's first quarter. The annualized return on average shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. for the 2002 first quarter was 13.56 percent compared with 14.10 percent in last year's comparable quarter. Consolidated assets increased six percent to $661.6 million at March 31, 2002, up $36.2 million from March 31, 2001. Net loans increased eight percent to $483.3 million from $446.3 million, led by strong commercial and consumer loan growth offset by a modest refinancing-induced decline in residential mortgage loans during the 12 months ended March 31, 2002. Smith continued, "The effectiveness with which we managed during a weak economy was illustrated by the results of a survey supplied by the investment firm of Howe Barnes Investments, Inc., in March 2002. Of the 27 banks in the survey, which compared publicly traded Ohio-based banks with total assets under $1 billion, LNB Bancorp ranked second in four categories for the last 12 months reported. "Of the surveyed banks holding the number-one positions in these performance measures," he explained, "no single bank achieved top ranking in more than a single category, making LNB Bancorp's overall position in the survey most enviable en·vi·a·ble adj. So desirable as to arouse envy: "the enviable English quality of being able to be mute without unrest" Henry James. . "We are very proud of our relative performance and feel it reflects the hard work and dedication of all our employees. Moreover, we are pursuing initiatives aimed at increasing the investment community's awareness of the many strengths in our business and operations, creating additional value for all our stakeholders Stakeholders All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. ," Smith concluded. During the quarter, the bank initiated a comprehensive marketing campaign aimed at generating low-cost deposits and has reported that early results are exceeding internal projections. Total deposits rose three percent to $522.3 million, up $13.9 million from one year ago. Growth in savings, CheckInvest, moneymarket and Market Access deposits more than offset declines in demand deposits and certificates of deposit. Other borrowings were $71.1 million at March 31, 2002, compared with $52.0 million one year ago--up 37 percent, attributable to increases in Federal Home Loan Bank advances of $26.0 million and repurchase agreements Repurchase agreement An agreement with a commitment by the seller (dealer) to buy a security back from the purchaser (customer) at a specified price at a designated future date. of $1.1 million offset in part by reductions in federal funds Federal Funds Funds deposited to regional Federal Reserve Banks by commercial banks, including funds in excess of reserve requirements. Notes: These non-interest bearing deposits are lent out at the Fed funds rate to other banks unable to meet overnight reserve purchased of $8.0 million. At March 31, 2002, shareholders' equity had reached an all-time high of $62.3 million, up $4.1 million or seven percent from one year ago; and book value per share had climbed to $14.47 versus $13.56 per share at March 31, 2001. Capital ratios remained strong during the period, with average equity to average assets of 9.5 percent. LNB Bancorp, Inc., and Lorain National Bank exceed all applicable regulatory capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. . Under Federal Deposit Insurance Corporation Federal Deposit Insurance Corporation (FDIC), an independent U.S. federal executive agency designed to promote public confidence in banks and to provide insurance coverage for bank deposits up to $100,000. (FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). ) guidelines, Lorain National Bank is categorized cat·e·go·rize tr.v. cat·e·go·rized, cat·e·go·riz·ing, cat·e·go·riz·es To put into a category or categories; classify. cat as "well capitalized"--the highest rating category available. LNB Bancorp, Inc.'s Board of Directors declared a first-quarter cash dividend of $0.25 per share. The cash dividend was paid on April 1, 2002, to shareholders of record on March 18, 2002. LNB Bancorp, Inc.'s Annual Meeting of Shareholders will be held at 10:00 a.m. Eastern Daylight Savings Time today at: LNB Bancorp, Inc., 521 Broadway, Lorain, Ohio Lorain is a city in Lorain County, Ohio, United States. The municipality is located in northeastern Ohio on Lake Erie, at the mouth of the Black River, west of Cleveland. As of the 2000 Census, the city had a total population of 68,652 making it Ohio's 10th largest city. . A detailed analysis of LNB Bancorp, Inc.'s 2001 financial performance is included in its 2001 Annual Report, which was released in March 2002. About LNB Bancorp, Inc. LNB Bancorp, Inc., is a $662 million financial holding company with two wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. : The Lorain National Bank and Charleston Insurance Agency, Inc. LNB Bancorp's primary subsidiary, The Lorain National Bank, provides a full spectrum of financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , including full-service community banking, specializing in commercial, mortgage and personal banking services, and investment and trust services. Lorain National Bank also offers long-term, fixed-rate mortgages via the secondary mortgage market. Securities brokerage services, mutual fund and variable-annuity sales are also offered at Lorain National Bank by Raymond James  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . Financial Services, Inc. (member NASD/SIPC), a registered broker/dealer. Charleston Insurance Agency, Inc. offers life and long-term-care insurance and fixed-annuity products. Lorain National Bank serves customers through 20 retail banking centers and 27 ATMs in Ohio's Lorain, eastern Erie, and western Cuyahoga counties. For more information about LNB Bancorp and its related products and services, visit http://www.4lnb.com. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. based on current expectations that are covered under the "safe-harbor" provision of the Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995. Certain forward-looking statements, which involve inherent risks and uncertainties, are described in LNB Bancorp's filings with the Securities and Exchange Commission. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include fluctuations in interest rates, inflation, government regulations, and economic conditions and competition in the geographic and business areas in which LNB Bancorp, Inc., conducts its operations. --Financial Highlights Follow--
LNB Bancorp, Inc.
FINANCIAL HIGHLIGHTS
(In thousands, except per-share data; unaudited)
Percent
Three months ended March 31, 2002 2001 Change
---------------------------- ----------- ----------- --------
Net revenues $ 9,721 $ 8,864 10%
Net income $ 2,105 $ 2,006 5%
Earnings per share
(basic and diluted) $ 0.49 $ 0.47 4%
Dividends declared per share $ 0.25 $ 0.25 0%
Financial Ratios:
-----------------
Return on average assets 1.29% 1.31%
Return on average equity 13.56% 14.10%
Net interest margin 4.61% 4.76%
Percent
At March 31, 2002 2001 Change
---------------------------- ----------- ----------- --------
Total assets $ 661,576 $ 625,359 6%
Net loans $ 483,308 $ 446,285 8%
Total deposits $ 522,322 $ 508,389 3%
Other borrowings $ 71,138 $ 51,962 37%
Total shareholders' equity $ 62,342 $ 58,244 7%
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