<PAGE>1
Form 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number: 0-13203
LNB Bancorp, Inc.
(Exact name of the registrant as specified on its charter)
Ohio 34-1406303
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
457 Broadway, Lorain, Ohio 44052 - 1769
(Address of principal executive offices) (Zip Code)
(216) 244 - 6000
Registrant's telephone number, including area code
Not Applicable
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months,
and (2) has been subject to such requirements for the past 90
days.
YES X NO
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Outstanding at March 31, 1995: 3,210,765 shares
Class of Common Stock: $1.00 par value
<PAGE>2
LNB Bancorp, Inc.
Quarterly Report on From 10-Q
Quarter Ended March 31, 1995
Part I - Financial Information
Item 1 - Financial Statements
Interim financial information required by Regulation 210.10-01 of
Regulation S-X is included in this Form 10-Q as referenced below:
Page
Number(s)
Consolidated Balance Sheets 3
Consolidated Statements of Income 5
Condensed Consolidated Statements
of Cash Flows 7
Notes to the Consolidated Financial Statements 9
Item 2 - Management's Discussion and Analysis
of Financial Condition and Results of
Operations 11
Part II - Other Information
Item 1 - Legal Proceedings 15
Item 2 - Changes in Securities 15
Item 3 - Defaults upon Senior Securities 15
Item 4 - Submission of matters to a Vote of
Security Holders 15
Item 5 - Other Information 16
Item 6 - Exhibits and Reports on Form 8-K 16
Signatures 16
Exhibit Index 17
<PAGE>3
FORM 10-Q LNB BANCORP, INC.
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
MARCH 31, DECEMBER 31,
CONDENSED CONSOLIDATED BALANCE SHEETS 1995 1994
------------- --------------
(Unaudited) (See Note 1)
ASSETS:
Cash and due from banks $ 20,199,000 $ 21,275,000
Federal funds sold and other interest
bearing instruments 2,100,000 -0-
Securities:
Securities available for sale 10,693,000 10,137,000
Investment securities 94,601,000 89,387,000
-------------- --------------
Total securities 105,294,000 99,524,000
(Market value $104,809,000 and -------------- --------------
$97,080,000, respectively)
Total loans 267,640,000 261,807,000
Reserve for possible loan losses (3,915,000) (3,832,000)
-------------- --------------
Net loans 263,725,000 257,975,000
-------------- --------------
Premises and equipment, net 11,112,000 10,682,000
Other assets 5,672,000 5,399,000
-------------- --------------
TOTAL ASSETS $408,102,000 $394,855,000
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Noninterest-bearing deposits $ 51,924,000 $ 57,096,000
Interest-bearing deposits 288,185,000 278,123,000
-------------- --------------
Total deposits 340,109,000 335,219,000
-------------- --------------
Federal funds purchased and securities
sold under agreements to repurchase 26,596,000 19,171,000
Other liabilities 3,104,000 2,954,000
-------------- --------------
Total liabilities 369,809,000 357,344,000
STATEMENT CONTINUED ON NEXT PAGE
<PAGE>4
STATEMENT CONTINUED FROM PREVIOUS PAGE
Shareholders' equity:
Common stock $1.00 par:
Authorized 4,000,000
Outstanding 3,210,765 and 3,200,054
respectively 3,211,000 3,200,000
Additional capital 18,495,000 18,415,000
Retained earnings 16,634,000 16,028,000
Net unrealized security losses (47,000) (132,000)
-------------- --------------
Total shareholders' equity 38,293,000 37,511,000
-------------- --------------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $408,102,000 $394,855,000
============== ==============
Note 1: The consolidated balance sheet at December 31, 1994 has been
taken from the audited Financial Statements and condensed.
See notes to condensed consolidated financial statements.
<PAGE>5
FORM 10-Q LNB BANCORP, INC. Unaudited
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
THREE MONTHS ENDED
CONDENSED CONSOLIDATED STATEMENTS MARCH 31,
OF INCOME ------------------------------
1995 1994
INTEREST INCOME: ------------------------------
Interest and fees on loans:
Taxable $ 5,877,000 $ 4,916,000
Tax-exempt 20,000 17,000
Interest and dividends on securities:
Taxable 1,305,000 1,072,000
Tax-exempt 99,000 141,000
Interest on Federal funds sold and other
interest bearing instruments 45,000 51,000
------------- -------------
TOTAL INTEREST INCOME 7,346,000 6,197,000
------------- -------------
INTEREST EXPENSE:
Interest on certificates of deposit
of $100,000 or more 393,000 135,000
Interest on other deposits 2,035,000 1,681,000
Interest on Federal funds purchased
and securities sold under agreements
to repurchase 288,000 112,000
------------- -------------
TOTAL INTEREST EXPENSE 2,716,000 1,928,000
------------- -------------
NET INTEREST INCOME 4,630,000 4,269,000
Provision for possible loan losses 100,000 100,000
NET INTEREST INCOME AFTER PROVISION ------------- -------------
FOR POSSIBLE LOAN LOSSES 4,530,000 4,169,000
------------- -------------
OTHER INCOME:
Trust division income 239,000 209,000
Service charges on deposit accounts 375,000 373,000
Other charges fees and exchanges 462,000 345,000
Other operating income 2,000 2,000
------------- -------------
TOTAL OTHER INCOME 1,078,000 929,000
STATEMENT CONTINUED ON NEXT PAGE
<PAGE>6
STATEMENT CONTINUED FROM PREVIOUS PAGE
OTHER EXPENSES:
Salaries and employee benefits 1,896,000 1,707,000
Net occupancy expense 307,000 286,000
Furniture and equipment expense 507,000 430,000
FDIC deposit insurance premium 186,000 178,000
Other operating expenses 1,124,000 1,040,000
------------- -------------
TOTAL OTHER EXPENSES 4,020,000 3,641,000
------------- -------------
INCOME BEFORE FEDERAL INCOME TAXES 1,588,000 1,457,000
FEDERAL INCOME TAXES 501,000 423,000
------------- -------------
NET INCOME $ 1,087,000 $ 1,034,000
============= =============
PER SHARE DATA:
EARNINGS $ .34 $ .32
======= =======
CASH DIVIDENDS $ .15 $ .14
======= =======
See notes to condensed consolidated financial statements.
<PAGE>7
FORM 10-Q LNB BANCORP, INC. Unaudited
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
THREE MONTHS ENDED
CONDENSED CONSOLIDATED STATEMENTS MARCH 31,
OF CASH FLOWS ----------------------------
1995 1994
CASH FLOWS FROM OPERATING ACTIVITIES: ----------------------------
Interest received $ 7,036,000 $ 6,200,000
Other income received 1,047,000 954,000
Interest paid (2,504,000) (1,926,000)
Cash paid for salaries and benefits (1,800,000) (1,756,000)
Net occupancy expense of premises paid (226,000) (218,000)
Furniture and equipment expenses paid (188,000) (158,000)
Cash paid for supplies and postage (232,000) (211,000)
Cash paid for other operating expenses (1,499,000) (1,416,000)
Federal income taxes paid -0- -0-
------------- -------------
NET CASH PROVIDED BY OPERATING
ACTIVITIES 1,634,000 1,469,000
------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Net decrease in securities
available for sale (46,000) (36,000)
Proceeds from sales of investment
securities 9,760,000 9,538,000
Purchase of securities available
for sale (425,000) -0-
Purchases of investment securities (14,967,000) (8,807,000)
Net decrease in credit card loans 437,000 461,000
Net (increase) decrease in long-term
loans (6,337,000) 86,000
Purchases of bank premises, equipment
and software (894,000) (725,000)
Proceeds from sales of bank premises,
and equipment -0- -0-
------------- -------------
NET CASH USED IN INVESTING ACTIVITIES (12,472,000) 517,000
------------- -------------
STATEMENT CONTINUED ON NEXT PAGE
<PAGE>8
STATEMENT CONTINUED FROM PREVIOUS PAGE
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase (decrease) in demand and
other noninterest-bearing deposits (5,172,000) 2,661,000
Net increase (decrease) in savings and
passbook deposits (9,403,000) 4,983,000
Net increase (decrease) in time deposit 19,465,000 (281,000)
Net increase (decrease) in federal
funds purchased and other interest
bearing instruments 7,425,000 (2,982,000)
Proceeds from line of credit -0- 450,000
Proceeds from exercise of stock options 91,000 6,000
Dividends paid (544,000) (496,000)
------------- -------------
NET CASH PROVIDED BY FINANCING
ACTIVITIES 11,862,000 4,341,000
------------- -------------
NET INCREASE IN CASH AND
CASH EQUIVALENTS 1,024,000 6,327,000
CASH AND CASH EQUIVALENTS AT BEGINNING
OF YEAR 21,275,000 21,276,000
------------- -------------
CASH AND CASH EQUIVALENTS AT END OF
QUARTER $22,299,000 $27,603,000
============= =============
See notes to condensed consolidated financial statements.
<PAGE>9
FORM 10-Q LNB Bancorp, Inc. Unaudited
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INTRODUCTION
The following areas of discussion pertain to the consolidated financial
statements of LNB Bancorp, Inc. at March 31, 1995, compared to December
31, 1994, and the results of operations for the three months ending March
31, 1995 compared to the same period in 1994. It is the intent of this
discussion to provide the reader with a more thorough understanding of the
consolidated financial statements and supporting schedules, and should be
read in conjunction with those consolidated financial statements and
schedules.
LNB Bancorp, Inc. is not aware of any trends, events, or uncertainties
that might have a material effect on the soundness of operations; neither
is LNB Bancorp, Inc. aware of any proposed recommendations by regulatory
authorities which would have a similar effect if implemented.
BASIS OF PRESENTATION
The unaudited condensed consolidated balance sheet as of March 31, 1995,
the condensed consolidated statements of income and the condensed
consolidated statement of cash flows for the three months ended March 31,
1995 are prepared in accordance with generally accepted accounting
principles for interim financial information. The above mentioned
statements reflect all normal and recurring adjustments which are, in the
opinion of management, necessary for a fair presentation of the financial
position and the results of operation for the interim periods presented.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted. It is suggested
that these condensed consolidated financial statements be read in
conjunction with the financial statements and notes thereto included in
the Corporation's December 31, 1994 Annual Report to Shareholders.
The results of operations for the period ended March 31, 1995 are not
necessarily indicative of the operating results for the full year.
RECLASSIFICATIONS
Certain 1994 amounts have been reclassified to conform to 1995
presentation.
<PAGE>10
LOANS
The Corporation adopted SFAS No. 114 "Accounting by Creditors for
Impairment of a Loan" on January 1, 1995. This Statement impacts the
accounting by creditors for impairment of certain loans. It requires that
certain impaired loans be measured based on the present value of expected
future cash flows discounted at the loan's effective interest rate or, as
a practical expedient, at the loan's observable market price or the fair
market value of collateral. Corporate management determined that the
adoption of SFAS No. 114 did not have a significant impact on the carrying
value of the impaired loans or on net income during the first quarter
1995.
2. PER SHARE DATA
Earnings per common and common equivalent shares (stock options) have been
computed using the weighted-average number of shares outstanding during
each period after giving consideration to the dilutive effect of incentive
stock options and a three percent stock dividend which was approved by
shareholders during 1994.
<PAGE>11
PART I - FINANCIAL INFORMATION
ITEM 2 - MANAGEMENT'S DISCUSSION & ANALYSIS OF FINANCIAL
CONDITION & RESULTS OF OPERATION
FINANCIAL CONDITION
Total assets of the Corporation increased $13,247,000 during the first
quarter, to $408,102,000. This growth is attributable to the cyclical
influx of municipal county tax money, increase in time deposits, and
increases in repurchase agreements.
Federal funds sold and other interest-bearing investments increased by
$2,100,000 during the first quarter of 1995. This increase is partially
reflected in the $1,000,000 decrease in cash and due from banks.
The total securities portfolio increased $5,770,000 ending the first
quarter at $105,294,000. At March 31, 1995 unrealized gains (losses) in
the securities portfolio were approximately $850,000 and ($1,335,000),
respectively.
The level of nonperforming assets increased $71,000 during the first
quarter 1995. The first quarter increase is the result of a net increase
in nonaccrual loans. The net result is due to decreases in nonaccrual
principal balances of $140,000 which have been paid off and brought
current and increases in nonaccrual principal balances of $211,000. The
level of nonperforming assets has remained at low levels and Corporate
management believes nonperforming assets are well collateralized. The
table below presents the level of nonperforming assets at the end of the
last four calendar quarters.
Amounts in thousands 03/31/95 12/31/94 09/30/94 06/30/94
-------- -------- -------- --------
Nonperforming Assets:
Nonaccrual $ 389 $ 318 $1,161 $1,191
Past Due Loans 0 0 0 0
Restructured 0 0 0 0
Other Real Estate Owned 0 0 0 0
------ ------ ------ ------
Total Nonperforming Assets $ 389 $ 318 $1,161 $1,191
====== ====== ====== ======
The large decrease in nonaccrual loans in the third quarter of 1994 was
due primarily to liquidation of collateral which was securing the loans of
a commercial loan customer. The Corporation did not incur any significant
losses of principal and interest in this liquidation.
Net loans increased $5,750,000 during the first quarter to $263,725,000 at
March 31, 1995. The reserve for possible loan losses ended the quarter at
$3,915,000 supported by a provision for loan losses of $100,000,
recoveries of $43,000 and loan charge-offs of $60,000. The reserve for
possible loan losses as a percentage of ending loans was 1.46% at December
31, 1994 and 1.46% at March 31, 1995. Corporate management believes that
the current level of the reserve for possible loan losses is adequate
based upon quantitative analysis of identified risks and analysis of
historical trends.
<PAGE>12
The Corporation's credit policies are reviewed and modified on an ongoing
basis in order to remain suitable for the management of credit risk within
the loan portfolio as conditions change. At March 31, 1995 there are no
significant concentrations of credit in the loan portfolio.
The Corporation had outstanding loan and credit commitments to make loans
totaling $71,078,000 and $60,710,000 at March 31, 1995 and 1994,
respectively. The increase in outstanding loan commitments results from
increased loan demand due to better local economic conditions.
Total deposits increased $4,890,000 during the first quarter to
$340,019,000. Noninterest-bearing deposits decreased to $51,924,000, at
March 31, 1995 for a decrease of $5,172,000, while interest-bearing
deposits climbed to $288,185,000 for an increase of $10,062,000. Federal
funds purchased and securities sold under agreements to repurchase
increased $7,425,000 during the first quarter of 1995. Due to the
volatility of customer repurchase agreements, most funds generated by
repurchase activity enter the Corporation's earning assets as short-term
investments.
LIQUIDITY
Liquidity measures a corporation's ability to generate cash or otherwise
obtain funds at reasonable prices to fund commitments to borrowers as well
as the demand of depositors and debt holders. Principal internal sources
of liquidity for the Corporation and the Bank are cash and cash
equivalents, Federal funds sold, and the maturity structures of investment
securities and portfolio loans. Securities and loans available for sale
provide another source of liquidity through the cash flows of these
interest bearing assets as they mature or are sold.
The Corporation continues to maintain a relatively high liquid position in
order to take advantage of interest rate fluctuations. As of March 31,
1995 short-term security investments with maturities of one year or less
totalled $38,493,000 which represented 36.5% of total securities. Adding
cash and due from banks of $20,199,000 and Federal Funds sold of
$2,100,000, total liquid assets represented 14.9% of total assets.
CAPITAL RESOURCES
Total shareholders' equity increased to $38,293,000, at March 31, 1995.
The increase resulted primarily from $1,087,000 of net income generated
from the first quarter of operations less a cash dividend payable to
shareholders of $482,000. Financial Accounting Standards Board Statement
No. 115, "Accounting for Certain Investments in Debt and Equity
Securities", requires that securities which the Bank has classified as
"Available-for-Sale" are recorded at market value with any adjustments
recorded to equity. The decrease in interest rates experienced in the
first quarter of 1995 has caused an increase in the market value of these
securities with a resulting positive impact on shareholders' equity of
$85,000 for the quarter ended March 31, 1995.
<PAGE>13
The Corporation continues to monitor growth to stay within the constraints
established by the regulatory authorities. Under Federal banking
regulations, an institution is deemed to be well-capitalized if it has a
Risk-based Tier 1 capital ratio of 6.00 percent or greater, a Risk-based
Total capital ratio of 10.00 percent or greater and a Leverage ratio of
5.00 percent or greater. The Corporation's Risk-based capital and
Leverage ratios have exceeded the ratios for a well-capitalized financial
institution for all periods presented. The Corporation's capital and
leverage ratios as of March 31, 1995 and 1994 follow.
MARCH 31,
--------------------
1995 1994
------ -------
Tier I capital ratio 16.41% 16.47%
Required Tier I capital ratio 4.00% 4.00%
Total capital ratio 17.59% 17.66%
Required total capital ratio 8.00% 8.00%
Leverage ratio 9.56% 9.37%
Required leverage ratio 3.00% 3.00%
On an ongoing basis the Corporation analyzes acquisition
opportunities in markets which are adjacent to or within the
Corporation's current geographical market. Corporate management
believes that it's current capital resources are sufficient to
support any foreseeable acquisition activity.
There were no material commitments outstanding at March 31, 1995, other
than the loan and credit commitments.
RESULTS OF OPERATIONS
Interest and fees on loans increased $964,000 when compared to the first
quarter of 1994. This was the result of the impact of increases in rates
combined with loan portfolio growth. Interest and dividends on securities
was $1,404,000 for the first quarter of 1995 for a increase of $191,000
over the same period in 1994. Interest and dividends on securities
represented 19.1% of total interest income at March 31, 1995 compared to
19.6% at March 31, 1994. Interest on Federal funds sold and other interest
bearing instruments was $45,000 at March 31, 1995 compared to $51,000 at
March 31, 1994. The decrease resulted from declining average balances
invested in this form of financial instrument which was not sufficient to
offset higher interest rates.
Total interest expense increased by $788,000 when compared to the first
quarter of 1994. The impact of increases in rates on savings and
certificates of deposit contributed to the increase expense. Increases in
the volume of savings, certificates of deposit, and repurchase agreements
contributed to the increase in total interest expense.
<PAGE>14
Total other income increased by $149,000 when compared to the first
quarter of 1994. This increase resulted from increases in income from
fiduciary fees of $30,000, increases in service charges of $2,000 and
increases in other charges of $116,000. The increase in other charges is
the result of pricing increases in credit card and merchant fees.
The Corporation continuously monitors noninterest expenses for greater
profitability. The entire staff is geared to improving productivity at
all levels. Noninterest expense for the quarter ended March 31, 1995 was
$4,020,000, 10.4% above the first quarter of 1994. This increase was due
primarily to increases in salaries and benefits, net occupancy, furniture
and equipment expense, and postage rate increases and the impacts of
inflation.
The effective tax rate increased from 29.0% during the first quarter of
1994 to 31.5% during the first quarter of 1995. The increase in the
effective rate is primarily due to changes of the proportion of nontaxable
to taxable interest income. Net income was $1,087,000 and $1,034,000 for
the quarters ended March 31, 1995 and 1994, respectively. Net income per
share after adjusting for the three percent stock dividend in 1994 was
$.34 and $.32 for the quarters ended March 31, 1995 and 1994,
respectively.
IMPACTS OF ACCOUNTING AND REGULATORY PRONOUNCEMENTS
Corporate management is not aware of any current recommendations the
Financial Accounting Standards Board or by regulatory authorities which,
if they were implemented, would have a material effect on the liquidity,
capital resources or operations of the Corporation. However, the
potential impact of certain accounting and regulatory pronouncements
warrant further discussion.
Significant actions by the Federal government and its agencies, affecting
the financial institutions industry in general, are currently having and
will continue to have an impact on the Corporation. A discussion of these
actions follows:
"Omnibus Budget Reconciliation Act of 1993":
Effective date of impact on the Corporation: August 10, 1993
Impact on the Corporation: Although the cost of tax compliance will
increase, Corporate management does not anticipate that this tax act will
have a material impact on net income.
During 1993, a risk-related assessment system was developed by the FDIC.
Effective, January 1, 1993, the Bank was assigned to the lowest deposit
insurance assessment rate currently possible. Under the system, the FDIC
will reevaluate the Bank's deposit insurance rate on a semi-annual basis.
No increase in the premium paid by the Bank, other than from changes in
deposit volume and mix, is anticipated in 1995.
<PAGE>15
Part II - OTHER INFORMATION
ITEM 1 - Legal Proceedings
None
ITEM 2 - Changes in Securities
See item 4, (c), (1)
ITEM 3 - Defaults Upon Senior Securities
None
ITEM 4 - Submission of Matters to a Vote of Security Holders
(a) LNB Bancorp Inc.'s 1995 Annual Meeting of Shareholders
was held on April 18, 1995.
(b) Proxies were solicited by LNB Bancorp Inc.`s management
pursuant to Regulation 14 under the Securities Exchange
Act of 1934, there was no solicitation in opposition to
management's nominees for election to the board of
directors as listed in the proxy statement, and all
such nominees were elected to the classes in the proxy
statement pursuant to the vote of the shareholders.
(c) Other matters voted upon - complete descriptions of the
matters voted upon is contained in Item 6, (c)
(1) A proposed amendment to the Articles of Incorporation
which would fix the par value of the Common Stock of the
Corporation at $1.00 per share and increase the
authorized number of shares from 4,000,000 to 5,000,000
to allow for a five-for-four stock split of the Common
Stock of the Corporation. The vote on Item 4, (c), (1):
FOR 2,935,134
AGAINST 1,738
ABSTAIN 8,936
The total number of shares of LNB Bancorp, Inc. Common
Stock, $1.00 par value, outstanding as of March 20, 1995,
the record date of the Annual Meeting, was 3,210,765.
<PAGE>16
ITEM 5 - Other Information
(a) The Notice of the Annual Meeting to Shareholders and Proxy
Statement (dated March 20, 1995) was previously filed as
Exhibit 28 to the Bancorp's 1994 Annual Report on Form 10-K.
ITEM 6 - Exhibits and Reports on Form 8-K
(a) Exhibit (11) - Computation of Shares Used for Earnings
Per Share Calculations.
(b) Exhibit (13) - First Quarter Report to shareholders of
LNB Bancorp, Inc. - March 31, 1995.
(c) Exhibit (27) - Financial Data Schedule
(d) Reports on Form 8-K
There were no reports on Form 8-K filed for the three
months ended March 31, 1995.
Also, see the Exhibit Index which is found on the next page of
this Form.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
LNB BANCORP, INC.
(registrant)
/s/ Gregory D. Friedman
Date: May 11, 1995 --------------------------
Gregory D. Friedman,
Senior Vice President and
Chief Financial Officer
and Acting Chief Accounting
Officer
<PAGE>17
LNB Bancorp, Inc.
Form 10-Q
Exhibit Index
Pursuant to Item 601 (a) of Regulation S-K
S-K Reference Exhibit
Number
(11) Computation of Shares Used for Earnings Per Share
Calculations
(12) First Quarter Report to Shareholders of LNB Bancorp, Inc. -
March 31, 1995
(27) Financial Data Schedule
<PAGE>18
LNB Bancorp, Inc.
Exhibit to Form 10-Q
(For the three months ended March 31, 1995)
S - K Reference Number (11)
Computation of Shares Used for Earnings Per Share Calculations.
Three Months Ended March 31
1995 1994
--------- ---------
Weighted-Average Shares Outstanding 3,209,371 3,191,488
Common Stock Equivalents
(Stock Options) 26,417 33,827
--------- ---------
3,235,788 3,225,315
========= =========
<PAGE>19
LNB Bancorp, Inc.
Exhibit to Form 10 - Q
(For the three months ended March 31, 1995)
S - K Reference Number (13)
First Quarter Report to Shareholders of
LNB Bancorp, Inc. - March 31, 1995
DESCRIPTION:
Two sided pamphlet: Outside cover containing the list of
Bank Offices and gray cover page of pamphlet.
Inside contains: Unaudited Consolidated Balance Sheets for period ending
March 31, 1995 and March 31, 1994, respectively and unaudited Consolidated
Statements of Income for the Three Months Ended March 31, 1995 and March
31, 1994, respectively.
<PAGE>20
Outside cover description:
Grey background, black lettering.
(LOGO) LNB
Bancorp, Inc.
and its subsidiary Lorain National Bank
(lower middle of outside cover)
LNB BANCORP, INC.
(middle of outside cover)
Quarterly Report
March 31, 1995
(lower right side of outside cover)
<PAGE>21
Outside Cover Text: 2 Column format
Bank Offices
MAIN OFFICE SECOND STREET OFFICE
457 Broadway 221 Second Street
Lorain, Ohio Elyria, Ohio
(216) 244-6000 (216) 323-4621
SIXTH STREET DRIVE-IN CLEVELAND STREET OFFICE
200 Sixth Street 801 Cleveland Street
Lorain, Ohio Elyria, Ohio
(216) 244-7242 (216) 365-8397
KANSAS AVENUE OFFICE LAKE AVENUE OFFICE
1604 Kansas Avenue 42935 E. North Ridge Road
Lorain, Ohio Elyria, Ohio
(216) 288-9151 (216) 233-7196
PEARL AVENUE OFFICE OBERLIN OFFICE
2850 Pearl Avenue 40 East College Street
Lorain, Ohio Oberlin, Ohio
(216) 277-1103 (216) 775-1361
LORAIN PLAZA OFFICE KENDAL AT OBERLIN OFFICE
1147 Meister Road 600 Kendal Drive
Lorain, Ohio Oberlin, Ohio
(216) 282-9196 (216) 775-5400
W. 37TH & OBERLIN VERMILION OFFICE
AVENUE AUTO BANK 4455 Liberty Avenue
3660 Oberlin Avenue Vermilion, Ohio
Lorain, Ohio (216) 967-3124
(216) 282-9196
OLMSTED OFFICE
WEST PARK DRIVE OFFICE 27095 Bagley Road
2130 West Park Drive Olmsted Twp., Ohio
Lorain, Ohio (216) 235-4600
(216) 989-3131
THE CROSSINGS OF WESTLAKE OFFICE
AMHERST OFFICE 30210 Detroit Road
1175 Cleveland Avenue Westlake, Ohio
Amherst, Ohio (216) 892-9696
(216) 988-4423
AVON LAKE OFFICE
240 Miller Road
Avon Lake, Ohio
(216) 933-2186
<PAGE>22
Consolidated Balance Sheets
March 31
--------------------------
1995 1994
------------ ------------
ASSETS:
Cash and Due from Banks $ 20,199,000 $ 16,603,000
Federal Funds Sold 2,100,000 11,000,000
Securities Available for Sale 10,693,000 10,303,000
Investment Securities 94,601,000 92,009,000
Loans 267,640,000 245,199,000
Reserve for Possible Loan Losses (3,915,000) (3,805,000)
- -----------------------------------------------------------------
NET LOANS 263,725,000 241,394,000
- -----------------------------------------------------------------
Premises and Equipment (net) 11,112,000 8,645,000
Other Assets 5,672,000 5,239,000
- -----------------------------------------------------------------
TOTAL ASSETS $408,102,000 $385,193,000
- -----------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY:
Non-Interest Bearing Deposits $ 51,924,000 $ 52,902,000
Interest Bearing Deposits 288,185,000 275,473,000
- -----------------------------------------------------------------
TOTAL DEPOSITS 340,109,000 328,375,000
- -----------------------------------------------------------------
Securities Sold under Repurchase
Agreements 26,596,000 16,418,000
Other Liabilities 3,104,000 4,769,000
- -----------------------------------------------------------------
TOTAL LIABILITIES 369,809,000 349,562,000
- -----------------------------------------------------------------
Common stock 3,211,000 3,098,000
Additional capital 18,495,000 15,864,000
Retained Earnings 16,634,000 16,705,000
Net Unrealized Security Losses (47,000) (36,000)
- -----------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 38,293,000 35,631,000
- -----------------------------------------------------------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $408,102,000 $385,193,000
- -----------------------------------------------------------------
(LOGO) LNB
Bancorp, Inc.
and its subsidiary Lorain National Bank
<PAGE>23
Consolidated Statements of Income
Three Months Ended
March 31
------------------------
1995 1994
------------ -----------
INTEREST INCOME:
Interest and Fees on Loans $5,897,000 $4,933,000
Interest and Dividends on Securities: 1,404,000 1,213,000
Interest on Federal Funds Sold 45,000 51,000
- ----------------------------------------------------------------
TOTAL INTEREST INCOME 7,346,000 6,197,000
- ----------------------------------------------------------------
INTEREST EXPENSE:
Interest Deposits 2,428,000 1,816,000
Interest on Securities Sold under
Repurchase Agreements 288,000 112,000
- ----------------------------------------------------------------
TOTAL INTEREST EXPENSE 2,716,000 1,928,000
- ----------------------------------------------------------------
NET INTEREST INCOME 4,630,000 4,269,000
Provision for Loan Losses 100,000 100,000
- ----------------------------------------------------------------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 4,530,000 4,169,000
- ----------------------------------------------------------------
OTHER INCOME:
Trust Department Income 239,000 209,000
Fees and Service Charges 837,000 718,000
Other Operating Income 2,000 2,000
- ----------------------------------------------------------------
TOTAL OTHER INCOME 1,078,000 929,000
- ----------------------------------------------------------------
OTHER EXPENSES:
Salaries and Employee Benefits 1,896,000 1,707,000
Net Occupancy Expense 307,000 286,000
Furniture and Equipment Expenses 507,000 430,000
FDIC Deposit Insurance Premium 186,000 178,000
Other Operating Expenses 1,124,000 1,040,000
- ----------------------------------------------------------------
TOTAL OTHER EXPENSES 4,020,000 3,641,000
- ----------------------------------------------------------------
INCOME BEFORE FEDERAL INCOME TAXES 1,588,000 1,457,000
Federal Income Taxes 501,000 423,000
- ----------------------------------------------------------------
NET INCOME $1,087,000 $1,034,000
- ----------------------------------------------------------------
PER SHARE DATA:
NET INCOME $ .34 $ .32
- ----------------------------------------------------------------
DIVIDENDS DECLARED $ .15 $ .14
================================================================
The per share data has been adjusted to reflect the 3% stock
dividend in 1994. Net income per share is based on weighted
average common and common equivalent shares outstanding.
<PAGE>24
LNB Bancorp, Inc.
Exhibit to Form 10 - Q
(For the three months ended March 31, 1995)
S - K Reference Number (27)
Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 9
<CIK> 0000737210
<NAME> LNB BANCORP, INC.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> MAR-31-1995
<CASH> 20,199
<INT-BEARING-DEPOSITS> 288,185
<FED-FUNDS-SOLD> 2,100
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 10,693
<INVESTMENTS-CARRYING> 94,601
<INVESTMENTS-MARKET> 94,116
<LOANS> 267,640
<ALLOWANCE> (3,915)
<TOTAL-ASSETS> 408,102
<DEPOSITS> 369,809
<SHORT-TERM> 26,596
<LIABILITIES-OTHER> 3,104
<LONG-TERM> 0
<COMMON> 3,211
0
0
<OTHER-SE> 35,082
<TOTAL-LIABILITIES-AND-EQUITY> 408,102
<INTEREST-LOAN> 5,897
<INTEREST-INVEST> 1,404
<INTEREST-OTHER> 45
<INTEREST-TOTAL> 7,346
<INTEREST-DEPOSIT> 2,428
<INTEREST-EXPENSE> 2,716
<INTEREST-INCOME-NET> 4,630
<LOAN-LOSSES> 100
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 4,020
<INCOME-PRETAX> 1,588
<INCOME-PRE-EXTRAORDINARY> 1,588
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,087
<EPS-PRIMARY> .34
<EPS-DILUTED> .34
<YIELD-ACTUAL> 5.16
<LOANS-NON> 389
<LOANS-PAST> 209
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 1,269
<ALLOWANCE-OPEN> 3,832
<CHARGE-OFFS> 60
<RECOVERIES> 43
<ALLOWANCE-CLOSE> 3,915
<ALLOWANCE-DOMESTIC> 2,751
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 1,164
</TABLE>
