-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, IWqpmZ2054/boLBFRcg0EDofAGXywB/W4jlr96ExoFAK6J/7xAu7kLyM0G3JKDBo UJmaZkKmY0HXFqB5iZNnxA== 0000737210-95-000021.txt : 19950516 0000737210-95-000021.hdr.sgml : 19950516 ACCESSION NUMBER: 0000737210-95-000021 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950515 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: LNB BANCORP INC CENTRAL INDEX KEY: 0000737210 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 341406303 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-13203 FILM NUMBER: 95538638 BUSINESS ADDRESS: STREET 1: 457 BROADWAY CITY: LORAIN STATE: OH ZIP: 44052-1769 BUSINESS PHONE: 2162446000 10-Q 1 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 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 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 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. 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 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. 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 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. 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. 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. 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. 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. 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. 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. 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. 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 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 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 ========= ========= 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. 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) 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 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 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. 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 EX-27 2
9 0000737210 LNB BANCORP, INC. 1,000 3-MOS DEC-31-1995 JAN-01-1995 MAR-31-1995 20,199 288,185 2,100 0 10,693 94,601 94,116 267,640 (3,915) 408,102 369,809 26,596 3,104 0 3,211 0 0 35,082 408,102 5,897 1,404 45 7,346 2,428 2,716 4,630 100 0 4,020 1,588 1,588 0 0 1,087 .34 .34 5.16 389 209 0 1,269 3,832 60 43 3,915 2,751 0 1,164
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