LNB Bancorp, Inc. (NASDAQ: LNBB) (“LNB” or the “Company”) today reported financial results for the first quarter 2014. Net income available to common shareholders for the first quarter 2014 was $1,571,000, or $0.16 per common share, compared to $856,000, or $0.10 per common share, for the year-ago quarter which included Supplemental Executive Retirement Plan (SERP) compensation expense of $455,000, net of tax. Excluding the SERP expense, the adjusted net income available to common shareholders totaled $1,311,000 in the first quarter of 2013. The adjusted net income available to common shareholders increased $260,000, or 19.8%, from the first quarter 2013 to the first quarter 2014.
“Gain on the sale of loans was $703,000 for the quarter, compared to $656,000 for the first quarter of 2013. This increase is primarily due to the gain on the sale of SBA (Small Business Administration) loans of $495,000, offset by a decline in mortgage loan sales. We continue to see strong results from our new SBA Lending Group. Since the group’s inception in the fourth quarter of 2013, they have generated over $12 million in loans to medical, dental, veterinary and funeral home businesses. Our new SBA Lending income exceeded the reduction of our fee income from mortgage loan sales. Our mortgage fee income has declined as the market transitioned from heavy refinance volume to a lower level of activity based primarily on purchases,” stated Daniel E. Klimas, president and chief executive officer of LNB Bancorp.
Net interest income was $9.0 million for the first quarter of 2014, compared to $8.7 million in the first quarter of the prior year, an increase of 3.0%. The net interest margin (FTE) for the first quarter of 2014 was 3.21%, a decline of 2 basis points from the first quarter of 2013.
Loan balances grew by 2.2% compared to the first quarter of 2013, led by the commercial and indirect auto loan portfolios.
The Company continued to make progress on improving credit quality as non-performing assets declined nearly $8 million from the same quarter in 2013. The ratio of non-performing assets to total assets at March 31, 2014, was 1.74%, down from 2.41% at March 31, 2013.
The provision for loan losses was $900,000 in the first quarter of 2014, down $450,000 from the first quarter of 2013, reflecting the Company’s improvement in credit quality. Net charge-offs were $908,000 for the first quarter of 2014, or 0.41% of average loans (annualized), compared to $1.2 million, or 0.54% of average loans (annualized), in the first quarter of 2013.
Trust and Investment Management fee income was $400,000 in the first quarter, an increase of 6.7% compared to the first quarter in 2013. “During the first quarter we saw a nice increase in new relationships and we look to continue growing this business in 2014,” stated Daniel E. Klimas. Noninterest income was $2.9 million for the first quarter of 2014 compared to $3.3 million for the prior-year first quarter. This year over year decrease was driven primarily by a slower mortgage loan market, lower account fee income due in part to the severe winter affecting consumers and no gains taken in the first quarter on the securities portfolio.
Noninterest expense was $8.9 million for the first quarter of 2014 compared with $9.3 million for the first quarter of 2013. Excluding the pre-tax expense for SERP compensation of $690,000 in the first quarter of 2013, noninterest expenses would have shown a 3.1% increase compared to the first quarter of 2013, largely as a result of the additional expense associated with the new SBA Lending business.
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 12.15%, Tier 1 leverage ratio of 8.61% and tangible common equity to tangible assets of 6.90% at March 31, 2014.
As previously announced, on January 17, 2014, the Company completed the repurchase and redemption of all of its remaining outstanding shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series B.
Total assets at March 31, 2014 were $1.26 billion, up $24 million, or 2.0%, from March 31, 2013. Total deposits at March 31, 2014 were $1.08 billion, up $28 million, or 2.6%, from March 31, 2013.
About LNB Bancorp, Inc.
LNB Bancorp, Inc. is a $1.3 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 20 retail-banking locations and 28 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," "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.
| CONSOLIDATED BALANCE SHEETS | |||||||||||
| At March 31, 2014 | At December 31, 2013 | ||||||||||
| (unaudited) | |||||||||||
| (Dollars in thousands except share amounts) | |||||||||||
| ASSETS | |||||||||||
| Cash and due from banks | $ | 38,939 | $ | 36,717 | |||||||
| Federal funds sold and interest bearing deposits in banks | 29,302 | 15,555 | |||||||||
| Cash and cash equivalents | 68,241 | 52,272 | |||||||||
| Securities available for sale, at fair value | 217,510 | 216,122 | |||||||||
| Restricted stock | 5,741 | 5,741 | |||||||||
| Loans held for sale | 1,811 | 4,483 | |||||||||
| Loans: | |||||||||||
| Portfolio loans | 910,189 | 902,299 | |||||||||
| Allowance for loan losses | (17,497 | ) | (17,505 | ) | |||||||
| Net loans | 892,692 | 884,794 | |||||||||
| Bank premises and equipment, net | 8,013 | 8,198 | |||||||||
| Other real estate owned | 979 | 579 | |||||||||
| Bank owned life insurance | 19,532 | 19,362 | |||||||||
| Goodwill, net | 21,582 | 21,582 | |||||||||
| Intangible assets, net | 424 | 457 | |||||||||
| Accrued interest receivable | 3,774 | 3,621 | |||||||||
| Other assets | 15,094 | 13,046 | |||||||||
| Total Assets | $ | 1,255,393 | $ | 1,230,257 | |||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
| Deposits | |||||||||||
| Demand and other noninterest-bearing | $ | 149,530 | $ | 148,961 | |||||||
| Savings, money market and interest-bearing demand | 430,142 | 393,778 | |||||||||
| Certificates of deposit | 497,179 | 502,850 | |||||||||
| Total deposits | 1,076,851 | 1,045,589 | |||||||||
| Short-term borrowings | 3,725 | 4,576 | |||||||||
| Federal Home Loan Bank advances | 46,760 | 46,708 | |||||||||
| Junior subordinated debentures | 16,238 | 16,238 | |||||||||
| Accrued interest payable | 701 | 789 | |||||||||
| Accrued taxes, expenses and other liabilities | 4,004 | 4,901 | |||||||||
| Total Liabilities | 1,148,279 | 1,118,801 | |||||||||
| Shareholders' Equity | |||||||||||
| Fixed rate cumulative preferred stock, Series B, no par value, $1,000 liquidation value, no shares were issued at March 31, 2014 and 7,689 shares were authorized and issued 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 10,001,717 at March 31, 2014 and 10,001,717 at December 31, 2013. | 10,002 | 10,002 | |||||||||
| Additional paid-in capital | 51,166 | 51,098 | |||||||||
| Retained earnings | 55,440 | 53,966 | |||||||||
| Accumulated other comprehensive income (loss) | (3,317 | ) | (5,188 | ) | |||||||
| Treasury shares at cost, 336,745 shares at March 31, 2014 and 328,194 at December 31, 2013 | (6,177 | ) | (6,092 | ) | |||||||
| Total Shareholders' Equity | 107,114 | 111,456 | |||||||||
| Total Liabilities and Shareholders' Equity | $ | 1,255,393 | $ | 1,230,257 | |||||||
| Consolidated Statements of Income (unaudited) | |||||||||||
Three Months Ended | Three Months Ended | ||||||||||
2014 | 2013 | ||||||||||
| (Dollars in thousands except share and per share amounts) | |||||||||||
| Interest Income | |||||||||||
| Loans | $ | 8,928 | $ | 9,054 | |||||||
| Securities: | |||||||||||
| U.S. Government agencies and corporations | 1,028 | 841 | |||||||||
| State and political subdivisions | 303 | 289 | |||||||||
| Other debt and equity securities | 117 | 70 | |||||||||
| Federal funds sold and short-term investments | 17 | 20 | |||||||||
| Total interest income | 10,393 | 10,274 | |||||||||
| Interest Expense | |||||||||||
| Deposits | 1,082 | 1,249 | |||||||||
| Federal Home Loan Bank advances | 155 | 155 | |||||||||
| Short-term borrowings | 27 | - | |||||||||
| Junior subordinated debenture | 168 | 166 | |||||||||
| Total interest expense | 1,432 | 1,570 | |||||||||
| Net Interest Income | 8,961 | 8,704 | |||||||||
| Provision for Loan Losses | 900 | 1,350 | |||||||||
| Net interest income after provision for loan losses | 8,061 | 7,354 | |||||||||
| Noninterest Income | |||||||||||
| Investment and trust services | 400 | 375 | |||||||||
| Deposit service charges | 770 | 816 | |||||||||
| Other service charges and fees | 753 | 831 | |||||||||
| Income from bank owned life insurance | 169 | 168 | |||||||||
| Other income | 151 | 321 | |||||||||
| Total fees and other income | 2,243 | 2,511 | |||||||||
| Securities gains, net | - | 178 | |||||||||
| Gains on sale of loans | 703 | 656 | |||||||||
| Loss on sale of other assets, net | (34 | ) | (13 | ) | |||||||
| Total noninterest income | 2,912 | 3,332 | |||||||||
| Noninterest Expense | |||||||||||
| Salaries and employee benefits | 4,595 | 5,027 | |||||||||
| Furniture and equipment | 1,148 | 949 | |||||||||
| Net occupancy | 613 | 588 | |||||||||
| Professional fees | 494 | 490 | |||||||||
| Marketing and public relations | 400 | 289 | |||||||||
| Supplies, postage and freight | 214 | 307 | |||||||||
| Telecommunications | 151 | 162 | |||||||||
| Ohio Franchise tax | 224 | 308 | |||||||||
| FDIC assessments | 272 | 242 | |||||||||
| Other real estate owned | 24 | 77 | |||||||||
| Loan and collection expense | 298 | 388 | |||||||||
| Other expense | 426 | 454 | |||||||||
| Total noninterest expense | 8,859 | 9,281 | |||||||||
| Income before income tax expense | 2,114 | 1,405 | |||||||||
| Income tax expense | 508 | 292 | |||||||||
| Net Income | $ | 1,606 | $ | 1,113 | |||||||
| Dividends and accretion on preferred stock | 35 | 257 | |||||||||
| Net Income Available to Common Shareholders | $ | 1,571 | $ | 856 | |||||||
| Net Income Per Common Share | |||||||||||
| Basic | $ | 0.16 | $ | 0.10 | |||||||
| Diluted | 0.16 | 0.10 | |||||||||
| Dividends declared | 0.01 | 0.01 | |||||||||
| Average Common Shares Outstanding | |||||||||||
| Basic | 9,668,297 | 8,201,120 | |||||||||
| Diluted | 9,705,432 | 8,212,038 | |||||||||
| LNB Bancorp, Inc. | ||||||||||||||||||
| Supplemental Financial Information | ||||||||||||||||||
| (Unaudited - Dollars in thousands except Share and Per Share Data) | ||||||||||||||||||
| Three Months Ended | ||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||
| END OF PERIOD BALANCES | 2014 | 2013 | 2013 | 2013 | 2013 | |||||||||||||
| Cash and Cash Equivalents | $ | 68,241 | $ | 52,272 | $ | 47,090 | $ | 49,534 | $ | 54,954 | ||||||||
| Securities | 217,510 | 216,122 | 215,290 | 228,766 | 223,173 | |||||||||||||
| Restricted stock | 5,741 | 5,741 | 5,741 | 5,741 | 5,741 | |||||||||||||
| Loans held for sale | 1,811 | 4,483 | 2,110 | 3,423 | 6,250 | |||||||||||||
| Portfolio loans | 910,189 | 902,299 | 891,300 | 882,896 | 889,931 | |||||||||||||
| Allowance for loan losses | 17,497 | 17,505 | 17,791 | 17,815 | 17,806 | |||||||||||||
| Net loans | 892,692 | 884,794 | 873,509 | 865,081 | 872,125 | |||||||||||||
| Other assets | 69,398 | 66,845 | 66,762 | 65,701 | 68,940 | |||||||||||||
| Total assets | $ | 1,255,393 | $ | 1,230,257 | $ | 1,210,502 | $ | 1,218,246 | $ | 1,231,183 | ||||||||
| Total deposits | 1,076,851 | 1,045,589 | 1,032,245 | 1,039,279 | 1,049,176 | |||||||||||||
| Other borrowings | 66,723 | 67,522 | 64,539 | 64,704 | 64,684 | |||||||||||||
| Other liabilities | 4,705 | 5,690 | 5,757 | 5,369 | 7,118 | |||||||||||||
| Total liabilities | 1,148,279 | 1,118,801 | 1,102,541 | 1,109,352 | 1,120,978 | |||||||||||||
| Total shareholders' equity | 107,114 | 111,456 | 107,961 | 108,894 | 110,205 | |||||||||||||
| Total liabilities and shareholders' equity | $ | 1,255,393 | $ | 1,230,257 | $ | 1,210,502 | $ | 1,218,246 | $ | 1,231,183 | ||||||||
| AVERAGE BALANCES | ||||||||||||||||||
| Assets: | ||||||||||||||||||
| Total assets | $ | 1,234,380 | $ | 1,221,830 | $ | 1,213,502 | $ | 1,233,694 | $ | 1,195,630 | ||||||||
| Earning assets* | 1,150,500 | 1,137,943 | 1,130,695 | 1,147,869 | 1,113,292 | |||||||||||||
| Securities | 217,753 | 214,860 | 222,229 | 225,644 | 207,791 | |||||||||||||
| Portfolio loans | 906,843 | 899,899 | 883,321 | 882,499 | 884,893 | |||||||||||||
| Liabilities and shareholders' equity: | ||||||||||||||||||
| Total deposits | $ | 1,055,980 | $ | 1,041,763 | $ | 1,036,149 | $ | 1,053,952 | $ | 1,016,968 | ||||||||
| Interest bearing deposits | 910,340 | 891,589 | 896,937 | 914,652 | 879,208 | |||||||||||||
| Interest bearing liabilities | 978,073 | 956,866 | 961,636 | 979,260 | 943,566 | |||||||||||||
| Total shareholders' equity | 106,681 | 109,814 | 108,025 | 110,619 | 110,416 | |||||||||||||
| INCOME STATEMENT | ||||||||||||||||||
| Total Interest Income | $ | 10,393 | $ | 10,525 | $ | 10,304 | $ | 10,576 | $ | 10,274 | ||||||||
| Total Interest Expense | 1,432 | 1,490 | 1,529 | 1,567 | 1,570 | |||||||||||||
| Net interest income | 8,961 | 9,035 | 8,775 | 9,009 | 8,704 | |||||||||||||
| Provision for loan losses | 900 | 1,025 | 950 | 1,050 | 1,350 | |||||||||||||
| Other income | 2,243 | 2,524 | 2,062 | 2,519 | 2,511 | |||||||||||||
| Net gain on sale of assets | 669 | 732 | 404 | 553 | 821 | |||||||||||||
| Noninterest expense | 8,859 | 8,983 | 8,301 | 8,622 | 9,281 | |||||||||||||
| Income before income taxes | 2,114 | 2,283 | 1,990 | 2,409 | 1,405 | |||||||||||||
| Income tax expense | 508 | 577 | 471 | 586 | 292 | |||||||||||||
| Net income | 1,606 | 1,706 | 1,519 | 1,823 | 1,113 | |||||||||||||
| Preferred stock dividend and accretion | 35 | 163 | 109 | 117 | 257 | |||||||||||||
| Net income available to common shareholders | $ | 1,571 | $ | 1,543 | $ | 1,410 | $ | 1,706 | $ | 856 | ||||||||
| Common cash dividend declared and paid | $ | 97 | $ | 93 | $ | 93 | $ | 93 | $ | 79 | ||||||||
| Net interest income-FTE (1) | $ | 9,117 | $ | 9,192 | $ | 8,934 | $ | 9,169 | $ | 8,860 | ||||||||
| Total Operating Revenue (4) | $ | 12,029 | $ | 12,448 | $ | 11,400 | $ | 12,241 | $ | 12,192 | ||||||||
| Three Months Ended | |||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||
| 2014 | 2013 | 2013 | 2013 | 2013 | |||||||||||||||||||
| PER SHARE DATA | |||||||||||||||||||||||
| Basic net income per common share | $ | 0.16 | $ | 0.16 | $ | 0.15 | $ | 0.18 | $ | 0.10 | |||||||||||||
| Diluted net income per common share | 0.16 | 0.16 | 0.15 | 0.18 | 0.10 | ||||||||||||||||||
| Cash dividends per common share | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | ||||||||||||||||||
| Book value per common shares outstanding | 11.08 | 10.73 | 10.62 | 10.36 | 10.87 | ||||||||||||||||||
| Tangible book value per common shares outstanding** | 8.81 | 8.45 | 8.25 | 8.35 | 8.49 | ||||||||||||||||||
| Period-end common share market value | 11.42 | 10.03 | 9.40 | 8.59 | 8.31 | ||||||||||||||||||
| Market as a % of tangible book | 129.69 | % | 118.69 | % | 113.93 | % | 102.90 | % | 97.93 | % | |||||||||||||
| Basic average common shares outstanding | 9,668,297 | 9,379,355 | 9,303,702 | 9,303,702 | 8,201,120 | ||||||||||||||||||
| Diluted average common shares outstanding | 9,705,432 | 9,404,651 | 9,323,657 | 9,319,142 | 8,212,038 | ||||||||||||||||||
| Common shares outstanding | 9,664,972 | 9,673,523 | 9,303,702 | 9,303,702 | 9,303,702 | ||||||||||||||||||
| KEY RATIOS | |||||||||||||||||||||||
| Return on average assets (2) | 0.53 | % | 0.55 | % | 0.50 | % | 0.59 | % | 0.38 | % | |||||||||||||
| Return on average common equity (2) | 6.11 | % | 6.16 | % | 5.58 | % | 6.61 | % | 4.09 | % | |||||||||||||
| Efficiency ratio | 73.65 | % | 72.16 | % | 72.82 | % | 70.44 | % | 76.12 | % | |||||||||||||
| Noninterest expense to average assets (2) | 2.91 | % | 2.92 | % | 2.71 | % | 2.80 | % | 3.15 | % | |||||||||||||
| Average equity to average assets | 8.64 | % | 8.99 | % | 8.90 | % | 8.97 | % | 9.23 | % | |||||||||||||
| Net interest margin (FTE) (1) | 3.21 | % | 3.20 | % | 3.13 | % | 3.20 | % | 3.23 | % | |||||||||||||
| Common stock dividend payout ratio | 6.18 | % | 6.10 | % | 6.61 | % | 5.46 | % | 9.59 | % | |||||||||||||
| Common stock market capitalization | $ | 110,374 | $ | 97,025 | $ | 87,455 | $ | 79,919 | $ | 77,314 | |||||||||||||
| ASSET QUALITY | |||||||||||||||||||||||
| Allowance for Loan Losses | |||||||||||||||||||||||
| Allowance for loan losses, beginning of period | $ | 17,505 | $ | 17,791 | $ | 17,815 | $ | 17,806 | $ | 17,637 | |||||||||||||
| Provision for loan losses | 900 | 1,025 | 950 | 1,050 | 1,350 | ||||||||||||||||||
| Charge-offs | 998 | 1,570 | 1,354 | 1,667 | 1,428 | ||||||||||||||||||
| Recoveries | 90 | 259 | 380 | 626 | 247 | ||||||||||||||||||
| Net charge-offs | 908 | 1,311 | 974 | 1,041 | 1,181 | ||||||||||||||||||
| Allowance for loan losses, end of period | $ | 17,497 | $ | 17,505 | $ | 17,791 | $ | 17,815 | $ | 17,806 | |||||||||||||
| Nonperforming Assets | |||||||||||||||||||||||
| Nonperforming loans | $ | 20,918 | $ | 21,986 | $ | 24,977 | $ | 26,605 | $ | 28,514 | |||||||||||||
| Other real estate owned | 979 | 579 | 951 | 1,149 | 1,215 | ||||||||||||||||||
| Total nonperforming assets | $ | 21,897 | $ | 22,565 | $ | 25,928 | $ | 27,754 | $ | 29,729 | |||||||||||||
| Ratios | |||||||||||||||||||||||
| Total nonperforming loans to total loans | 2.30 | % | 2.44 | % | 2.80 | % | 3.01 | % | 3.20 | % | |||||||||||||
| Total nonperforming assets to total assets | 1.74 | % | 1.83 | % | 2.14 | % | 2.28 | % | 2.41 | % | |||||||||||||
| Net charge-offs to average loans (2) | 0.41 | % | 0.58 | % | 0.44 | % | 0.47 | % | 0.54 | % | |||||||||||||
| Provision for loan losses to average loans (2) | 0.40 | % | 0.45 | % | 0.43 | % | 0.48 | % | 0.62 | % | |||||||||||||
| Allowance for loan losses to portfolio loans | 1.92 | % | 1.94 | % | 2.00 | % | 2.02 | % | 2.00 | % | |||||||||||||
| Allowance to nonperforming loans | 83.65 | % | 79.62 | % | 71.23 | % | 66.96 | % | 62.45 | % | |||||||||||||
| Allowance to nonperforming assets | 79.91 | % | 77.58 | % | 68.62 | % | 64.19 | % | 59.89 | % | |||||||||||||
| CAPITAL & LIQUIDITY | |||||||||||||||||||||||
| Period-end tangible common equity to assets** | 6.90 | % | 6.77 | % | 6.46 | % | 6.49 | % | 6.53 | % | |||||||||||||
| Average equity to assets | 8.64 | % | 8.99 | % | 8.90 | % | 8.97 | % | 9.23 | % | |||||||||||||
| Average equity to loans | 11.76 | % | 12.20 | % | 12.23 | % | 12.53 | % | 12.48 | % | |||||||||||||
| Average loans to deposits | 85.88 | % | 86.38 | % | 85.25 | % | 83.73 | % | 87.01 | % | |||||||||||||
| Tier 1 leverage ratio (3) | 8.61 | % | 9.22 | % | 8.95 | % | 8.73 | % | 8.88 | % | |||||||||||||
| Tier 1 risk-based capital ratio (3) | 10.90 | % | 11.63 | % | 11.40 | % | 11.36 | % | 11.05 | % | |||||||||||||
| Total risk-based capital ratio (3) | 12.15 | % | 12.89 | % | 12.65 | % | 12.62 | % | 12.31 | % | |||||||||||||
| (1) FTE -- fully tax equivalent at 34% tax rate | |||||||||||||||||||||||
| (2) Annualized | |||||||||||||||||||||||
| (3) 3-31-14 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. | |||||||||||||||||||||||
Contacts:
Peter R. Catanese, 440-244-7126
Senior Vice
President
