LNB Bancorp Scales 52-Week High on Q2 Earnings Beat - Analyst Blog

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On Aug 20, 2014, shares of LNB Bancorp Inc.  ( LNBB ) scaled a 52-week high of $13.06 buoyed by a solid second-quarter earnings beat. With about 0.01 million shares exchanging hands in the last trading session, shares closed at $13.04, gaining 0.5%.

The year-to-date return from the stock came in at 30.01%, which was ahead of NASDAQ's return of 8.38%.

In the second quarter, LNB Bancorp posted earnings of 21 cents per share that surpassed the Zacks Consensus Estimate by about 10.5% and improved nearly 16.7% year over year. Top line increased 3% year over year on 2.5% higher net interest income and 6.5% increase in non-interest income. Net interest margin expanded seven basis points to 3.27%.

LNB Bancorp remains focused on improving its credit quality and a reduction in non-performing assets bears testimony to it. The ratio of non-performing assets to total assets was 1.69% at second-quarter end, down from 2.28% at Jun 30, 2013. The improvement was also reflected in lower provision for loan losses. The ratio of non-performing assets to total assets at Jun 30, 2014 was 1.69%, down from 2.28% at Jun 30, 2013.

In addition, LNB Bancorp has capital levels above the regulatory requirements. LNB Bancorp exited the second quarter with total risk-based capital ratio of 12.41%, Tier 1 leverage ratio of 8.77% and tangible common equity to tangible assets of 7.29%.

On the strength of solid quarterly performance, this Zacks Rank #2 (Buy) stock has been witnessing upward revisions in the Zacks Consensus Estimate in the last 60 days. It increased by 2 cents and is currently pggeed at 80 cents and translates to a year-over-year increase of 31.2%.

Other Stocks to Consider

Investors interested in Midwest banks may also consider First Business Financial Services, Inc.  ( FBIZ ), First Financial Corp. ( THFF ) and Heartland Financial USA, Inc. ( HTLF ). All these stocks hold the same Zacks Rank as LNB Bancorp.


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LNB BANCORP INC (LNBB): Free Stock Analysis Report

HEARTLAND FINCL (HTLF): Free Stock Analysis Report

FIRST FINL-IND (THFF): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: FBIZ , LNBB , HTLF , THFF

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