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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