Stocks to Watch – LNB Bancorp Inc. (Public, NASDAQ: LNBB)

LNB Bancorp, Inc. offers lending and depository services, investment services and other traditional banking services. It is a diversified banking services company which provides its products and services through its wholly owned subsidiary, The Lorain National Bank (the Bank).

The Company’s main business focuses on the following:

• Providing personal
• Mortgage and commercial banking products
• Investment management
• Trust services

The Bank operated through 20 retail-banking locations and 30 automated teller machines (ATM’s) in Lorain, Erie, Cuyahoga and Summit counties in the Ohio communities of Lorain, Elyria, Amherst, Avon, Avon Lake, LaGrange, North Ridgeville, Oberlin, Olmsted Township, Vermilion, Westlake and Hudson, as well as a business development office in Cuyahoga County.

On the other hand, its deposit services include traditional transaction and time deposit accounts, as well as cash management services for corporate and municipal customers. It may supplement local deposit generation with time deposits generated through a broker relationship.

Other bank services provided are safe deposit boxes, night depository, the United States savings bonds, travelers’ checks, money orders, cashiers checks, ATM’s, debit cards, wire transfer, electronic funds transfers, foreign drafts, foreign currency, electronic banking by phone or through the Internet, lockbox and other services tailored for both individuals and businesses.

Lending Activities

Its commercial lending activities consist of commercial and industrial loans, commercial real estate loans, construction and equipment loans, letters of credit, revolving lines of credit, small business administration loans and government guaranteed loans.

The Company’s commercial loans are mainly made to local businesses in the form of lines-of-credit, equipment or plant facilities while consumer loans are made to borrowers mainly on secured terms. Real estate mortgages are primarily adjustable rate one- to four-family mortgage loans and construction loans made to individuals.

Investment Activities

By 2010, the Company’s investment portfolio consisted of available for sale securities which consisted of 25.28% the United States Government agencies, 43.27% the United States agency mortgage backed securities, 20.52% the United States collateralized mortgage obligations and 10.93% municipal securities.

Sources of Funds

The Bank mainly gets its funds from deposits. It offers retail and business customers several deposit products, which includes checking accounts, interest checking, savings accounts and time deposits.  By 2010, the Bank had no brokered time deposit balances.

LNB Bancorp, Inc.  (Public, NASDAQ: LNBB) 52 week:  3.56 – 6.02 Mkt cap: 41.85M Shares: 7.88M