Lorain National Bank

Last updated
LNB Bancorp, Inc.
Industry Banking
FateAcquired by Northwest Bank
Founded1905;114 years ago (1905)
DefunctAugust 14, 2015;4 years ago (August 14, 2015)
Headquarters Lorain, Ohio
Key people
 Daniel E. Klimas, President & CEO
James R. Herrick, Chairman
James H. Nicholson, CFO
Total assets $1.236 billion (2014)
Total equity $0.115 billion (2014)
Number of employees
272 (2014)
Footnotes /references
[1]

The Lorain National Bank was a bank headquartered in Lorain, Ohio. The bank was a subsidiary of LNB Bancorp, a bank holding company. It operated 20 branches, all of which were in Lorain County, Cuyahoga County, or Summit County. In 2015, the bank was acquired by Northwest Bank.

Bank financial institution

A bank is a financial institution that accepts deposits from the public and creates credit. Lending activities can be performed either directly or indirectly through capital markets. Due to their importance in the financial stability of a country, banks are highly regulated in most countries. Most nations have institutionalized a system known as fractional reserve banking under which banks hold liquid assets equal to only a portion of their current liabilities. In addition to other regulations intended to ensure liquidity, banks are generally subject to minimum capital requirements based on an international set of capital standards, known as the Basel Accords.

Lorain, Ohio City in Ohio, United States of America

Lorain is a city in Lorain County, Ohio, United States. The municipality is located in northeastern Ohio on Lake Erie, at the mouth of the Black River, approximately 30 miles west of Cleveland. As of the 2010 census, the city had a total population of 64,097, making it Ohio's tenth largest city, the third largest in Greater Cleveland, and the largest in Lorain County by population.

A bank holding company is a company that controls one or more banks, but does not necessarily engage in banking itself. The compound bancorp is often used to refer to these companies as well.

History

The bank was founded in 1905 as Lorain Banking Co. [2] [1]

In 1961, it merged with the National Bank of Lorain to form Lorain National Bank. [2] [1]

In February 2005, Daniel Kilmas became president & chief executive officer of the bank. [3]

The president is a leader of an organization, company, community, club, trade union, university or other group. The relationship between the president and the chief executive officer varies, depending on the structure of the specific organization. In a similar vein to the chief operating officer, the title of corporate president as a separate position is also loosely defined; the president is usually the legally recognized highest rank of corporate officer, ranking above the various vice presidents, but on its own generally considered subordinate, in practice, to the CEO. The powers of the president vary widely across organizations and such powers come from specific authorization in the bylaws like Robert's Rules of Order.

Chief executive officer Highest-ranking corporate officer or administrator

The chief executive officer (CEO), or just chief executive (CE), is the most senior corporate, executive, or administrative officer in charge of managing an organization – especially an independent legal entity such as a company or nonprofit institution. CEOs lead a range of organizations, including public and private corporations, non-profit organizations and even some government organizations. The CEO of a corporation or company typically reports to the board of directors and is charged with maximizing the value of the entity, which may include maximizing the share price, market share, revenues or another element. In the non-profit and government sector, CEOs typically aim at achieving outcomes related to the organization's mission, such as reducing poverty, increasing literacy, etc.

In December 2008, the bank received a $25.2 million investment from the United States Department of the Treasury as part of the Troubled Asset Relief Program. [3] [4] The bank remained under partial government ownership until 2012. [5]

United States Department of the Treasury United States federal executive department

The Department of the Treasury (USDT) is an executive department and the treasury of the United States federal government. Established by an Act of Congress in 1789 to manage government revenue, the Treasury prints all paper currency and mints all coins in circulation through the Bureau of Engraving and Printing and the United States Mint, respectively; collects all federal taxes through the Internal Revenue Service; manages U.S. government debt instruments; licenses and supervises banks and thrift institutions; and advises the legislative and executive branches on matters of fiscal policy.

The Troubled Asset Relief Program (TARP) is a program of the United States government to purchase toxic assets and equity from financial institutions to strengthen its financial sector that was passed by a Democratic Party controlled Congress and signed into law by Republican Party President George W. Bush on October 3, 2008. It was a component of the government's measures in 2008 to address the subprime mortgage crisis.

In 2007, the bank acquired Morgan Bancorp for $26.5 million in cash and stock. [6]

In 2015, the bank was acquired by Northwest Bank. [2] [7]

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References

  1. 1 2 3 "LNB Bancorp, Inc. 2014 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. 1 2 3 Murray, Teresa Dixon (December 16, 2014). "Lorain National Bank sold to Northwest Bank of Warren". The Plain Dealer .
  3. 1 2 Murray, Teresa Dixon (July 21, 2012). "Lorain National Bank enjoys post-TARP era without government ownership: Talk with the Boss". The Plain Dealer .
  4. ↑ "LNB Bancorp Receives Preliminary Approval for $25.2 Million Investment under U.S. Treasury's TARP Program" (Press release). Business Wire. November 20, 2008.
  5. ↑ Browdie, Brian (December 26, 2012). "LNB Bancorp in Ohio Buys Back Tarp Shares". American Banker .(subscription required)
  6. ↑ "LNB Bancorp, Inc. and Morgan Bancorp, Inc. Announce Merger Agreement" (Press release). Business Wire. January 16, 2007.
  7. ↑ "Northwest Bancshares, Inc. Completes Merger with LNB Bancorp, Inc" (Press release). PRNewswire. August 14, 2015.
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