Company reports stable earnings, steady growth and improving credit quality
- $2.28 million in net income for the first nine months of 2019
- Annual growth of 3% for loans and 2% for assets and deposits
- Nonperforming loans continue to decline
PEMBROKE, NC / ACCESSWIRE / November 15, 2019 / For the quarter ended September 30, 2019, Lumbee Guaranty Bank (OTC PINK:LUMB) ("Lumbee" or "Bank"), reported net income of $804,000, or earnings per share of $0.24, compared to net income of $868,000, or earnings per share of $0.25, for the same period in 2018. For the nine-month period ended as of the same date, Lumbee reported net income of $2.278 million in 2019, or earnings per share of $0.67, compared to net income of $2.350 million for the nine months ended September 30, 2018, or earnings per share of $0.69.
As of September 30, 2019, Lumbee reported assets of $346.2 million, an increase of almost 2% over assets of $340.4 million as of September 30, 2018. Loans were up over 3% to $190.3 million, compared to loans of $184.0 million reported September 30, 2018. Deposits grew to $299.5 million at quarter-end, an increase of 1.5% over September 30, 2018 deposits of $295.1 million. Capital levels remained strong, as shareholders equity totaled $41.0 million, or 12% of assets at September 30, 2019, versus $37.3 million, or 11% of assets at the year-ago date.
Earnings in the third quarter of 2019 were slightly below the year-ago figures, yet still beat expectations by $0.01/share. The Bank's capital position remains strong, as all capital ratios exceed the regulatory minimums to be considered "Well Capitalized". Lastly, nonperforming assets decreased by 22% from the third quarter of 2018.
"Our primary goal is to continue to pursue strategies designed to grow shareholder value." said Kyle R. Chavis, Chief Executive Officer of Lumbee. "We look forward to continuing our positive impact on the economy of southeastern NC by seeking to meet the financial needs of our customers. We are also pleased to announce that as of November 5, 2019, Raymond James became our primary market maker, and our common stock is now publicly traded on the OTC-Pink under the stock symbol LUMB. We have since applied to join the OTC-QX and look forward to approval and listing. This trading symbol only applies to the Bank's common stock and does not cover the Bank's Class A common stock. Shareholders who want to sell shares of their Class A common stock should contact our corporate office"
Lumbee Guaranty Bank is a community bank headquartered in Pembroke, NC and serves Robeson, Cumberland, and Hoke Counties through its network of thirteen strategically located branch offices over the three-county area.
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The information as of and for the quarter ended September 30, 2019, as presented is unaudited. This news release contains forward-looking statements. Actual results may differ materially from those projected, for various reasons, including our ability to manage growth, substantial changes in financial markets, regulatory changes, changes in interest rates, loss of deposits and loan demand to other savings and financial institutions, and changes in real estate values and the real estate market.
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LUMBEE GUARANTY BANK
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Balance Sheets (unaudited) September 30,
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2019 | 2018 | ||||||
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(Dollars in thousands) | |||||||
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Assets
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Cash and due from banks
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$ | 4,370 | $ | 4,539 | ||||
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Interest-earning deposits with banks
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26,766 | 32,976 | ||||||
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Total cash and cash equivalents
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31,136 | 37,515 | ||||||
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Net Investments
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103,411 | 95,990 | ||||||
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Loans receivable
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189,942 | 183,629 | ||||||
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Allowance for loan losses
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2,171 | 2,096 | ||||||
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Net loans receivable
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187,771 | 181,533 | ||||||
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Bank premises & equipment, net
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8,847 | 8,608 | ||||||
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Other assets
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14,994 | 16,749 | ||||||
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Total assets
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$ | 346,159 | $ | 340,395 | ||||
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Liabilities and Shareholders' Equity
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Deposits:
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Demand deposits, Money market & NOW
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$ | 188,472 | $ | 186,789 | ||||
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Savings
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25,943 | 24,357 | ||||||
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Time deposits
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85,117 | 83,959 | ||||||
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Total deposits
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299,532 | 295,105 | ||||||
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Securities Sold under Agreement to Repurchase
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573 | 642 | ||||||
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Other borrowed money
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861 | 2,999 | ||||||
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Accrued interest payable and other liabilities
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4,098 | 4,303 | ||||||
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Total liabilities
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305,064 | 303,049 | ||||||
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Total shareholders' equity
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41,095 | 37,346 | ||||||
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Total liabilities and shareholders' equity
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$ | 346,159 | $ | 340,395 | ||||
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Book value per share
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$ | 12.02 | $ | 10.93 | ||||
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LUMBEE GUARANTY BANK
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Statement of Operations (unaudited) Nine Months Ended, September 30,
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2019 | 2018 | |||||||||
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(Dollars in thousands, except per share data) | ||||||||||
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Interest Income
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10,889 | 9,869 | |||||||||
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Interest Expense
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1,313 | 688 | |||||||||
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Net Interest Income
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9,576 | 9,181 | |||||||||
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Provision for loan losses
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- | 99 | |||||||||
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Net Interest Income after provision
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9,576 | 9,082 | |||||||||
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Service charges on deposit accounts
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1,010 | 1,069 | |||||||||
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Other
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529 | 564 | |||||||||
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Total noninterest Income
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1,539 | 1,633 | |||||||||
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Personnel costs
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4,714 | 4,632 | |||||||||
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Occupancy and equipment
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971 | 951 | |||||||||
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Data processing fees
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1,036 | 863 | |||||||||
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Other
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1,749 | 1,554 | |||||||||
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Total noninterest expense
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8,470 | 8,000 | |||||||||
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Net Income before income taxes
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2,645 | 2,715 | |||||||||
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Income taxes
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367 | 365 | |||||||||
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Net Income
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2,278 | 2,350 | |||||||||
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Net income per common share
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$ | 0.67 | $ | 0.69 | |||||||
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LUMBEE GUARANTY BANK
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Statement of Operations (unaudited) Three Months Ended, September 30,
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2019 | 2018 | |||||||||
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(Dollars in thousands, except per share data) | ||||||||||
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Interest Income
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3,666 | 3,494 | |||||||||
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Interest Expense
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473 | 307 | |||||||||
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Net Interest Income
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3,193 | 3,187 | |||||||||
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Provision for loan losses
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- | 74 | |||||||||
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Net Interest Income after provision
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3,193 | 3,113 | |||||||||
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Service charges on deposit accounts
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353 | 362 | |||||||||
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Other
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186 | 136 | |||||||||
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Total noninterest Income
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539 | 498 | |||||||||
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Personnel costs
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1,558 | 1,461 | |||||||||
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Occupancy and equipment
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350 | 307 | |||||||||
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Data processing fees
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359 | 296 | |||||||||
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Other
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526 | 531 | |||||||||
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Total noninterest expense
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2,793 | 2,595 | |||||||||
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Net Income before income taxes
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939 | 1,016 | |||||||||
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Income taxes
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135 | 147 | |||||||||
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Net Income
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804 | 868 | |||||||||
CONTACT:
Kyle R. Chavis, Chief Executive Officer
Lumbee Guaranty Bank
(910) 521-9707; [email protected]; www.lumbeeguarantybank.com
SOURCE: Lumbee Guaranty Bank