Company beats earnings projections. Reports sustained asset growth and sound capital levels.
- $1.4 million in net income for the quarter-ended September 30, 2022.
- Year-over-year asset growth of 4.1%, driven by an 6.6% increase in deposits.
- Asset quality remains satisfactory.
PEMBROKE, NC / ACCESSWIRE / November 8, 2022 / For the quarter ended September 30, 2022, Lumbee Guaranty Bank ("Lumbee" or "Bank")(OTCQX:LUMB), reported net income of $1,405,000, or earnings per share of $0.42, compared to net income of $1,009,000, or earnings per share of $0.30, for the same period in 2021. For the nine-month period ended as of the same date, Lumbee reported net income of $3.698 million in 2022, or earnings per share of $1.11, compared to net income of $3.098 million for the nine months ended September 30, 2021, or earnings per share of $0.92. The primary causes of the increase in net income compared to prior periods were an increase in net interest income, an increase in deposit service charges, and a decrease in noninterest expense.
As of September 30, 2022, Lumbee reported assets of $501.0 million, an increase of 4.1% over assets of $481.3 million as of September 30, 2021. Loans decreased 0.8% to $186.3 million, compared to loans of $187.7 million reported September 30, 2021. Investments rose to $235.2 million from $220.9 million at the year-ago date, an increase of 6.5%. Deposits grew to $458.5 million at September 30, 2022, an increase of 6.6% from September 30, 2021 deposits of $430.4 million. Shareholders' equity totaled $33.7 million, or 6.7% of assets at September 30, 2022, versus $44.3 million, or 9.2% of assets at the year-ago date. The decrease in shareholders' equity is due to unrealized losses in the Bank's securities portfolio. The Bank's Community Bank Leverage Ratio of 9.89% meets the "Well-capitalized" ratio requirements of the Federal Deposit Insurance Corporation.
Net interest income totaled $3.85 million in the third quarter of 2022, up 12.8% from $3.41 million in the year-ago quarter. The increase in net interest income was due to higher interest margins and an increase in the Bank's securities portfolio. Noninterest income was up 13.6% to $603 thousand in 2022's third quarter from $531 thousand in the year-ago quarter, due to increased deposit service charges. Noninterest expense was $2.83 million in the third quarter of 2022, down 2.6% from $2.90 million in the year-ago quarter. The decreased expenses were due to a combination of decrease in personnel costs and other expenses.
Nonperforming assets ("NPAs") at September 30, 2022, (including nonaccruing loans, loans more than 90 days past due and still accruing, and OREO) were $1.4 million, or 0.29% of total assets, which was down 45% from $2.6 million, or 0.55% of total assets, at September 30, 2021, and unchanged from $1.4 million, or 0.30% of total assets, at June 30, 2022. The allowance for loan losses was $2.0 million, or 1.06% of gross loans, at September 30, 2022, versus $2.2 million, or 1.16% of gross loans, at the year-ago date.
"In the third quarter, we were able to continue our positive trends for this year" said Kyle R. Chavis, Chief Executive Officer of Lumbee. "With loan growth of over $6 million and deposit growth of nearly $20 million during the quarter, our Bank crossed the $500 million asset threshold as of September 30, 2022. This is a milestone for us and a testament to the consistent hard work of our employees and the loyalty of our shareholders and Directors over the years." Chavis continued, "We expect another record year of earnings for the Bank in 2022, as we seek to increase value for our shareholders and serve the communities of southeastern North Carolina. Our approach to changing and uncertain economic conditions will continued to be measured, with a focus on safety and soundness, an emphasis on excellent customer service, and a concentrated effort to provide value for our customers."
Lumbee Guaranty Bank is a community bank headquartered in Pembroke, NC and serves Robeson, Cumberland, and Hoke Counties. Established in 1971, the Bank offers a full array of financial services through its network of fourteen strategically located branch offices over the three-county area. The Bank's common stock is traded on the OTC-QX under the stock symbol LUMB.
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The information as of and for the quarter ended September 30, 2022, 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, our limited operating history, 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.
LUMBEE GUARANTY BANK | ||||||||
Balance Sheets (unaudited) September 30, | 2022 | 2021 | ||||||
| (Dollars in thousands) | ||||||||
| Assets | ||||||||
Cash and due from banks | $ | 6,726 | $ | 5,736 | ||||
Interest-earning deposits with banks | 44,187 | 44,243 | ||||||
Total cash and cash equivalents | 50,913 | 49,979 | ||||||
Net Investments | 235,167 | 220,858 | ||||||
Loans receivable | 186,283 | 187,698 | ||||||
Allowance for loan losses | 1,973 | 2,180 | ||||||
Net loans receivable | 184,310 | 185,518 | ||||||
Bank premises & equipment, net | 8,280 | 8,575 | ||||||
Other assets | 22,311 | 16,385 | ||||||
Total assets | $ | 500,981 | $ | 481,315 | ||||
Liabilities and Shareholders' Equity | ||||||||
Deposits: | ||||||||
Demand deposits, Money market & NOW | $ | 333,286 | $ | 308,640 | ||||
Savings | 45,404 | 38,564 | ||||||
Time deposits | 79,857 | 83,149 | ||||||
Total deposits | 458,547 | 430,353 | ||||||
Securities Sold under Agreement to Repurchase | 2,361 | 1,299 | ||||||
Other borrowed money | 56 | 89 | ||||||
Accrued interest payable and other liabilities | 6,362 | 5,250 | ||||||
Total liabilities | 467,326 | 436,991 | ||||||
Total shareholders' equity | 33,655 | 44,324 | ||||||
Total liabilities and shareholders' equity | $ | 500,981 | $ | 481,315 | ||||
Book value per share | $ | 10.08 | $ | 13.15 | ||||
LUMBEE GUARANTY BANK | ||||||||
Statement of Operations (unaudited) Nine Months Ended, September 30, | 2022 | 2021 | ||||||
| (Dollars in thousands, except per share data) | ||||||||
Interest Income | 11,047 | 10,782 | ||||||
Interest Expense | 425 | 566 | ||||||
Net Interest Income | 10,622 | 10,216 | ||||||
Provision for loan losses | -88 | -200 | ||||||
Net Interest Income after provision | 10,710 | 10,416 | ||||||
Service charges on deposit accounts | 1,149 | 876 | ||||||
Other | 875 | 756 | ||||||
Total noninterest Income | 2,024 | 1,632 | ||||||
Realized gains/(loss) on AFS securities | 0 | -14 | ||||||
Personnel costs | 4,776 | 4,833 | ||||||
Occupancy and equipment | 1,163 | 1,139 | ||||||
Data processing fees | 971 | 947 | ||||||
Other | 1,610 | 1,532 | ||||||
Total noninterest expense | 8,520 | 8,451 | ||||||
Net Income before income taxes | 4,214 | 3,583 | ||||||
Income taxes | 516 | 485 | ||||||
Net Income | 3,698 | 3,098 | ||||||
Net income per common share | $ | 1.11 | $ | 0.92 | ||||
LUMBEE GUARANTY BANK | ||||||||
Statement of Operations (unaudited) Three Months Ended, September 30, | 2022 | 2021 | ||||||
| (Dollars in thousands, except per share data) | ||||||||
Interest Income | 3,993 | 3,582 | ||||||
Interest Expense | 144 | 169 | ||||||
Net Interest Income | 3,849 | 3,413 | ||||||
Provision for loan losses | 0 | -100 | ||||||
Net Interest Income after provision | 3,849 | 3,513 | ||||||
Service charges on deposit accounts | 397 | 305 | ||||||
Other | 206 | 226 | ||||||
Total noninterest Income | 603 | 531 | ||||||
Realized gains/(loss) on AFS securities | 0 | 4 | ||||||
Personnel costs | 1,551 | 1,615 | ||||||
Occupancy and equipment | 396 | 383 | ||||||
Data processing fees | 352 | 351 | ||||||
Other | 529 | 554 | ||||||
Total noninterest expense | 2,828 | 2,903 | ||||||
Net Income before income taxes | 1,624 | 1,145 | ||||||
Income taxes | 219 | 136 | ||||||
Net Income | 1,405 | 1,009 | ||||||
Net income per common share | $ | 0.42 | $ | 0.30 | ||||
Kyle R. Chavis, Chief Executive Officer
Lumbee Guaranty Bank
(910) 521-9707; [email protected]; www.lumbeeguarantybank.com
SOURCE: Lumbee Guaranty Bank