Lumbee Guaranty Bank Reports 3rd Quarter 2019 Earnings

ACCESSWIRE
16 Nov 2019, 00:43 GMT+10

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.

LUMBEE GUARANTY BANK
Balance Sheets (unaudited) September 30,	2019		2018
	(Dollars in thousands)
Assets
Cash and due from banks	$	4,370	$	4,539
Interest-earning deposits with banks		26,766		32,976
Total cash and cash equivalents		31,136		37,515
Net Investments		103,411		95,990
Loans receivable		189,942		183,629
Allowance for loan losses		2,171		2,096
Net loans receivable		187,771		181,533
Bank premises & equipment, net		8,847		8,608
Other assets		14,994		16,749
Total assets	$	346,159	$	340,395

Liabilities and Shareholders' Equity
Deposits:
Demand deposits, Money market & NOW	$	188,472	$	186,789
Savings		25,943		24,357
Time deposits		85,117		83,959
Total deposits		299,532		295,105
Securities Sold under Agreement to Repurchase		573		642
Other borrowed money		861		2,999
Accrued interest payable and other liabilities		4,098		4,303
Total liabilities		305,064		303,049
Total shareholders' equity		41,095		37,346
Total liabilities and shareholders' equity	$	346,159	$	340,395

Book value per share	$	12.02	$	10.93

LUMBEE GUARANTY BANK
Statement of Operations (unaudited) Nine Months Ended, September 30,	2019		2018
	(Dollars in thousands, except per share data)

Interest Income		10,889		9,869
Interest Expense		1,313		688

Net Interest Income		9,576		9,181
Provision for loan losses		-		99

Net Interest Income after provision		9,576		9,082

Service charges on deposit accounts		1,010		1,069
Other		529		564
Total noninterest Income		1,539		1,633

Personnel costs		4,714		4,632
Occupancy and equipment		971		951
Data processing fees		1,036		863
Other		1,749		1,554
Total noninterest expense		8,470		8,000

Net Income before income taxes		2,645		2,715
Income taxes		367		365
Net Income		2,278		2,350

Net income per common share	$	0.67	$	0.69

LUMBEE GUARANTY BANK
Statement of Operations (unaudited) Three Months Ended, September 30,	2019		2018
	(Dollars in thousands, except per share data)

Interest Income		3,666		3,494
Interest Expense		473		307

Net Interest Income		3,193		3,187
Provision for loan losses		-		74

Net Interest Income after provision		3,193		3,113

Service charges on deposit accounts		353		362
Other		186		136
Total noninterest Income		539		498

Personnel costs		1,558		1,461
Occupancy and equipment		350		307
Data processing fees		359		296
Other		526		531
Total noninterest expense		2,793		2,595

Net Income before income taxes		939		1,016
Income taxes		135		147
Net Income		804		868