Lumbee Guaranty Bank Reports 3rd Quarter 2019 Earnings

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  

CONTACT:

Kyle R. Chavis, Chief Executive Officer
Lumbee Guaranty Bank
(910) 521-9707; kylechavis@lumbeeguarantybank.com; www.lumbeeguarantybank.com

SOURCE: Lumbee Guaranty Bank

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