Lumbee Guaranty Bank Reports 4th Quarter 2019 Earnings

Bank reports steady earnings, controlled growth, and low loan losses

  • $3.00 million in net income for 2019
  • Annual growth of 5% for loans, 2% for assets and deposits, and 8% for shareholders’ equity
  • Low loan charge-offs compared to other banks

PEMBROKE, NC / ACCESSWIRE / February 7, 2020 / For the year ended December 31, 2019, Lumbee Guaranty Bank (OTCQX:LUMB)(“Lumbee” or “Bank”), reported net income of $3.0 million, or earnings per share of $0.88, compared to net income of $3.1 million, or earnings per share of $0.91, for the year ended December 31, 2018. Net income declined by 3.20%, while earnings per share decreased by 3.30%. For the three-month period ended as of the same date, Lumbee reported net income of $726,000, compared to net income of $753,000 for the three months ended December 31, 2018.

As of December 31, 2019, Lumbee reported assets of $343.8 million, an increase of 2.40% over assets of $335.7 million as of December 31, 2018. Loans were up over 4.71% to $192.0 million, compared to loans of $183.4 million reported December 31, 2018. Deposits grew to $296.1 million at year-end, an increase of 2.32% over December 31, 2018 deposits of $289.4 million. Capital levels remained strong, as shareholders equity totaled $40.9 million, or 11.9% of assets at December 31, 2019, versus $38.0 million, or 11.3% of assets at the year-ago date. For the three-month period ended December 31, 2019, assets fell by $2.4 million, loans grew by $1.7 million, and deposits decreased by $3.4 million.

Loan losses for 2019 were 0.02% of average loans, compared to 0.03% for all banks in NC. Lumbee’s strong performance in this area allowed the Bank to reverse $100,000 of its allowance for loan losses, which augmented net income. in the fourth quarter of 2019 and for the year. The Bank’s capital position remains very strong, as all capital ratios exceed the regulatory minimums to be considered “Well Capitalized”. Finally, nonperforming assets decreased by 20% from the fourth quarter of 2019.

“Declining interest rates in 2019 presented challenges to our Bank, as our interest margin was compressed.” said Kyle R. Chavis, Chief Executive Officer of Lumbee. “As we managed through the lower rate environment, we also incurred over $110,000 in one-time expenses related to the Bank’s deregistration from the SEC and reclassification of certain shares of our common stock. Despite those headwinds, we were able to grow our loan portfolio and enjoy historically low loss rates as well. With the cost savings from deregistration and the pending opening of a new office in Fayetteville, we are well-positioned to continue to create shareholder value and serve our markets in southeastern NC.”

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 thirteen 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.

###

The information as of and for the quarter ended December 31, 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) December 31,
  2019     2018  
 
  (Dollars in thousands)  
Assets
           
Cash and due from banks
  $ 4,829     $ 5,563  
Interest-earning deposits with banks
    26,243       21,174  
Total cash and cash equivalents
    31,072       26,737  
Net Investments
    99,294       104,600  
Loans receivable
    191,622       183,009  
Allowance for loan losses
    2,067       2,172  
Net loans receivable
    189,555       180,837  
Bank premises & equipment, net
    9,056       8,564  
Other assets
    14,776       16,032  
Total assets
  $ 343,753     $ 336,770  
 
               
Liabilities and Shareholders’ Equity
               
Deposits:
               
Demand deposits, Money market & NOW
  $ 184,058     $ 179,144  
Savings
    26,384       25,453  
Time deposits
    85,652       84,781  
Total deposits
    296,094       289,378  
Securities Sold under Agreement to Repurchase
    1,096       1,432  
Other borrowed money
    825       2,965  
Accrued interest payable and other liabilities
    4,811       5,022  
Total liabilities
    302,826       298,797  
Total shareholders’ equity
    40,927       37,973  
Total liabilities and shareholders’ equity
  $ 343,753     $ 336,770  
 
               
Book value per share
  $ 11.99     $ 11.11  
                 

LUMBEE GUARANTY BANK

 
           
Statement of Operations (unaudited) Twelve Months Ended, December 31,
  2019     2018  
 
  (Dollars in thousands, except per share data)  
   
Interest Income
    14,436       13,436  
Interest Expense
    1,754       1,054  
   
Net Interest Income
    12,652       12,382  
Provision for loan losses
    (100)       167  
   
Net Interest Income after provision
    12,752       12,215  
   
Service charges on deposit accounts
    1,350       1,408  
Other
    686       726  
Total noninterest Income
    2,036       2,133  
   
Realized gains on AFS securities
    25        
   
Personnel costs
    6,327       6,168  
Occupancy and equipment
    1,273       1,268  
Data processing fees
    1,400       1,157  
Other
    2,322       2,137  
Total noninterest expense
    11,322       10,730  
 
               
Net Income before income taxes
    3,491       3,619  
Income taxes
    487       516  
Net Income
    3,004       3,103  
   
Net income per common share
  $ 0.88     $ 0.91  
                 

LUMBEE GUARANTY BANK

 
           
Statement of Operations (unaudited) Three Months Ended, December 31,
  2019     2018  
 
  (Dollars in thousands, except per share data)  
   
Interest Income
    3,547       3,567  
Interest Expense
    471       366  
   
Net Interest Income
    3,076       3,201  
Provision for loan losses
    (100)       68  
   
Net Interest Income after provision
    3,176       3,133  
   
Service charges on deposit accounts
    340       339  
Other
    157       162  
Total noninterest Income
    497       501  
   
Personnel costs
    1,613       1,536  
Occupancy and equipment
    302       317  
Data processing fees
    364       294  
Other
    573       583  
Total noninterest expense
    2,852       2,730  
 
               
Net Income before income taxes
    846       904  
Income taxes
    120       151  
Net Income
    726       753  
                 

Contact:

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

SOURCE: Lumbee Guaranty Bank

View source version on accesswire.com:
https://www.accesswire.com/575715/Lumbee-Guaranty-Bank-Reports-4th-Quarter-2019-Earnings

error: Content is protected !!