Lumbee Guaranty Bank Reports 1st Quarter 2020 Earnings

Company reports consistent earnings, continued loan growth and strong capital levels

  • $722 thousand in net income for the quarter-ended March 31, 2020
  • Over 7% loan growth
  • Bank is considered “Well-Capitalized” by regulators

PEMBROKE, NC / ACCESSWIRE / May 6, 2020 / For the quarter ended March 31, 2020, Lumbee Guaranty Bank (OTCQX:LUMB) (“Lumbee” or “Bank”), reported net income of $722,000, or earnings per share of $0.21, compared to net income of $820,000, or earnings per share of $0.24, for the same period in 2019. As of the quarter-end, Lumbee reported assets of $341.8 million, a slight increase of 0.3% over assets of $340.9 million as of March 31, 2019. Loans were up 7.5% to $197.3 million, compared to loans of $182.5 million reported March 31, 2019. Deposits fell to $288.5 million at March 31, 2020, a decrease of 1.8% from March 31, 2019 deposits of $293.8 million. Capital levels remained healthy, as shareholders equity totaled $42.6 million, or 12.46% of assets at March 31, 2020, versus $39.0 million, or 11.44% of assets at the year-ago date.

In the first quarter of 2020, noninterest income grew 4.5% to $532,000 from $509,000 in the year-ago quarter, as both income from deposit service charges and other noninterest income rose. Noninterest expense grew a modest 2.6% to $2.81 million the quarter ending March 31, 2020 from $2.74 million in the year-ago quarter; however, it was down from $2.85 million in the fourth quarter of 2019. At March 31, 2020, the Bank reported nonperforming assets (including nonaccruing loans, loans more than 90 days past due and still accruing, and OREO) of $4.6 million, or 1.35% of total assets, down from $4.7 million, or 1.35% of total assets, at the end of 2019, and down 16% from $5.5 million, or 1.62% of total assets, at the year-ago date.

“The first quarter was a busy one.” said Kyle R. Chavis, Chief Executive Officer of Lumbee. “We were able to open our Hay Street branch in Fayetteville, and we achieved solid loan growth across our three-county primary market area. As we began to feel the effects of COVID-19 in mid-March, we shifted our focus to protecting the health and safety of our customers and employees while continuing to provide needed financial services to the communities of southeastern NC.” Chavis further stated, “Our robust capital position and strong liquidity levels will enable us to continue to meet the needs of our customers during this unprecedented health crisis. Our team is committed to making a difference in the lives of our friends and neighbors in the communities that we serve.”

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 March 31, 2020, 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) March 31,
  2020     2019  
 
  (Dollars in thousands)  
Assets
           
Cash and due from banks
  7,490     4,364  
Interest-earning deposits with banks
    12,861       27,717  
   Total cash and cash equivalents
    20,351       32,081  
Net Investments
    102,342       104,710  
Loans receivable
    197,265       182,511  
    Allowance for loan losses
    2,056       2,185  
   Net loans receivable
    195,209       180,326  
Bank premises & equipment, net
    9,123       8,650  
Other assets
    14,746       15,105  
    Total assets
  341,771     340,872  
 
               
Liabilities and Shareholders’ Equity
               
Deposits:
               
Demand deposits, Money market & NOW
  175,781     180,618  
Savings
    27,614       26,240  
Time deposits
    85,097       86,956  
    Total deposits
    288,492       293,814  
Securities Sold under Agreement to Repurchase
    906       977  
Other borrowed money
    5137       2,930  
Accrued interest payable and other liabilities
    4,634       4,125  
Total liabilities
    299,169       301,846  
Total shareholders’ equity
    42,602       39,026  
Total liabilities and shareholders’ equity
  341,771     340,872  
 
               
Book value per share
  12.49     11.42  
                 
LUMBEE GUARANTY BANK
           
Statement of Operations (unaudited) Three Months Ended, March 31,
  2020     2019  
 
  (Dollars in thousands, except per share data)  
     
Interest Income
    3,548       3,598  
Interest Expense
    434       405  
     
Net Interest Income
    3,114       3,193  
    Provision for loan losses
    0       0  
     
Net Interest Income after provision
    3,114       3,193  
     
    Service charges on deposit accounts
    333       320  
    Other
    199       189  
Total noninterest Income
    532       509  
     
    Personnel costs
    1,563       1,581  
    Occupancy and equipment
    395       302  
    Data processing fees
    323       317  
    Other
    530       540  
Total noninterest expense
    2,811       2,740  
 
               
Net Income before income taxes
    835       962  
    Income taxes
    113       142  
Net Income
    722       820  
     
Net income per common share
  0.21     0.24  

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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