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

ReleaseID: 588825