Lumbee Guaranty Bank Reports 2nd Quarter 2022 EarningsPress Release | 08/03/2022

Company reports strong quarterly earnings, asset growth, and continued improvement in asset quality

  • $1.24 million in net income for the quarter-ended June 30, 2022.
  • 6.0% asset growth, driven by an 8.5% increase in deposits.
  • Continued improvement in asset quality.

PEMBROKE, NC / ACCESSWIRE / August 3, 2022 / For the quarter ended June 30, 2022, Lumbee Guaranty Bank ("Lumbee" or "Bank"), reported net income of $1,236,000, or earnings per share of $0.37, compared to net income of $1,027,000, or earnings per share of $0.30, for the same period in 2021. For the six-month period ended as of the same date, Lumbee reported net income of $2.293 million in 2022, or earnings per share of $0.69, compared to net income of $2.089 million for the six months ended June 30, 2021, or earnings per share of $0.62. The primary causes of the increase in net income compared to prior periods were an increase in deposit service charges on accounts and an increase in other non-interest income due to a Bank Enterprise Award (BEA) grant from the Community Development Financial Institutions Fund.

As of June 30, 2022, Lumbee reported assets of $481.9 million, an increase of 6.0% over assets of $454.6 million as of June 30, 2021. Loans decreased 8.0% to $180.1 million, compared to loans of $195.7 million reported June 30, 2021. Investments rose to $234.5 million from $205.1 million at the year-ago date, an increase of 14.3%. Deposits grew to $437.7 million at June 30, 2022, an increase of 8.5% from June 30, 2021 deposits of $403.5 million. Capital levels remained solid, as shareholders equity totaled $35.3 million, or 7.3% of assets at June 30, 2022, versus $43.8 million, or 9.6% of assets at the year-ago date.

Net interest income totaled $3.51 million in the second quarter of 2022, up 2.8% from $3.41 million in the year-ago quarter. The stability of the interest income was due to a decrease in Paycheck Protection Program fees in 2021 offset by an increase in interest on investments during the second quarter of 2022. Noninterest income was up 58.7% to $808 thousand in 2022's second quarter from $509 thousand in the year-ago quarter, due to increased deposit service charges and the BEA grant previously mentioned. Noninterest expense was $2.91 million in the second quarter of 2022, up 3.4% from $2.81 million in the year-ago quarter. The increased expenses were due to a combination of increased data processing costs and other expenses.

Nonperforming assets ("NPAs") at June 30, 2022, (including nonaccruing loans, loans more than 90 days past due and still accruing, and OREO) were $1.4 million, or 0.30% of total assets, which was down 66% from $4.2 million, or 0.93% of total assets, at June 30, 2021, and down 30% from $2.1 million, or 0.42% of total assets, at March 31, 2022. The allowance for loan losses was $2.0 million, or 1.09% of gross loans, at June 30, 2022, versus $2.3 million, or 1.17% of gross loans, at the year-ago date.

"Our Bank had strong financial results in the second quarter, with earnings exceeding projections again" said Kyle R. Chavis, Chief Executive Officer of Lumbee. "We were able to grow our loan portfolio by $4.3 million during the quarter, and we continued to attract new deposit customers by focusing on providing value and excellent service. I am particularly proud that our bank was awarded and received a Bank Enterprise Award grant from the Community Development Financial Institutions Fund of the U.S. Treasury. This grant is recognition of the small business lending we have always done in the communities we serve." Chavis continued, "As interest rates rise and economic conditions change, we will continue to strive to meet the financial needs of the citizens of southeastern North Carolina and to demonstrate the value of doing business with a community bank."

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 June 30, 2022, 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
Statement of Operations (unaudited) Six Months Ended, June 30,

2022 2021
(Dollars in thousands)

Assets

Cash and due from banks

$ 5,841 $ 5,612

Interest-earning deposits with banks

34,656 25,777

Total cash and cash equivalents

40,497 31,389

Net Investments

234,498 205,094

Loans receivable

180,050 195,683

Allowance for loan losses

1,963 2,280

Net loans receivable

178,087 193,403

Bank premises & equipment, net

8,357 8,745

Other assets

20,414 15,970

Total assets

$ 481,853 $ 454,601

Liabilities and Shareholders' Equity

Deposits:

Demand deposits, Money market & NOW

$ 312,683 $ 283,150

Savings

43,868 37,871

Time deposits

81,170 82,436

Total deposits

437,721 403,457

Securities Sold under Agreement to Repurchase

2,264 1,844

Other borrowed money

64 98

Accrued interest payable and other liabilities

6,505 5,421

Total liabilities

446,554 410,820

Total shareholders' equity

35,299 43,781

Total liabilities and shareholders' equity

$ 481,853 $ 454,601

Book value per share

$ 10.57 $ 12.96

LUMBEE GUARANTY BANK
Statement of Operations (unaudited) Six Months Ended, June 30,

2022 2021
(Dollars in thousands, except per share data)

Interest Income

7,054 7,200

Interest Expense

281 397

Net Interest Income

6,773 6,803

Provision for loan losses

-88 -100

Net Interest Income after provision

6,861 6,903

Service charges on deposit accounts

752 571

Other

669 530

Total noninterest Income

1,421 1,101

Realized gains/(loss) on AFS securities

0 -18

Personnel costs

3,225 3,218

Occupancy and equipment

767 756

Data processing fees

619 596

Other

1,081 978

Total noninterest expense

5,692 5,548

Net Income before income taxes

2,590 2,438

Income taxes

297 349

Net Income

2,293 2,089

Net income per common share

$ 0.69 $ 0.62

LUMBEE GUARANTY BANK
Statement of Operations (unaudited) Three Months Ended, June 30,

2022 2021
(Dollars in thousands, except per share data)

Interest Income

3,645 3,589

Interest Expense

137 178

Net Interest Income

3,508 3,411

Provision for loan losses

0 -100

Net Interest Income after provision

3,508 3,511

Service charges on deposit accounts

381 282

Other

427 227

Total noninterest Income

808 509

Realized gains/(loss) on AFS securities

0 -18

Personnel costs

1,594 1,616

Occupancy and equipment

392 384

Data processing fees

322 286

Other

602 528

Total noninterest expense

2,910 2,814

Net Income before income taxes

1,406 1,188

Income taxes

170 161

Net Income

1,236 1,027

Net income per common share

$ 0.37 $ 0.30

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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Lumbee Guaranty Bank published this content on 03 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2022 19:28:12 UTC.