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Lumbee Guaranty Bank Reports 1st Quarter 2022 Earnings


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

  • $1.06 million in net income for the quarter-ended March 31, 2022.
  • 11.4% asset growth, driven by a 13.4% increase in deposits.
  • Improving asset quality led to a credit for loan losses.

PEMBROKE, NC / ACCESSWIRE / May 9, 2022 / For the quarter ended March 31, 2022, Lumbee Guaranty Bank ("Lumbee" or "Bank"), reported net income of $1,057,000, or earnings per share of $0.32, compared to net income of $1,062,000, or earnings per share of $0.31, for the same period in 2021. As of the quarter-end, Lumbee reported assets of $486.4 million, an increase of 11.4% over assets of $436.4 million as of March 31, 2021. Loans decreased 12.0% to $175.7 million, compared to loans of $199.6 million reported March 31, 2021. Deposits grew to $438.6 million at March 31, 2022, an increase of 13.4% from March 31, 2021 deposits of $386.6 million. Capital levels remained strong, as shareholders' equity totaled $38.8 million, or 8.0% of assets at March 31, 2022, versus $42.7 million, or 9.8% of assets at the year-ago date. The decrease in shareholders' equity was due to unrealized losses in the available-for-sale securities portfolio.

Net interest income remained steady with $3.35 million in the first quarter of 2022, down 1.15% from $3.39 million in the year-ago quarter. The stability of the interest income was due to a decrease in Paycheck Protection Program fees offset by an increase in interest on investments during the first quarter of 2022.

As asset quality continues to improve, the Bank was able to recognize a credit of $88 thousand in the quarter ending March 31, 2022, compared to no provision in 2021's first quarter. Nonperforming assets ("NPAs") at March 31, 2022, (including nonaccruing loans, loans more than 90 days past due and still accruing, and OREO) were $2.06 million, or 0.42% of total assets, which was down 0.96% from $2.1 million, or 0.44% of total assets, at December 31, 2021, and down 52.09% from $4.3 million, or 0.98% of total assets, at March 31, 2021. The allowance for loan losses was $1.96 million, or 1.11% of gross loans, at March 31, 2022, versus $2.36 million, or 1.17% of gross loans, at the year-ago date.

Noninterest income increased by 3.55% from $592 thousand in the quarter ending March 31, 2021 to $613 thousand at quarter-end due to increased service charges on deposit accounts. Noninterest expense was $2.78 million in the first quarter of 2022, up 1.76% from $2.73 million in the year-ago quarter. The increased expenses were due to a combination of increased personnel costs and other expenses.

"Our Bank had a solid performance the first quarter of 2022" said Kyle R. Chavis, Chief Executive Officer of Lumbee. "Core earnings beat projections, with pretax income (excluding non-recurring items) showing an 18% increase. We continue to benefit from the growth in our earning assets and improving asset quality." Chavis continued, "Management continues to monitor the rising interest rate environment, as well as inflationary pressures, and we will maintain our focus on meeting the financial needs of the markets 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.

The information as of and for the quarter ended March 31, 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.

Balance Sheets (unaudited) March 31,
2022 2021
(Dollars in thousands)
Cash and due from banks
$ 6,031 $ 5,364
Interest-earning deposits with banks
40,250 38,824
Total cash and cash equivalents
46,281 44,188
Net Investments
238,863 170,112
Loans receivable
175,725 199,642
Allowance for loan losses
1,964 2,361
Net loans receivable
173,761 197,281
Bank premises & equipment, net
8,420 8,789
Other assets
19,025 16,064

Total assets
$ 486,351 $ 436,434
Liabilities and Shareholders' Equity
Demand deposits, Money market & NOW
$ 313,946 $ 269,575
42,216 35,787
Time deposits
82,392 81,219
Total deposits
438,554 386,581
Securities Sold under Agreement to Repurchase
2,751 1,650
Other borrowed money
73 106
Accrued interest payable and other liabilities
6,184 5,426
Total liabilities
447,562 393,763
Total shareholders' equity
38,789 42,671
Total liabilities and shareholders' equity
$ 486,351 $ 436,434
Book value per share
$ 11.59 $ 12.63

Statement of Operations (unaudited) Three Months Ended, March 31,
2022 2021
(Dollars in thousands, except per share data)
Interest Income
3,409 3,611
Interest Expense
144 219
Net Interest Income
3,265 3,392
Provision for loan losses
-88 0
Net Interest Income after provision
3,353 3,392
Service charges on deposit accounts
371 289
242 303
Total noninterest Income
613 592
Personnel costs
1,631 1,602
Occupancy and equipment
375 372
Data processing fees
297 310
479 450
Total noninterest expense
2,782 2,734
Net Income before income taxes
1,184 1,250
Income taxes
127 188
Net Income
1,057 1,062
Net income per common share
$ 0.32 $ 0.31


Kyle R. Chavis, Chief Executive Officer
Lumbee Guaranty Bank
(910) 521-9707;;

SOURCE: Lumbee Guaranty Bank

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