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Press release content from ACCESSWIRE. The AP news staff was not involved in its creation.

Lumbee Guaranty Bank Reports 3rd Quarter 2019 Earnings

November 15, 2019

Company reports stable earnings, steady growth and improving credit quality

PEMBROKE, NC / ACCESSWIRE / November 15, 2019 / For the quarter ended September 30, 2019, Lumbee Guaranty Bank (OTC PINK:LUMB) (“Lumbee” or “Bank”), reported net income of $804,000, or earnings per share of $0.24, compared to net income of $868,000, or earnings per share of $0.25, for the same period in 2018. For the nine-month period ended as of the same date, Lumbee reported net income of $2.278 million in 2019, or earnings per share of $0.67, compared to net income of $2.350 million for the nine months ended September 30, 2018, or earnings per share of $0.69.

As of September 30, 2019, Lumbee reported assets of $346.2 million, an increase of almost 2% over assets of $340.4 million as of September 30, 2018. Loans were up over 3% to $190.3 million, compared to loans of $184.0 million reported September 30, 2018. Deposits grew to $299.5 million at quarter-end, an increase of 1.5% over September 30, 2018 deposits of $295.1 million. Capital levels remained strong, as shareholders equity totaled $41.0 million, or 12% of assets at September 30, 2019, versus $37.3 million, or 11% of assets at the year-ago date.

Earnings in the third quarter of 2019 were slightly below the year-ago figures, yet still beat expectations by $0.01/share. The Bank’s capital position remains strong, as all capital ratios exceed the regulatory minimums to be considered “Well Capitalized”. Lastly, nonperforming assets decreased by 22% from the third quarter of 2018.

“Our primary goal is to continue to pursue strategies designed to grow shareholder value.” said Kyle R. Chavis, Chief Executive Officer of Lumbee. “We look forward to continuing our positive impact on the economy of southeastern NC by seeking to meet the financial needs of our customers. We are also pleased to announce that as of November 5, 2019, Raymond James became our primary market maker, and our common stock is now publicly traded on the OTC-Pink under the stock symbol LUMB. We have since applied to join the OTC-QX and look forward to approval and listing. This trading symbol only applies to the Bank’s common stock and does not cover the Bank’s Class A common stock. Shareholders who want to sell shares of their Class A common stock should contact our corporate office”

Lumbee Guaranty Bank is a community bank headquartered in Pembroke, NC and serves Robeson, Cumberland, and Hoke Counties through its network of thirteen strategically located branch offices over the three-county area.

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The information as of and for the quarter ended September 30, 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) September 30,

20192018
(Dollars in thousands)

Assets

Cash and due from banks

$4,370$4,539

Interest-earning deposits with banks

26,76632,976

Total cash and cash equivalents

31,13637,515

Net Investments

103,41195,990

Loans receivable

189,942183,629

Allowance for loan losses

2,1712,096

Net loans receivable

187,771181,533

Bank premises & equipment, net

8,8478,608

Other assets

14,99416,749

Total assets

$346,159$340,395

Liabilities and Shareholders' Equity

Deposits:

Demand deposits, Money market & NOW

$188,472$186,789

Savings

25,94324,357

Time deposits

85,11783,959

Total deposits

299,532295,105

Securities Sold under Agreement to Repurchase

573642

Other borrowed money

8612,999

Accrued interest payable and other liabilities

4,0984,303

Total liabilities

305,064303,049

Total shareholders' equity

41,09537,346

Total liabilities and shareholders' equity

$346,159$340,395

Book value per share

$12.02$10.93

LUMBEE GUARANTY BANK

Statement of Operations (unaudited) Nine Months Ended, September 30,

20192018
(Dollars in thousands, except per share data)

Interest Income

10,8899,869

Interest Expense

1,313688

Net Interest Income

9,5769,181

Provision for loan losses

-99

Net Interest Income after provision

9,5769,082

Service charges on deposit accounts

1,0101,069

Other

529564

Total noninterest Income

1,5391,633

Personnel costs

4,7144,632

Occupancy and equipment

971951

Data processing fees

1,036863

Other

1,7491,554

Total noninterest expense

8,4708,000

Net Income before income taxes

2,6452,715

Income taxes

367365

Net Income

2,2782,350

Net income per common share

$0.67$0.69

LUMBEE GUARANTY BANK

Statement of Operations (unaudited) Three Months Ended, September 30,

20192018
(Dollars in thousands, except per share data)

Interest Income

3,6663,494

Interest Expense

473307

Net Interest Income

3,1933,187

Provision for loan losses

-74

Net Interest Income after provision

3,1933,113

Service charges on deposit accounts

353362

Other

186136

Total noninterest Income

539498

Personnel costs

1,5581,461

Occupancy and equipment

350307

Data processing fees

359296

Other

526531

Total noninterest expense

2,7932,595

Net Income before income taxes

9391,016

Income taxes

135147

Net Income

804868

CONTACT:

Kyle R. Chavis, Chief Executive Officer

Lumbee Guaranty Bank

(910) 521-9707; ; www.lumbeeguarantybank.com

SOURCE: Lumbee Guaranty Bank

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