PEMBROKE — Lumbee Guaranty Bank reported solid earnings, continued growth and improving credit quality in its second quarter 2019 earnings report.

For the quarter ending June 30, Lumbee Guaranty Bank reported a net income of $654,000, or earnings per share of 19 cents, compared to net income of $745,000, or earnings per share of 22 cents, for the same period in 2018. For the six-month period ending as of the same date, Lumbee reported net income of $1.47 million in 2019, or earnings per share of 43 cents, compared to net income of $1.482 million for the six months ended June 30, 2018, or earnings per share of 43 cents.

During the quarter ending on June 30, non-recurring expenses totaling about $111,000 were recognized, which lowered Lumbee’s earnings below expectations. These expenses were related to a reclassification of certain shares of its common stock in order to terminate its registration and reporting obligations pursuant to the Securities and Exchange Act of 1934. Going forward, the bank expects to realize significant cost savings annually from the reclassification and de-registration.

As of June 30, Lumbee reported assets of $336.3 million, an increase of nearly 8% over assets of $312.1 million as of June 30, 2018. Loans were up more than 5% to $187.4 million, compared to loans of $178 million reported June 30, 2018.

Deposits grew to $287.3 million at the end of the quarter, an increase of almost 8% over June 30, 2018, deposits of $267.3 million.

Capital levels remained strong, as shareholders equity totaled $40.2 million, or 11.94% of assets at June 30, vs. $36.7 million, or 11.77% of assets at the year-ago date.

“We are pleased with the continued profitability and growth of our institution.” said Kyle R. Chavis, bank CEO. “The strategic decision to reclassify a portion of our common stock and to eliminate some of the SEC reporting requirements will allow us to recognize future cost savings and gain operational efficiencies. We are excited to continue our mission of serving the communities of southeastern N.C. by providing competitive products, financial expertise, and superior customer service.”

Lumbee Guaranty Bank is a community bank headquartered in Pembroke, and serves Robeson, Cumberland and Hoke counties through its network of 13 branch offices over the three-county area.