Lumbee Bank shows slight dip in earnings

By: Staff report

PEMBROKE — Lumbee Guaranty Bank, based in Pembroke, reported a slight dip in earnings, steady growth and improving credit quality during its third quarter 2019 earnings report.

For the quarter ended on Sept. 30, Lumbee Guaranty Bank reported a net income of $804,000, or earnings per share of $0.24, compared with 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 a net income of $2.278 million in 2019, or earnings per share of $0.67, compared with net income of $2.35 million for the nine months ended Sept. 30, 2018, or earnings per share of $0.69.

As of Sept. 30, Lumbee reported assets of $346.2 million, an increase of almost 2% over assets of $340.4 million as of Sept. 30, 2018. Loans were up over 3% to $190.3 million, compared with loans of $184 million reported Sept. 30, 2018. Deposits grew to $299.5 million at quarter end, an increase of 1.5% over Sept. 30, 2018 deposits of $295.1 million. Capital levels remained strong, as shareholders equity totaled $41 million, or 12% of assets at Sept. 30, 2019, vs. $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 per 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 Guaranty Bank. “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 Nov. 5, 2019, Raymond James became our primary market maker, and our common stock is now publicly traded on the OTC-Pinkunder 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, and serves Robeson, Cumberland and Hoke counties through its network of 13 branch offices over the three-county area.

Staff report