PEMBROKE — Lumbee Guaranty Bank’s final 2019 quarter report found a slight dip in the year-end earnings but an increase in assets, loans, deposits and shareholders’ equity compared with its 2018 year-end date.
For the year ending Dec. 31, Lumbee Guaranty reported a net income of $3 million, or earnings per share of 88 cents compared to net income of $3.1 million, or earnings per share of 91 cents for the year ending Dec. 31, 2018.
Net income declined by 3.2%, while earnings per share decreased by 3.3%. For the final three-month period, Lumbee reported net income of $726,000, compared to net income of $753,000 for the three months ended Dec. 31, 2018.
As of Dec. 31, Lumbee reported assets of $343.8 million, an increase of 2.4% over assets of $335.7 million in 2018. Loans were up over 4.71% to $192 million, compared with loans of $183.4 million reported in 2018. Deposits grew to $296.1 million at year-end, an increase of 2.32% over Dec. 31, 2018, deposits of $289.4 million.
Capital levels remained strong, as shareholders equity totaled $40.9 million, or 11.9% of assets at Dec. 31, vs. $38 million, or 11.3% of assets at the year-ago date. For the three-month period ending Dec. 31, assets fell by $2.4 million, loans grew by $1.7 million, and deposits decreased by $3.4 million.
Loan losses for 2019 were .02% of average loans, compared to .03% for all banks in North Carolina. Lumbee’s strong performance in this area allowed the bank to reverse $100,000 of its allowance for loan losses, which augmented net income in the fourth quarter of 2019 and for the year.
All capital ratios exceed the regulatory minimums to be considered “Well Capitalized.”
Finally, nonperforming assets decreased by 20% from the fourth quarter of 2019.
“Declining interest rates in 2019 presented challenges to our bank, as our interest margin was compressed.” Lumbee Bank CEO Kyle R. Chavis said. “As we managed through the lower rate environment, we also incurred over $110,000 in one-time expenses related to the bank’s deregistration from the SEC and reclassification of certain shares of our common stock.
“Despite those headwinds, we were able to grow our loan portfolio and enjoy historically low loss rates as well. With the cost savings from deregistration and the pending opening of a new office in Fayetteville, we are well-positioned to continue to create shareholder value and serve our markets in southeastern NC.”
Lumbee Guaranty Bank is a community bank headquartered in Pembroke and serves Robeson, Cumberland and Hoke counties. Established in 1971, the bank offers a full array of financial services through its network of 13 strategically located branch offices over the three-county area.
