Lumbee Guaranty Bank (OTCMKTS: LUMB) shares gained 1.08% after the company reported net income of $1.062 million or EPS of $0.31 in Q1 2021 compared to Q1 2020’s net income of $722,000 or EPS of $0.21.
Lumbee assets grew 27.7% YoY in Q1.
The bank reported assets of $436.4 million at the end of the quarter, up 27.7% YoY from $341.8 million at the end of March 2020. Loans increased 1.2% YoY to $199.6 million from $197.3 million in Q1 2021. On the other hand, deposits increased by 34% to $386.6 million compared to $288.5 million at the end of Q1 2020. In addition, the company’s capital levels remained robust, with shareholders’ equity totaling $42.7 million, or 9.8% of total assets, compared to $42.6 million, or 12.46% of assets, in 2020.
Noninterest income increased 11.3% to $592,000 in Q1 2021 from $532,000 the previous quarter. Surprisingly, non-interest expense fell 2.7% to $2.73 million in Q1 2021 compared to $2.81 million the year before. Nonperforming assets were $4.3 million, or 0.98% of total assets relative to $4.6 million, or 0.98% of total assets, in Q1 2020.
Lumbee received fee income from PPP.
Kyle Chavis, the company’s CEO, stated that they managed to receive fee revenues through involvement in the first two rounds of the Paycheck Protection Program in 2020. He also said that they proved the success of the cost containment initiatives adopted, contributing to solid Q1 results. In addition, Chavis said that Lumbee bankers are offering required capital to customers as the local economy recovers.
Most importantly, Lumbee is delighted with the quality of its assets, and the bank is actively exploring loan opportunities within the significant market area of three counties. Chavis said that the solid financial position and high liquidity levels offer the company the foundation needed to continue serving customers.