FOR IMMEDIATE RELEASE
CONTACT: Doyle M. Thigpen, Chief Financial Officer (252) 317-2804
DATE: January 27, 2017
the little bank releases fourth quarter earnings today
Kinston, NC – (Business Wire) January 27, 2017– the little bank (OTCQX: LTLB) reports earnings results for the quarter and twelve months ended December 31, 2016.
The little bank (the “Company”) is pleased to report earnings results for the quarter and twelve months ended December 31, 2016. Unaudited net income for the twelve months ended December 31, 2016 was $3,085,000, or $.92 per basic share, compared to $3,122,000, or $.93 per basic share in the prior year. The Bank recorded no provision for loan losses during 2016, compared to a recovery of $100,000 for the same twelve-month period in 2015. Nominal loan growth and net recoveries on prior loan charge-offs was the justification for no provision for loan losses. Core earnings after adjusting for merger expenses, were $3,294,000 for the twelve months ended December 31, 2016, compared to $3,122,000 for the prior year. This represents a 5.5% increase in core earnings. The little bank announced the planned merger with Oxford, NC based Union Banc Corp. on November 15, 2016. The transaction, which is subject to regulatory approval, the approval of the shareholders of the little bank and Union Banc Corp., and other customary conditions, is expected to close in the second quarter of 2017.
Actual unaudited net income for the fourth quarter of 2016 was $623,000, or $.19 per basic share compared to earnings of $805,000, or $.24 per basic share reported in the quarter ended December 31, 2015. For the quarter ended December 31, 2016, net income, adjusted for merger related expenses, was $832,000, a 3.4% increase in core earnings compared to net income of $805,000 for the fourth quarter of 2015.
Total assets as of December 31, 2016 were $361.9 million, compared to total assets of $362.1 million as of December 31, 2015. Total loans, net of reserves, were $243.1 million and deposits were $300.6 million, representing an increase of 1.7% in loan balances and an increase of 1.0% in deposit balances, over the December 31, 2015 levels. Currently 3,355,974 shares of common stock are issued and outstanding.
Vincent R. Jones, President and Chief Executive Officer stated, “We are pleased to announce another record year of core earnings for the Bank. 2016 marked the fifth consecutive year that the little bank has produced record core earnings.” Mr. Jones added, “We continue to be excited about the opportunity to grow our Company through the proposed merger of Union Bank into the little bank later this year.”
The little bank is headquartered in Kinston, North Carolina and currently serves the Lenoir, Wayne, Onslow, Pitt, Craven, and New Hanover county markets. The Bank prides itself on the special care with which it serves its customers. The Bank’s website is www.thelittlebank.com. The little bank stock can be found on the OTCQX trading under the symbol “LTLB.”
This press release includes certain forward-looking statements in reliance on the “safe-harbor” provisions of The Private Securities Litigation Reform Act of 1995. Any such forward-looking statements are subject to a number of risks and uncertainties. Actual results may differ materially from those anticipated in any such forward-looking statements. The Company undertakes no obligation to update or revise any such forward-looking statements. This press release contains financial information determined by methods other than in accordance with GAAP. The Company’s management uses these non-GAAP financial measures in their analysis of the Company’s performance. These measures typically adjust GAAP performance measures to exclude the effects of transactions that are infrequent in nature. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s core businesses.
the little bank Summary of Operations (un-audited) (000’s omitted except per share data)
December 31, 2016
December 31, 2015
December 31, 2016
December 31, 2015
|Net Interest Income||2,977||2,943||11,920||11,620|
|Provision (recovery) for loan losses||0||(75)||0||(100)|
|Net interest income after Provision for losses||2,977||3,018||11,920||11,720|
|Income before taxes||849||1,204||4,497||4,707|
|Net Income available per basic common share||$0.19||$0.24||$0.92||$0.93|
the little bank Balance Sheets (000’s omitted except per share data)
|December 31, 2016
|September 30, 2016
|December 31, 2015*|
|Cash and due from banks||$9,085||$6,538||$7,842|
|Investment securities AFS||85,744||83,227||85,661|
|Loans||246,522||250,107||242,516||Less Allowance for loan losses||(3,444)||(3,506)||(3,496)|
|Other Real Estate Owned||-0-||-0-||-0-||Other Assets||17,886||17,492||16,686||Total Assets||$361,863||$366,501||$362,127|
|Liabilities & Stockholders’ Equity|
|FHLB Advances||24,000||29,000||29,000||Other liabilities||644||969||851|
|Common stock, no par value||31,631||29,447||29,590|
|Accumulated other comprehensive income (loss)||(454)||610||(3)|
|Total stockholders’ equity||$36,597||$37,317||$34,655|
|Total liabilities and stockholders’ equity||$361,863||$366,501||$362,127|
*Derived from audited financial statements