FOR IMMEDIATE RELEASE
CONTACT: Doyle M. Thigpen, Chief Financial Officer (252) 317-2804
DATE: April 28, 2016
the little bank releases first quarter earnings today
Kinston, NC – (Business Wire) – April 28, 2016 – the little bank (OTCQX: LTLB) reports earnings results for the quarter ended March 31, 2016.
The little bank (the “Company”), today announced an 8.2% increase in unaudited net income for the quarter ended March 31, 2016. Net income for the first quarter was $763,000 or $.24 per basic share compared to net income of $705,000 or $.22 per basic share for the quarter ended March 31, 2015. The Bank experienced increases in net interest income, and fee income, partially offset by higher operating expenses during the first quarter, compared to the quarter ended March 31, 2015. The Bank recorded no provision for loan losses during either first quarter 2016 or first quarter 2015. The Bank continues to experience excellent asset quality.
Total assets as of March 31, 2016 were $360.4 million, compared to total assets of $347.3 million as of March 31, 2015, representing an increase of 3.8%. As of March 31, 2016, total loans, net of reserves, were $241.9 million and deposits were $297.7 million, representing a decrease of .9% in loan balances and an increase of 4.7% in deposit balances, over the same period in the prior year. Loan balances in 2015 were impacted by the repayment of $14.5 million in life insurance trust loans associated with the passing of a customer. Loan growth during the last two quarters has offset those reductions. Currently, 3,190,165 shares of common stock are issued and outstanding.
Vincent R. Jones, President and Chief Executive Officer stated, “We are pleased to present a very positive earnings report for the first quarter of 2016.” Jones continued, “Low interest rates combined with a general lack of loan demand continue to be headwinds for the industry. Less profitable loan pricing is dominating the industry as banks have tried to offset lower asset yields with loan growth. We expect this trend to continue until loan demand increases and interest rates begin to rise. We have forecast moderate growth for the remainder of 2016.”
The little bank’s common stock had tangible book value per share of approximately $11.17 at March 31, 2016. On May 11, 2015, the Company announced the continuation of its share repurchase plan whereby the Company could repurchase shares of its Common Stock in the open market and retire such shares. The Company continues to make open market purchases of its shares and will continue such a policy, within certain regulatory thresholds, until the Board of Directors feels that the shares’ market price are reflective of the value of the shares outstanding.
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.
the little bank Summary of Operations (un-audited) (000’s omitted except per share data)
| Three Months Ended March 31, 2016 | Three Months Ended March 31, 2015 | |
|---|---|---|
| Interest Income | $3,236 | $3,148 |
| Interest Expense | 309 | 320 |
| Net Interest Income | 2,927 | 2,828 |
| Provision for loan losses | – | – |
| Net interest income after Provision for losses | 2,927 | 2,828 |
| Non-interest income | 407 | 402 |
| Non-interest expense | 2,207 | 2,168 |
| Income before taxes | 1,127 | 1,062 |
| Income taxes | 364 | 357 |
| Net Income | $763 | $705 |
| Net Income available per basic common share | $0.24 | $0.22 |
the little bank Balance Sheets (000’s omitted except per share data)
| March 31, 2016 (un-audited) | December 31, 2015* | March 31, 2015 (un-audited) | |
|---|---|---|---|
| Assets | |||
| Cash and due from banks | $5,914 | $7,842 | $6,560 |
| Overnight investments | 9,246 | 12,918 | 13,914 |
| Investment securities AFS | 86,939 | 85,661 | 66,317 |
| Loans | 245,386 | 242,516 | 247,704 |
| Less Allowance for loan losses | (3,490) | (3,496) | (3,710) |
| Net Loans | 241,896 | 239,020 | 243,994 |
| Other Real Estate Owned | 71 | – | 124 |
| Other Assets | 16,327 | 16,686 | 16,415 |
| Total Assets | $360,393 | $362,127 | $347,324 |
| Liabilities & Stockholders’ Equity | |||
| Liabilities | |||
| Deposits | $297,731 | $297,621 | $284,500 |
| FHLB Advances | 26,000 | 29,000 | 28,500 |
| Other liabilities | 1,035 | 851 | 937 |
| Total Liabilities | 324,766 | 327,472 | 313,937 |
| Stockholders’ Equity | |||
| Common stock, no par value | 29,410 | 29,590 | 28,215 |
| Retained earnings | 5,831 | 5,068 | 4,806 |
| Accumulated other comprehensive income (loss) | 386 | (3) | 366 |
| Total stockholders’ equity | $35,627 | $34,655 | $33,387 |
| Total liabilities and stockholders’ equity | $360,393 | $362,127 | $347,324 |
*Derived from audited financial statements