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UB Bancorp, the holding company for Union Bank, has agreed to merge with FNB Corporation. Read the Press Release HERE.

Fourth Quarter 2015

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CONTACT: Doyle M. Thigpen, Chief Financial Officer (252) 317-2804
DATE: January 28, 2016

the little bank releases fourth quarter results, announces record year of earnings

Kinston, NC – (Business Wire) – January 28, 2016 – the little bank (OTCQX: LTLB) reports a record year of earnings for the year ended December 31, 2015.

The little bank (the “Company”), is pleased to report record annual net income for fiscal year 2015. Unaudited net income for the year ended December 31, 2015 was $3,122,000, or $0.97 per basic share, compared to $2,925,000, or $0.91 per basic share, in the prior year. This represents a 6.7% increase in earnings, a .89% return on average assets, and a 9.20% return on average equity. The Company recorded a $100,000 negative provision for loan losses for fiscal year 2015, compared to a $150,000 provision in fiscal year 2014. The decrease in loan provision is related to a decrease in loan balances and continued recoveries of prior period loan charge-offs.

For the quarter ended December 31, 2015, unaudited net income increased 6.9% to $805,000, or $0.25 per basic share. This compares favorably to the $753,000, or $0.23 per basic share, reported in the quarter ended December 31, 2014.

Total assets as of December 31, 2015 were $362.2 million, compared to total assets of $339.0 million as of December 31, 2014. Total loans, net of reserves, were $239.0 million and deposits were $297.7 million, representing a decrease of 1.4% and an increase of 7.3%, respectively, over the December 31, 2014 levels. Loan and deposit balances were impacted by an influx of life insurance proceeds associated with the passing of a customer. Currently, 3,206,520 shares of common stock are issued and outstanding. The little bank currently pays a semi-annual cash dividend totaling $0.16 per share annually.

Rob Jones, President and Chief Executive Officer stated, “We are pleased to report record annual net income for the fourth consecutive year. Continued outstanding loan quality as well as the anticipated repayment of a large life insurance loan allowed us to reduce our loan loss provision from the previous year.” Jones continued, ”While the uncertainty regarding the movement of interest rates by the Federal Reserve have made forecasting more difficult, we continue to expect low to moderate growth for the foreseeable future.”

The little bank’s common stock had a tangible book value per share of approximately $10.81 at December 31, 2015. 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. During 2015, the Company has repurchased approximately 30,230 shares.

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 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
December 31, 2015
Three Months
December 31, 2014
Twelve Months
December 31, 2015
Twelve Months
December 31, 2014*
Interest Income $3,276 $3,247 $12,924 $12,695
Interest Expense 333 326 1,304 1,352
Net Interest Income 2,943 2,921 11,620 11,343
Provision for loan losses (75) (100) 150
Net interest income after Provision for losses 3,018 2,921 11,720 11,193
Non-interest income 401 363 1,563 1,408
Non-interest expense 2,215 2,147 8,576 8,146
Income before taxes 1,204 1,137 4,707 4,455
Income taxes 399 384 1,585 1,530
Net Income $805 $753 $3,122 $2,925
Net Income available per basic common share $0.25 $0.23 $0.97 $0.91

the little bank Balance Sheets (000’s omitted except per share data)

December 31, 2015
September 30, 2015
December 31, 2014*
Cash and due from banks $7,842 $5,714 $10,792
Overnight investments 12,918 25,873 3,717
Investment securities AFS 85,661 75,832 65,606
Loans 242,516 244,784 246,147
Less Allowance for loan losses (3,496) (3,700) (3,688)
Net Loans 239,020 241,084 242,459
Other Real Estate Owned -0- -0- 350
Other Assets 16,790 16,620 16,125
Total Assets $362,231 $365,123 $339,049
Liabilities & Stockholders’ Equity
Deposits $297,653 $297,595 $277,381
FHLB Advances 29,000 32,000 28,500
Other liabilities 923 1,059 634
Total Liabilities 327,576 330,654 306,515
Stockholders’ Equity
Common stock, no par value 29,590 28,003 28,262
Retained earnings 5,068 6,188 4,101
Accumulated other comprehensive income (loss) (3) 278 171
Total stockholders’ equity $34,655 $34,469 $32,534
Total liabilities and stockholders’ equity $362,231 $365,123 $339,049

*Derived from audited financial statements