FOR IMMEDIATE RELEASE
CONTACT: Doyle M. Thigpen, Chief Financial Officer (252) 317-2804
DATE: October 23, 2014
the little bank releases third quarter earnings, announces 5% stock dividend and semi-annual cash dividend
Kinston, NC – (Business Wire) – October 23, 2014 – the little bank (OTCBB: LTLB) reports earnings results for the quarter and nine
months ended September 30, 2014, and announces stock and cash dividends.
The little bank (the “Company”), today announced a 14% increase in unaudited net income for the quarter ended September 30, 2014. Net income was $814,000 or $.28 per basic share compared to earnings of $714,000 or $.24 per basic share for the quarter ended September 30, 2013.
Unaudited net income for the first nine months of 2014 increased 3% to $2,172,000, or $.74 per basic share compared to earnings of $2,100,000, or $.71 per basic share for the first nine months of 2013. After adjusting for dividends and the accretion of discount on preferred stock, net income available for common shareholders for the nine month period ended September 30, 2014 increased 9% to $2,172,000, or $.74 per basic share, compared to $1,984,000, or $.67 per basic share for the comparable nine month period during 2013. The little bank repurchased and retired all remaining shares of its preferred stock outstanding during June 2013, as was previously reported. The Company recorded a $150,000 provision for loan losses during the nine month period ended September 30, 2014, compared to no provision for the comparable period in 2013. The increase in provision is related to growth in loan balances and not a decrease in credit quality.
Total assets as of September 30, 2014 were $338.5 million, compared to total assets of $312.0 million as of December 31, 2013, and $309.2 million as of September 30, 2013. Total loans, net of reserves, were $244.0 million and deposits were $275.7 million, representing increases of 11.4% and 5.5%, respectively, over the December 31, 2013 levels. Currently, 2,944,196 shares of common stock are issued and outstanding.
Rob Jones, President and Chief Executive Officer stated, “We are pleased to announce such a positive earnings report for the quarter and for the nine month period.” Jones continued, “The addition of high quality lending personnel in late 2013 is paying off as indicated by the Bank’s excellent 15% loan growth since September 2013.”
The little bank’s common stock had tangible book value per share of approximately $10.86 at September 30, 2014. On May 19, 2014 the little bank 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 2014, the Company has repurchased approximately 33,608 shares.
The Company’s Board of Directors has authorized the issuance of a 5% stock dividend to shareholders. The 5% stock dividend will be payable November 28, 2014 to shareholders of record as of November 14, 2014. Cash-in-lieu will be paid on fractional shares based on the stock’s market value at the close of business on November 14, 2014.
The Board has also approved a semi-annual cash dividend, payable December 31, 2014 to shareholders of record as of the close of business on December 15, 2014. The amount payable is at the rate of $0.0750 per common share.
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 Over-the-Counter Electronic Bulletin Board 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)
September 30, 2014
September 30, 2013
September 30, 2014
September 30, 2013
|Net Interest Income||2,872||2,569||8,379||7,574|
|Provision for loan losses||50||0||150||0|
|Net interest income after Provision for losses||2,822||2,569||8,229||7,574|
|Income before taxes||1,251||1,066||3,318||3,162|
|Preferred Stock Dividends||-0-||-0-||-0-||(78)|
|Accretion of Discount, net||-0-||-0-||-0-||(38)|
|Net Income available for common shareholders||$814||$714||$2,172||$1,984|
|Net Income available per basic common share||$0.28||$0.24||$0.74||$0.67|
the little bank Balance Sheets (000’s omitted except per share data)
|September 30, 2014|
|December 31, 2013*||September 30, 2013|
|Cash and due from banks||$5,842||$5,896||$3,817|
|Investment securities AFS||65,370||68,118||69,662|
|Less Allowance for loan losses||(3,984)||(3,850)||(3,999)|
|Other Real Estate Owned||386||520||520|
|Liabilities & Stockholders’ Equity|
|Preferred stock, Series A & B||0||0||0|
|Common stock, no par value||26,819||27,107||25,434|
|Accumulated other comprehensive income (loss)||5||(577)||(358)|
|Total stockholders’ equity||$31,975||$29,728||$29,507|
|Total liabilities and stockholders’ equity||$338,497||$311,959||$309,250|
*Derived from audited financial statements