Record Annual Earnings Announced By the little bank

Record Annual Earnings Announced By the little bank

KINSTON, N.C.--(BUSINESS WIRE)-- the little bank, (OTCBB:LTLB) (the "Company") is pleased to report record annual net income in fiscal year 2012. Unaudited net income for the year ended December 31, 2012, was $2,468,000, or 87 cents per basic share, up from $2,257,000, or 84 cents per basic share, in the prior year. The Company reported higher annual net income for the third straight year. The record earnings result was driven by improvement in revenues and a decreased loan-loss provision, reflecting further improvements in the Company's credit quality.

For the quarter ended December 31, 2012, unaudited net income was $554,000, or 20 cents per basic share. This compares favorably to the $545,000, or 20 cents per basic share, reported in the quarter ended December 31, 2011.


Total assets as of December 31, 2012 were $306.0 million, compared to total assets of $312.4 million as of December 31, 2011. Total loans, net of reserves, were $210.7 million, representing a 6.9% year-over-year increase.

"We're pleased to set a new record for earnings at the little bank," said Vincent R. Jones, President and CEO of the little bank. "We look forward to 2013 with cautious optimism and are prepared to respond to opportunities for quality growth within our markets."

The Company has consistently produced quarterly earnings and paid a common stock cash dividend throughout the down economic cycle. Due to this core franchise strength, the little bank had the opportunity in the fourth quarter to retire a significant portion of the preferred stock it issued to the U.S. Treasury in December 2008. The lower resulting preferred dividend will be accretive to earnings per share beginning with the first quarter of 2013.

ASSET QUALITY

In 2012, the little bank recorded a loan-loss provision of $815,000, 32% lower than during the same period in 2011. The allowance for loan losses grew to $4.0 million at December 31, 2012, or 1.90% of gross loans as of the same date. "Sound underwriting and aggressive credit management contributed to our results," Jones said. "We can continue to pursue loan growth with confidence because of our process, and that benefits our shareholders and our customers alike."

The Company has consistently reported superior credit quality metrics compared to its peers during the past several years. According to data compiled by SNL Financial LC, the little bank has had lower quarterly nonperforming assets/total assets ratios than the median for all North Carolina-chartered commercial banks and savings banks in each period since credit quality began to deteriorate broadly in the fourth quarter of 2007. The lower this ratio is, the fewer credit problems a bank has on its balance sheet.

Nonperforming assets were just 0.60% of total assets as of year-end 2012, marking the lowest quarter-end nonperforming assets/total assets ratio for the Company since 2008 and the sixth straight quarter with a nonperforming assets/total assets ratio of less than 1.00%.

CAPITAL

Capital remains strong, despite the previously announced retirement of a portion of the Company's senior preferred stock. Total stockholders' equity was $31.7 million at December 31, 2012, or 10.4% of total assets. The Company will remain "Well Capitalized" for regulatory capital purposes, even if it decides to retire the remainder of its senior preferred stock.

The little bank is headquartered in Kinston, North Carolina and currently serves the Lenoir, Wayne, Onslow, Pitt, and Craven county markets.The Bank prides itself on the special care with which it serves its customers.The Bank's website iswww.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)

Three Months

Three Months

Twelve Months

Twelve Months

Ended

Ended

Ended

Ended

December 31, 2012

December 31, 2011

December 31, 2012

December 31, 2011 *

Interest Income

$

3,117

$

3,265

$

12,628

$

13,214

Interest Expense

476

646

2,129

2,785

Net interest income

2,641

2,619

10,499

10,429

Provision for loan losses

175

350

815

1,200

Net interest income after

Provision for losses

2,466

2,269

9,684

9,229

Non-interest income

403

371

1,490

1,324

Non-interest expense

2,001

1,807

7,355

7,047

Income before taxes

868

833

3,819

3,506

Income taxes

314

288

1,351

1,249

Net Income

554

545

2,468

2,257

Preferred Stock Dividends

(92

)

(102

)

(398

)

(409

)

Accretion of Discount, net

(9

)

(19

)

(69

)

__________(74)

Net Income available

for common shareholders

$

453

$

424

$

2,001

$

1,774

Net Income available

per basic common share

$

0.16

$

0.16

$

0.71

$

0.66

the little bank

Balance Sheets

(000's omitted except per share data)

December 31,

September 30,

December 31,

2012

2012

2011 *

(un-audited)

(un-audited)

Assets

Cash and due from banks

$

6,266

$

5,973

$

3,522

Overnight investments

6,161

13,432

13,752

Investment securities AFS

69,820

76,290

85,003

Loans

214,728

207,079

200,874

Less Allowance for loan losses

(4,073

)

(4,040

)

(3,898

)

Net Loans

210,655

203,039

196,976

Other Assets

13,131

13,486

13,156

Total Assets

$

306,033

$

312,220

$

312,409

Liabilities & Stockholders' Equity

Liabilities

Deposits

$

250,225

$

250,986

$

251,723

FHLB Advances

23,500

23,000

25,000

Other liabilities

582

1,535

700

Total liabilities

274,307

275,521

277,423

Stockholders' Equity

Preferred stock, Series A & B

$

2,763

$

7,769

$

7,710

Common stock, no par value

25,573

24,409

24,395

Retained earnings

2,658

3,574

2,211

Accumulated other comprehensive income

732

947

670

Total stockholders' equity

$

31,726

$

36,699

$

34,986

Total liabilities and stockholders' equity

$

306,033

$

312,220

$

312,409

* Derived from audited financial statements



the little bank
Doyle M. Thigpen, 252-317-2804
Chief Financial Officer

KEYWORDS: United States North America North Carolina

INDUSTRY KEYWORDS:

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