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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