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the little bank Reports 43rd Consecutive Positive Quarter, Announces 5% Stock Dividend and Semi-Annual Cash Dividend

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  Published in Business and Finance on Thursday, October 28th 2010 at 14:50 GMT by Market Wire
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KINSTON, N.C.--([ BUSINESS WIRE ])--For the 43^rd consecutive quarter, the little bank (OTCBB: LTLB) has generated positive net income for its shareholders. This consistent level of performance by the little bank (the aCompanya) has allowed it to execute with confidence and should position the Company to expand its reach to additional customers at a time when many other banks are contracting their services.

"Our conservative credit culture and strong capital base have allowed us to refocus on growing our banking franchise"

The Company today announced unaudited net income for the quarter ended September 30, 2010 of $465,000 ($.19 per basic share), compared to earnings of $501,000 ($.21 per basic share) for the quarter ended September 30, 2009. After adjusting for dividends and the accretion of discount on preferred stock under the Capital Purchase Program, net income available to common shareholders was $345,000 ($.14 per basic share) for the quarter ended September 30, 2010, compared to $399,000 ($.16 per basic share) for the prior period.

Unaudited net income for the first nine months of 2010 was $1,186,000, ($.49 per basic share), compared to earnings of $973,000 ($.40 per basic share) for the first nine months of 2009. 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, 2010 was $827,000 ($.34 per basic share), compared to $709,000 ($.29 per basic share) for the comparable nine month period during 2009.

Net interest income totaled $7.5 million for the first nine months of 2010, compared to $6.3 million for the comparable nine-month period during 2009. The Company grew this key revenue component despite a modest reduction in the overall balance sheet by improving the quality of its deposit franchise. Average core transaction deposits (checking and money market) continue to grow and were up 11.9% year over year. This trend plus deposit repricing in the current lower interest rate environment helped to boost the net interest margin on a year-over-year basis.

Total assets as of September 30, 2010 were $288.6 million, compared to total assets of $303.5 million as of December 31, 2009, and $310.6 million as of September 30, 2009. Total loans, net of reserves, were $200.9 million and deposits were $232.2 million, representing decreases of 10.9% and 6.3%, respectively, from the December 31, 2009 levels.

aWe are pleased to announce another quarter of solid earnings, particularly in these times,a stated Vincent R. Jones, President and Chief Executive Officer. aNationwide, banks continue to struggle due to elevated loan losses and a lack of quality loan demand in local markets and more broadly. We expect the industry to recognize above normal loan losses for some time.a

The Company recorded provisions for loan losses of $1,250,000 for the nine month period ended September 30, 2010, compared to $845,000 for the comparable period ended September 30, 2009. As of September 30, 2010, the allowance for loan losses represented 2.1% of total gross loans and 128% of total nonperforming assets. The Companya™s aTexas Ratioa (a non-GAAP ratio used by many banking industry observers to judge the capital adequacy of an institution, with a smaller ratio considered less risky than a larger ratio) was just 10.3% as of quarter end. All North Carolina-headquartered banks had an average Texas Ratio of 50.5% as of June 30, 2010, according to data from SNL Financial.

The Companya™s consistent earnings record and manageable credit issues have allowed executive management to consider all options to increase shareholder value despite what has been a difficult operating environment for most community banks. In light of this performance, the Companya™s Board of Directors has authorized the issuance of a 5% stock dividend to shareholders. The 5% stock dividend will be payable on November 30, 2010 to shareholders of record on November 15, 2010. Cash-in-lieu will be paid on fractional shares based on the stocka™s market value at the close of business on November 30, 2010.

The Board has also approved a semi-annual cash dividend, payable December 30, 2010 to shareholders of record on December 15, 2010 at the rate of $0.0725 per common share. The combination of the 5% stock dividend and the cash dividend results in essentially the same total cashdividend that has been paid in prior periods.

The Board and executive management continually review ways to increase shareholder value and expand the Companya™s services to new customers.

aOur conservative credit culture and strong capital base have allowed us to refocus on growing our banking franchise,a Jones stated. aWe intend to expand our customer base via renewed lending efforts, and we also will pursue viable acquisition opportunities in our existing and contiguous markets, including whole bank, branch, and failed bank transactions.a

The little bank is headquartered in Kinston, North Carolina and currently serves the Lenoir, Wayne, Onslow, Pitt, and Craven county markets.The Company prides itself on the special care with which it serves its customers.The Companya™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.There were 2,440,209 shares of common stock issued and outstanding as of September 30, 2010.

This press release includes certain forward-looking statements in reliance on the asafe-harbora 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.