the little bank Releases Fourth Quarter Earnings Today

KINSTON, N.C.--(BUSINESS WIRE)--

the little bank LTLB reports earnings results for the quarter and twelve months ended December 31, 2016.

The little bank (the "Company") is pleased to report earnings results for the quarter and twelve months ended December 31, 2016. Unaudited net income for the twelve months ended December 31, 2016 was $3,085,000, or $.92 per basic share, compared to $3,122,000, or $.93 per basic share in the prior year. The Bank recorded no provision for loan losses during 2016, compared to a recovery of $100,000 for the same twelve-month period in 2015. Nominal loan growth and net recoveries on prior loan charge-offs was the justification for no provision for loan losses. Core earnings after adjusting for merger expenses, were $3,294,000 for the twelve months ended December 31, 2016, compared to $3,122,000 for the prior year. This represents a 5.5% increase in core earnings. The little bank announced the planned merger with Oxford, NC based Union Banc Corp. on November 15, 2016. The transaction, which is subject to regulatory approval, the approval of the shareholders of the little bank and Union Banc Corp., and other customary conditions, is expected to close in the second quarter of 2017.

Actual unaudited net income for the fourth quarter of 2016 was $623,000, or $.19 per basic share compared to earnings of $805,000, or $.24 per basic share reported in the quarter ended December 31, 2015. For the quarter ended December 31, 2016, net income, adjusted for merger related expenses, was $832,000, a 3.4% increase in core earnings compared to net income of $805,000 for the fourth quarter of 2015.

Total assets as of December 31, 2016 were $361.9 million, compared to total assets of $362.1 million as of December 31, 2015. Total loans, net of reserves, were $243.1 million and deposits were $300.6 million, representing an increase of 1.7% in loan balances and an increase of 1.0% in deposit balances, over the December 31, 2015 levels. Currently 3,355,974 shares of common stock are issued and outstanding.

Vincent R. Jones, President and Chief Executive Officer stated, "We are pleased to announce another record year of core earnings for the Bank. 2016 marked the fifth consecutive year that the little bank has produced record core earnings." Mr. Jones added, "We continue to be excited about the opportunity to grow our Company through the proposed merger of Union Bank into the little bank later this year."

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 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. This press release contains financial information determined by methods other than in accordance with GAAP. The Company's management uses these non-GAAP financial measures in their analysis of the Company's performance. These measures typically adjust GAAP performance measures to exclude the effects of transactions that are infrequent in nature. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company's core businesses.

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, 2016				December 31, 2015					December 31, 2016				December 31, 2015
Interest Income				$	3,296			$	3,276				$	13,203			$	12,924
Interest Expense					319				333					1,283				1,304
Net interest income					2,977				2,943					11,920				11,620
Provision (recovery) for loan losses					0				(75	)				0				(100	)
Net interest income after Provision for losses					2,977				3,018					11,920				11,720
`
Non-interest income					401				401					1,751				1,563
Non-interest expense					2,529				2,215					9,174				8,576
Income before taxes					849				1,204					4,497				4,707
Income taxes					226				399					1,412				1,585
Net Income				$	623			$	805				$	3,085			$	3,122
Net Income available per basic common share				$	0.19			$	0.24				$	0.92			$	0.93

the little bank
Balance Sheets
(000's omitted except per share data)
				December 31,					September 30,					December 31,
				2016					2016					2015*
				(un-audited)					(un-audited)
Assets
Cash and due from banks				$	9,085				$	6,538				$	7,842
Overnight investments					6,070					12,643					12,918
Investment securities AFS					85,744					83,227					85,661
Loans					246,522					250,107					242,516
Less Allowance for loan losses					(3,444	)				(3,506	)				(3,496	)
Net Loans					243,078					246,601					239,020
Other Real Estate Owned					-0-					-0-					-0-
Other Assets					17,886					17,492					16,686
Total Assets				$	361,863				$	366,501				$	362,127
Liabilities & Stockholders' Equity
Liabilities
Deposits				$	300,622				$	299,215				$	297,621
FHLB Advances					24,000					29,000					29,000
Other liabilities					644					969					851
Total liabilities					325,266					329,184					327,472
Stockholders' Equity
Common stock, no par value					31,631					29,447					29,590
Retained earnings					5,420					7,260					5,068
Accumulated other comprehensive income (loss)					(454)					610					(3)
Total stockholders' equity				$	36,597				$	37,317				$	34,655
Total liabilities and stockholders' equity				$	361,863				$	366,501				$	362,127
* Derived from audited financial statements

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