the little bank (OTCBB: LTLB) reports annual earnings and fourth quarter earnings.

The little bank (the "Company"), today announced unaudited net income for the year ended December 31, 2011 of $2,257,000 or $.84 per basic share compared to audited net income of $1,710,000 or $.67 per basic share for the year ended December 31, 2010. This represents a 32% increase in unaudited net income compared to the prior year. After adjusting for dividends and the accretion of discount on preferred stock under the Capital Purchase Program, net income available to common shareholders was $1,774,000, or $.66 per basic share for the year ended December 31, 2011, compared to $1,232,000 or $.48 per basic share for the prior year. Net interest income before the provision for loan losses increased $433,000, or 4.3% during 2011 compared to the prior year. The provision for loan losses was decreased $400,000, or 25% to $1,200,000 during 2011, compared to a provision of $1,600,000 during the prior year.

Unaudited net income for the quarter ended December 31, 2011 was $545,000 or $.20 per basic share compared to $525,000 or $.20 per basic share for the quarter ended December 31, 2010. After adjusting for dividends and the accretion of discount on preferred stock, net income available for common shareholders for the fourth quarter ended December 31, 2011 was $424,000 or $.16 per basic share, compared to $405,000 or $.16 per basic share for the quarter ended December 31, 2010.

Total assets as of December 31, 2011 were $312.7 million, compared to total assets of $299.3 million as of December 31, 2010. Total loans, net of reserves, were $197.0 million and deposits were $251.8 million, representing a decrease of 1.1% and an increase of 5.7%, respectively, over the December 31, 2010 levels. Nonperforming assets, which include nonaccrual loans and other real estate owned, have decreased from $3.6 million at December 31, 2010 to $2.7 million at December 31, 2011. Currently, 2,690,028 shares of common stock are issued and outstanding.

Vincent R. Jones, President and Chief Executive Officer stated, "I want to thank our customers and congratulate our entire team for the excellent financial results achieved in 2011." Mr. Jones pointed out that 2011 results were driven by favorable net interest margins, solid asset quality results and operating expense management. He commented further, "While asset quality indicators are on a more positive trend, we anticipate that loan charge-offs will remain somewhat elevated, and plan to manage our loan loss reserves accordingly. In addition, our view is that revenue growth will be difficult in the near term due to continued low loan demand and falling asset yields associated with a protracted low interest rate environment. As for the future, our strong capital position and excellent balance sheet quality will allow us to take advantage of growth opportunities as they present themselves."

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 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)

 

     
Three Months Three Months Twelve Months Twelve Months
Ended Ended Ended Ended
December 31, 2011 December 31, 2010 December 31, 2011 December 31, 2010 *
 
Interest Income $ 3,265 $ 3,251

$

13,214

$ 13,323
 
Interest Expense   646     729    

2,785

     3,327  
 
Net interest income 2,619 2,522

10,429

9,996
 
Provision for loan losses   350     350     1,200     1,600  
 
Net interest income after
Provision for losses   2,269     2,172     9,229     8,396  
 
Non-interest income 371 368 1,324 1,335
 
Non-interest expense   1,807     1,713     7,047     7,059  
 
Income before taxes 833 827 3,506 2,672
 
Income taxes   288     302     1,249     962  
 
Net Income 545 525 2,257 1,710
Preferred Stock Dividends (102 ) (102 ) (409 ) (408 )
Accretion of Discount, net   (19)   (18)   (74)

 

(70

)

 
Net Income available

for common shareholders

$ 424   $ 405   $ 1,774   $ 1,232  
Net Income available

per basic common share

$ 0.16   $ 0.16   $ 0.66   $ 0.48  
 
 

the little bank

Balance Sheets

(000's omitted except per share data)

   
December 31, September 30, December 31,
2011 2011 2010 *
(un-audited) (un-audited)
Assets
 
Cash and due from banks $ 3,522 $ 4,070 $ 2,811
Overnight investments 13,752 7,739 5,935
Investment securities AFS 85,003 83,152 77,624
 
Loans 200,874 202,429 203,017
Less Allowance for loan losses   (3,898)   (3,770)   (3,834)
Net Loans 196,976 198,659 199,183
 
Other Assets   13,423     13,751     13,737  
Total Assets $ 312,676   $ 307,371   $ 299,290  
 
 
Liabilities & Stockholders' Equity
 
Liabilities
Deposits $ 251,845 $ 243,660 $ 238,160
FHLB Advances 25,000 28,000 28,000
Other liabilities   845     851     601  
Total liabilities 277,690 272,511 266,761
 
Stockholders' Equity
Preferred stock, Series A & B $ 7,710 $ 7,691 $ 7,635
Common stock, no par value 24,395 23,206 23,189
Retained earnings 2,211 3,157 1,993
Accumulated other comprehensive income   670     806     (288)
Total stockholders' equity$34,986   $34,860   $32,529  
 
Total liabilities and stockholders' equity $ 312,676   $ 307,371   $ 299,290  

* Derived from audited financial statements

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