Lumbee Guaranty Bank (LUMB) AI Stock Analysis

Lumbee Guaranty Bank

(Other OTC:LUMB)

Select Model

Rating:72.6Outperform

Price Target:$15.50▲(15.24% Upside)

Action:reiterated

Date:04/06/26

The score is driven primarily by solid but recently less stable financial performance (margin compression and materially weaker free cash flow since 2023). Technicals are mildly positive with price above key moving averages and neutral momentum indicators. Valuation is a supportive offset, with a low P/E and a moderate dividend yield.

Positive Factors

Conservative balance sheetConservative leverage and a built-up equity base provide a durable capital buffer that sustains lending capacity and loss absorption. This structural balance-sheet strength reduces solvency risk, supports regulatory flexibility, and permits measured growth without immediate external financing over the medium term.

Negative Factors

Declining free cash flowA sharp, multi-year decline in free cash flow points to weakening cash conversion of reported earnings, limiting internal capacity for reinvestment, dividends, or balance-sheet growth. Persistent FCF deterioration raises sensitivity to funding costs and reduces margin for error in stressed scenarios over the medium term.

Lumbee Guaranty Bank (LUMB) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $44.70M
Dividend Yield: 3.05%
Average Volume (3M): 1,663
Price to Earnings (P/E): 10.1
Beta (1Y): 0.11
Revenue Growth: 6.70%
EPS Growth: 16.14%
Country: US
Employees: 100
Sector: Financial
Sector Strength: 68
Industry: Banks - Regional

Lumbee Guaranty Bank Business Overview & Revenue Model

Company Description

Lumbee Guaranty Bank functions as a community-oriented financial institution, delivering a diverse range of banking services. It offers clients a full spectrum of deposit accounts, including personal and business checking and savings options, as well...

How the Company Makes Money

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Lumbee Guaranty Bank Financial Statement Overview

Summary

Financials are solid but less consistent recently: revenue growth is meaningful, leverage appears conservative, and equity/asset base has expanded, but margins compressed in 2025 and net income remains below the 2023 peak. Cash generation quality weakened materially, with free cash flow dropping sharply in 2024 and further in 2025.

Income Statement

78Positive

Balance Sheet

74Positive

Cash Flow

63Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	25.77M	24.59M	24.14M	22.96M	17.44M	16.59M
Gross Profit	18.80M	17.99M	15.43M	19.69M	16.97M	16.19M
EBITDA	5.25M	5.43M	4.75M	7.10M	6.15M	5.20M
Net Income	4.58M	4.15M	3.85M	5.96M	4.94M	4.02M
Balance Sheet
Total Assets	583.50M	561.39M	520.21M	519.66M	484.34M	473.27M
Cash, Cash Equivalents and Short-Term Investments	15.95M	7.78M	136.11M	156.57M	130.45M	139.96M
Total Debt	37.50M	10.62M	6.03M	7.55M	2.44M	2.42M
Total Liabilities	531.37M	509.71M	475.08M	477.38M	448.95M	430.02M
Stockholders Equity	52.13M	51.69M	45.13M	42.28M	35.39M	43.25M
Cash Flow
Free Cash Flow	0	2.42M	4.21M	6.87M	5.40M	5.71M
Operating Cash Flow	0	5.03M	4.88M	7.20M	5.71M	5.79M
Investing Cash Flow	0	-31.61M	-20.20M	-27.38M	-30.91M	-62.72M
Financing Cash Flow	0	33.56M	-3.87M	28.99M	18.78M	54.02M

Lumbee Guaranty Bank Technical Analysis

Technical Analysis SentimentNegative

Last Price13.45

Price Trends

50DMA13.72Negative

100DMA13.66Negative

200DMA13.65Negative

Market Momentum

MACD-0.11Positive

RSI46.21Neutral

STOCH58.82Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LUMB, the sentiment is Negative. The current price of 13.45 is below the 20-day moving average (MA) of 13.64, below the 50-day MA of 13.72, and below the 200-day MA of 13.65, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 46.21 is Neutral, neither overbought nor oversold. The STOCH value of 58.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LUMB.

Lumbee Guaranty Bank Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

LUMB against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPHC	83Outperform	$115.50M	5.29	16.39%	―	24.01%	20.16%
LUMB	73Outperform	$44.46M	10.10	8.86%	3.05%	6.70%	16.14%
ASRV	70Outperform	$83.42M	9.14	7.48%	2.44%	2.43%	75.47%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TCBS	65Neutral	$49.87M	14.34	6.14%	1.44%	5.94%	51.02%
HFBL	64Neutral	$69.25M	10.68	11.12%	2.43%	7.94%	43.98%
BAFN	52Neutral	$156.38M	-0.55	-42.84%	―	-40.59%	-260.03%

* Financial Sector Average

Performance Comparison

LUMB and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
LUMB	Lumbee Guaranty Bank	13.45	0.83	6.62%
ASRV	AmeriServ Financial, Inc.	4.91	1.88	62.15%
HFBL	Home Federal Bancorp Inc. Of Louisiana	22.85	6.90	43.23%
OPHC	Optimumbank	9.15	5.05	123.17%
BAFN	BayFirst Financial Corp	5.80	-3.50	-37.63%
TCBS	Texas Community Bancshares, Inc.	17.36	1.70	10.83%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Apr 06, 2026

Lumbee Guaranty Bank AI Stock Analysis