LUMBEE GUARANTY BANK
NEWS RELEASE 11/02/2009

Lumbee Guaranty Bank President /CEO Larry R. Chavis announced that at its regular Board Meeting held on October 31, 2009 the Board of Directors of the Bank voted to pay a 7 cent per share cash dividend with a record date of December 10, 2009 and a payment date of December 21, 2009. Mr. Chavis stated that this is a reduction from previous payments, but the board felt it was the prudent thing to do during these economic times. The bank is still strong, and we want to make sure we remain strong. Also at this meeting, the Board of Directors voted to issue a 2 for 5 stock split which is a 40% stock dividend with a record date of January 7, 2010 and a payment date of February 3, 2010. The bank’s stock has held it’s value during these depressed times and has been trading at $23.50 per share during 2009. The bank’s profitability thru 09/30/09 was $898,491 compared to $1,645,963 thru 09/30/08. Earnings are down due to the squeeze on interest rate margins. The bank continues to grow with assets at 9/30/09 of $264,008,630 compared to 9/30/08 of $235,290,544 a 12% growth. The bank has grown and we continue to gain market share. The board has used stock dividends to reward stockholders for their confidence in the bank in lieu of cash dividends which are needed for expansion.

For additional information please contact Janet Newton (Stock Transfer Agent) @ (910) 521-9707 at Lumbee Guaranty Bank.