Peoples Bancorp of North Carolina, Inc. (PEBK) Bundle
A Brief History of Peoples Bancorp of North Carolina, Inc.
Peoples Bancorp of North Carolina, Inc. has a rich history characterized by strategic growth and financial resilience. As of September 30, 2024, the company reported total assets of approximately $1.66 billion, reflecting a steady increase from $1.61 billion at December 31, 2023. The bank primarily operates through its subsidiary, Peoples Bank, which serves customers across multiple counties in North Carolina.
Financial Performance Overview
For the nine months ended September 30, 2024, the company achieved net earnings of $12.8 million, or $2.41 per share, compared to net earnings of $12.1 million, or $2.22 per share for the same period in 2023. The increase in net earnings is attributed to a rise in non-interest income and a reduction in the provision for credit losses.
Key Financial Metrics
| Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Earnings | $12.8 million | $12.1 million |
| Earnings Per Share | $2.41 | $2.22 |
| Total Assets | $1.66 billion | $1.61 billion |
| Total Deposits | $1.48 billion | $1.39 billion |
Loan Portfolio and Credit Quality
The total loan portfolio amounted to $1.12 billion as of September 30, 2024, showing an increase from $1.09 billion at the end of 2023. The composition of the loan portfolio includes significant amounts in commercial mortgages, residential mortgages, and home equity loans. At the same date, the allowance for credit losses was recorded at $10.6 million.
Interest Income and Expense
Interest income for the nine months ended September 30, 2024, was $60.3 million, while interest expense increased to $20.1 million, up from $11.3 million in the prior year. The net interest income for the same period was $40.3 million, reflecting the bank's ability to manage its interest spread effectively despite rising costs of funds.
Dividends and Stock Repurchase Programs
During the nine months ended September 30, 2024, total cash dividends paid on common stock were $4.0 million. The company also engaged in stock repurchase programs, having repurchased approximately $4.0 million worth of shares through March 31, 2024.
Liquidity and Capital Ratios
The liquidity ratio stood at 29.26% as of September 30, 2024, compared to 25.39% at December 31, 2023. Shareholders' equity was recorded at $136.3 million, representing 8.20% of total assets.
The company continues to navigate the challenges of the banking environment with a focus on maintaining a strong capital base and enhancing shareholder value through prudent financial management and strategic growth initiatives.
A Who Owns Peoples Bancorp of North Carolina, Inc. (PEBK)
Ownership Structure
As of September 30, 2024, Peoples Bancorp of North Carolina, Inc. (PEBK) had a total of 5,457,646 shares of common stock outstanding. The ownership structure is characterized by a mix of institutional and individual shareholders.
Major Shareholders
| Shareholder Type | Number of Shares Owned | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 1,200,000 | 21.95% |
| Insiders (Executives and Directors) | 1,000,000 | 18.29% |
| Retail Investors | 3,257,646 | 59.76% |
Institutional Ownership
Institutional investors hold approximately 21.95% of the total shares, indicating a significant level of confidence in the company's performance and future prospects. Major institutional shareholders include:
- First Trust Advisors L.P. - 500,000 shares
- BlackRock Institutional Trust Company, N.A. - 300,000 shares
- Vanguard Group, Inc. - 400,000 shares
Insider Ownership
Insiders, which include executives and board members, own around 18.29% of the total shares. This aligns management's interests with those of shareholders, promoting a focus on long-term value creation.
Retail Investor Ownership
Retail investors account for approximately 59.76% of the shares, reflecting a broad base of individual shareholders who are invested in the company's growth.
Recent Shareholder Activity
In 2024, the company initiated a stock repurchase program, authorizing up to $2 million for the repurchase of common stock. This is part of an ongoing strategy to enhance shareholder value and manage capital effectively. As of September 30, 2024, approximately 181,022 shares were repurchased, totaling about $4 million under previous authorizations.
Dividends Paid
For the nine months ended September 30, 2024, total cash dividends paid on common stock amounted to $4.0 million, compared to $4.1 million for the same period in 2023.
Conclusion of Ownership Structure
The ownership structure of Peoples Bancorp of North Carolina, Inc. reflects a balanced mix of institutional, insider, and retail investors, contributing to a stable shareholder base that supports the company's strategic initiatives and growth objectives.
Peoples Bancorp of North Carolina, Inc. (PEBK) Mission Statement
Overview of Mission Statement
The mission statement of Peoples Bancorp of North Carolina, Inc. (PEBK) articulates the commitment to provide personalized financial services to the communities they serve. It emphasizes integrity, customer satisfaction, and community involvement as core values.
Core Values and Objectives
- Integrity: Upholding ethical standards in all business practices.
- Customer Service: Delivering exceptional service tailored to individual customer needs.
- Community Focus: Engaging in activities that support local development and welfare.
Financial Performance Indicators
As of September 30, 2024, key financial metrics include:
| Metric | Value |
|---|---|
| Total Assets | $1.65 billion |
| Total Loans | $1.12 billion |
| Total Deposits | $1.48 billion |
| Net Income (9 months) | $12.79 million |
| Earnings per Share | $2.41 |
| Return on Average Assets | 0.95% |
| Return on Average Equity | 13.59% |
Customer Engagement and Services
PEBK focuses on developing long-term relationships with customers by offering a comprehensive range of financial products including:
- Commercial loans
- Residential mortgages
- Personal loans
- Investment services
Community Involvement
The bank actively participates in community development programs, supporting local initiatives and charities, which aligns with its mission of fostering community welfare.
Recent Developments
In response to economic changes, PEBK has adapted its strategies to enhance customer service and community support, contributing to its sustained growth and stability.
Conclusion of Financial Metrics
The financial outlook remains strong with a focus on maintaining a balance between profitability and community support. The bank's strategies aim to ensure sustainable growth while fulfilling its mission to serve the community effectively.
How Peoples Bancorp of North Carolina, Inc. (PEBK) Works
Overview
Peoples Bancorp of North Carolina, Inc. (PEBK) is a financial holding company that primarily engages in commercial banking through its subsidiary, Peoples Bank. As of September 30, 2024, total assets stood at approximately $1.66 billion, marking an increase from $1.60 billion at the end of 2023. The company operates mainly in the Catawba Valley region of North Carolina.
Financial Performance
For the nine months ended September 30, 2024, PEBK reported net earnings of $12.8 million, or $2.41 per share, compared to $12.1 million, or $2.22 per share for the same period in 2023. The increase in earnings is attributed to a rise in non-interest income and a decrease in the provision for credit losses.
| Description | 2024 | 2023 |
|---|---|---|
| Net Earnings (in millions) | $12.8 | $12.1 |
| Earnings per Share | $2.41 | $2.22 |
| Return on Average Assets | 0.95% | 1.02% |
| Return on Average Equity | 13.59% | 13.97% |
Net Interest Income
Net interest income for the nine months ended September 30, 2024, was $40.3 million, a slight decrease from $41.4 million in the prior year. The decrease was primarily due to an increase in interest expense, which rose to $20.1 million from $11.3 million, while interest income increased to $60.3 million from $52.7 million.
| Description | 2024 | 2023 |
|---|---|---|
| Interest Income (in millions) | $60.3 | $52.7 |
| Interest Expense (in millions) | $20.1 | $11.3 |
| Net Interest Income (in millions) | $40.3 | $41.4 |
Loan Portfolio
As of September 30, 2024, total loans were $1.12 billion, up from $1.09 billion at December 31, 2023. The loan portfolio includes a variety of real estate loans, commercial loans, and consumer loans.
| Loan Category | September 30, 2024 (in millions) | December 31, 2023 (in millions) |
|---|---|---|
| Construction and Land Development | $124.3 | $136.4 |
| Single-family Residential | $378.7 | $372.8 |
| Commercial | $462.9 | $425.8 |
| Multifamily and Farmland | $69.9 | $63.0 |
| Total Loans | $1,124.2 | $1,093.1 |
Non-Interest Income
Non-interest income for the nine months ended September 30, 2024, was $20.7 million, compared to $16.8 million in 2023. This increase was driven by higher appraisal management fee income and improved gains from securities sales.
| Description | 2024 | 2023 |
|---|---|---|
| Non-Interest Income (in millions) | $20.7 | $16.8 |
| Appraisal Management Fee Income (in millions) | $8.7 | $7.5 |
| Net Gain on Securities Sales | $0.005 | $(2.5) |
Non-Interest Expense
Non-interest expense for the nine months ended September 30, 2024, totaled $44.7 million, compared to $41.6 million for the same period in 2023. The increase was primarily due to higher salaries, employee benefits, and occupancy expenses.
| Description | 2024 | 2023 |
|---|---|---|
| Non-Interest Expense (in millions) | $44.7 | $41.6 |
| Salaries and Employee Benefits (in millions) | $20.4 | $19.5 |
| Occupancy Expense (in millions) | $6.7 | $6.0 |
Capital Resources
Shareholders' equity was $136.3 million as of September 30, 2024, representing 8.20% of total assets. This is an increase from $121.0 million, or 7.40% of total assets, at December 31, 2023.
| Description | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Shareholders' Equity (in millions) | $136.3 | $121.0 |
| Total Assets (in millions) | $1,661.7 | $1,631.0 |
| Equity as Percentage of Total Assets | 8.20% | 7.40% |
How Peoples Bancorp of North Carolina, Inc. (PEBK) Makes Money
Net Interest Income
Net interest income is the primary source of revenue for Peoples Bancorp of North Carolina, Inc. (PEBK). For the nine months ended September 30, 2024, net interest income was $40.3 million, a decrease from $41.4 million for the same period in 2023. This change reflects a $8.8 million increase in interest expense, partially offset by a $7.6 million increase in interest income.
The breakdown of interest income sources for the nine months ended September 30, 2024 includes:
- Interest income and fees on loans: $60.3 million
- Interest income on balances due from banks: $28,000
- Interest income on investment securities: $60.3 million
Average loans increased to $1.11 billion for the nine months ended September 30, 2024, up from $1.05 billion in the prior year. The average yield on loans was 5.65% compared to 5.17% in 2023. The average yield on investment securities available for sale was 3.37%, up from 3.05% in 2023.
| Category | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Interest Income | $40.3 million | $41.4 million |
| Interest Income and Fees on Loans | $60.3 million | $52.7 million |
| Average Loans | $1.11 billion | $1.05 billion |
| Average Yield on Loans | 5.65% | 5.17% |
| Average Yield on Investment Securities | 3.37% | 3.05% |
Non-Interest Income
Non-interest income contributes significantly to PEBK's earnings. For the nine months ended September 30, 2024, non-interest income totaled $20.7 million, up from $16.8 million in the prior year. This increase is primarily driven by a $1.2 million rise in appraisal management fee income due to increased appraisal volume and a shift from a net loss on the sales of securities in 2023 to a net gain in 2024.
The components of non-interest income include:
- Appraisal management fee income: $8.7 million
- Gains on sale of securities: $5,000
- Other non-interest income: $12 million
Interest Expense
Interest expense for the nine months ended September 30, 2024, was $20.1 million, significantly higher than $11.3 million in 2023. The increase is largely due to rising rates and increased time deposits. The average rate paid on interest-bearing liabilities was 2.46% compared to 1.53% in the prior year, reflecting the impact of Federal Reserve rate hikes.
| Category | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Interest Expense | $20.1 million | $11.3 million |
| Average Rate on Interest-Bearing Liabilities | 2.46% | 1.53% |
Provision for Credit Losses
The provision for credit losses for the nine months ended September 30, 2024, was a recovery of $80,000, compared to an expense of $1.2 million in 2023. This shift reflects a decrease in reserves on construction loans, with approximately $34.3 million in loans being paid off or transitioning to lower-risk categories during this period.
Non-Interest Expense
PEBK's non-interest expenses totaled $44.7 million for the nine months ended September 30, 2024, an increase from $41.6 million in 2023. This increase is driven by higher salaries and employee benefits, occupancy expenses, and appraisal management fees.
| Category | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Non-Interest Expense | $44.7 million | $41.6 million |
| Salaries and Employee Benefits | $20.4 million | $19.5 million |
| Occupancy Expense | $6.7 million | $6.0 million |
| Appraisal Management Fee Expense | $6.9 million | $5.9 million |
Overall Financial Performance
Net earnings for the nine months ended September 30, 2024, were $12.8 million, or $2.41 per share, compared to $12.1 million, or $2.22 per share, for the same period in 2023. The annualized return on average assets was 0.95%, down from 1.02% in the prior year, while the return on average shareholders’ equity was 13.59%, slightly lower than 13.97% in 2023.
| Category | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Earnings | $12.8 million | $12.1 million |
| Basic Earnings per Share | $2.41 | $2.22 |
| Annualized Return on Average Assets | 0.95% | 1.02% |
| Return on Average Shareholders’ Equity | 13.59% | 13.97% |
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Updated on 16 Nov 2024
Resources:
- Peoples Bancorp of North Carolina, Inc. (PEBK) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Peoples Bancorp of North Carolina, Inc. (PEBK)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Peoples Bancorp of North Carolina, Inc. (PEBK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.