Peoples Bancorp Announces Third Quarter 2024 Results

Peoples Bancorp of North Carolina, Inc., the parent company of Peoples Bank, has released its financial results for the third quarter of 2024. The company reported a slight decrease in net earnings compared to the same period last year, attributing the decline to a mix of increased non-interest expenses and decreased non-interest income, partially offset by higher net interest income and a reduced provision for credit losses.

Financial Highlights

For the three months ended September 30, 2024, Peoples Bancorp reported net earnings of $4.0 million, or $0.74 per share, compared to $4.1 million, or $0.76 per share, for the same period in 2023. The net interest margin for the quarter was 3.35%, slightly down from 3.39% in the previous year. Year-to-date net earnings were $12.8 million, or $2.41 per share, up from $12.1 million, or $2.22 per share, for the same period in 2023. The net interest margin for the nine months ended September 30, 2024, was 3.34%, compared to 3.57% for the same period in 2023.

Business and Operational Highlights

Peoples Bancorp saw an increase in total loans to $1.12 billion as of September 30, 2024, up from $1.09 billion at the end of 2023. Total deposits also grew to $1.48 billion, compared to $1.39 billion at the end of 2023. Non-performing assets remained stable at $3.9 million, or 0.24% of total assets, as of September 30, 2024.

Strategic Initiatives and Corporate Developments

The company declared cash dividends of $0.73 per share for the nine months ended September 30, 2024, slightly up from $0.72 per share for the same period in 2023. Additionally, the company closed its branch in Cary, North Carolina, in June 2024, resulting in a write-off of leasehold improvements amounting to $362,000.

Management's Perspective

William D. Cable, Sr., President and Chief Executive Officer, noted that the decrease in third-quarter net earnings was primarily due to a decrease in non-interest income and an increase in non-interest expense. He highlighted that the increase in net interest income was driven by higher interest income on loans and investment securities, partially offset by increased interest expense. The provision for credit losses decreased significantly due to a reduction in reserves on construction loans and a decrease in construction loan balances.

Future Outlook

While the company did not provide specific forward-looking statements in this filing, it did mention the impact of Hurricane Helene on expected losses and the revaluation of the deferred tax asset due to upcoming reductions in the North Carolina corporate income tax rate. These factors are expected to influence future financial results.

SEC Filing: PEOPLES BANCORP OF NORTH CAROLINA INC [ PEBK ] - 8-K - Oct. 21, 2024