Peoples Bancorp Announces Authorization of Stock Repurchase Plan

Rhea-AI Summary

Peoples Bancorp of North Carolina (Nasdaq: PEBK) has announced a new stock repurchase program authorized by its Board of Directors. The program allocates up to $3.0 million to repurchase the company's common stock in open market or privately-negotiated transactions.

As of December 31, 2024, the company reported total assets of $1.65 billion and shareholders' equity of $130.6 million. The timing and amount of share repurchases will be determined by management based on market conditions and can be suspended at any time without prior notice.

Peoples Bank currently operates 16 banking offices across North Carolina in Catawba, Alexander, Lincoln, Mecklenburg, Iredell, and Wake Counties, along with loan production offices in Lincoln, Mecklenburg, Rowan, and Forsyth Counties.

Positive

• Authorization of $3.0 million stock repurchase program to enhance shareholder value
• Strong balance sheet with $1.65 billion in assets
• Solid capital position with $130.6 million in shareholders' equity
• Extensive banking network with 16 offices and 4 loan production facilities

Negative

• Repurchase program may reduce company's cash reserves
• Program can be suspended at any time without prior notice

Insights

Financial Analyst

Peoples Bancorp's $3 million stock repurchase program represents roughly 2.1% of the company's current market capitalization, a modest but meaningful capital allocation decision. This buyback program signals management's confidence in the bank's financial position and indicates they view their shares as undervalued at current prices.

The bank's strong financial foundation supports this initiative, with $1.65 billion in assets and $130.6 million in shareholders' equity as of December 31, 2024. This provides a healthy equity-to-assets ratio of approximately 7.9%, well above regulatory requirements.

For shareholders, this repurchase program creates a price support mechanism while potentially enhancing key metrics like earnings per share and return on equity through share count reduction. The flexible implementation approach - allowing purchases in open market or private transactions without a fixed timeline - gives management discretion to optimize execution based on market conditions.

This capital return strategy complements Peoples Bancorp's regional banking focus across six North Carolina counties, demonstrating a balanced approach between reinvesting in operations and returning value to shareholders. The board's decision reflects confidence in their competitive position within their operating markets.

NEWTON, N.C., March 13, 2025 (GLOBE NEWSWIRE) -- Peoples Bancorp of North Carolina, Inc. (Nasdaq: PEBK), the parent company of Peoples Bank, Newton, NC announced today that its Board of Directors has authorized a stock repurchase program, whereby up to $3.0 million will be allocated to repurchase the Company’s common stock. At December 31, 2024, the Company had assets of $1.65 billion and shareholders’ equity of $130.6 million

Any purchases under the Company’s repurchase program may be made periodically as permitted by securities laws and other legal requirements in the open market or in privately-negotiated transactions. The timing and amount of any repurchase of shares will be determined by the Company’s management, based on its evaluation of market conditions and other factors. The repurchase program may be suspended at any time or from time-to-time without prior notice.

“The Board’s decision to repurchase stock was based on the strength of the Company’s balance sheet and capital position. We believe this is an appropriate way to utilize capital and enhance shareholder value,” said William D. Cable, Sr., President and Chief Executive Officer.

Peoples Bank operates 16 banking offices in North Carolina, with offices in Catawba, Alexander, Lincoln, Mecklenburg, Iredell and Wake Counties. The Bank also operates loan production offices in Lincoln, Mecklenburg, Rowan and Forsyth Counties. The Company’s common stock is publicly traded and is listed on the Nasdaq Global Market under the symbol “PEBK.”

Statements made in this press release, other than those concerning historical information, should be considered forward-looking statements pursuant to the safe harbor provisions of the Securities Exchange Act of 1934 and the Private Securities Litigation Act of 1995. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of management and on the information available to management at the time that this release was prepared. These statements can be identified by the use of words like “expect,” “anticipate,” “estimate,” and “believe,” variations of these words and other similar expressions. Readers should not place undue reliance on forward-looking statements as a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause actual results to differ include, but are not limited to, (1) competition in the markets served by the Bank, (2) changes in the interest rate environment, (3) general national, regional or local economic conditions may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and the possible impairment of collectibility of loans, (4) legislative or regulatory changes, including changes in accounting standards, (5) significant changes in the federal and state legal and regulatory environment and tax laws, (6) the impact of changes in monetary and fiscal policies, laws, rules and regulations and (7) other risks and factors identified in the Company’s other filings with the Securities and Exchange Commission, including but not limited to those described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

Contact:	William D. Cable, Sr.
	President and Chief Executive Officer
	Jeffrey N. Hooper
	Executive Vice President and Chief Financial Officer
	828-464-5620

FAQ

How much is Peoples Bancorp (PEBK) allocating for its stock repurchase program in 2025?

Peoples Bancorp is allocating up to $3.0 million for its stock repurchase program announced on March 13, 2025.

What are Peoples Bancorp's (PEBK) total assets and shareholders' equity as of December 2024?

As of December 31, 2024, PEBK reported total assets of $1.65 billion and shareholders' equity of $130.6 million.

How many banking offices does Peoples Bank (PEBK) operate in North Carolina?

Peoples Bank operates 16 banking offices across six North Carolina counties and four additional loan production offices.

What is the purpose of PEBK's 2025 stock repurchase program?

The program aims to utilize capital effectively and enhance shareholder value, based on the company's strong balance sheet and capital position.

How will PEBK implement its stock repurchase program?

The repurchases will be made periodically in open market or privately-negotiated transactions, with timing and amount determined by management based on market conditions.