Peoples Bancorp Announces First Quarter 2024 Results
Peoples Bancorp of North Carolina, Inc. announced their first quarter 2024 results, showcasing a rise in net earnings to $3.9 million or $0.74 per share, attributed to increased non-interest income and reduced credit losses provision. Despite net interest income decline, total loans and core deposits saw growth, highlighting a positive quarter for the company.
- Net earnings increased to $3.9 million or $0.74 per share in Q1 2024.
- Total loans reached $1.1 billion at the end of March 2024.
- Core deposits were $1.3 billion or 89.75% of total deposits at March 31, 2024.
- Non-performing assets stood at $4.0 million or 0.24% of total assets.
- Net interest margin decreased to 3.33% in Q1 2024 compared to 3.77% in Q1 2023.
- Non-interest income rose to $6.0 million in Q1 2024 from $3.6 million in Q1 2023.
- Non-interest expense increased to $14.5 million in Q1 2024 from $13.7 million in Q1 2023.
- Income tax expense decreased to $787,000 in Q1 2024 from $851,000 in Q1 2023.
- Total assets grew to $1.7 billion as of March 31, 2024.
- Shareholders' equity was $121.1 million at the end of Q1 2024.
- Peoples Bank operates 17 banking offices in North Carolina.
- The company's common stock is listed on the Nasdaq Global Market under the symbol 'PEBK.'
- Net interest income declined to $13.3 million in Q1 2024 compared to $14.3 million in Q1 2023.
- Non-interest expense rose to $14.5 million in Q1 2024 from $13.7 million in Q1 2023.
- Non-interest income saw a net loss of $2.5 million on the sales of securities in Q1 2023.
- The provision for credit losses decreased to $91,000 in Q1 2024 from $224,000 in Q1 2023.
- Interest expense increased due to higher rates on time deposits and liabilities.
- Total non-performing assets increased slightly to $4.0 million at the end of Q1 2024.
- The allowance for credit losses on loans decreased slightly to $10.9 million at the end of Q1 2024.
- Securities sold under agreements to repurchase decreased to $59.2 million at the end of Q1 2024.
- Shareholders' equity as a percentage of total assets decreased slightly to 7.25% at the end of Q1 2024.
- The effective tax rate decreased to 16.62% in Q1 2024 from 21.15% in Q1 2023.
Insights
Peoples Bancorp's first quarter 2024 results show a net earnings increase to
Evaluating the net interest margin (NIM), which contracted from
Regarding asset quality, the steadiness of non-performing assets at
Lastly, the effective tax rate dip to
The report's revelation of a rise in total loans held at
Furthermore, the shift of funds from securities sold under repurchase agreements into deposits via the IntraFi network's Insured Cash Sweep (ICS) could be indicative of changing customer preferences or a strategic move to bolster deposit base stability. Such shifts are pivotal in understanding customer behavior trends and the bank's agility in adapting to the same.
The maintenance of a robust core deposit base, approximately
NEWTON, NC / ACCESSWIRE / April 26, 2024 / Peoples Bancorp of North Carolina, Inc. (NASDAQ:PEBK) (the "Company"), the parent company of Peoples Bank (the "Bank"), reported first quarter 2024 results with highlights as follows:
First quarter 2024 highlights:
- Net earnings were
$3.9 million or$0.74 per share and$0.72 per diluted share for the three months ended March 31, 2024, compared to$3.2 million or$0.58 per share and 0.56 per diluted share for the same period one year ago. - Cash dividends were
$0.35 per share during the three months ended March 31, 2024, compared to$0.34 per share for the prior year period. - Total loans were
$1.1 billion at March 31, 2024 and December 31, 2023. - Non-performing assets were
$4.0 million or0.24% of total assets at March 31, 2024, compared to$3.9 million or0.24% of total assets at December 31, 2023. - Total deposits were
$1.5 billion at March 31, 2024, compared to$1.4 billion at December 31, 2023. - Core deposits, a non-GAAP measure, were
$1.3 billion or89.75% of total deposits at March 31, 2024, compared to$1.2 billion or89.30% of total deposits at December 31, 2023. - Net interest margin was
3.33% for the three months ended March 31, 2024, compared to3.77% for the three months ended March 31, 2023.
Net earnings were
Net interest income was
Non-interest income was
Non-interest expense was
Income tax expense was
Total assets were
Non-performing assets were
The allowance for credit losses on loans was
Deposits were
Securities sold under agreements to repurchase were
Peoples Bank operates 17 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 earnings 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, 2023.
CONSOLIDATED BALANCE SHEETS
March 31, 2024, December 31, 2023 and March 31, 2023
(Dollars in thousands)
| March 31, 2024 | December 31, 2023 | March 31, 2023 | ||||||||||
| (Unaudited) | (Audited) | (Unaudited) | ||||||||||
ASSETS: | ||||||||||||
Cash and due from banks | $ | 26,272 | $ | 32,819 | $ | 40,100 | ||||||
Interest-bearing deposits | 71,824 | 49,556 | 42,921 | |||||||||
Cash and cash equivalents | 98,096 | 82,375 | 83,021 | |||||||||
Investment securities available for sale | 394,664 | 391,924 | 399,148 | |||||||||
Other investments | 2,858 | 2,874 | 2,628 | |||||||||
Total securities | 397,522 | 394,798 | 401,776 | |||||||||
Mortgage loans held for sale | 1,292 | 686 | 417 | |||||||||
Loans | 1,106,670 | 1,093,066 | 1,050,871 | |||||||||
Less: Allowance for credit losses on loans | (10,847 | ) | (11,041 | ) | (9,617 | ) | ||||||
Net loans | 1,095,823 | 1,082,025 | 1,041,254 | |||||||||
Premises and equipment, net | 16,330 | 16,702 | 18,194 | |||||||||
Cash surrender value of life insurance | 18,250 | 18,134 | 17,806 | |||||||||
Accrued interest receivable and other assets | 42,247 | 41,190 | 40,224 | |||||||||
Total assets | $ | 1,669,560 | $ | 1,635,910 | $ | 1,602,692 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY: | ||||||||||||
Deposits: | ||||||||||||
Noninterest-bearing demand | $ | 462,966 | $ | 432,687 | $ | 502,702 | ||||||
Interest-bearing demand, MMDA & savings | 633,740 | 620,244 | 742,473 | |||||||||
Time, over | 148,819 | 148,904 | 51,701 | |||||||||
Other time | 206,839 | 190,210 | 116,565 | |||||||||
Total deposits | 1,452,364 | 1,392,045 | 1,413,441 | |||||||||
Securities sold under agreements to repurchase | 59,216 | 86,715 | 39,535 | |||||||||
Junior subordinated debentures | 15,464 | 15,464 | 15,464 | |||||||||
Accrued interest payable and other liabilities | 21,424 | 20,670 | 19,469 | |||||||||
Total liabilities | 1,548,468 | 1,514,894 | 1,487,909 | |||||||||
Shareholders' equity: | ||||||||||||
Preferred stock, no par value; authorized | ||||||||||||
5,000,000 shares; no shares issued and outstanding | - | - | - | |||||||||
Common stock, no par value; authorized | ||||||||||||
20,000,000 shares; issued and outstanding | ||||||||||||
5,455,999 at 3/31/24, 5,534,499 shares at 12/31/23, | ||||||||||||
5,637,021 at 3/31/23 | 48,627 | 50,625 | 52,642 | |||||||||
Common stock held by deferred compensation trust, | ||||||||||||
at cost; 164,970 shares at 3/31/24, 163,702 shares | ||||||||||||
at 12/31/23, 158,356 shares at 3/31/23 | (1,943 | ) | (1,910 | ) | (1,837 | ) | ||||||
Deferred compensation | 1,943 | 1,910 | 1,837 | |||||||||
Retained earnings | 111,775 | 109,756 | 100,565 | |||||||||
Accumulated other comprehensive loss | (39,310 | ) | (39,365 | ) | (38,424 | ) | ||||||
Total shareholders' equity | 121,092 | 121,016 | 114,783 | |||||||||
Total liabilities and shareholders' equity | $ | 1,669,560 | $ | 1,635,910 | $ | 1,602,692 | ||||||
CONSOLIDATED STATEMENTS OF INCOME
For the three months ended March 31, 2024 and 2023
(Dollars in thousands, except per share amounts)
| Three months ended | ||||||||
| March 31, | ||||||||
| 2024 | 2023 | |||||||
| (Unaudited) | (Unaudited) | |||||||
INTEREST INCOME: | ||||||||
Interest and fees on loans | $ | 15,138 | $ | 12,883 | ||||
Interest on due from banks | 907 | 383 | ||||||
Interest on investment securities: | ||||||||
U.S. Government sponsored enterprises | 2,591 | 2,230 | ||||||
State and political subdivisions | 695 | 862 | ||||||
Other | 479 | 443 | ||||||
Total interest income | 19,810 | 16,801 | ||||||
INTEREST EXPENSE: | ||||||||
Interest-bearing demand, MMDA & savings deposits | 2,060 | 1,488 | ||||||
Time deposits | 3,681 | 516 | ||||||
Junior subordinated debentures | 284 | 248 | ||||||
Other | 481 | 211 | ||||||
Total interest expense | 6,506 | 2,463 | ||||||
NET INTEREST INCOME | 13,304 | 14,338 | ||||||
PROVISION FOR CREDIT LOSSES | 91 | 224 | ||||||
NET INTEREST INCOME AFTER | ||||||||
PROVISION FOR CREDIT LOSSES | 13,213 | 14,114 | ||||||
NON-INTEREST INCOME: | ||||||||
Service charges | 1,340 | 1,341 | ||||||
Other service charges and fees | 184 | 182 | ||||||
Loss on sale of securities | - | (2,488 | ) | |||||
Mortgage banking income | 51 | 93 | ||||||
Insurance and brokerage commissions | 246 | 228 | ||||||
Appraisal management fee income | 2,414 | 2,094 | ||||||
Miscellaneous | 1,803 | 2,161 | ||||||
Total non-interest income | 6,038 | 3,611 | ||||||
NON-INTEREST EXPENSES: | ||||||||
Salaries and employee benefits | 6,980 | 6,500 | ||||||
Occupancy | 2,111 | 2,014 | ||||||
Appraisal management fee expense | 1,904 | 1,650 | ||||||
Other | 3,521 | 3,538 | ||||||
Total non-interest expense | 14,516 | 13,702 | ||||||
EARNINGS BEFORE INCOME TAXES | 4,735 | 4,023 | ||||||
INCOME TAXES | 787 | 851 | ||||||
NET EARNINGS | $ | 3,948 | $ | 3,172 | ||||
PER SHARE AMOUNTS | ||||||||
Basic net earnings | $ | 0.74 | $ | 0.58 | ||||
Diluted net earnings | $ | 0.72 | $ | 0.56 | ||||
Cash dividends | $ | 0.35 | $ | 0.34 | ||||
Book value | $ | 22.89 | $ | 20.95 | ||||
FINANCIAL HIGHLIGHTS
For the three months ended March 31, 2024 and 2023
(Dollars in thousands)
| Three months ended | Year ended | |||||||||||
| March 31, | December 31, | |||||||||||
| 2024 | 2023 | 2023 | ||||||||||
| (Unaudited) | (Unaudited) | (Audited) | ||||||||||
SELECTED AVERAGE BALANCES: | ||||||||||||
Available for sale securities | $ | 443,480 | $ | 476,250 | $ | 454,823 | ||||||
Loans | 1,092,658 | 1,037,124 | 1,061,075 | |||||||||
Earning assets | 1,605,981 | 1,548,932 | 1,561,825 | |||||||||
Assets | 1,647,802 | 1,596,788 | 1,605,386 | |||||||||
Deposits | 1,428,305 | 1,417,408 | 1,395,265 | |||||||||
Shareholders' equity | 117,524 | 109,250 | 116,295 | |||||||||
SELECTED KEY DATA: | ||||||||||||
Net interest margin (tax equivalent) (1) | 3.33 | % | 3.77 | % | 3.51 | % | ||||||
Return on average assets | 0.96 | % | 0.81 | % | 0.97 | % | ||||||
Return on average shareholders' equity | 13.51 | % | 11.78 | % | 13.37 | % | ||||||
Average shareholders' equity to total average assets | 7.13 | % | 6.84 | % | 7.24 | % | ||||||
| March 31, 2024 | March 31, 2023 | December 31, 2023 | ||||||||||
| (Unaudited) | (Unaudited) | (Audited) | ||||||||||
| ALLOWANCE FOR CREDIT LOSSES: | ||||||||||||
Allowance for credit losses on loans | $ | 10,847 | $ | 9,617 | $ | 11,041 | ||||||
Allowance for credit losses on unfunded commitments | 1,698 | 2,074 | 1,770 | |||||||||
Provision for credit losses (2) | 91 | 224 | 1,566 | |||||||||
Charge-offs (2) | (656 | ) | (166 | ) | (698 | ) | ||||||
Recoveries (2) | 299 | 82 | 392 | |||||||||
| ASSET QUALITY: | ||||||||||||
Non-accrual loans | $ | 3,991 | $ | 3,644 | $ | 3,887 | ||||||
90 days past due and still accruing | - | - | - | |||||||||
Other real estate owned | - | - | - | |||||||||
Total non-performing assets | $ | 3,991 | $ | 3,644 | $ | 3,887 | ||||||
Non-performing assets to total assets | 0.24 | % | 0.23 | % | 0.24 | % | ||||||
Allowance for credit losses on loans to non-performing assets | 271.79 | % | 263.91 | % | 284.05 | % | ||||||
Allowance for credit losses on loans to total loans | 0.98 | % | 0.92 | % | 1.01 | % | ||||||
| LOAN RISK GRADE ANALYSIS: | ||||||||||||
| Percentage of loans by risk grade | ||||||||||||
Risk Grade 1 (excellent quality) | 0.30 | % | 0.26 | % | 0.30 | % | ||||||
Risk Grade 2 (high quality) | 19.42 | % | 20.30 | % | 19.78 | % | ||||||
Risk Grade 3 (good quality) | 73.14 | % | 72.83 | % | 72.96 | % | ||||||
Risk Grade 4 (management attention) | 5.77 | % | 5.53 | % | 5.59 | % | ||||||
Risk Grade 5 (watch) | 0.84 | % | 0.50 | % | 0.84 | % | ||||||
Risk Grade 6 (substandard) | 0.53 | % | 0.58 | % | 0.53 | % | ||||||
Risk Grade 7 (doubtful) | 0.00 | % | 0.00 | % | 0.00 | % | ||||||
Risk Grade 8 (loss) | 0.00 | % | 0.00 | % | 0.00 | % | ||||||
At March 31, 2024, including non-accrual loans, there were two relationships exceeding
(1) This amount reflects the tax benefit that the Company receives related to its tax-exempt loans and securities, which carry interest rates lower than similar taxable investments due to their tax-exempt status. This amount has been computed using an effective tax rate of
(2) For the three months ended March 31, 2024 and 2023 and the year ended December 31, 2023.
| Contact: | Lance A. Sellers | |
| President and Chief Executive Officer | ||
| Jeffrey N. Hooper | ||
| Executive Vice President and Chief Financial Officer | ||
| 828-464-5620, Fax 828-465-6780 |
SOURCE: Peoples Bancorp of North Carolina, Inc.
View the original press release on accesswire.com
FAQ
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