Peoples Bancorp Announces Fourth Quarter and Annual Earnings Results
Peoples Bancorp of North Carolina (NASDAQ:PEBK) reported fourth quarter net earnings of $1.9 million, or $0.33 per share, down from $3.0 million, or $0.50 per share, in Q4 2019. The year-to-date net earnings totaled $11.4 million, or $1.95 per share, a decline from $14.1 million, or $2.37 per share, in the previous year. Total loans increased to $948.6 million, with a notable $99.0 million in PPP loans originated. However, net interest income fell to $11.3 million from $11.4 million due to lower interest income. The provision for loan losses rose to $799,000 reflecting COVID-19 impacts.
- Total loans increased by $98.7 million to $948.6 million year-over-year.
- Non-interest income grew to $5.9 million in Q4 2020, up from $4.5 million in Q4 2019.
- Fourth quarter net earnings decreased to $1.9 million from $3.0 million year-over-year.
- Year-to-date net earnings fell to $11.4 million compared to $14.1 million in 2019.
- Increase in provision for loan losses to $799,000 in Q4 2020, up from $186,000 in Q4 2019.
- Net interest income for the year declined to $44.1 million from $45.8 million in 2019.
NEWTON, NC / ACCESSWIRE / January 25, 2021 / Peoples Bancorp of North Carolina, Inc. (NASDAQ:PEBK), the parent company of Peoples Bank, reported fourth quarter and year to date earnings results with highlights as follows:
Fourth quarter highlights:
- Net earnings were
$1.9 million or$0.33 b asic and diluted net earnings per share for the three months ended December 31, 2020, as compared to$3.0 million or$0.50 b asic and diluted net earnings per share for the same period one year ago.
Year to date highlights:
- Net earnings were
$11.4 million or$1.95 b asic and diluted net earnings per share for the year ended December 31, 2020, as compared to$14.1 million or$2.37 b asic net earnings per share and$2.36 diluted net earnings per share for the same period one year ago. - Total loans increased
$98.7 million to$948.6 million at December 31, 2020, compared to$849.9 million at December 31, 2019. - The Bank originated 1,127 Small Business Administration (SBA) Paycheck Protection Program (PPP) loans, totaling
$99.0 million , during the year ended December 31, 2020. The Bank has received$4.0 million in fees from the SBA for PPP loans originated as of December 31, 2020. The Bank has recognized$1.4 million PPP loan fee income as of December 31, 2020. - Core deposits were
$1.2 billion or97.89% of total deposits at December 31, 2020, compared to$932.2 million or96.45% of total deposits at December 31, 2019.
Lance A. Sellers, President and Chief Executive Officer, attributed the decrease in fourth quarter net earnings to a decrease in net interest income, an increase in the provision for loan losses and an increase in non-interest expense, which were partially offset by an increase in non-interest expense during the three months ended December 31, 2020, compared to the three months ended December 31, 2019, as discussed below.
Net interest income was
Non-interest income was
Non-interest expense was
Year-to-date net earnings as of December 31, 2020 were
Year-to-date net interest income as of December 31, 2020 was
Non-interest income was
Non-interest expense was
Income tax expense was
Total assets were
Non-performing assets were
The allowance for loan losses at December 31, 2020 was
Deposits were
Securities sold under agreements to repurchase were
Junior subordinated debentures were
Shareholders' equity was
Peoples Bank currently operates 18 banking offices entirely in North Carolina, with offices in Catawba, Alexander, Lincoln, Mecklenburg, Iredell and Wake Counties. The Bank also operates loan production offices in Lincoln and Mecklenburg Counties. The Company's common stock is publicly traded and is quoted 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 Peoples 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, 2019.
CONSOLIDATED BALANCE SHEETS
December 31, 2020 and 2019
(Dollars in thousands)
December 31, 2020 | December 31, 2019 | |||||||
| (Unaudited) | (Audited) | |||||||
ASSETS: | ||||||||
Cash and due from banks | $ | 42,737 | $ | 48,337 | ||||
Interest-bearing deposits | 118,843 | 720 | ||||||
Federal funds sold | - | 3,330 | ||||||
Cash and cash equivalents | 161,580 | 52,387 | ||||||
Investment securities available for sale | 245,249 | 195,746 | ||||||
Other investments | 4,155 | 4,231 | ||||||
Total securities | 249,404 | 199,977 | ||||||
Mortgage loans held for sale | 9,139 | 4,417 | ||||||
Loans | 948,639 | 849,874 | ||||||
Less: Allowance for loan losses | (9,908) | (6,680 | ) | |||||
Net loans | 938,731 | 843,194 | ||||||
Premises and equipment, net | 18,600 | 18,604 | ||||||
Cash surrender value of life insurance | 16,968 | 16,319 | ||||||
Accrued interest receivable and other assets | 20,433 | 19,984 | ||||||
Total assets | $ | 1,414,855 | $ | 1,154,882 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY: | ||||||||
Deposits: | ||||||||
Noninterest-bearing demand | $ | 456,980 | $ | 338,004 | ||||
NOW, MMDA & savings | 657,834 | 516,757 | ||||||
Time, | 25,771 | 34,269 | ||||||
Other time | 80,501 | 77,487 | ||||||
Total deposits | 1,221,086 | 966,517 | ||||||
Securities sold under agreements to repurchase | 26,201 | 24,221 | ||||||
FHLB borrowings | - | - | ||||||
Junior subordinated debentures | 15,464 | 15,619 | ||||||
Accrued interest payable and other liabilities | 12,205 | 14,405 | ||||||
Total liabilities | 1,274,956 | 1,020,762 | ||||||
Shareholders' equity: | ||||||||
Series A preferred stock, | ||||||||
5,000,000 shares; no shares issued and outstanding | - | - | ||||||
Common stock, no par value; authorized | ||||||||
20,000,000 shares; issued and outstanding | ||||||||
5,787,504 shares 12/31/20 and | ||||||||
5,912,300 shares 12/31/19 | 56,871 | 59,813 | ||||||
Retained earnings | 77,628 | 70,663 | ||||||
Accumulated other comprehensive income | 5,400 | 3,644 | ||||||
Total shareholders' equity | 139,899 | 134,120 | ||||||
Total liabilities and shareholders' equity | $ | 1,414,855 | $ | 1,154,882 | ||||
CONSOLIDATED STATEMENTS OF INCOME
For the three months and years ended December 31, 2020 and 2019
(Dollars in thousands, except per share amounts)
| Three months ended | Years ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |||||||||||||
INTEREST INCOME: | ||||||||||||||||
Interest and fees on loans | $ | 10,947 | $ | 10,784 | $ | 42,314 | $ | 43,301 | ||||||||
Interest on due from banks | 24 | 77 | 127 | 213 | ||||||||||||
Interest on federal funds sold | 26 | 331 | 204 | 331 | ||||||||||||
Interest on investment securities: | ||||||||||||||||
U.S. Government sponsored enterprises | 497 | 728 | 2,361 | 2,670 | ||||||||||||
State and political subdivisions | 649 | 650 | 2,691 | 2,915 | ||||||||||||
Other | 59 | 43 | 261 | 171 | ||||||||||||
Total interest income | 12,202 | 12,613 | 47,958 | 49,601 | ||||||||||||
INTEREST EXPENSE: | ||||||||||||||||
NOW, MMDA & savings deposits | 507 | 539 | 1,962 | 1,596 | ||||||||||||
Time deposits | 222 | 328 | 947 | 909 | ||||||||||||
FHLB borrowings | 88 | 135 | 357 | 205 | ||||||||||||
Junior subordinated debentures | 74 | 188 | 370 | 844 | ||||||||||||
Other | 50 | 35 | 200 | 203 | ||||||||||||
Total interest expense | 941 | 1,225 | 3,836 | 3,757 | ||||||||||||
NET INTEREST INCOME | 11,261 | 11,388 | 44,122 | 45,844 | ||||||||||||
PROVISION FOR LOAN LOSSES | 799 | 186 | 4,259 | 863 | ||||||||||||
NET INTEREST INCOME AFTER | ||||||||||||||||
PROVISION FOR LOAN LOSSES | 10,462 | 11,202 | 39,863 | 44,981 | ||||||||||||
NON-INTEREST INCOME: | ||||||||||||||||
Service charges | 893 | 1,167 | 3,528 | 4,576 | ||||||||||||
Other service charges and fees | 199 | 166 | 742 | 714 | ||||||||||||
Gain on sale of securities | 494 | - | 2,639 | 226 | ||||||||||||
Mortgage banking income | 834 | 430 | 2,469 | 1,264 | ||||||||||||
Insurance and brokerage commissions | 250 | 235 | 897 | 877 | ||||||||||||
Appraisal management fee income | 1,799 | 1,199 |
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FAQ
What were the earnings results for PEBK in Q4 2020?
In Q4 2020, Peoples Bancorp reported net earnings of $1.9 million, or $0.33 per share.
How did the annual earnings for PEBK change in 2020?
Year-to-date earnings for 2020 were $11.4 million, down from $14.1 million in 2019.
What is the total loan amount reported by PEBK as of December 31, 2020?
Total loans at PEBK amounted to $948.6 million as of December 31, 2020.
How much did PEBK increase its non-interest income in Q4 2020?
PEBK's non-interest income increased to $5.9 million in Q4 2020, compared to $4.5 million in Q4 2019.
What was the provision for loan losses for PEBK in Q4 2020?
The provision for loan losses for Q4 2020 was $799,000, significantly up from $186,000 in Q4 2019.
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PEBK Stock Data
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Banks - Regional
State Commercial Banks
United States of America
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