Peoples Bancorp Announces Second Quarter 2024 Results

Rhea-AI Summary

Peoples Bancorp of North Carolina (NASDAQ:PEBK) reported second quarter 2024 results with net earnings of $4.9 million or $0.93 per share, compared to $4.8 million or $0.88 per share in the same period last year. Key highlights include:

- Net interest margin decreased to 3.34% from 3.56% year-over-year
- Total loans increased to $1.11 billion from $1.09 billion at year-end 2023
- Total deposits grew to $1.48 billion from $1.39 billion at year-end 2023
- Non-performing assets were 0.25% of total assets, slightly up from 0.24% at year-end 2023
- Core deposits increased to 90.02% of total deposits from 89.30% at year-end 2023

The increase in earnings was attributed to higher non-interest income and lower provision for credit losses, partially offset by decreased net interest income and increased non-interest expenses.

Positive

• Net earnings increased to $4.9 million from $4.8 million year-over-year
• Total loans grew to $1.11 billion from $1.09 billion at year-end 2023
• Total deposits increased to $1.48 billion from $1.39 billion at year-end 2023
• Core deposits rose to 90.02% of total deposits from 89.30% at year-end 2023
• Non-interest income increased due to higher appraisal management fee income and SBIC investment income

Negative

• Net interest margin decreased to 3.34% from 3.56% year-over-year
• Non-performing assets slightly increased to 0.25% of total assets from 0.24% at year-end 2023
• Net interest income decreased due to higher interest expenses
• Non-interest expenses increased, primarily due to higher salaries and employee benefits

Financial Analyst

The results reported by Peoples Bancorp highlight several key financial metrics that are essential in evaluating its performance. The net earnings for Q2 2024 were $4.9 million, slightly up from $4.8 million in the same period of 2023. While this growth is modest, a deeper dive into the components reveals significant factors that may interest investors.

Firstly, the net interest margin fell to 3.34% from 3.56% year-over-year. The decline is primarily due to increased interest expenses, driven by higher rates on interest-bearing liabilities and time deposits. This trend is consistent with the broader economic environment where rising interest rates impact borrowing costs. However, the bank has managed to counter this with a notable increase in interest income from loans and securities.

Another point to note is the year-to-date net earnings, which rose to $8.8 million from $8.0 million. This growth is largely due to increased non-interest income and a reduced provision for credit losses, which indicates better asset quality and effective risk management.

Overall, despite the pressure on net interest margins, the company's ability to grow its earnings and manage credit risks effectively speaks to its operational resilience.

Market Research Analyst

From a market perspective, Peoples Bancorp's performance is reflective of broader market trends amongst regional banks. The increase in deposits to $1.48 billion from $1.39 billion at the end of 2023 is a positive sign of customer confidence and might indicate successful deposit-gathering strategies, possibly due to the competitive rates offered in a high-rate environment.

However, the decline in their net interest margin and the increase in non-interest expenses could be a concern if it persists. Non-interest expense rose to $15.1 million from $13.6 million year-over-year, primarily due to higher salaries and benefits and increasing appraisal management fee expenses. This could pressure the company's profitability if these trends continue.

The Bank’s strategy to mitigate interest expense by shifting customer funds from repurchase agreements to deposits through the ICS network is innovative, potentially reducing costs associated with repurchase agreements and enhancing liquidity. This strategy could become a model for similar-sized banks in managing liquidity in shifting interest rate environments.

Credit Risk Analyst

From a risk management standpoint, the decrease in the provision for credit losses from an expense of $375,000 to a recovery of $468,000 is noteworthy. This reduction is mainly due to decreased reserves on construction loans, which have been transitioned to lower-risk permanent financing categories. This transition reduces the overall risk profile of the loan portfolio significantly.

Moreover, non-performing assets remain relatively stable at 0.25% of total assets, which is a good indicator of asset quality. The allowance for credit losses on loans also decreased to 0.90% of total loans from 1.01%, suggesting that the bank’s loan portfolio is currently performing well with lower anticipated losses.

In summary, Peoples Bancorp shows strong credit quality management, which is essential for sustaining long-term profitability and investor confidence.

NEWTON, NC / ACCESSWIRE / July 22, 2024 / Peoples Bancorp of North Carolina, Inc. (NASDAQ:PEBK) (the "Company"), the parent company of Peoples Bank (the "Bank"), reported second quarter 2024 results with highlights as follows:

Second quarter 2024 highlights:

• Net earnings were $4.9 million or $0.93 per share and $0.89 per diluted share for the three months ended June 30, 2024, compared to $4.8 million or $0.88 per share and $0.85 per diluted share for the same period one year ago.

• Net interest margin was 3.34% for the three months ended June 30, 2024, compared to 3.56% for the three months ended June 30, 2023.

Year to date highlights:

• Net earnings were $8.8 million or $1.67 per share and $1.61 per diluted share for the six months ended June 30, 2024, as compared to $8.0 million or $1.46 per share and $1.41 per diluted share for the same period one year ago.

• Cash dividends were $0.54 per share during the six months ended June 30, 2024, compared to $0.53 per share for the prior year period.

• Total loans were $1.11 billion at June 30, 2024, compared to $1.09 billion at December 31, 2023.

• Non-performing assets were $4.2 million or 0.25% of total assets at June 30, 2024, compared to $3.9 million or 0.24% of total assets at December 31, 2023.

• Total deposits were $1.48 billion at June 30, 2024, compared to $1.39 billion at December 31, 2023.

• Core deposits, a non-GAAP measure, were $1.33 billion or 90.02% of total deposits at June 30, 2024, compared to $1.24 billion or 89.30% of total deposits at December 31, 2023.

• Net interest margin was 3.34% for the six months ended June 30, 2024, compared to 3.67% for the six months ended June 30, 2023.

Net earnings were $4.9 million or $0.93 per share and $0.89 per diluted share for the three months ended June 30, 2024, compared to $4.8 million or $0.88 per share and $0.85 per diluted share for the prior year period. Lance A. Sellers, President and Chief Executive Officer, attributed the increase in second quarter net earnings to an increase in non-interest income and a decrease in the provision for credit losses, which were partially offset by a decrease in net interest income and an increase in non-interest expense, compared to the prior year period, as discussed below.

Net interest income was $13.4 million for the three months ended June 30, 2024, compared to $13.8 million for the three months ended June 30, 2023. The decrease in net interest income is due to a $2.8 million increase in interest expense, partially offset by a $2.5 million increase in interest income. The increase in interest income reflects a $1.9 million increase in interest income and fees on loans, a $208,000 increase in interest income on balances due from banks and a $359,000 increase in interest income on investment securities. The increase in interest income and fees on loans is primarily due to an increase in total loans and rate increases by the Federal Reserve. The increase in interest income on balances due from banks is also due to an increase in average balances outstanding and rate increases by the Federal Reserve. The increase in interest income on investment securities is primarily due to increases on yields on variable rate securities and higher yields on securities purchased since June 30, 2023. The increase in interest expense is primarily due to an increase in time deposits and an increase in rates paid on interest-bearing liabilities. Net interest income after the provision for credit losses was $13.9 million for the three months ended June 30, 2024, compared to $13.4 million for the three months ended June 30, 2023. The provision for credit losses for the three months ended June 30, 2024 was a recovery of $468,000, compared to an expense of $375,000 for the three months ended June 30, 2023. The decrease in the provision for credit losses is primarily attributable to a reduction in reserves on construction loans, which was primarily due to a decrease in construction loan balances outstanding composed mostly of about $12.7 million in loans being paid off or transitioning to permanent financing in other loan categories within the portfolio with lower loss rates than the construction pool during the three months ended June 30, 2024. In addition, the high rate environment is slowing additional construction activity resulting in a decrease in unfunded construction loan commitments with about $4.9 million in new commitments offset by the $9.9 million in commitments being utilized to fund loan balances or being closed-out with unused amounts for the three months ended June 30, 2024.

Non-interest income was $7.5 million for the three months ended June 30, 2024, compared to $6.4 million for the three months ended June 30, 2023. The increase in non-interest income is primarily attributable to a $591,000 increase in appraisal management fee income due to an increase in appraisal volume and a $444,000 increase in miscellaneous non-interest income primarily due to an increase in income on Small Business Investment Company (SBIC) investments.

Non-interest expense was $15.1 million for the three months ended June 30, 2024, compared to $13.6 million for the three months ended June 30, 2023. The increase in non-interest expense is primarily attributable to a $541,000 increase in salaries and employee benefits expense primarily due to increases in salary and restricted stock expenses, a $474,000 increase in appraisal management fee expense due to an increase in appraisal volume and a $373,000 increase in other non-interest expense primarily due to increases in consulting fees and debit card expense.

Net earnings were $8.8 million or $1.67 per share and $1.61 per diluted share for the six months ended June 30, 2024, compared to $8.0 million or $1.46 per share and $1.41 per diluted share for the prior year period. The increase in second quarter net earnings is primarily attributable to an increase in non-interest income and a decrease in the provision for credit losses, which were partially offset by a decrease in net interest income and an increase in non-interest expense, compared to the prior year period, as discussed below.

Net interest income was $26.7 million for the six months ended June 30, 2024, compared to $28.1 million for the six months ended June 30, 2023. The decrease in net interest income is due to a $6.9 million increase in interest expense, partially offset by a $5.5 million increase in interest income. The increase in interest income reflects a $4.2 million increase in interest income and fees on loans, a $732,000 increase in interest income on balances due from banks and a $589,000 increase in interest income on investment securities. The increase in interest income and fees on loans is primarily due to an increase in total loans and rate increases by the Federal Reserve. The increase in interest income on balances due from banks is also due to an increase in average balances outstanding and rate increases by the Federal Reserve. The increase in interest income on investment securities is primarily due to increases on yields on variable rate securities and higher yields on securities purchased since June 30, 2023. The increase in interest expense is primarily due to an increase in time deposits and an increase in rates paid on interest-bearing liabilities. Net interest income after the provision for credit losses was $27.1 million for the six months ended June 30, 2024, compared to $27.5 million for the six months ended June 30, 2023. The provision for credit losses for the six months ended June 30, 2024 was a recovery of $377,000, compared to an expense of $599,000 for the six months ended June 30, 2023. The decrease in the provision for credit losses is primarily attributable to a reduction in reserves on construction loans, which was primarily due to a decrease in construction loan balances outstanding composed mostly of about $29.1 million in loans being paid off or transitioning to permanent financing in other loan categories within the portfolio with lower loss rates than the construction pool during the first six months ending June 30, 2024. In addition, the high rate environment is slowing additional construction activity resulting in a decrease in unfunded construction loan commitments with about $12.4 million in new commitments offset by $19.5 million in commitments being utilized to fund loan balances or being closed-out with unused amounts for the six months ended June 30, 2024.

Non-interest income was $13.6 million for the six months ended June 30, 2024, compared to $10.0 million for the six months ended June 30, 2023. The increase in non-interest income is primarily attributable to a $2.5 million net loss on the sales of securities during the six months ended June 30, 2023 compared to no losses in the six months ended June 30, 2024, and a $911,000 increase in appraisal management fee income due to an increase in appraisal volume.

Non-interest expense was $29.6 million for the six months ended June 30, 2024, compared to $27.3 million for the six months ended June 30, 2023. The increase in non-interest expense is primarily attributable to a $1.0 million increase in salaries and employee benefits expense primarily due to increases in salary, medical insurance and restricted stock expenses, a $728,000 increase in appraisal management fee expense due to an increase in appraisal volume and a $356,000 increase in other non-interest expense primarily due to increases in consulting fees and debit card expense.

Income tax expense was $1.4 million for the three months ended June 30, 2024 and 2023. The effective tax rate was 22.09% for the three months ended June 30, 2024, compared to 22.20% for the three months ended June 30, 2023. Income tax expense was $2.2 million for the six months ended June 30, 2024 and 2023. The effective tax rate was 19.74% for the six months ended June 30, 2024, compared to 21.79% for the six months ended June 30, 2023.

Total assets were $1.66 billion as of June 30, 2024, compared to $1.64 billion as of December 31, 2023. Available for sale securities were $393.3 million as of June 30, 2024, compared to $391.9 million as of December 31, 2023. Total loans were $1.11 billion as of June 30, 2024, compared to $1.09 billion at December 31, 2023.

Non-performing assets were $4.2 million or 0.25% of total assets at June 30, 2024, compared to $3.9 million or 0.24% at December 31, 2023. Non-performing assets include $3.9 million in commercial and residential mortgage loans, and $267,000 in other loans at June 30, 2024, compared to $3.4 million in commercial and residential mortgage loans, and $464,000 in other loans at December 31, 2023.

The allowance for credit losses on loans was $10.0 million or 0.90% of total loans at June 30, 2024, compared to $11.0 million or 1.01% at December 31, 2023. The allowance for credit losses on unfunded commitments was $1.6 million at June 30, 2024, compared to $1.8 million at December 31, 2023. The decrease in reserve amounts for loan balances and unfunded commitments is the result of a decrease in both loan balances and unfunded commitments in construction loans. The volume of new unfunded construction commitments decreased in the first six months ended June 30, 2024, which resulted in the volume of funded construction loans decreasing as existing balances mature and migrate to permanent loan categories with loss rates that are lower than the construction category. As such, though the overall loan and charge-off balances increased, the decreases in the construction category are significant enough to reduce the overall risk profile of the loan portfolio which reduces the overall reserving requirements. Management believes the current level of the allowance for credit losses is adequate; however, there is no guarantee that additional adjustments to the allowance will not be required because of changes in economic conditions, regulatory requirements or other factors.

Deposits were $1.48 billion as of June 30, 2024, compared to $1.39 billion as of December 31, 2023. Core deposits, a non-GAAP measure, which include noninterest-bearing demand deposits, NOW, MMDA, savings and non-brokered certificates of deposit of denominations of $250,000 or less, were $1.33 billion at June 30, 2024, compared to $1.24 billion at December 31, 2023. Management believes it is useful to calculate and present core deposits because of the positive impact this low cost funding source provides to the Bank's overall cost of funds and profitability. Certificates of deposit in amounts of more than $250,000 totaled $147.3 million at June 30, 2024, compared to $148.9 million December 31, 2023.

Securities sold under agreements to repurchase were $18.8 million at June 30, 2024, compared to $86.7 million at December 31, 2023. The decrease in securities sold under agreements to repurchase is primarily due to customers transferring funds from securities sold under agreements to repurchase to deposits via the IntraFi network's Insured Cash Sweep ("ICS") during the six months ended June 30, 2024. Junior subordinated debentures were $15.5 million at June 30, 2024 and December 31, 2023. Shareholders' equity was $124.3 million, or 7.51% of total assets, at June 30, 2024, compared to $121.0 million, or 7.40% of total assets, at December 31, 2023.

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 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
June 30, 2024, December 31, 2023 and June 30, 2023
(Dollars in thousands)

		June 30, 2024				December 31, 2023				June 30, 2023
		(Unaudited)				(Audited)				(Unaudited)
ASSETS:
Cash and due from banks		$	31,909			$	32,819			$	41,219
Interest-bearing deposits			50,926				49,556				47,822
Cash and cash equivalents			82,835				82,375				89,041
Investment securities available for sale			393,260				391,924				394,084
Other investments			2,779				2,874				2,602
Total securities			396,039				394,798				396,686
Mortgage loans held for sale			1,288				686				1,560
Loans			1,110,672				1,093,066				1,057,724
Less: Allowance for credit losses on loans			(10,016	)			(11,041	)			(9,789	)
Net loans			1,100,656				1,082,025				1,047,935
Premises and equipment, net			15,888				16,702				16,734
Cash surrender value of life insurance			18,365				18,134				17,912
Accrued interest receivable and other assets			40,327				41,190				41,706
Total assets		$	1,655,398			$	1,635,910			$	1,611,574
LIABILITIES AND SHAREHOLDERS' EQUITY:
Deposits:
Noninterest-bearing demand		$	415,977			$	432,687			$	454,702
Interest-bearing demand, MMDA & savings			710,446				620,244				679,823
Time, over $250,000			147,333				148,904				105,284
Other time			202,200				190,210				129,715
Total deposits			1,475,956				1,392,045				1,369,524
Securities sold under agreements to repurchase			18,824				86,715				93,172
Junior subordinated debentures			15,464				15,464				15,464
Accrued interest payable and other liabilities			20,842				20,670				21,044
Total liabilities			1,531,086				1,514,894				1,499,204
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
5,457,646 at 6/30/24, 5,534,499 shares at 12/31/23,
5,590,799 at 6/30/23			48,678				50,625				51,809
Common stock held by deferred compensation trust,
at cost; 166,247 shares at 6/30/24, 163,702 shares
at 12/31/23, 165,142 shares at 6/30/23			(1,980	)			(1,910	)			(1,967	)
Deferred compensation			1,980				1,910				1,967
Retained earnings			115,623				109,756				104,304
Accumulated other comprehensive loss			(39,989	)			(39,365	)			(43,743	)
Total shareholders' equity			124,312				121,016				112,370
Total liabilities and shareholders' equity		$	1,655,398			$	1,635,910			$	1,611,574

CONSOLIDATED STATEMENTS OF INCOME
For the three and six months ended June 30, 2024 and 2023
(Dollars in thousands, except per share amounts)

		Three months ended								Six months ended
		June 30,								June 30,
		2024				2023				2024				2023
		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
INTEREST INCOME:
Interest and fees on loans		$	15,571			$	13,667			$	30,709			$	26,550
Interest on due from banks			725				517				1,632				900
Interest on investment securities:
U.S. Government sponsored enterprises			2,551				2,280				5,142				4,510
State and political subdivisions			695				696				1,390				1,558
Other			528				439				1,007				882
Total interest income			20,070				17,599				39,880				34,400
INTEREST EXPENSE:
Interest-bearing demand, MMDA & savings deposits			2,438				1,648				4,498				3,136
Time deposits			3,628				1,638				7,309				2,154
Junior subordinated debentures			283				259				567				507
Other			305				283				786				494
Total interest expense			6,654				3,828				13,160				6,291
NET INTEREST INCOME			13,416				13,771				26,720				28,109
PROVISION FOR CREDIT LOSSES			(468	)			375				(377	)			599
NET INTEREST INCOME AFTER
PROVISION FOR CREDIT LOSSES			13,884				13,396				27,097				27,510
NON-INTEREST INCOME:
Service charges			1,346				1,328				2,686				2,669
Other service charges and fees			180				163				364				345
Loss on sale of securities			-				-				-				(2,488	)
Mortgage banking income			74				39				125				132
Insurance and brokerage commissions			219				206				465				434
Appraisal management fee income			3,181				2,590				5,595				4,684
Miscellaneous			2,521				2,077				4,324				4,238
Total non-interest income			7,521				6,403				13,559				10,014
NON-INTEREST EXPENSES:
Salaries and employee benefits			6,827				6,286				13,807				12,786
Occupancy			2,105				1,981				4,216				3,995
Appraisal management fee expense			2,523				2,049				4,427				3,699
Other			3,676				3,303				7,197				6,841
Total non-interest expense			15,131				13,619				29,647				27,321
EARNINGS BEFORE INCOME TAXES			6,274				6,180				11,009				10,203
INCOME TAXES			1,386				1,372				2,173				2,223
NET EARNINGS		$	4,888			$	4,808			$	8,836			$	7,980
PER SHARE AMOUNTS
Basic net earnings		$	0.93			$	0.88			$	1.67			$	1.46
Diluted net earnings		$	0.89			$	0.85			$	1.61			$	1.41
Cash dividends		$	0.19			$	0.19			$	0.54			$	0.53
Book value		$	23.49			$	20.71			$	23.49			$	20.71

FINANCIAL HIGHLIGHTS
For the three and six months ended June 30, 2024 and 2023, and the year ended December 31, 2023
(Dollars in thousands)

		Three months ended								Six months ended								Year ended
		June 30,								June 30,								December 31,
		2024				2023				2024				2023				2023
		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Audited)
SELECTED AVERAGE BALANCES:
Available for sale securities		$	445,098			$	450,666			$	444,289			$	463,387			$	454,823
Loans			1,108,684				1,056,062				1,100,671				1,046,646				1,061,075
Earning assets			1,610,811				1,550,703				1,608,396				1,549,822				1,561,825
Assets			1,650,008				1,603,916				1,648,905				1,600,262				1,605,386
Deposits			1,461,596				1,403,751				1,444,950				1,410,542				1,395,265
Shareholders' equity			119,443				114,090				120,927				113,965				116,295
SELECTED KEY DATA:
Net interest margin (tax equivalent) (1)			3.35	%			3.56	%			3.34	%			3.67	%			3.51	%
Return on average assets			1.19	%			1.20	%			1.08	%			1.01	%			0.97	%
Return on average shareholders' equity			16.46	%			16.90	%			14.69	%			14.12	%			13.37	%
Average shareholders' equity to total average assets			7.24	%			7.11	%			7.33	%			7.12	%			7.24	%
										June 30, 2024				June 30, 2023				December 31, 2023
										(Unaudited)				(Unaudited)				(Audited)
ALLOWANCE FOR CREDIT LOSSES:
Allowance for credit losses on loans										$	10,016			$	9,789			$	11,041
Allowance for credit losses on unfunded commitments											1,565				2,259				1,770
Provision for credit losses (2)											(377	)			599				1,566
Charge-offs (2)											(1,228	)			(343	)			(698	)
Recoveries (2)											375				240				392
ASSET QUALITY:
Non-accrual loans										$	4,156			$	3,561			$	3,887
90 days past due and still accruing											-				-				-
Other real estate owned											-				-				-
Total non-performing assets										$	4,156			$	3,561			$	3,887
Non-performing assets to total assets											0.25	%			0.22	%			0.24	%
Allowance for credit losses on loans to non-performing assets											241.00	%			274.89	%			284.05	%
Allowance for credit losses on loans to total loans											0.90	%			0.93	%			1.01	%
LOAN RISK GRADE ANALYSIS:
Percentage of loans by risk grade
Risk Grade 1 (excellent quality)											0.29	%			0.27	%			0.30	%
Risk Grade 2 (high quality)											19.57	%			19.90	%			19.78	%
Risk Grade 3 (good quality)											72.99	%			73.82	%			72.96	%
Risk Grade 4 (management attention)											5.95	%			4.97	%			5.59	%
Risk Grade 5 (watch)											0.66	%			0.49	%			0.84	%
Risk Grade 6 (substandard)											0.54	%			0.55	%			0.53	%
Risk Grade 7 (doubtful)											0.00	%			0.00	%			0.00	%
Risk Grade 8 (loss)											0.00	%			0.00	%			0.00	%

At June 30, 2024, including non-accrual loans, there were two relationships exceeding $1.0 million in the Watch risk grade, which totaled $3.0 million; there were no relationships exceeding $1.0 million in the Substandard risk grade. At December 31, 2023, including non-accrual loans, there were two relationships exceeding $1.0 million in the Watch risk grade, which totaled $4.9 million; there were no relationships exceeding $1.0 million in the Substandard risk grade.

(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 22.98% and is reduced by the related nondeductible portion of interest expense.

(2) For the six months ended June 30, 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

What was Peoples Bancorp's (PEBK) earnings per share for Q2 2024?

Peoples Bancorp (PEBK) reported earnings of $0.93 per share and $0.89 per diluted share for the second quarter of 2024.

How did Peoples Bancorp's (PEBK) total loans change in Q2 2024?

Peoples Bancorp's (PEBK) total loans increased to $1.11 billion as of June 30, 2024, compared to $1.09 billion at December 31, 2023.

What was Peoples Bancorp's (PEBK) net interest margin in Q2 2024?

Peoples Bancorp's (PEBK) net interest margin was 3.34% for the three months ended June 30, 2024, compared to 3.56% for the same period in 2023.

How did Peoples Bancorp's (PEBK) total deposits change in Q2 2024?

Peoples Bancorp's (PEBK) total deposits increased to $1.48 billion as of June 30, 2024, compared to $1.39 billion at December 31, 2023.