Peoples Bancorp of North Carolina Inc. (PEBK, Financial) filed Quarterly Report for the period ended 2009-09-30.
Peoples Bancorp of North Carolina, Inc. is the holding company for Peoples Bank. Peoples Bancorp Of North Carolina Inc. has a market cap of $31.1 million; its shares were traded at around $5.61 with a P/E ratio of 17.5 and P/S ratio of 0.5. The dividend yield of Peoples Bancorp Of North Carolina Inc. stocks is 5%. Peoples Bancorp Of North Carolina Inc. had an annual average earning growth of 36.6% over the past 5 years.
Interest income decreased $1.7 million or 12% for the three months ended September 30, 2009 compared with the same period in 2008. The decrease was due to a 175 basis point reduction in the Bank s prime commercial lending rate, which was partially offset by an increase in interest earning assets. Net income from derivative instruments was $662,000 for the three months ended September 30, 2009 when compared to a net income of $907,000 for the same period in 2008. The average yield on earning assets for the quarters ended September 30, 2009 and 2008 was 5.18% and 6.43%, respectively. During the quarter ended September 30, 2009, average loans increased $31.0 million to $788.4 million from $757.4 million for the three months ended September 30, 2008. During the quarter ended September 30, 2009, average investment securities available-for-sale increased $58.5 million to $172.0 million from $113.5 million for the three months ended September 30, 2008.
The provision for loan losses for the nine months ended September 30, 2009 was $7.2 million as compared to $2.1 million for the same period one year ago. The increase in the provision for loan losses is primarily attributable to an increase in non-performing assets, a $1.3 million increase in net charge-offs during the nine months ended September 30, 2009 compared to the same period last year and growth in the loan portfolio. Net charge-offs during the nine months ended September 30, 2009 included $752,000 on construction and acquisition and development loans, $1.1 million on mortgage loans and $856,000 on non-real estate loans, which included $409,000 on commercial loans.
Non-Interest Income. Total non-interest income was $2.5 million in the third quarter of 2009 and 2008. Service charges increased 7% to $1.5 million for the three months ended September 30, 2009 when compared to the same period one year ago. The increase in service charges and fees is primarily attributable to growth in the Bank s deposit base coupled with normal pricing changes. Other service charges and fees decreased to $472,000 for the three-month period ended September 30, 2009 as compared to $575,000 for the same period one year ago primarily due to a decrease in check cashing fees. Mortgage banking income decreased to $129,000 during the three months ended September 30, 2009 from $165,000 for the same period in 2008. Miscellaneous income was $383,000 for the three months ended September 30, 2009 as compared to $391,000 for the same period in 2008. Recurring non-interest income amounted to $2.9 million for the three months ended September 30, 2009, as compared to $2.8 million for the same period one year ago. Net non-recurring losses of $360,000 for the three months ended September 30, 2009 included a $281,000 loss on the disposition of assets and a $79,000 write-down on an investment. Management determined the market value of this investment had decreased significantly and was not considered temporary, therefore a write-down was appropriate during the third quarter of 2009. Non-recurring losses of $316,000 for the three months ended September 30, 2008 were due to a $176,000 loss on the disposition of assets and a $140,000 loss on sale of securities.
Total non-interest income was $8.9 million in the nine months ended September 30, 2009 as compared to $7.9 million for the same period of 2008. This increase in non-interest income is attributable to an increase in gains on sale of securities which were partially offset by an increase in write-downs of securities and a decrease in miscellaneous income and other service charges and fees when compared to the same period last year. Service charges increased 7% to $4.1 million for the nine months ended September 30, 2009 when compared to the same period one year ago. The increase in service charges and fees is primarily attributable to growth in the Bank s deposit base coupled with normal pricing changes. Other service charges and fees decreased 15% to $1.6 million for the three-month period ended September 30, 2009 when compared to the same period one year ago primarily due to a decrease in check cashing fees. Mortgage banking income increased to $633,000 during the nine months ended September 30, 2009 from $526,000 for the same period in 2008 due to an increase in mortgage loan demand. Miscellaneous income was $1.3 million for the nine months ended September 30, 2009, a 17% decrease from $1.6 million for the same period in 2008 primarily due to an increase in losses on the disposition of assets. Recurring non-interest income increased 2% to $8.4 million for the nine months ended September 30, 2009, as compared to $8.2 million for the same period one year ago. Net non-recurring gains of $552,000 for the nine months ended September 30, 2009 included a $1.8 million gain on sale of securities partially offset by write-downs of three securities totaling $723,000. This $1.1 million net gain on the sale and write-down of securities for the nine months ended September 30, 2009 was partially offset by a $521,000 loss on the disposition of assets. Net non-recurring losses of $276,000 for the nine months ended September 30, 2008 were due to a $140,000 loss on the sale of securities and a $136,000 loss on the disposition of assets.
Total non-interest expense increased 6% to $22.6 million for the nine months ended September 30, 2009 as compared to $21.3 million for the corresponding period in 2008. Salary and employee benefits totaled $11.2 million for the nine months ended September 30, 2009, a decrease of 2% from the same period in 2008. The decrease in salary and employee benefits is primarily due to a reduction in incentive expense. Occupancy expense increased 9% for the nine months ended September 30, 2009. The increase in occupancy expense is primarily attributable to an increase in furniture and equipment expense. Other non-interest expense increased 19% to $7.4 million for the nine months ended September 30, 2009 as compared to the same period in 2008. This increase in other non-interest expense is primarily attributable to increase of $1.0 million in FDIC insurance expense and an increase of $376,000 in debit card expense. The increase in FDIC insurance expense is due to an increase in 2009 FDIC insurance assessment rates combined with a $453,000 FDIC insurance special assessment paid in September 2009.
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Peoples Bancorp of North Carolina, Inc. is the holding company for Peoples Bank. Peoples Bancorp Of North Carolina Inc. has a market cap of $31.1 million; its shares were traded at around $5.61 with a P/E ratio of 17.5 and P/S ratio of 0.5. The dividend yield of Peoples Bancorp Of North Carolina Inc. stocks is 5%. Peoples Bancorp Of North Carolina Inc. had an annual average earning growth of 36.6% over the past 5 years.
Highlight of Business Operations:
Year-to-date net earnings as of September 30, 2009 was $2.3 million, or $0.41 basic and diluted net earnings per share, before adjustment for preferred stock dividends and accretion, as compared to $6.0 million, or $1.07 basic net earnings per share and $1.06 diluted net earnings per share, for the same period one year ago. The decrease in year-to-date earnings is primarily attributable to an increase in provision for loan losses and an increase in non-interest expense, which were partially offset by an increase in non-interest income. After adjusting for $898,000 in dividends and accretion on preferred stock, net earnings available to common shareholders for the nine months ended September 30, 2009 was $1.4 million, or $0.25 basic and diluted net earnings per common share.Interest income decreased $1.7 million or 12% for the three months ended September 30, 2009 compared with the same period in 2008. The decrease was due to a 175 basis point reduction in the Bank s prime commercial lending rate, which was partially offset by an increase in interest earning assets. Net income from derivative instruments was $662,000 for the three months ended September 30, 2009 when compared to a net income of $907,000 for the same period in 2008. The average yield on earning assets for the quarters ended September 30, 2009 and 2008 was 5.18% and 6.43%, respectively. During the quarter ended September 30, 2009, average loans increased $31.0 million to $788.4 million from $757.4 million for the three months ended September 30, 2008. During the quarter ended September 30, 2009, average investment securities available-for-sale increased $58.5 million to $172.0 million from $113.5 million for the three months ended September 30, 2008.
The provision for loan losses for the nine months ended September 30, 2009 was $7.2 million as compared to $2.1 million for the same period one year ago. The increase in the provision for loan losses is primarily attributable to an increase in non-performing assets, a $1.3 million increase in net charge-offs during the nine months ended September 30, 2009 compared to the same period last year and growth in the loan portfolio. Net charge-offs during the nine months ended September 30, 2009 included $752,000 on construction and acquisition and development loans, $1.1 million on mortgage loans and $856,000 on non-real estate loans, which included $409,000 on commercial loans.
Non-Interest Income. Total non-interest income was $2.5 million in the third quarter of 2009 and 2008. Service charges increased 7% to $1.5 million for the three months ended September 30, 2009 when compared to the same period one year ago. The increase in service charges and fees is primarily attributable to growth in the Bank s deposit base coupled with normal pricing changes. Other service charges and fees decreased to $472,000 for the three-month period ended September 30, 2009 as compared to $575,000 for the same period one year ago primarily due to a decrease in check cashing fees. Mortgage banking income decreased to $129,000 during the three months ended September 30, 2009 from $165,000 for the same period in 2008. Miscellaneous income was $383,000 for the three months ended September 30, 2009 as compared to $391,000 for the same period in 2008. Recurring non-interest income amounted to $2.9 million for the three months ended September 30, 2009, as compared to $2.8 million for the same period one year ago. Net non-recurring losses of $360,000 for the three months ended September 30, 2009 included a $281,000 loss on the disposition of assets and a $79,000 write-down on an investment. Management determined the market value of this investment had decreased significantly and was not considered temporary, therefore a write-down was appropriate during the third quarter of 2009. Non-recurring losses of $316,000 for the three months ended September 30, 2008 were due to a $176,000 loss on the disposition of assets and a $140,000 loss on sale of securities.
Total non-interest income was $8.9 million in the nine months ended September 30, 2009 as compared to $7.9 million for the same period of 2008. This increase in non-interest income is attributable to an increase in gains on sale of securities which were partially offset by an increase in write-downs of securities and a decrease in miscellaneous income and other service charges and fees when compared to the same period last year. Service charges increased 7% to $4.1 million for the nine months ended September 30, 2009 when compared to the same period one year ago. The increase in service charges and fees is primarily attributable to growth in the Bank s deposit base coupled with normal pricing changes. Other service charges and fees decreased 15% to $1.6 million for the three-month period ended September 30, 2009 when compared to the same period one year ago primarily due to a decrease in check cashing fees. Mortgage banking income increased to $633,000 during the nine months ended September 30, 2009 from $526,000 for the same period in 2008 due to an increase in mortgage loan demand. Miscellaneous income was $1.3 million for the nine months ended September 30, 2009, a 17% decrease from $1.6 million for the same period in 2008 primarily due to an increase in losses on the disposition of assets. Recurring non-interest income increased 2% to $8.4 million for the nine months ended September 30, 2009, as compared to $8.2 million for the same period one year ago. Net non-recurring gains of $552,000 for the nine months ended September 30, 2009 included a $1.8 million gain on sale of securities partially offset by write-downs of three securities totaling $723,000. This $1.1 million net gain on the sale and write-down of securities for the nine months ended September 30, 2009 was partially offset by a $521,000 loss on the disposition of assets. Net non-recurring losses of $276,000 for the nine months ended September 30, 2008 were due to a $140,000 loss on the sale of securities and a $136,000 loss on the disposition of assets.
Total non-interest expense increased 6% to $22.6 million for the nine months ended September 30, 2009 as compared to $21.3 million for the corresponding period in 2008. Salary and employee benefits totaled $11.2 million for the nine months ended September 30, 2009, a decrease of 2% from the same period in 2008. The decrease in salary and employee benefits is primarily due to a reduction in incentive expense. Occupancy expense increased 9% for the nine months ended September 30, 2009. The increase in occupancy expense is primarily attributable to an increase in furniture and equipment expense. Other non-interest expense increased 19% to $7.4 million for the nine months ended September 30, 2009 as compared to the same period in 2008. This increase in other non-interest expense is primarily attributable to increase of $1.0 million in FDIC insurance expense and an increase of $376,000 in debit card expense. The increase in FDIC insurance expense is due to an increase in 2009 FDIC insurance assessment rates combined with a $453,000 FDIC insurance special assessment paid in September 2009.
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