Peoples Bancorp of North Carolina Inc. (PEBK, Financial) filed Quarterly Report for the period ended 2010-03-31.
Peoples Bancorp Of North Carolina Inc. has a market cap of $37.06 million; its shares were traded at around $6.69 with a P/E ratio of 21.58 and P/S ratio of 0.6. The dividend yield of Peoples Bancorp Of North Carolina Inc. stocks is 1.2%. Peoples Bancorp Of North Carolina Inc. had an annual average earning growth of 6.6% over the past 10 years.
Interest income decreased $651,000 or 5% for the three months ended March 31, 2010 compared with the same period in 2009. The decrease was primarily due to a reduction in net income associated with derivative instruments combined with a decrease in average loans. Net income from derivative instruments was $374,000 for the three months ended March 31, 2010 when compared to $1.1 million for the same period in 2009. The average yield on earning assets for the quarters ended March 31, 2010 and 2009 was 5.05% and 5.63%, respectively. During the quarter ended March 31, 2010, average loans decreased $3.8 million to $776.3 million from $780.1 million for the three months ended March 31, 2009. During the quarter ended March 31, 2010, average investment securities available-for-sale increased $58.5 million to $191.3 million from $132.8 million for the three months ended March 31, 2009 primarily due to securities purchased in 2009 to offset the cost of the Company s CPP dividend.
Non-Interest Income. Total non-interest income was $2.6 million for the first quarter of 2010 as compared to $2.2 million for the same period of 2009. Service charges increased 7% to $1.3 million for the three months ended March 31, 2010 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 increased to $602,000 for the three-month period ended March 31, 2010 as compared to $593,000 for the same period one year ago. Mortgage banking income decreased to $156,000 during the three months ended March 31, 2010 from $193,000 for the same period in 2009. Miscellaneous income was $413,000 for the three months ended March 31, 2010 as compared to $318,000 for the same period in 2009. Recurring non-interest income amounted to $2.8 million for the three months ended March 31, 2010, as compared to $2.6 million for the same period one year ago. Net non-recurring losses of $182,000 for the three months ended March 31, 2010 were primarily attributable to write-downs and losses on foreclosed property. Non-recurring losses of $463,000 for the three months ended March 31, 2009 included $215,000 in write-downs and losses on foreclosed property and a $248,000 write-down of an asset classified as other investments.
Non-Interest Expense. Total non-interest expense was $7.2 million for the first quarter of 2010 as compared to $7.3 million for the first quarter of 2009. Salary and employee benefits totaled $3.5 million for the three months ended March 31, 2010, as compared to $3.6 million for the same period in 2009. The decrease in salary and employee benefits is primarily due to a reduction in incentive compensation expense. Occupancy expense totaled $1.4 million for the quarters ended March 31, 2010 and 2009. Other non-interest expense decreased 4% to $2.3 million for the three months ended March 31, 2010 as compared to the same period in 2009. The decrease in other non-interest expense is primarily attributable to a decrease of $177,000 in FDIC insurance expense. FDIC insurance expense for the first quarter of 2009 included an accrual of $257,000 for the FDIC insurance special assessment paid September 30, 2009. No FDIC insurance special assessments are anticipated in 2010 at this time.
Loans. At March 31, 2010, loans amounted to $767.4 million compared to $778.1 million at December 31, 2009, a decrease of $10.7 million. This decrease reflects a decline in loan originations combined with continuing payments on existing loans. Loans originated or renewed during the three months ended March 31, 2010 amounting to approximately $16.0 million were offset by paydowns and payoffs of existing loans. The Bank has modified terms on mortgage loans totaling $4.9 million during the three months ended March 31, 2010. Average loans represented 79% and 82% of average earning assets for the three months ended March 31, 2010 and the year ended December 31, 2009, respectively. The Company had $2.0 million and $2.8 million in mortgage loans held for sale as of March 31, 2010 and December 31, 2009, respectively.
Although the Company has a diversified loan portfolio, a substantial portion of the loan portfolio is collateralized by real estate, which is dependent upon the real estate market. Real estate mortgage loans include both commercial and residential mortgage loans. At March 31, 2010, the Company had $115.7 million in residential mortgage loans, $99.8 million in home equity loans and $296.3 million in commercial mortgage loans, which include $228.3 million using commercial property as collateral and $68.1 million using residential property as collateral. At March 31, 2010, real estate construction loans included $95.9 million in speculative construction and development loans.
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Peoples Bancorp Of North Carolina Inc. has a market cap of $37.06 million; its shares were traded at around $6.69 with a P/E ratio of 21.58 and P/S ratio of 0.6. The dividend yield of Peoples Bancorp Of North Carolina Inc. stocks is 1.2%. Peoples Bancorp Of North Carolina Inc. had an annual average earning growth of 6.6% over the past 10 years.
Highlight of Business Operations:
On December 23, 2008, the Company entered into a Securities Purchase Agreement (“Purchase Agreement”) with the United States Department of the Treasury (“UST”). Under the Purchase Agreement, the Company agreed to issue and sell 25,054 shares of Series A preferred stock and a warrant to purchase 357,234 shares of common stock associated with the Company s participation in the UST s Capital Purchase Program (“CPP”) under the Troubled Asset Relief Program (“TARP”). Proceeds from this issuance of preferred shares were allocated between preferred stock and the warrant based on their relative fair values at the time of the sale. Of the $25.1 million in proceeds, $24.4 million was allocated to the Series A preferred stock and $704,000 was allocated to the common stock warrant. The discount recorded on the preferred stock that resulted from allocating a portion of the proceeds to the warrant is being accreted directly to retained earnings over a five-year period applying a level yield. As of March 31, 2010, the Company has accreted a total of $161,000 of the discount related to the Series A preferred stock. The Company paid dividends of $313,000 on the Series A preferred stock during the first quarter of 2010. Cumulative undeclared dividends at March 31, 2010 were $157,000. The CPP, created by the UST, was a voluntary program in which selected, healthy financial institutions were encouraged to participate. Approved use of the funds includes providing credit to qualified borrowers, either as companies or individuals, among other things. Such participation is intended to support the economic development of the community and thereby restore the health of the local and national economy.Interest income decreased $651,000 or 5% for the three months ended March 31, 2010 compared with the same period in 2009. The decrease was primarily due to a reduction in net income associated with derivative instruments combined with a decrease in average loans. Net income from derivative instruments was $374,000 for the three months ended March 31, 2010 when compared to $1.1 million for the same period in 2009. The average yield on earning assets for the quarters ended March 31, 2010 and 2009 was 5.05% and 5.63%, respectively. During the quarter ended March 31, 2010, average loans decreased $3.8 million to $776.3 million from $780.1 million for the three months ended March 31, 2009. During the quarter ended March 31, 2010, average investment securities available-for-sale increased $58.5 million to $191.3 million from $132.8 million for the three months ended March 31, 2009 primarily due to securities purchased in 2009 to offset the cost of the Company s CPP dividend.
Non-Interest Income. Total non-interest income was $2.6 million for the first quarter of 2010 as compared to $2.2 million for the same period of 2009. Service charges increased 7% to $1.3 million for the three months ended March 31, 2010 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 increased to $602,000 for the three-month period ended March 31, 2010 as compared to $593,000 for the same period one year ago. Mortgage banking income decreased to $156,000 during the three months ended March 31, 2010 from $193,000 for the same period in 2009. Miscellaneous income was $413,000 for the three months ended March 31, 2010 as compared to $318,000 for the same period in 2009. Recurring non-interest income amounted to $2.8 million for the three months ended March 31, 2010, as compared to $2.6 million for the same period one year ago. Net non-recurring losses of $182,000 for the three months ended March 31, 2010 were primarily attributable to write-downs and losses on foreclosed property. Non-recurring losses of $463,000 for the three months ended March 31, 2009 included $215,000 in write-downs and losses on foreclosed property and a $248,000 write-down of an asset classified as other investments.
Non-Interest Expense. Total non-interest expense was $7.2 million for the first quarter of 2010 as compared to $7.3 million for the first quarter of 2009. Salary and employee benefits totaled $3.5 million for the three months ended March 31, 2010, as compared to $3.6 million for the same period in 2009. The decrease in salary and employee benefits is primarily due to a reduction in incentive compensation expense. Occupancy expense totaled $1.4 million for the quarters ended March 31, 2010 and 2009. Other non-interest expense decreased 4% to $2.3 million for the three months ended March 31, 2010 as compared to the same period in 2009. The decrease in other non-interest expense is primarily attributable to a decrease of $177,000 in FDIC insurance expense. FDIC insurance expense for the first quarter of 2009 included an accrual of $257,000 for the FDIC insurance special assessment paid September 30, 2009. No FDIC insurance special assessments are anticipated in 2010 at this time.
Loans. At March 31, 2010, loans amounted to $767.4 million compared to $778.1 million at December 31, 2009, a decrease of $10.7 million. This decrease reflects a decline in loan originations combined with continuing payments on existing loans. Loans originated or renewed during the three months ended March 31, 2010 amounting to approximately $16.0 million were offset by paydowns and payoffs of existing loans. The Bank has modified terms on mortgage loans totaling $4.9 million during the three months ended March 31, 2010. Average loans represented 79% and 82% of average earning assets for the three months ended March 31, 2010 and the year ended December 31, 2009, respectively. The Company had $2.0 million and $2.8 million in mortgage loans held for sale as of March 31, 2010 and December 31, 2009, respectively.
Although the Company has a diversified loan portfolio, a substantial portion of the loan portfolio is collateralized by real estate, which is dependent upon the real estate market. Real estate mortgage loans include both commercial and residential mortgage loans. At March 31, 2010, the Company had $115.7 million in residential mortgage loans, $99.8 million in home equity loans and $296.3 million in commercial mortgage loans, which include $228.3 million using commercial property as collateral and $68.1 million using residential property as collateral. At March 31, 2010, real estate construction loans included $95.9 million in speculative construction and development loans.
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