On July 22, 2024, Peoples Bancorp of North Carolina Inc (PEBK, Financial) released its 8-K filing detailing the financial results for the second quarter of 2024. Peoples Bancorp of North Carolina Inc is a bank holding company serving various regions in North Carolina, with a diversified loan portfolio and a primary income source from dividends declared and paid by the Bank on its capital stock.
Performance Overview
For the three months ended June 30, 2024, Peoples Bancorp of North Carolina Inc reported net earnings of $4.9 million, or $0.93 per share ($0.89 per diluted share), compared to $4.8 million, or $0.88 per share ($0.85 per diluted share) for the same period in 2023. The net interest margin decreased to 3.34% from 3.56% in the prior year period.
Year-to-Date Highlights
For the six months ended June 30, 2024, net earnings were $8.8 million, or $1.67 per share ($1.61 per diluted share), compared to $8.0 million, or $1.46 per share ($1.41 per diluted share) for the same period in 2023. Cash dividends were $0.54 per share, up from $0.53 per share in the prior year period.
Financial Achievements
Total loans increased to $1.11 billion as of June 30, 2024, from $1.09 billion at the end of 2023. Non-performing assets were $4.2 million, or 0.25% of total assets, compared to $3.9 million, or 0.24% of total assets, at the end of 2023. Total deposits rose to $1.48 billion from $1.39 billion over the same period, with core deposits making up 90.02% of total deposits.
Income Statement Insights
Net interest income for the three months ended June 30, 2024, was $13.4 million, down from $13.8 million in the prior year period. This decrease was due to a $2.8 million increase in interest expense, partially offset by a $2.5 million increase in interest income. Non-interest income rose to $7.5 million from $6.4 million, driven by higher appraisal management fee income and miscellaneous non-interest income.
Balance Sheet and Cash Flow
Total assets were $1.66 billion as of June 30, 2024, compared to $1.64 billion at the end of 2023. Available-for-sale securities were $393.3 million, up from $391.9 million. The allowance for credit losses on loans decreased to $10.0 million from $11.0 million, reflecting a reduction in reserves on construction loans.
Commentary
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."
Analysis
The performance of Peoples Bancorp of North Carolina Inc in the second quarter of 2024 highlights the company's ability to maintain profitability despite challenges such as a declining net interest margin. The increase in non-interest income and the strategic management of credit losses have contributed positively to the overall financial health of the company. However, the rising interest expense and non-interest expense indicate areas that require careful monitoring to sustain growth and profitability.
For more detailed insights and to view the full earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Peoples Bancorp of North Carolina Inc for further details.
