Peoples Bancorp Announces Fourth Quarter and Full Year 2024 Results

In This Article:

Peoples Bancorp of North Carolina, Inc. (NASDAQ:PEBK) (the "Company"), the parent company of Peoples Bank (the "Bank"), reported fourth quarter and full year 2024 results with highlights as follows:

Fourth quarter 2024 highlights:

  • Net earnings were $3.6 million or $0.67 per share and $0.65 per diluted share for the three months ended December 31, 2024, as compared to $3.4 million or $0.64 per share and $0.62 per diluted share for the same period one year ago.

  • Net interest margin was 3.39% for the three months ended December 31, 2024, compared to 3.32% for three months ended December 31, 2023.

Full year 2024 highlights:

  • Net earnings were $16.4 million or $3.08 per share and $2.98 per diluted share for the year ended December 31, 2024, compared to $15.5 million or $2.87 per share and $2.77 per diluted share for the year ended December 31, 2023.

  • Cash dividends were $0.92 per share for the year ended December 31, 2024, compared to $0.91 per share for the prior year period.

  • Total loans were $1.14 billion at December 31, 2024, compared to $1.09 billion at December 31, 2023.

  • Non-performing assets were $4.4 million or 0.27% of total assets at December 31, 2024, compared to $3.9 million or 0.24% of total assets at December 31, 2023.

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

  • Core deposits, a non-GAAP measure, were $1.34 billion or 90.17% of total deposits at December 31, 2024, compared to $1.24 billion or 89.30% of total deposits at December 31, 2023.

  • Net interest margin was 3.36% for the year ended December 31, 2024, compared to 3.51% for the year ended December 31, 2023.

Net earnings were $3.6 million or $0.67 per share and $0.65 per diluted share for the three months ended December 31, 2024, as compared to $3.4 million or $0.64 per share and $0.62 per diluted share for the prior year period. William D. Cable, Sr., President and Chief Executive Officer, attributed the increase in fourth quarter net earnings to an increase in net interest income, a decrease in the provision for credit losses and an increase in non-interest income, which was partially offset by an increase in non-interest expense, compared to the prior year period, as discussed below.

Net interest income was $13.8 million for the three months ended December 31, 2024, compared to $13.3 million for the three months ended December 31, 2023. The increase in net interest income is due to a $1.2 million increase in interest income, partially offset by a $690,000 increase in interest expense. The increase in interest income is primarily due to a $1.3 million increase in interest income and fees on loans and a $83,000 increase in interest income on investment securities, which were partially offset by a $154,000 decrease in interest income on balances due from banks. The increase in interest income and fees on loans is primarily due to an increase in total loans and rate increases implemented by the Federal Reserve between December 2022 and July 2023. The increase in interest income on investment securities is primarily due to increases in yields on variable rate securities and higher yields on securities held during the more recent reporting period. The decrease in interest income on balances due from banks is due to a reduction in balances outstanding and rate decreases implemented by the Federal Reserve since September 2024. The increase in interest expense is due to an increase in balances of interest-bearing liabilities and an increase in rates paid on interest-bearing liabilities. Net interest income after the provision for credit losses was $14.0 million for the three months ended December 31, 2024, compared to $12.9 million for the three months ended December 31, 2023. The provision for credit losses for the three months ended December 31, 2024 was a recovery of $205,000, compared to an expense of $405,000 for the three months ended December 31, 2023. The decrease in the provision for credit losses is primarily attributable to a $609,000 decrease in the reserve for losses associated with Hurricane Helene, which impacted western North Carolina in late September 2024. The reserve for losses associated with Hurricane Helene was $669,000 at September 30, 2024, compared to $60,000 at December 31, 2024. There were no losses associated with Hurricane Helene during the three months ended December 31, 2024. Minimal losses are expected as a result of Hurricane Helene.