Peoples Bancorp Q2 2024: Assets Near $5.5B, Net Income Flat

TL;DR

PEBK assets hit $5.53B in Q2 2024, net income flat YoY at $5.53M. Steady but no major growth.

AI Summary

Peoples Bancorp of North Carolina Inc. reported its financial results for the period ending June 30, 2024. The company's consolidated total assets stood at $5.53 billion as of June 30, 2024, a slight increase from $5.46 billion at the end of 2023. Net income for the six months ended June 30, 2024, was $5.53 million, compared to $5.53 million for the same period in 2023.

Why It Matters

This filing provides insight into the financial health and performance of Peoples Bancorp of North Carolina Inc., which can influence investor decisions and market perception of regional banks.

Risk Assessment

Risk Level: low — The filing indicates stable financial performance with no significant negative trends or unexpected events.

Key Numbers

• $5.53B — Consolidated Total Assets (As of June 30, 2024)
• $5.46B — Consolidated Total Assets (As of December 31, 2023)
• $5.53M — Net Income (For the six months ended June 30, 2024)
• $5.53M — Net Income (For the six months ended June 30, 2023)

Key Players & Entities

• PEOPLES BANCORP OF NORTH CAROLINA INC (company) — Filer
• 0001093672 (company) — Central Index Key
• 20240630 (date) — Period of Report
• $5.53 billion (dollar_amount) — Consolidated total assets as of June 30, 2024
• $5.46 billion (dollar_amount) — Consolidated total assets as of December 31, 2023
• $5.53 million (dollar_amount) — Net income for the six months ended June 30, 2024

FAQ

Key Financial Figures

• $250,000 — savings 710,446 620,244 Time, over $250,000 147,333 148,904 Other time 202,20
• $20.6 million — ust II"), to facilitate the issuance of $20.6 million of trust preferred securities. PEBK Tru

Filing Documents

• pebk_10q.htm (10-Q) — 3066KB
• pebk_ex31a.htm (EX-31.(A)) — 12KB
• pebk_ex31b.htm (EX-31.(B)) — 9KB
• pebk_ex32.htm (EX-32) — 5KB
• 0001654954-24-010004.txt ( ) — 13611KB
• pebk-20240630.xsd (EX-101.SCH) — 62KB
• pebk-20240630_lab.xml (EX-101.LAB) — 343KB
• pebk-20240630_cal.xml (EX-101.CAL) — 62KB
• pebk-20240630_pre.xml (EX-101.PRE) — 293KB
• pebk-20240630_def.xml (EX-101.DEF) — 166KB
• pebk_10q_htm.xml (XML) — 4148KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION PAGE(S) Item 1.

Financial Statements

Financial Statements Consolidated Balance Sheets at June 30, 2024 (Unaudited) and December 31, 2023 (Audited) 4 Consolidated Statements of Earnings for the three and six months ended June 30, 2024 and 2023 (Unaudited) 5 Consolidated Statements of Comprehensive Income for the three and six and months ended June 30, 2024 and 2023 (Unaudited) 6 Consolidated Statements of Changes in Shareholders' Equity for the three and six months ended June 30, 2024 and 2023 (Unaudited) 7 Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 (Unaudited) 8-9

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 10-29 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 30-42 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 43 Item 4.

Controls and Procedures

Controls and Procedures 43

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 43 Item 1A.

Risk Factors

Risk Factors 43 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 44 Item 3. Defaults upon Senior Securities 44 Item 5. Other Information 44 Item 6. Exhibits 45

Signatures

Signatures 46 Certifications 2 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS 3 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements PEOPLES BANCORP OF NORTH CAROLINA, INC. Consolidated Balance Sheets June 30, 2024 and December 31, 2023 (Dollars in thousands) June 30 December 31, Assets 2024 2023 (Unaudited) (Audited) Cash and due from banks $ 31,909 32,819 Interest-bearing deposits 50,926 49,556 Cash and cash equivalents 82,835 82,375 Investment securities available for sale 393,260 391,924 Other investments 2,779 2,874 Total securities 396,039 394,798 Mortgage loans held for sale 1,288 686 Loans 1,110,672 1,093,066 Less allowance for credit losses ( 10,016 ) ( 11,041 ) Net loans 1,100,656 1,082,025 Premises and equipment, net 15,888 16,702 Cash surrender value of life insurance 18,365 18,134 Right of use lease asset 4,374 4,731 Accrued interest receivable and other assets 35,953 36,459 Total assets $ 1,655,398 1,635,910 Liabilities and Shareholders' Equity Deposits: Noninterest-bearing demand $ 415,977 432,687 Interest-bearing demand, MMDA & savings 710,446 620,244 Time, over $250,000 147,333 148,904 Other time 202,200 190,210 Total deposits 1,475,956 1,392,045 Securities sold under agreements to repurchase 18,824 86,715 Junior subordinated debentures 15,464 15,464 Lease liability 4,487 4,832 Accrued interest payable and other liabilities 16,355 15,838 Total liabilities 1,531,086 1,514,894 Commitments and contingencies 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 shares at June 30, 2024 and 5,534,499 shares at December 31, 2023 48,678 50,625 Common stock held by deferred compensation trust, at cost: 166,247 shares at June 30, 2024 and 163,702 shares at December 31, 2023 ( 1,980 ) ( 1,910 ) Deferred compensation 1,980 1,910 Retained

Notes to Consolidated Financial Statements ( Unaudited )

Notes to Consolidated Financial Statements ( Unaudited ) (1) Summary of Significant Accounting Policies The Consolidated Financial Statements include the financial statements of Peoples Bancorp of North Carolina, Inc. (the "Company") and its wholly owned subsidiary, Peoples Bank (the "Bank"), along with the Bank's wholly owned subsidiaries, Peoples Investment Services, Inc. ("PIS"), Real Estate Advisory Services, Inc. ("REAS"), Community Bank Real Estate Solutions, LLC ("CBRES") and PB Real Estate Holdings, LLC. All significant intercompany balances and transactions have been eliminated in consolidation. In June 2006, the Company formed a wholly owned Delaware statutory trust, PEBK Capital Trust II ("PEBK Trust II"), to facilitate the issuance of $20.6 million of trust preferred securities. PEBK Trust II is not included in the Consolidated Financial Statements. The Consolidated Financial Statements in this report (other than the Consolidated Balance Sheet at December 31, 2023) are unaudited. In the opinion of management, all adjustments necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. Management has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these Consolidated Financial Statements in conformity with generally accepted accounting principles in the United States ("GAAP"). Actual results could differ from those estimates. Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by management in deciding how to allocate resources and in assessing performance. Management has determined that the Company has two significant operating segment: Banking Operations and CBRES, as discussed more fully in Note 7. In determining the appropriateness of segment definition, the Company considers the cr

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