-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UPAlhK1f/n4E8e+O7wn8CmXxdWhHw0KU7VmNKFt21CTq0+t3YJ/3tWquobgJHMV3 Jjvx1YxGMHRnePrD3aEcOA== 0001015402-03-001357.txt : 20030424 0001015402-03-001357.hdr.sgml : 20030424 20030424090751 ACCESSION NUMBER: 0001015402-03-001357 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030421 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030424 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PEOPLES BANCORP OF NORTH CAROLINA INC CENTRAL INDEX KEY: 0001093672 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 562132396 STATE OF INCORPORATION: NC FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-27205 FILM NUMBER: 03661160 BUSINESS ADDRESS: STREET 1: 218 SOUTH MAIN STREET CITY: NEWTON STATE: NC ZIP: 28658 BUSINESS PHONE: 8284645620 MAIL ADDRESS: STREET 1: 218 SOUTH MAIN STREET CITY: NEWTON STATE: NC ZIP: 28658 8-K 1 doc1.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ______________ FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (date of earliest event reported): APRIL 21, 2003 PEOPLES BANCORP OF NORTH CAROLINA, INC. -------------------------------------------- (Exact Name of Registrant as Specified in Its Charter) NORTH CAROLINA 000-27205 56-2132396 -------------- --------- ---------- (State or Other Jurisdiction (Commission File No.) (IRS Employer of Incorporation) Identification No.) 518 WEST C STREET NEWTON, NORTH CAROLINA 28658 ------------------------ ----- (Address of Principal Executive Offices) (Zip Code) (828) 464-5620 --------------- (Registrant's Telephone Number, Including Area Code) Peoples Bancorp of North Carolina, Inc. INDEX ----- Page ---- Item 7 - Financial Statements and Exhibits 3 Item 9 - Regulation FD Disclosure (disclosure pursuant to Item 12, 3 Results of Operations and Financial Condition) Signatures 4 Exhibit 99(a) Press Release dated April 21, 2003 5 2 ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits (99)(a) Press Release, dated April 21, 2003 ITEM 9. REGULATION FD DISCLOSURE (disclosing information pursuant to Item 12, Results of Operations and Financial Condition) (a) On April 21, 2003, Peoples Bancorp of North Carolina, Inc. issued a press release announcing first quarter earnings. A copy of the press release is attached hereto as Exhibit (99)(a) and is incorporated by reference herein. DISCLOSURE ABOUT FORWARD-LOOKING STATEMENTS This Form 8-K contains forward-looking statements. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that might cause such a difference include, but are not limited to, changes in interest rate environment, management's business strategy, national, regional, and local market conditions and legislative and regulatory conditions. Readers should not place undue reliance on forward-looking statements, which reflect management's view only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances. Readers should also carefully review the risk factors described in other documents the Company files from time to time with the Securities and Exchange Commission. 3 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. PEOPLES BANCORP OF NORTH CAROLINA, INC. Date: April 24, 2003 By: /s/ A. Joseph Lampron ----------------------------------- A. Joseph Lampron Executive Vice President and Chief Financial Officer 4 EX-99.(A) 3 doc2.txt EXHIBIT (99) (a) NEWS RELEASE APRIL 21, 2003 CONTACT: TONY W. WOLFE PRESIDENT AND CHIEF EXECUTIVE OFFICER A. JOSEPH LAMPRON EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER 828-464-5620, FAX 828-465-6780 FOR IMMEDIATE RELEASE - --------------------- PEOPLES BANCORP ANNOUNCES FIRST QUARTER EARNINGS RESULTS -------------------------------------------------------- Peoples Bancorp of North Carolina, Inc., the parent company of Peoples Bank, reported first quarter 2003 net income of $1,418,088, or $.45 basic and diluted net income per share for the three months ended March 31, 2003. Net income from recurring operations for the three months ended March 31, 2003 was $1,124,228, or $.36 basic and diluted net income per share, representing a 27% increase over first quarter 2002 net income from recurring operations of $885,876 or $.28 basic and diluted net income per share. Non-recurring income in 2003 amounted to $293,860, net of income tax expense, associated with the sale of the Bank's $3.7 million credit card portfolio. The Company did not have any non-recurring income in first quarter 2002. Tony W. Wolfe, President and Chief Executive Officer, attributed the increase in first quarter recurring earnings primarily to increased net interest income, which was only partially offset by increased provision for loan losses and non-interest expense. Net interest income increased 22% to $5,456,163 for the three months ended March 31, 2003 compared to $4,481,642 for the same period one year ago. The provision for loan losses for the three months ended March 31, 2003 was $793,000 as compared to $500,000 in first quarter 2002. Non-interest expense increased 6% to $4,446,933 for the three months ended March 31, 2003, as compared to $4,214,709 for the same period last year. Excluding non-recurring income associated with the sale of the Bank's credit card portfolio, non-interest income for the three months ended March 31, 2003 decreased 1% to $1,505,599, as compared to $1,523,943 for the same period last year. Total assets as of March 31, 2003 amounted to $661,332,076, an increase of 6% compared to total assets of $623,283,974 at March 31, 2002. This increase is primarily attributable to an increase in loans, which was partially offset by a decrease in available-for-sale securities. Loans increased 7% to $528,866,443 as of March 31, 2003 compared to $495,224,705 as of March 31, 2002. Non-performing assets totaled $9,570,350 at March 31, 2003 or 1.45% of total assets, compared to $4,645,074 at March 31, 2002 or .75% of total assets. The allowance for loan losses at March 31, 2003 amounted to $7,606,124 or 1.44% of total loans compared to $6,481,894 or 1.31% of total loans at March 31, 2002. PEOPLES BANCORP ANNOUNCES FIRST QUARTER EARNINGS RESULTS- PAGE TWO - -------------------------------------------------------------------------- Deposits amounted to $536,744,370 as of March 31, 2003, representing an increase of 8% over deposits of $498,473,528 at March 31, 2002. Shareholders' equity increased to $49,695,543, or 7.51% of total assets, at March 31, 2003 as compared to $44,710,147, or 7.17% of total assets, at March 31, 2002. Peoples Bank operates eleven offices throughout Catawba County, North Carolina, one office in Alexander County, North Carolina and three offices in Lincoln County, North Carolina. The Company's common stock is publicly traded over the counter and is quoted on the Nasdaq National Market under the symbol "PEBK." Scott and Stringfellow, Inc., Ryan, Beck & Co., Sterne Agee & Leach, Inc. and Trident Securities, Inc. are market makers for the Company's shares. (TABLES FOLLOW) STATEMENTS MADE IN THIS PRESS RELEASE, OTHER THAN THOSE CONCERNING HISTORICAL INFORMATION, SHOULD BE CONSIDERED FORWARD-LOOKING STATEMENTS PURSUANT TO THE SAFE HARBOR PROVISIONS OF THE SECURITIES EXCHANGE ACT OF 1934 AND THE PRIVATE SECURITIES LITIGATION ACT OF 1995. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON INFORMATION CURRENTLY AVAILABLE TO MANAGEMENT AND ARE SUBJECT TO VARIOUS RISKS AND UNCERTAINTIES, INCLUDING BUT NOT LIMITED TO THOSE DESCRIBED IN PEOPLES BANCORP OF NORTH CAROLINA, INC.'S ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2002, UNDER "GENERAL DESCRIPTION OF BUSINESS" AND OTHERWISE IN THE COMPANY'S REPORTS AND FILINGS.
PEOPLES BANCORP ANNOUNCES FIRST QUARTER EARNINGS RESULTS - PAGE THREE - --------------------------------------------------------------------- CONSOLIDATED BALANCE SHEETS March 31, 2003, December 31, 2002 and March 31, 2002 =============================================================================================================== MARCH 31, 2003 December 31, 2002 March 31, 2002 ---------------- ------------------- ---------------- (Unaudited) (Unaudited) ASSETS: Cash and due from banks $ 15,596,019 $ 13,803,665 $ 10,765,832 Federal funds sold 15,144,000 1,774,000 9,329,000 ---------------- ------------------- ---------------- Cash and cash equivalents 30,740,019 15,577,665 20,094,832 Investment securities available for sale 70,555,422 71,735,705 79,833,431 Other investments 4,271,973 4,345,573 4,902,773 ---------------- ------------------- ---------------- Total securities 74,827,395 76,081,278 84,736,204 Loans 528,866,443 526,369,746 495,224,705 Mortgage loans held for sale 5,786,084 5,064,635 3,881,823 Less: Allowance for loan losses (7,606,124) (7,247,906) (6,481,894) ---------------- ------------------- ---------------- Net loans 527,046,403 524,186,475 492,624,633 Premises and equipment, net 15,224,207 15,620,977 14,679,262 Accrued interest receivable and other assets 13,494,052 13,275,143 11,149,043 ---------------- ------------------- ---------------- Total assets $ 661,332,076 $ 644,741,538 $ 623,283,974 ================ =================== ================ LIABILITIES AND SHAREHOLDERS' EQUITY: Deposits: Non-interest bearing demand 69,411,825 $ 67,398,458 $ 59,919,920 NOW, MMDA & Savings 152,260,665 156,554,189 149,289,823 Time, $100,000 or more 180,963,909 160,836,596 162,755,529 Other time 134,107,971 130,949,712 126,508,256 ---------------- ------------------- ---------------- Total deposits 536,744,370 515,738,955 498,473,528 Demand notes payable to U.S. Treasury 537,019 1,600,000 1,600,000 FHLB borrowings 58,000,000 63,071,429 62,142,857 Trust preferred securities 14,000,000 14,000,000 14,000,000 Accrued interest payable and other liabilities 2,355,144 1,726,421 2,357,442 ---------------- ------------------- ---------------- Total liabilities 611,636,533 596,136,805 578,573,827 ---------------- ------------------- ---------------- 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 3,133,547 shares in 2003 and 3,145,547 shares in 2002 35,097,773 35,097,773 35,265,773 Retained earnings 13,199,096 12,094,363 10,486,737 Accumulated other comprehensive income 1,398,674 1,412,597 (1,042,363) ---------------- ------------------- ---------------- Total shareholders' equity 49,695,543 48,604,733 44,710,147 ---------------- ------------------- ---------------- Total liabilities and shareholders' equity $ 661,332,076 $ 644,741,538 $ 623,283,974 ================ =================== ================ MEMORANDUM: LETTERS OF CREDIT $ 1,954,050 $ 2,061,103 $ 1,497,087 ================ =================== ================
PEOPLES BANCORP ANNOUNCES FIRST QUARTER EARNINGS RESULTS - PAGE FOUR - --------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF INCOME For the three months March 31, 2003 and 2002 ================================================================================ THREE MONTHS ENDED MARCH 31, 2003 2002 ------------ ----------- (UNAUDITED) (UNAUDITED) INTEREST INCOME: Interest and fees on loans $ 7,783,423 $7,815,535 Interest on federal funds sold 16,929 10,748 Interest on investment securities: U.S. Government agencies 635,126 700,696 States and political subdivisions 149,661 440,443 Other 108,967 121,732 ------------ ---------- Total interest income 8,694,106 9,089,154 INTEREST EXPENSE: NOW, MMDA & Savings deposits 306,760 510,353 Time deposits 2,102,756 3,218,866 FHLB borrowings 659,941 684,909 Trust preferred securities 166,250 183,750 Other 2,236 9,634 ------------ ---------- Total interest expense 3,237,943 4,607,512 ------------ ---------- NET INTEREST INCOME 5,456,163 4,481,642 PROVISION FOR LOAN LOSSES 793,000 500,000 ------------ ---------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 4,663,163 3,981,642 OTHER INCOME: Service charges 772,151 660,496 Other service charges and fees 159,438 162,868 Gain (loss) on sale of securities - - Mortgage banking income 190,357 229,954 Insurance and brokerage commission 96,961 119,628 Miscellaneous 765,451 350,997 ------------ ---------- Total other income 1,984,358 1,523,943 ------------ ---------- OTHER EXPENSES: Salaries and employee benefits 2,563,794 2,437,002 Occupancy 834,889 759,342 Other 1,048,250 1,018,365 ------------ ---------- Total other expenses 4,446,933 4,214,709 ------------ ---------- INCOME BEFORE INCOME TAXES 2,200,588 1,290,876 INCOME TAXES 782,500 405,000 ------------ ---------- NET INCOME $ 1,418,088 $ 885,876 ============ ========== PER SHARE AMOUNTS Basic net income $ 0.45 $ 0.28 Diluted net income $ 0.45 $ 0.28 Cash dividends $ 0.10 $ 0.10 Book value $ 15.86 $ 14.21
PEOPLES BANCORP ANNOUNCES FIRST QUARTER EARNINGS RESULTS - PAGE FIVE - --------------------------------------------------------------------
FINANCIAL HIGHLIGHTS For the three months ended March 31, 2003 and 2002 ======================================================================================= THREE MONTHS ENDED MARCH 31, 2003 2002 ---------------------------- (UNAUDITED) (Unaudited) SELECTED AVERAGE BALANCES: Available for Sale Securities $ 69,086,484 $ 83,509,158 Loans 533,157,212 497,998,781 Earning Assets 613,036,913 589,350,082 Assets 650,176,427 620,338,028 Deposits 519,362,374 489,450,074 Shareholders' Equity 49,957,890 46,183,131 SELECTED KEY DATA: Net Interest Margin (tax equivalent) 3.66% 3.15% Return on Average Assets 0.88% 0.58% Return on Average Shareholders' Equity 11.51% 7.78% Shareholders' Equity to Total Assets (Period End) 7.51% 7.17% ALLOWANCE FOR LOAN LOSSES: Balance, beginning of period $ 7,247,906 $ 6,090,570 Provision for loan losses 793,000 500,000 Charge-offs (483,696) (153,956) Recoveries 48,914 45,280 ------------- ------------- Balance, end of period $ 7,606,124 $ 6,481,894 ============= ============= ASSET QUALITY: Non-accrual Loans $ 7,441,918 $ 4,471,863 90 Days Past Due and still accruing 334,570 78,856 Other Real Estate Owned 272,209 85,555 Repossessed Assets 1,521,653 8,800 ------------- ------------- Total Non-performing Assets $ 9,570,350 $ 4,645,074 ============= ============= Non-performing Assets to Total Assets 1.45% 0.75% Allowance for Loan Losses to Non-performing Assets 79.48% 139.54% Allowance for Loan Losses to Total Loans 1.44% 1.31%
LOAN RISK GRADE ANALYSIS: PERCENTAGE OF LOANS GENERAL RESERVE BY RISK GRADE PERCENTAGE ---------------------------------------------- 3/31/2003 3/31/2002 3/31/2003 3/31/2002 ---------- ---------- ---------- ---------- Risk 1 (Excellent Quality) 9.30% 8.67% 0.15% 0.15% Risk 2 (High Quality) 31.65% 40.28% 0.50% 0.50% Risk 3 (Good Quality) 47.62% 43.54% 1.00% 1.00% Risk 4 (Management Attention) 5.40% 4.91% 2.50% 2.50% Risk 5 (Watch) 3.22% 0.92% 7.00% 7.00% Risk 6 (Substandard) 1.29% 0.75% 12.00% 12.00% Risk 7 (Low Substandard) 0.11% 0.02% 25.00% 25.00% Risk 8 (Doubtful) 0.00% 0.00% 50.00% 50.00% Risk 9 (Loss) 0.00% 0.00% 100.00% 100.00%
At March 31, 2003 there were four relationships exceeding $1 million each (which totaled $10.9 million) in the Watch risk grade and two relationships exceeding $1 million each (which totaled $4.9 million) in the Substandard risk grade. Balances of individual relationships exceeding $1 million in these risk grades ranged from $1.6 million to $3.9 million. If current operating conditions for these customers remain stable, it is not expected that any of the relationships with balances exceeding $1 million will become non-performing assets within the next three to six months. If unforeseen events were to occur, it is possible that the viability of one or more of these customers could require the reclassification of their loans to non-accrual. (END) -----END PRIVACY-ENHANCED MESSAGE-----