UNITED STATES
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SECURITIES AND EXCHANGE COMMISSION
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Washington, D.C. 20549
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______________________________
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FORM 8-K
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CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D)
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OF THE SECURITIES EXCHANGE ACT OF 1934
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Date of Report (Date of earliest event reported): April 25, 2011
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Peoples Bancorp of North Carolina, Inc.
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(Exact Name of Registrant as Specified in Its Charter)
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North Carolina
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(State or Other Jurisdiction of Incorporation)
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000-27205
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56-2132396
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(Commission File No.)
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(IRS Employer Identification No.)
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518 West C Street, Newton, North Carolina
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28658
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(Address of Principal Executive Offices)
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(Zip Code)
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(828) 464-5620
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(Registrant’s Telephone Number, Including Area Code)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Peoples Bancorp of North Carolina, Inc.
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INDEX
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Page
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Item 2.02 - Results of Operations and Financial Condition
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3
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Item 9.01 - Financial Statements and Exhibits
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3
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Signatures
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4
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Exhibit (99)(a) Press Release dated April 25, 2011
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5
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Item 2.02.
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Results of Operations and Financial Condition
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Item 9.01.
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Financial Statements and Exhibits
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(d)
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Exhibits
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(99)(a)
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Press release, dated April 25, 2011
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SIGNATURES
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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.
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PEOPLES BANCORP OF NORTH CAROLINA, INC.
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Date: April 25, 2011
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By:
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/s/ A. Joseph Lampron, Jr.
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A. Joseph Lampron, Jr.
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Executive Vice President and Chief Financial Officer
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EXHIBIT (99)(a)
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NEWS RELEASE
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April 25, 2011
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Contact:
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Tony W. Wolfe
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President and Chief Executive Officer
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A. Joseph Lampron, Jr.
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Executive Vice President and Chief Financial Officer
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828-464-5620, Fax 828-465-6780
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For Immediate Release
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PEOPLES BANCORP ANNOUNCES FIRST QUARTER EARNINGS RESULTS
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CONSOLIDATED BALANCE SHEETS
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March 31, 2011, December 31, 2010 and March 31, 2010
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(Dollars in thousands)
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March 31, 2011
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December 31, 2010
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March 31, 2010
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(Unaudited)
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(Unaudited)
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ASSETS:
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Cash and due from banks
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$ | 44,918 | $ | 22,521 | $ | 47,411 | |||
Interest bearing deposits
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1,335 | 1,456 | 2,631 | ||||||
Cash and cash equivalents
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46,253 | 23,977 | 50,042 | ||||||
Certificates of deposits
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735 | 735 | 2,136 | ||||||
Investment securities available for sale
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271,570 | 272,449 | 218,646 | ||||||
Other investments
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5,976 | 5,761 | 6,346 | ||||||
Total securities
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277,546 | 278,210 | 224,992 | ||||||
Mortgage loans held for sale
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2,415 | 3,814 | 1,999 | ||||||
Loans
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711,166 | 726,160 | 767,402 | ||||||
Less: Allowance for loan losses
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(15,410 | ) | (15,493 | ) | (16,756 | ) | |||
Net loans
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695,756 | 710,667 | 750,646 | ||||||
Premises and equipment, net
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17,155 | 17,334 | 17,527 | ||||||
Cash surrender value of life insurance
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7,599 | 7,539 | 7,346 | ||||||
Accrued interest receivable and other assets
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24,587 | 25,376 | 20,965 | ||||||
Total assets
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$ | 1,072,046 | $ | 1,067,652 | $ | 1,075,653 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY:
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Deposits:
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Non-interest bearing demand
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$ | 120,550 | $ | 114,792 | $ | 113,293 | |||
NOW, MMDA & Savings
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349,077 | 332,511 | 313,475 | ||||||
Time, $100,000 or more
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224,485 | 241,366 | 246,272 | ||||||
Other time
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144,868 | 150,043 | 164,833 | ||||||
Total deposits
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838,980 | 838,712 | 837,873 | ||||||
Demand notes payable to U.S. Treasury
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843 | 1,600 | 817 | ||||||
Securities sold under agreement to repurchase
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38,446 | 34,094 | 38,471 | ||||||
Short-term Federal Reserve Bank borrowings
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- | - | - | ||||||
FHLB borrowings
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70,000 | 70,000 | 72,000 | ||||||
Junior subordinated debentures
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20,619 | 20,619 | 20,619 | ||||||
Accrued interest payable and other liabilities
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5,957 | 5,769 | 5,738 | ||||||
Total liabilities
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974,845 | 970,794 | 975,518 | ||||||
Shareholders' equity:
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Series A preferred stock, $1,000 stated value; authorized
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5,000,000 shares; issued and outstanding
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25,054 shares in 2010 and 2009
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24,652 | 24,617 | 24,511 | ||||||
Common stock, no par value; authorized
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20,000,000 shares; issued and
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outstanding 5,542,703 shares in 2011
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and 5,541,413 shares in 2010
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48,289 | 48,281 | 48,269 | ||||||
Retained earnings
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24,475 | 23,573 | 23,989 | ||||||
Accumulated other comprehensive income
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(215 | ) | 387 | 3,366 | |||||
Total shareholders' equity
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97,201 | 96,858 | 100,135 | ||||||
Total liabilities and shareholders' equity
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$ | 1,072,046 | $ | 1,067,652 | $ | 1,075,653 |
CONSOLIDATED STATEMENTS OF INCOME
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For the three months ended March 31, 2011 and 2010
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(Dollars in thousands, except per share amounts)
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Three months ended
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March 31,
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2011
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2010
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(Unaudited)
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(Unaudited)
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INTEREST INCOME:
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Interest and fees on loans
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$ | 9,614 | $ | 10,091 | ||
Interest on investment securities:
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U.S. Government sponsored enterprises
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1,082 | 1,405 | ||||
States and political subdivisions
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805 | 402 | ||||
Other
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57 | 32 | ||||
Total interest income
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11,558 | 11,930 | ||||
INTEREST EXPENSE:
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NOW, MMDA & savings deposits
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717 | 866 | ||||
Time deposits
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1,404 | 1,876 | ||||
FHLB borrowings
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744 | 889 | ||||
Junior subordinated debentures
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100 | 97 | ||||
Other
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79 | 97 | ||||
Total interest expense
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3,044 | 3,825 | ||||
NET INTEREST INCOME
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8,513 | 8,105 | ||||
PROVISION FOR LOAN LOSSES
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2,950 | 2,382 | ||||
NET INTEREST INCOME AFTER
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PROVISION FOR LOAN LOSSES
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5,564 | 5,723 | ||||
NON-INTEREST INCOME:
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Service charges
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1,255 | 1,319 | ||||
Other service charges and fees
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582 | 602 | ||||
Gain on sale of securities
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1,075 | 22 | ||||
Mortgage banking income
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187 | 156 | ||||
Insurance and brokerage commission
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108 | 98 | ||||
Miscellaneous
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395 | 413 | ||||
Total non-interest income
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3,602 | 2,610 | ||||
NON-INTEREST EXPENSES:
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Salaries and employee benefits
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3,667 | 3,520 | ||||
Occupancy
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1,365 | 1,351 | ||||
Other
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2,368 | 2,318 | ||||
Total non-interest expense
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7,400 | 7,189 | ||||
EARNINGS BEFORE INCOME TAXES
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1,766 | 1,144 | ||||
INCOME TAXES
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405 | 269 | ||||
NET EARNINGS
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1,361 | 875 | ||||
Dividends and accretion on preferred stock
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348 | 348 | ||||
NET EARNINGS AVAILABLE TO
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COMMON SHAREHOLDERS
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$ | 1,013 | $ | 527 | ||
PER COMMON SHARE AMOUNTS
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Basic net earnings
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$ | 0.18 | $ | 0.10 | ||
Diluted net earnings
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$ | 0.18 | $ | 0.09 | ||
Cash dividends
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$ | 0.02 | $ | 0.02 | ||
Book value
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$ | 13.02 | $ | 13.55 |
FINANCIAL HIGHLIGHTS
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For the three months ended March 31, 2011 and 2010
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(Dollars in thousands)
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Three months ended
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March 31,
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2011
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2010
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(Unaudited)
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(Unaudited)
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SELECTED AVERAGE BALANCES:
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Available for sale securities
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$ | 268,218 | $ | 191,253 | |||
Loans
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721,717 | 776,269 | |||||
Earning assets
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1,011,055 | 981,252 | |||||
Assets
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1,068,523 | 1,059,904 | |||||
Deposits
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967,764 | 820,876 | |||||
Shareholders' equity
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97,593 | 100,482 | |||||
SELECTED KEY DATA:
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Net interest margin (tax equivalent)
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3.59% | 3.47% | |||||
Return of average assets
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0.52% | 0.33% | |||||
Return on average shareholders' equity
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5.66% | 3.53% | |||||
Shareholders' equity to total assets (period end)
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9.07% | 9.31% | |||||
ALLOWANCE FOR LOAN LOSSES:
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Balance, beginning of period
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$ | 15,493 | $ | 15,413 | |||
Provision for loan losses
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2,950 | 2,382 | |||||
Charge-offs
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(3,345 | ) | (1,132 | ) | |||
Recoveries
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312 | 93 | |||||
Balance, end of period
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$ | 15,410 | $ | 16,756 | |||
ASSET QUALITY:
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Non-accrual loans
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$ | 32,949 | $ | 26,376 | |||
90 days past due and still accruing
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185 | - | |||||
Other real estate owned
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6,358 | 4,399 | |||||
Total non-performing assets
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$ | 39,492 | $ | 30,775 | |||
Non-performing assets to total assets
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3.68% | 2.86% | |||||
Allowance for loan losses to non-performing assets
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39.02% | 54.45% | |||||
Allowance for loan losses to total loans
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2.17% | 2.18% |
LOAN RISK GRADE ANALYSIS:
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Percentage of Loans
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By Risk Grade*
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3/31/2011
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3/31/2010
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Risk Grade 1 (excellent quality)
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3.34% | 3.44% | ||
Risk Grade 2 (high quality)
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17.05% | 15.77% | ||
Risk Grade 3 (good quality)
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47.30% | 50.09% | ||
Risk Grade 4 (management attention)
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21.86% | 17.69% | ||
Risk Grade 5 (watch)
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2.89% | 6.95% | ||
Risk Grade 6 (substandard)
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2.65% | 2.32% | ||
Risk Grade 7 (low substandard)
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0.00% | 0.04% | ||
Risk Grade 8 (doubtful)
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0.00% | 0.00% | ||
Risk Grade 9 (loss)
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0.00% | 0.00% | ||
*Excludes non-accrual loans
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At March 31, 2011 there were five relationships exceeding $1.0 million (which totaled $8.3 million) in the Watch risk grade, six relationships exceeding $1.0 million in the Substandard risk grade (which totaled $11.3 million) and no relationships exceeding $1.0 million in the Low Substandard risk grade. These customers continue to meet payment requirements in accordance with the terms of the promissory notes on these loans.
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(END)
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