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 21, 2014
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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 21, 2014
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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 21, 2014
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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 21, 2014
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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 21, 2014
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Contact:
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Lance A. Sellers
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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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·
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Net earnings were $2.6 million or $0.46 basic and diluted net earnings per share for the three months ended March 31, 2014, as compared to $1.8 million or $0.31 basic and diluted net earnings per share, before adjustment for preferred stock dividends and accretion, for the same period one year ago.
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Net earnings available to common shareholders were $2.6 million or $0.46 basic and diluted net earnings per common share for the three months ended March 31, 2014, as compared to $1.6 million or $0.29 basic and diluted net earnings per common share, for the same period one year ago.
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Earnings before securities gains and income taxes were $3.5 million for the three months ended March 31, 2014, compared to $2.0 million for the same period one year ago.
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Non-performing assets declined to $14.9 million or 1.4% of total assets at March 31, 2014, compared to $24.3 million or 2.4% of total assets at March 31, 2013.
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Core deposits were $694.2 million, or 85.6% of total deposits at March 31, 2014, compared to $656.0 million, or 83.7% of total deposits at March 31, 2013.
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CONSOLIDATED BALANCE SHEETS
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March 31, 2014, December 31, 2013 and March 31, 2013
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(Dollars in thousands)
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March 31, 2014
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December 31, 2013
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March 31, 2013
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(Unaudited)
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(Audited)
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(Unaudited)
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ASSETS:
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Cash and due from banks
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$ | 50,906 | $ | 49,902 | $ | 19,754 | |||
Interest bearing deposits
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28,006 | 26,871 | 52,624 | ||||||
Cash and cash equivalents
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78,912 | 76,773 | 72,378 | ||||||
Investment securities available for sale
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300,756 | 297,890 | 293,925 | ||||||
Other investments
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4,706 | 4,990 | 5,215 | ||||||
Total securities
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305,462 | 302,880 | 299,140 | ||||||
Mortgage loans held for sale
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635 | 497 | 3,834 | ||||||
Loans
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618,040 | 620,960 | 609,965 | ||||||
Less: Allowance for loan losses
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(12,978 | ) | (13,501 | ) | (14,412 | ) | |||
Net loans
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605,062 | 607,459 | 595,553 | ||||||
Premises and equipment, net
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16,419 | 16,358 | 16,616 | ||||||
Cash surrender value of life insurance
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13,809 | 13,706 | 13,379 | ||||||
Accrued interest receivable and other assets
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18,465 | 17,011 | 17,380 | ||||||
Total assets
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$ | 1,038,764 | $ | 1,034,684 | $ | 1,018,280 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY:
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Deposits:
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Non-interest bearing demand
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$ | 195,465 | $ | 195,265 | $ | 168,156 | |||
NOW, MMDA & savings
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399,847 | 386,893 | 378,755 | ||||||
Time, $100,000 or more
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116,200 | 115,268 | 127,772 | ||||||
Other time
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99,023 | 101,935 | 109,149 | ||||||
Total deposits
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810,535 | 799,361 | 783,832 | ||||||
Securities sold under agreements to repurchase
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43,319 | 45,396 | 37,388 | ||||||
FHLB borrowings
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65,000 | 65,000 | 70,000 | ||||||
Junior subordinated debentures
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20,619 | 20,619 | 20,619 | ||||||
Accrued interest payable and other liabilities
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10,880 | 20,589 | 8,163 | ||||||
Total liabilities
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950,353 | 950,965 | 920,002 | ||||||
Shareholders' equity:
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Series A preferred stock, $1,000 stated value; authorized
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5,000,000 shares; issued and outstanding
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12,524 shares at 3/31/13
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- | - | 12,524 | ||||||
Common stock, no par value; authorized
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20,000,000 shares; issued and outstanding
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5,613,495 shares at 3/31/14 and 12/31/13
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48,133 | 48,133 | 48,133 | ||||||
Retained earnings
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39,109 | 36,758 | 32,911 | ||||||
Accumulated other comprehensive income (loss)
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1,169 | (1,172 | ) | 4,710 | |||||
Total shareholders' equity
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88,411 | 83,719 | 98,278 | ||||||
Total liabilities and shareholders' equity
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$ | 1,038,764 | $ | 1,034,684 | $ | 1,018,280 |
CONSOLIDATED STATEMENTS OF INCOME
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For the three months ended March 31, 2014 and 2013
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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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2014
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2013
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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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$ | 7,401 | $ | 7,640 | |
Interest on due from banks
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12 | 12 | |||
Interest on investment securities:
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U.S. Government sponsored enterprises
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847 | 378 | |||
State and political subdivisions
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1,177 | 984 | |||
Other
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108 | 89 | |||
Total interest income
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9,545 | 9,103 | |||
INTEREST EXPENSE:
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NOW, MMDA & savings deposits
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126 | 218 | |||
Time deposits
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334 | 467 | |||
FHLB borrowings
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545 | 661 | |||
Junior subordinated debentures
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96 | 100 | |||
Other
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10 | 17 | |||
Total interest expense
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1,111 | 1,463 | |||
NET INTEREST INCOME
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8,434 | 7,640 | |||
PROVISION FOR LOAN LOSSES
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(349 | ) | 1,053 | ||
NET INTEREST INCOME AFTER
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PROVISION FOR LOAN LOSSES
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8,783 | 6,587 | |||
NON-INTEREST INCOME:
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Service charges
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1,129 | 1,039 | |||
Other service charges and fees
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419 | 373 | |||
Gain on sale of securities
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26 | 263 | |||
Mortgage banking income
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104 | 384 | |||
Insurance and brokerage commissions
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198 | 139 | |||
Miscellaneous
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965 | 1,229 | |||
Total non-interest income
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2,841 | 3,427 | |||
NON-INTEREST EXPENSES:
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Salaries and employee benefits
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4,276 | 4,190 | |||
Occupancy
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1,521 | 1,312 | |||
Other
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2,326 | 2,236 | |||
Total non-interest expense
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8,123 | 7,738 | |||
EARNINGS BEFORE INCOME TAXES
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3,501 | 2,276 | |||
INCOME TAXES
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923 | 518 | |||
NET EARNINGS
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2,578 | 1,758 | |||
Dividends and accretion on preferred stock
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- | 157 | |||
NET EARNINGS AVAILABLE TO
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COMMON SHAREHOLDERS
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$ | 2,578 | $ | 1,601 | |
PER COMMON SHARE AMOUNTS
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Basic net earnings
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$ | 0.46 | $ | 0.29 | |
Diluted net earnings
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$ | 0.46 | $ | 0.29 | |
Cash dividends
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$ | 0.04 | $ | 0.03 | |
Book value
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$ | 15.75 | $ | 15.28 |
FINANCIAL HIGHLIGHTS
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For the three months ended March 31, 2014 and 2013
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(Dollars in thousands)
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Three months ended
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March 31,
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2014
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2013
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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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$ | 299,017 | $ | 286,527 | ||
Loans
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617,461 | 621,077 | ||||
Earning assets
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942,723 | 936,820 | ||||
Assets
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1,019,275 | 1,004,257 | ||||
Deposits
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798,297 | 738,222 | ||||
Shareholders' equity
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87,712 | 99,381 | ||||
SELECTED KEY DATA:
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Net interest margin (tax equivalent)
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3.88% | 3.52% | ||||
Return on average assets
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1.03% | 0.71% | ||||
Return on average shareholders' equity
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11.92% | 7.17% | ||||
Shareholders' equity to total assets (period end)
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8.51% | 9.65% | ||||
ALLOWANCE FOR LOAN LOSSES:
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Balance, beginning of period
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$ | 13,501 | $ | 14,423 | ||
Provision for loan losses
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(349 | ) | 1,057 | |||
Charge-offs
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(575 | ) | (1,181 | ) | ||
Recoveries
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401 | 113 | ||||
Balance, end of period
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$ | 12,978 | $ | 14,412 | ||
ASSET QUALITY:
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Non-accrual loans
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$ | 11,568 | $ | 19,667 | ||
90 days past due and still accruing
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60 | 50 | ||||
Other real estate owned
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3,282 | 4,588 | ||||
Repossessed assets
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- | 12 | ||||
Total non-performing assets
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$ | 14,910 | $ | 24,317 | ||
Non-performing assets to total assets
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1.44% | 2.39% | ||||
Allowance for loan losses to non-performing assets
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87.04% | 59.27% | ||||
Allowance for loan losses to total loans
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2.10% | 2.36% |
LOAN RISK GRADE ANALYSIS:
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Percentage of Loans
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By Risk Grade
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03/31/2014
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03/31/2013
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Risk Grade 1 (excellent quality)
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2.32% | 2.86% | |
Risk Grade 2 (high quality)
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19.32% | 17.32% | |
Risk Grade 3 (good quality)
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48.80% | 48.29% | |
Risk Grade 4 (management attention)
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18.55% | 19.00% | |
Risk Grade 5 (watch)
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5.72% | 5.41% | |
Risk Grade 6 (substandard)
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5.00% | 6.80% | |
Risk Grade 7 (doubtful)
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0.00% | 0.00% | |
Risk Grade 8 (loss)
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0.00% | 0.00% | |
At March 31, 2014, including non-accrual loans, there were six relationships exceeding $1.0 million in the Watch risk grade (which totaled $15.9 million) and four relationships exceeding $1.0 million in the Substandard risk grade (which totaled $10.2 million).
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(END)
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