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, 2016
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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, 2016
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5
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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, 2016
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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 26, 2016
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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, 2015
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Contact: | Lance A. Sellers |
·
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Net earnings were $2.5 million or $0.45 basic net earnings per share and $0.44 diluted net earnings per share for the three months ended March 31, 2016, as compared to $2.3 million or $0.41 basic and diluted net earnings per share for the same period one year ago.
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·
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Average outstanding principal balance of loans increased $37.1 million to $691.8 million for the three months ended March 31, 2016 compared to $654.7 million for the three months ended March 31, 2015.
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·
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Non-performing assets declined to $8.5 million or 0.79% of total assets at March 31, 2016, compared to $12.4 million or 1.2% of total assets at March 31, 2015.
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·
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Total loans increased $32.5 million to $693.0 million at March 31, 2016, compared to $660.5 million at March 31, 2015.
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·
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Core deposits were $821.6 million or 96.3% of total deposits at March 31, 2016, compared to $786.2 million or 94.7% of total deposits at March 31, 2015.
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CONSOLIDATED BALANCE SHEETS
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March 31, 2016, December 31, 2015 and March 31, 2015
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(Dollars in thousands)
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March 31, 2016
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December 31, 2015
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March 31, 2015
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(Unaudited)
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(Audited)
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(Unaudited)
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ASSETS:
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Cash and due from banks
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$
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45,566
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$
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29,194
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$
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47,730
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Interest-bearing deposits
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30,826
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10,569
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19,783
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Cash and cash equivalents
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76,392
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39,763
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67,513
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Investment securities available for sale
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264,092
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268,530
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282,575
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Other investments
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3,633
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3,636
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3,912
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Total securities
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267,725
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272,166
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286,487
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Mortgage loans held for sale
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996
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4,149
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806
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Loans
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693,033
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689,091
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660,477
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Less: Allowance for loan losses
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(9,116
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)
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(9,589
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)
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(10,843
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)
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Net loans
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683,917
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679,502
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649,634
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Premises and equipment, net
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16,408
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16,976
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16,745
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Cash surrender value of life insurance
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14,652
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14,546
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14,229
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Accrued interest receivable and other assets
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10,254
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11,379
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14,041
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Total assets
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$
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1,070,344
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$
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1,038,481
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$
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1,049,455
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LIABILITIES AND SHAREHOLDERS' EQUITY:
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Deposits:
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Noninterest-bearing demand
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$
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246,677
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$
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244,231
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$
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217,603
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NOW, MMDA & savings
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452,158
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431,052
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432,541
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Time, $250,000 or more
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26,352
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26,891
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36,237
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Other time
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127,930
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130,001
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143,579
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Total deposits
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853,117
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832,175
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829,960
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Securities sold under agreements to repurchase
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36,056
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27,874
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38,702
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FHLB borrowings
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43,500
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43,500
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50,000
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Junior subordinated debentures
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20,619
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20,619
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20,619
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Accrued interest payable and other liabilities
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9,292
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9,449
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8,660
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Total liabilities
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962,584
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933,617
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947,941
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Shareholders' equity:
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Series A preferred stock, $1,000 stated value; authorized
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5,000,000 shares; no shares issued and outstanding
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-
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-
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-
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Common stock, no par value; authorized
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20,000,000 shares; issued and outstanding
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5,510,538 shares at 3/31/16 and 12/31/15;
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5,612,588 shares at 3/31/15
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46,171
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46,171
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48,088
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Retained earnings
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55,189
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53,183
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47,110
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Accumulated other comprehensive income
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6,400
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5,510
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6,316
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Total shareholders' equity
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107,760
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104,864
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101,514
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Total liabilities and shareholders' equity
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$
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1,070,344
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$
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1,038,481
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$
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1,049,455
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CONSOLIDATED STATEMENTS OF INCOME
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For the three months ended March 31, 2016 and 2015
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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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2016
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2015
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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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$
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8,023
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$
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7,593
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Interest on due from banks
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17
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10
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Interest on investment securities:
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U.S. Government sponsored enterprises
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658
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713
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State and political subdivisions
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1,127
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1,163
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Other
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80
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88
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Total interest income
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9,905
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9,567
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INTEREST EXPENSE:
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NOW, MMDA & savings deposits
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120
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111
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Time deposits
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162
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247
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FHLB borrowings
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406
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418
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Junior subordinated debentures
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113
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97
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Other
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8
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11
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Total interest expense
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809
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884
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NET INTEREST INCOME
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9,096
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8,683
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PROVISION FOR (REDUCTION OF PROVISION
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FOR) LOAN LOSSES
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(216
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173
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NET INTEREST INCOME AFTER
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PROVISION FOR LOAN LOSSES
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9,312
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8,510
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NON-INTEREST INCOME:
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Service charges
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1,041
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1,134
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Other service charges and fees
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334
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355
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Mortgage banking income
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369
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239
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Insurance and brokerage commissions
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158
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161
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Miscellaneous
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1,422
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1,356
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Total non-interest income
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3,324
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3,245
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NON-INTEREST EXPENSES:
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Salaries and employee benefits
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4,581
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4,801
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Occupancy
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1,754
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1,483
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Other
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3,157
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2,464
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Total non-interest expense
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9,492
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8,748
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EARNINGS BEFORE INCOME TAXES
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3,144
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3,007
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INCOME TAXES
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691
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679
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NET EARNINGS
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$
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2,453
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$
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2,328
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PER SHARE AMOUNTS
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Basic net earnings
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$
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0.45
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$
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0.41
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Diluted net earnings
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$
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0.44
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$
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0.41
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Cash dividends
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$
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0.08
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$
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0.06
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Book value
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$
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19.56
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$
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18.09
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FINANCIAL HIGHLIGHTS | ||||||||
For the three months ended March 31, 2016 and 2015 | ||||||||
(Dollars in thousands) | ||||||||
Three months ended
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March 31,
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2016
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2015
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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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$
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256,922
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$
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272,111
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Loans
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691,834
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654,728
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Earning assets
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967,945
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948,279
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Assets
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1,047,013
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1,036,299
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Deposits
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838,986
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819,654
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Shareholders' equity
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108,038
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101,328
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SELECTED KEY DATA:
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Net interest margin (tax equivalent)
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4.02
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%
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3.97
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%
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Return on average assets
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0.94
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%
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0.91
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%
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Return on average shareholders' equity
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9.13
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%
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9.32
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%
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Shareholders' equity to total assets (period end)
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10.07
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%
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9.67
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%
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ALLOWANCE FOR LOAN LOSSES:
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Balance, beginning of period
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$
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9,589
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$
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11,082
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Provision for loan losses
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(216
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)
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173
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Charge-offs
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(322
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)
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(530
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)
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Recoveries
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65
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118
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Balance, end of period
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$
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9,116
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$
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10,843
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ASSET QUALITY:
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Non-accrual loans
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$
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8,268
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$
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8,934
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90 days past due and still accruing
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127
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-
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Other real estate owned
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85
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3,424
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Total non-performing assets
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$
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8,480
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$
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12,358
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Non-performing assets to total assets
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0.79
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%
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1.18
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%
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Allowance for loan losses to non-performing assets
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107.50
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%
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87.74
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%
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Allowance for loan losses to total loans
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1.32
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%
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1.64
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%
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LOAN RISK GRADE ANALYSIS:
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Percentage of Loans
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By Risk Grade
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3/31/2016
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3/31/2015
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Risk Grade 1 (excellent quality)
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1.56
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%
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2.03
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%
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Risk Grade 2 (high quality)
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25.23
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%
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23.44
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%
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Risk Grade 3 (good quality)
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53.92
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%
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50.69
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%
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Risk Grade 4 (management attention)
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13.78
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%
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16.36
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%
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Risk Grade 5 (watch)
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2.82
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%
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4.28
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%
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Risk Grade 6 (substandard)
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2.39
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%
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2.96
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%
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Risk Grade 7 (doubtful)
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0.00
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%
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0.00
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%
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Risk Grade 8 (loss)
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0.00
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%
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0.00
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%
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At March 31, 2016, including non-accrual loans, there were five relationships exceeding $1.0 million in the Watch risk grade (which totaled $9.4 million) and one relationship exceeding $1.0 million in the Substandard risk grade (which totaled $1.3 million). There were two relationships with loans in both the Watch and Substandard risk grades, which exceeded $1.0 million for loans in both risk grades combined.
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(END)
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