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): July 24, 2017 |
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 July 24, 2017
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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 July 24, 2017
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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: July 24, 2017
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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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July 24, 2017
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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 $2.8 million or $0.52 basic net earnings per share and $0.51 diluted net earnings per share for the three months ended June 30, 2017, as compared to $3.0 million or $0.54 basic net earnings per share and $0.53 diluted net earnings per share for the same period one year ago.
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·
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Net earnings were $5.0 million or $0.92 basic net earnings per share and $0.91 diluted net earnings per share for the three months ended June 30, 2017, as compared to $5.4 million or $0.98 basic net earnings per share and $0.97 diluted net earnings per share for the same period one year ago.
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·
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Non-performing assets declined to $4.7 million or 0.4% of total assets at June 30, 2017, compared to $6.2 million or 0.6% of total assets at June 30, 2016.
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·
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Total loans increased $43.0 million to $745.0 million at June 30, 2017, compared to $702.0 million at June 30, 2016.
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·
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Core deposits were $869.3 million or 97.4% of total deposits at June 30, 2017, compared to $815.0 million or 96.9% of total deposits at June 30, 2016.
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CONSOLIDATED BALANCE SHEETS
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||||||||||||
June 30, 2017, December 31, 2016 and June 30, 2016
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||||||||||||
(Dollars in thousands)
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||||||||||||
June 30, 2017
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December 31, 2016
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June 30, 2016
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(Unaudited)
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(Audited)
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(Unaudited)
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ASSETS:
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||||||||||||
Cash and due from banks
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$
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54,100
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$
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53,613
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$
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47,524
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||||||
Interest-bearing deposits
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20,955
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16,481
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17,150
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Cash and cash equivalents
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75,055
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70,094
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64,674
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Investment securities available for sale
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241,320
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249,946
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265,114
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Other investments
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2,680
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2,635
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3,634
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Total securities
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244,000
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252,581
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268,748
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Mortgage loans held for sale
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3,513
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5,709
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3,024
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Loans
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745,038
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723,811
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702,031
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Less: Allowance for loan losses
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(7,167
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)
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(7,550
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)
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(8,540
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)
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Net loans
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737,871
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716,261
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693,491
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Premises and equipment, net
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19,385
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16,452
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16,209
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Cash surrender value of life insurance
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15,351
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14,952
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14,753
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Accrued interest receivable and other assets
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11,809
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11,942
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9,450
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Total assets
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$
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1,106,984
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$
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1,087,991
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$
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1,070,349
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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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276,614
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$
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271,851
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$
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238,542
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NOW, MMDA & savings
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483,440
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477,054
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452,247
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Time, $250,000 or more
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22,462
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26,771
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25,675
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Other time
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109,969
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117,242
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124,936
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Total deposits
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892,485
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892,918
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841,400
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Securities sold under agreements to repurchase
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49,977
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36,434
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42,715
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FHLB borrowings
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20,000
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20,000
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43,500
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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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9,971
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10,592
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10,331
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Total liabilities
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993,052
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980,563
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958,565
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Shareholders' equity:
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Series A preferred stock, $1,000 stated value; authorized
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5,000,000 shares; no shares issued and outstanding
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-
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-
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-
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Common stock, no par value; authorized
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20,000,000 shares; issued and outstanding
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5,448,454 shares at 6/30/17; 5,417,800 shares at
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12/31/16 and 5,510,538 shares at 6/30/16
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45,039
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44,187
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46,171
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Retained earnings
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63,954
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60,254
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57,594
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Accumulated other comprehensive income
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4,939
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2,987
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8,019
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Total shareholders' equity
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113,932
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107,428
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111,784
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Total liabilities and shareholders' equity
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$
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1,106,984
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$
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1,087,991
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$
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1,070,349
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CONSOLIDATED STATEMENTS OF INCOME
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For the three and six months ended June 30, 2017 and 2016
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(Dollars in thousands, except per share amounts)
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Three months ended
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Six months ended
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June 30,
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June 30,
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2017
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2016
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2017
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2016
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(Unaudited)
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(Unaudited)
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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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8,689
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$
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7,973
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$
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16,969
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$
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15,996
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Interest on due from banks
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48
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18
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78
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35
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Interest on investment securities:
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U.S. Government sponsored enterprises
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613
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649
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1,217
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1,307
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State and political subdivisions
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1,067
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1,118
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2,151
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2,245
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Other
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44
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57
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110
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137
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Total interest income
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10,461
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9,815
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20,525
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19,720
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INTEREST EXPENSE:
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NOW, MMDA & savings deposits
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143
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121
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275
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241
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Time deposits
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120
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148
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248
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310
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FHLB borrowings
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201
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416
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393
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822
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Junior subordinated debentures
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145
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118
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280
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231
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Other
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13
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10
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24
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18
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Total interest expense
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622
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813
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1,220
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1,622
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NET INTEREST INCOME
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9,839
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9,002
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19,305
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18,098
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PROVISION FOR (REDUCTION OF PROVISION
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||||||||||||||
FOR) LOAN LOSSES
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49
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(531
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)
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(187
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)
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(748
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)
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NET INTEREST INCOME AFTER
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||||||||||||||
PROVISION FOR LOAN LOSSES
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9,790
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9,533
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19,492
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18,846
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NON-INTEREST INCOME:
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Service charges
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1,094
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1,087
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2,200
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2,128
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Other service charges and fees
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147
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202
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302
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536
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Gain on sale of securities
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-
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324
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-
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324
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Mortgage banking income
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319
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292
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665
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661
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Insurance and brokerage commissions
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179
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156
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347
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314
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Miscellaneous
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1,542
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1,511
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2,643
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2,933
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||||||||||
Total non-interest income
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3,281
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3,572
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6,157
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6,896
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||||||||||
NON-INTEREST EXPENSES:
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Salaries and employee benefits
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4,871
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4,704
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10,105
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9,285
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||||||||||
Occupancy
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1,699
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1,734
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3,312
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3,488
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||||||||||
Other
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2,765
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2,671
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5,713
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5,828
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||||||||||
Total non-interest expense
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9,335
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9,109
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19,130
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18,601
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||||||||||
EARNINGS BEFORE INCOME TAXES
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3,736
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3,996
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6,519
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7,141
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||||||||||
INCOME TAXES
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925
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1,032
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1,503
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1,723
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||||||||||
NET EARNINGS
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$
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2,811
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$
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2,964
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$
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5,016
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$
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5,418
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||||||
PER SHARE AMOUNTS
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||||||||||||||
Basic net earnings
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$
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0.52
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$
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0.54
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$
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0.92
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$
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0.98
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||||||
Diluted net earnings
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$
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0.51
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$
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0.53
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$
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0.91
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$
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0.97
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||||||
Cash dividends
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$
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0.12
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$
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0.10
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$
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0.24
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$
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0.18
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||||||
Book value
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$
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20.91
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$
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20.29
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$
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20.91
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$
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20.29
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FINANCIAL HIGHLIGHTS
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For the three and six months ended June 30, 2017 and 2016
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||||||||||||||||
(Dollars in thousands)
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||||||||||||||||
Three months ended
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Six months ended
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June 30,
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June 30,
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|||||||||||||||
2017
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2016
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2017
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2016
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|||||||||||||
(Unaudited)
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(Unaudited)
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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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236,041
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$
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253,226
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$
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238,405
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$
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255,074
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||||||||
Loans
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743,275
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693,238
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736,413
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692,536
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||||||||||||
Earning assets
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1,001,652
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965,846
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995,293
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966,895
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||||||||||||
Assets
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1,101,284
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1,059,550
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1,093,917
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1,053,282
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||||||||||||
Deposits
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897,041
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844,369
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893,740
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841,677
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||||||||||||
Shareholders' equity
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112,280
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111,130
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111,741
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111,066
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||||||||||||
SELECTED KEY DATA:
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||||||||||||||||
Net interest margin (tax equivalent)
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4.16
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%
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3.99
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%
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4.13
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%
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4.00
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%
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||||||||
Return on average assets
|
1.02
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%
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1.13
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%
|
0.92
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%
|
1.03
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%
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||||||||
Return on average shareholders' equity
|
10.04
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%
|
10.73
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%
|
9.05
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%
|
9.81
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%
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||||||||
Shareholders' equity to total assets (period end)
|
10.29
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%
|
10.44
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%
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10.29
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%
|
10.44
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%
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||||||||
ALLOWANCE FOR LOAN LOSSES:
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||||||||||||||||
Balance, beginning of period
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$
|
7,263
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$
|
9,116
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$
|
7,550
|
$
|
9,589
|
||||||||
Provision for loan losses
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49
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(531
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)
|
(187
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)
|
(748
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)
|
|||||||||
Charge-offs
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(198
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)
|
(186
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)
|
(329
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)
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(508
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)
|
||||||||
Recoveries
|
53
|
141
|
133
|
207
|
||||||||||||
Balance, end of period
|
$
|
7,167
|
$
|
8,540
|
$
|
7,167
|
$
|
8,540
|
||||||||
ASSET QUALITY:
|
||||||||||||||||
Non-accrual loans
|
$
|
4,645
|
$
|
5,985
|
||||||||||||
90 days past due and still accruing
|
55
|
-
|
||||||||||||||
Other real estate owned
|
-
|
235
|
||||||||||||||
Total non-performing assets
|
$
|
4,700
|
$
|
6,220
|
||||||||||||
Non-performing assets to total assets
|
0.42
|
%
|
0.58
|
%
|
||||||||||||
Allowance for loan losses to non-performing assets
|
152.49
|
%
|
137.30
|
%
|
||||||||||||
Allowance for loan losses to total loans
|
0.96
|
%
|
1.22
|
%
|
LOAN RISK GRADE ANALYSIS:
|
||||||||||
Percentage of Loans
|
||||||||||
By Risk Grade
|
||||||||||
6/30/2017
|
6/30/2016
|
|||||||||
Risk Grade 1 (excellent quality)
|
1.19%
|
1.49%
|
||||||||
Risk Grade 2 (high quality)
|
25.08%
|
25.22%
|
||||||||
Risk Grade 3 (good quality)
|
60.22%
|
54.87%
|
||||||||
Risk Grade 4 (management attention)
|
9.21%
|
13.26%
|
||||||||
Risk Grade 5 (watch)
|
2.80%
|
2.81%
|
||||||||
Risk Grade 6 (substandard)
|
1.20%
|
2.04%
|
||||||||
Risk Grade 7 (doubtful)
|
0.00%
|
0.00%
|
||||||||
Risk Grade 8 (loss)
|
0.00%
|
0.00%
|
||||||||
At June 30, 2017, including non-accrual loans, there were four relationships exceeding $1.0 million in the Watch risk grade (which totaled $7.2 million) and one relationship exceeding $1.0 million in the Substandard risk grade (which totaled $1.0 million).
|
||||||||||
(END)
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