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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☐
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Written
communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
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☐
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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☐
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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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☐
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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 8.01 – Other Events
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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 January 23,
2020
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5
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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:
January 23, 2020
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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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December 31,
2019
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December
31,
2018
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(Unaudited)
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(Audited)
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ASSETS:
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Cash
and due from banks
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$48,337
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$40,553
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Interest-bearing
deposits
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720
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2,817
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Federal
funds sold
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3,330
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-
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Cash
and cash equivalents
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52,387
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43,370
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Investment
securities available for sale
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195,746
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194,578
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Other
investments
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4,231
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4,361
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Total
securities
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199,977
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198,939
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Mortgage
loans held for sale
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4,417
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680
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Loans
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849,874
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804,023
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Less:
Allowance for loan losses
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(6,680)
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(6,445)
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Net
loans
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843,194
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797,578
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Premises
and equipment, net
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18,604
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18,450
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Cash
surrender value of life insurance
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16,319
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15,936
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Accrued
interest receivable and other assets
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19,984
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18,298
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Total
assets
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$1,154,882
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$1,093,251
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LIABILITIES AND SHAREHOLDERS' EQUITY:
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Deposits:
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Noninterest-bearing
demand
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$338,004
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$298,817
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NOW,
MMDA & savings
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516,757
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475,223
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Time,
$250,000 or more
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34,269
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16,239
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Other
time
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77,487
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86,934
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Total
deposits
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966,517
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877,213
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Securities
sold under agreements to repurchase
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24,221
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58,095
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FHLB
borrowings
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-
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-
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Junior
subordinated debentures
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15,619
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20,619
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Accrued
interest payable and other liabilities
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14,405
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13,707
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Total
liabilities
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1,020,762
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969,634
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Shareholders'
equity:
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Series
A preferred stock, $1,000 stated value; authorized
5,000,000
shares; no shares issued and outstanding
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-
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-
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Common
stock, no par value; authorized 20,000,000
shares; issued and outstanding 5,912,300
shares 12/31/19 and 5,995,256
shares 12/31/18
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59,813
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62,096
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Retained
earnings
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70,663
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60,535
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Accumulated
other comprehensive income
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3,644
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986
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Total
shareholders' equity
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134,120
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123,617
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Total
liabilities and shareholders' equity
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$1,154,882
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$1,093,251
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Three months ended
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Years ended
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December 31,
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December 31,
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2019
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2018
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2019
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2018
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(Unaudited)
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(Unaudited)
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(Unaudited)
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(Audited)
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INTEREST INCOME:
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Interest
and fees on loans
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$10,784
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$10,292
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$43,301
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$38,654
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Interest
on due from banks
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77
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49
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213
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304
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Interest
on federal funds sold
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331
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-
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331
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-
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Interest
on investment securities:
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U.S.
Government sponsored enterprises
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728
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612
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2,670
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2,333
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State
and political subdivisions
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650
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927
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2,915
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3,877
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Other
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43
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44
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171
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182
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Total
interest income
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12,613
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11,924
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49,601
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45,350
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INTEREST EXPENSE:
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NOW,
MMDA & savings deposits
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539
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218
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1,596
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769
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Time
deposits
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328
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130
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909
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472
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FHLB
borrowings
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135
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-
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205
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-
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Junior
subordinated debentures
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188
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212
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844
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790
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Other
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35
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49
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203
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115
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Total
interest expense
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1,225
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609
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3,757
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2,146
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NET INTEREST INCOME
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11,388
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11,315
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45,844
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43,204
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PROVISION FOR (REDUCTION OF PROVISION
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FOR) LOAN LOSSES
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186
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418
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863
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790
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NET INTEREST INCOME AFTER
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PROVISION FOR LOAN LOSSES
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11,202
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10,897
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44,981
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42,414
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NON-INTEREST INCOME:
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Service
charges
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1,167
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1,192
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4,576
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4,355
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Other
service charges and fees
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166
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177
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714
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705
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Gain
on sale of securities
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-
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(35)
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226
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15
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Mortgage
banking income
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430
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179
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1,264
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851
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Insurance
and brokerage commissions
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235
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233
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877
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824
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Appraisal
management fee income
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1,199
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764
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4,484
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3,206
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Miscellaneous
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1,329
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1,989
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5,598
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6,210
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Total
non-interest income
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4,526
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4,499
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17,739
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16,166
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NON-INTEREST EXPENSES:
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Salaries
and employee benefits
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6,178
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5,664
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23,238
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21,530
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Occupancy
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1,955
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1,803
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7,364
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7,170
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Appraisal
management fee expense
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883
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587
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3,421
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2,460
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Other
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3,074
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3,216
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11,494
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11,414
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Total
non-interest expense
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12,090
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11,270
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45,517
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42,574
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EARNINGS
BEFORE INCOME TAXES
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3,638
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4,126
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17,203
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16,006
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INCOME
TAXES
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672
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690
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3,136
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2,624
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NET EARNINGS
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$2,966
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$3,436
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$14,067
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$13,382
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PER SHARE AMOUNTS
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Basic
net earnings
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$0.50
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$0.57
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$2.37
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$2.23
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Diluted
net earnings
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$0.50
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$0.57
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$2.36
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$2.22
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Cash
dividends
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$0.14
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$0.13
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$0.66
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$0.52
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Book
value
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$22.68
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$20.62
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$22.68
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$20.62
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Three months ended
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Years ended
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December 31,
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December 31,
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2019
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2018
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2019
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2018
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(Unaudited)
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(Unaudited)
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(Unaudited)
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(Audited)
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SELECTED AVERAGE BALANCES:
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Available
for sale securities
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$185,880
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$202,385
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$185,302
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$209,742
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Loans
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849,745
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792,373
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834,517
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777,098
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Earning
assets
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1,136,318
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1,008,381
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1,055,730
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1,007,485
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Assets
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1,225,963
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1,093,082
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1,143,338
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1,094,707
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Deposits
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980,795
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888,713
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932,646
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903,120
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Shareholders'
equity
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133,630
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121,194
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134,669
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123,796
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SELECTED KEY DATA:
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Net
interest margin (tax equivalent)
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4.04%
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4.55%
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4.42%
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4.39%
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Return
on average assets
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0.96%
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1.25%
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1.23%
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1.22%
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Return
on average shareholders' equity
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8.81%
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11.25%
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10.45%
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10.81%
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Shareholders'
equity to total assets (period end)
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11.61%
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11.31%
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11.61%
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11.31%
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ALLOWANCE FOR LOAN LOSSES:
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Balance,
beginning of period
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$6,578
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$6,295
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$6,445
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$6,366
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Provision
for loan losses
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186
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418
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863
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790
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Charge-offs
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(166)
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(367)
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(1,076)
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(1,133)
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Recoveries
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82
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99
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448
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422
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Balance,
end of period
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$6,680
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$6,445
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$6,680
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$6,445
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ASSET QUALITY:
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Non-accrual
loans
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$3,553
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$3,314
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90
days past due and still accruing
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-
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-
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Other
real estate owned
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-
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27
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Total
non-performing assets
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$3,553
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$3,341
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Non-performing
assets to total assets
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0.31%
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0.31%
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Allowance
for loan losses to non-performing assets
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188.01%
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192.91%
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Allowance
for loan losses to total loans
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0.79%
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0.80%
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Percentage of Loans
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By Risk Grade
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12/31/2019
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12/31/2018
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Risk
Grade 1 (excellent quality)
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0.59%
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0.73%
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Risk
Grade 2 (high quality)
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24.45%
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25.47%
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Risk
Grade 3 (good quality)
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62.73%
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61.05%
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Risk
Grade 4 (management attention)
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10.02%
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10.19%
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Risk
Grade 5 (watch)
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1.45%
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1.72%
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Risk
Grade 6 (substandard)
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0.76%
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0.84%
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Risk
Grade 7 (doubtful)
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0.00%
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0.00%
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Risk
Grade 8 (loss)
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0.00%
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0.00%
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