NEWTON, NC / ACCESSWIRE / July 22, 2024 / Peoples Bancorp of North Carolina, Inc. (NASDAQ:PEBK) (the "Company"), the parent company of Peoples Bank (the "Bank"), reported second quarter 2024 results with highlights as follows:
Second quarter 2024 highlights:
Net earnings were $4.9 million or $0.93 per share and $0.89 per diluted share for the three months ended June 30, 2024, compared to $4.8 million or $0.88 per share and $0.85 per diluted share for the same period one year ago.
Net interest margin was 3.34% for the three months ended June 30, 2024, compared to 3.56% for the three months ended June 30, 2023.
Year to date highlights:
Net earnings were $8.8 million or $1.67 per share and $1.61 per diluted share for the six months ended June 30, 2024, as compared to $8.0 million or $1.46 per share and $1.41 per diluted share for the same period one year ago.
Cash dividends were $0.54 per share during the six months ended June 30, 2024, compared to $0.53 per share for the prior year period.
Total loans were $1.11 billion at June 30, 2024, compared to $1.09 billion at December 31, 2023.
Non-performing assets were $4.2 million or 0.25% of total assets at June 30, 2024, compared to $3.9 million or 0.24% of total assets at December 31, 2023.
Total deposits were $1.48 billion at June 30, 2024, compared to $1.39 billion at December 31, 2023.
Core deposits, a non-GAAP measure, were $1.33 billion or 90.02% of total deposits at June 30, 2024, compared to $1.24 billion or 89.30% of total deposits at December 31, 2023.
Net interest margin was 3.34% for the six months ended June 30, 2024, compared to 3.67% for the six months ended June 30, 2023.
Net earnings were $4.9 million or $0.93 per share and $0.89 per diluted share for the three months ended June 30, 2024, compared to $4.8 million or $0.88 per share and $0.85 per diluted share for the prior year period. Lance A. Sellers, President and Chief Executive Officer, attributed the increase in second quarter net earnings to an increase in non-interest income and a decrease in the provision for credit losses, which were partially offset by a decrease in net interest income and an increase in non-interest expense, compared to the prior year period, as discussed below.
Net interest income was $13.4 million for the three months ended June 30, 2024, compared to $13.8 million for the three months ended June 30, 2023. The decrease in net interest income is due to a $2.8 million increase in interest expense, partially offset by a $2.5 million increase in interest income. The increase in interest income reflects a $1.9 million increase in interest income and fees on loans, a $208,000 increase in interest income on balances due from banks and a $359,000 increase in interest income on investment securities. The increase in interest income and fees on loans is primarily due to an increase in total loans and rate increases by the Federal Reserve. The increase in interest income on balances due from banks is also due to an increase in average balances outstanding and rate increases by the Federal Reserve. The increase in interest income on investment securities is primarily due to increases on yields on variable rate securities and higher yields on securities purchased since June 30, 2023. The increase in interest expense is primarily due to an increase in time deposits and an increase in rates paid on interest-bearing liabilities. Net interest income after the provision for credit losses was $13.9 million for the three months ended June 30, 2024, compared to $13.4 million for the three months ended June 30, 2023. The provision for credit losses for the three months ended June 30, 2024 was a recovery of $468,000, compared to an expense of $375,000 for the three months ended June 30, 2023. The decrease in the provision for credit losses is primarily attributable to a reduction in reserves on construction loans, which was primarily due to a decrease in construction loan balances outstanding composed mostly of about $12.7 million in loans being paid off or transitioning to permanent financing in other loan categories within the portfolio with lower loss rates than the construction pool during the three months ended June 30, 2024. In addition, the high rate environment is slowing additional construction activity resulting in a decrease in unfunded construction loan commitments with about $4.9 million in new commitments offset by the $9.9 million in commitments being utilized to fund loan balances or being closed-out with unused amounts for the three months ended June 30, 2024.
Non-interest income was $7.5 million for the three months ended June 30, 2024, compared to $6.4 million for the three months ended June 30, 2023. The increase in non-interest income is primarily attributable to a $591,000 increase in appraisal management fee income due to an increase in appraisal volume and a $444,000 increase in miscellaneous non-interest income primarily due to an increase in income on Small Business Investment Company (SBIC) investments.
Non-interest expense was $15.1 million for the three months ended June 30, 2024, compared to $13.6 million for the three months ended June 30, 2023. The increase in non-interest expense is primarily attributable to a $541,000 increase in salaries and employee benefits expense primarily due to increases in salary and restricted stock expenses, a $474,000 increase in appraisal management fee expense due to an increase in appraisal volume and a $373,000 increase in other non-interest expense primarily due to increases in consulting fees and debit card expense.
Net earnings were $8.8 million or $1.67 per share and $1.61 per diluted share for the six months ended June 30, 2024, compared to $8.0 million or $1.46 per share and $1.41 per diluted share for the prior year period. The increase in second quarter net earnings is primarily attributable to an increase in non-interest income and a decrease in the provision for credit losses, which were partially offset by a decrease in net interest income and an increase in non-interest expense, compared to the prior year period, as discussed below.
Net interest income was $26.7 million for the six months ended June 30, 2024, compared to $28.1 million for the six months ended June 30, 2023. The decrease in net interest income is due to a $6.9 million increase in interest expense, partially offset by a $5.5 million increase in interest income. The increase in interest income reflects a $4.2 million increase in interest income and fees on loans, a $732,000 increase in interest income on balances due from banks and a $589,000 increase in interest income on investment securities. The increase in interest income and fees on loans is primarily due to an increase in total loans and rate increases by the Federal Reserve. The increase in interest income on balances due from banks is also due to an increase in average balances outstanding and rate increases by the Federal Reserve. The increase in interest income on investment securities is primarily due to increases on yields on variable rate securities and higher yields on securities purchased since June 30, 2023. The increase in interest expense is primarily due to an increase in time deposits and an increase in rates paid on interest-bearing liabilities. Net interest income after the provision for credit losses was $27.1 million for the six months ended June 30, 2024, compared to $27.5 million for the six months ended June 30, 2023. The provision for credit losses for the six months ended June 30, 2024 was a recovery of $377,000, compared to an expense of $599,000 for the six months ended June 30, 2023. The decrease in the provision for credit losses is primarily attributable to a reduction in reserves on construction loans, which was primarily due to a decrease in construction loan balances outstanding composed mostly of about $29.1 million in loans being paid off or transitioning to permanent financing in other loan categories within the portfolio with lower loss rates than the construction pool during the first six months ending June 30, 2024. In addition, the high rate environment is slowing additional construction activity resulting in a decrease in unfunded construction loan commitments with about $12.4 million in new commitments offset by $19.5 million in commitments being utilized to fund loan balances or being closed-out with unused amounts for the six months ended June 30, 2024.
Non-interest income was $13.6 million for the six months ended June 30, 2024, compared to $10.0 million for the six months ended June 30, 2023. The increase in non-interest income is primarily attributable to a $2.5 million net loss on the sales of securities during the six months ended June 30, 2023 compared to no losses in the six months ended June 30, 2024, and a $911,000 increase in appraisal management fee income due to an increase in appraisal volume.
Non-interest expense was $29.6 million for the six months ended June 30, 2024, compared to $27.3 million for the six months ended June 30, 2023. The increase in non-interest expense is primarily attributable to a $1.0 million increase in salaries and employee benefits expense primarily due to increases in salary, medical insurance and restricted stock expenses, a $728,000 increase in appraisal management fee expense due to an increase in appraisal volume and a $356,000 increase in other non-interest expense primarily due to increases in consulting fees and debit card expense.
Income tax expense was $1.4 million for the three months ended June 30, 2024 and 2023. The effective tax rate was 22.09% for the three months ended June 30, 2024, compared to 22.20% for the three months ended June 30, 2023. Income tax expense was $2.2 million for the six months ended June 30, 2024 and 2023. The effective tax rate was 19.74% for the six months ended June 30, 2024, compared to 21.79% for the six months ended June 30, 2023.
Total assets were $1.66 billion as of June 30, 2024, compared to $1.64 billion as of December 31, 2023. Available for sale securities were $393.3 million as of June 30, 2024, compared to $391.9 million as of December 31, 2023. Total loans were $1.11 billion as of June 30, 2024, compared to $1.09 billion at December 31, 2023.
Non-performing assets were $4.2 million or 0.25% of total assets at June 30, 2024, compared to $3.9 million or 0.24% at December 31, 2023. Non-performing assets include $3.9 million in commercial and residential mortgage loans, and $267,000 in other loans at June 30, 2024, compared to $3.4 million in commercial and residential mortgage loans, and $464,000 in other loans at December 31, 2023.
The allowance for credit losses on loans was $10.0 million or 0.90% of total loans at June 30, 2024, compared to $11.0 million or 1.01% at December 31, 2023. The allowance for credit losses on unfunded commitments was $1.6 million at June 30, 2024, compared to $1.8 million at December 31, 2023. The decrease in reserve amounts for loan balances and unfunded commitments is the result of a decrease in both loan balances and unfunded commitments in construction loans. The volume of new unfunded construction commitments decreased in the first six months ended June 30, 2024, which resulted in the volume of funded construction loans decreasing as existing balances mature and migrate to permanent loan categories with loss rates that are lower than the construction category. As such, though the overall loan and charge-off balances increased, the decreases in the construction category are significant enough to reduce the overall risk profile of the loan portfolio which reduces the overall reserving requirements. Management believes the current level of the allowance for credit losses is adequate; however, there is no guarantee that additional adjustments to the allowance will not be required because of changes in economic conditions, regulatory requirements or other factors.
Deposits were $1.48 billion as of June 30, 2024, compared to $1.39 billion as of December 31, 2023. Core deposits, a non-GAAP measure, which include noninterest-bearing demand deposits, NOW, MMDA, savings and non-brokered certificates of deposit of denominations of $250,000 or less, were $1.33 billion at June 30, 2024, compared to $1.24 billion at December 31, 2023. Management believes it is useful to calculate and present core deposits because of the positive impact this low cost funding source provides to the Bank's overall cost of funds and profitability. Certificates of deposit in amounts of more than $250,000 totaled $147.3 million at June 30, 2024, compared to $148.9 million December 31, 2023.
Securities sold under agreements to repurchase were $18.8 million at June 30, 2024, compared to $86.7 million at December 31, 2023. The decrease in securities sold under agreements to repurchase is primarily due to customers transferring funds from securities sold under agreements to repurchase to deposits via the IntraFi network's Insured Cash Sweep ("ICS") during the six months ended June 30, 2024. Junior subordinated debentures were $15.5 million at June 30, 2024 and December 31, 2023. Shareholders' equity was $124.3 million, or 7.51% of total assets, at June 30, 2024, compared to $121.0 million, or 7.40% of total assets, at December 31, 2023.
Peoples Bank operates 16 banking offices in North Carolina, with offices in Catawba, Alexander, Lincoln, Mecklenburg, Iredell and Wake Counties. The Bank also operates loan production offices in Lincoln, Mecklenburg, Rowan and Forsyth Counties. The Company's common stock is publicly traded and is listed on the Nasdaq Global Market under the symbol "PEBK."
Statements made in this earnings release, other than those concerning historical information, should be considered forward-looking statements pursuant to the safe harbor provisions of the Securities Exchange Act of 1934 and the Private Securities Litigation Act of 1995. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of management and on the information available to management at the time that this release was prepared. These statements can be identified by the use of words like "expect," "anticipate," "estimate," and "believe," variations of these words and other similar expressions. Readers should not place undue reliance on forward-looking statements as a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause actual results to differ include, but are not limited to, (1) competition in the markets served by the Bank, (2) changes in the interest rate environment, (3) general national, regional or local economic conditions may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and the possible impairment of collectibility of loans, (4) legislative or regulatory changes, including changes in accounting standards, (5) significant changes in the federal and state legal and regulatory environment and tax laws, (6) the impact of changes in monetary and fiscal policies, laws, rules and regulations and (7) other risks and factors identified in the Company's other filings with the Securities and Exchange Commission, including but not limited to those described in the Company's Annual Report on Form 10-K for the year ended December 31, 2023.
CONSOLIDATED BALANCE SHEETS
June 30, 2024, December 31, 2023 and June 30, 2023
(Dollars in thousands)
| June 30, 2024 | December 31, 2023 | June 30, 2023 | ||||||||||
| (Unaudited) | (Audited) | (Unaudited) | ||||||||||
ASSETS: | ||||||||||||
Cash and due from banks | $ | 31,909 | $ | 32,819 | $ | 41,219 | ||||||
Interest-bearing deposits | 50,926 | 49,556 | 47,822 | |||||||||
Cash and cash equivalents | 82,835 | 82,375 | 89,041 | |||||||||
Investment securities available for sale | 393,260 | 391,924 | 394,084 | |||||||||
Other investments | 2,779 | 2,874 | 2,602 | |||||||||
Total securities | 396,039 | 394,798 | 396,686 | |||||||||
Mortgage loans held for sale | 1,288 | 686 | 1,560 | |||||||||
Loans | 1,110,672 | 1,093,066 | 1,057,724 | |||||||||
Less: Allowance for credit losses on loans | (10,016 | ) | (11,041 | ) | (9,789 | ) | ||||||
Net loans | 1,100,656 | 1,082,025 | 1,047,935 | |||||||||
Premises and equipment, net | 15,888 | 16,702 | 16,734 | |||||||||
Cash surrender value of life insurance | 18,365 | 18,134 | 17,912 | |||||||||
Accrued interest receivable and other assets | 40,327 | 41,190 | 41,706 | |||||||||
Total assets | $ | 1,655,398 | $ | 1,635,910 | $ | 1,611,574 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY: | ||||||||||||
Deposits: | ||||||||||||
Noninterest-bearing demand | $ | 415,977 | $ | 432,687 | $ | 454,702 | ||||||
Interest-bearing demand, MMDA & savings | 710,446 | 620,244 | 679,823 | |||||||||
Time, over $250,000 | 147,333 | 148,904 | 105,284 | |||||||||
Other time | 202,200 | 190,210 | 129,715 | |||||||||
Total deposits | 1,475,956 | 1,392,045 | 1,369,524 | |||||||||
Securities sold under agreements to repurchase | 18,824 | 86,715 | 93,172 | |||||||||
Junior subordinated debentures | 15,464 | 15,464 | 15,464 | |||||||||
Accrued interest payable and other liabilities | 20,842 | 20,670 | 21,044 | |||||||||
Total liabilities | 1,531,086 | 1,514,894 | 1,499,204 | |||||||||
Shareholders' equity: | ||||||||||||
Preferred stock, no par value; authorized | ||||||||||||
5,000,000 shares; no shares issued and outstanding | - | - | - | |||||||||
Common stock, no par value; authorized | ||||||||||||
20,000,000 shares; issued and outstanding | ||||||||||||
5,457,646 at 6/30/24, 5,534,499 shares at 12/31/23, | ||||||||||||
5,590,799 at 6/30/23 | 48,678 | 50,625 | 51,809 | |||||||||
Common stock held by deferred compensation trust, | ||||||||||||
at cost; 166,247 shares at 6/30/24, 163,702 shares | ||||||||||||
at 12/31/23, 165,142 shares at 6/30/23 | (1,980 | ) | (1,910 | ) | (1,967 | ) | ||||||
Deferred compensation | 1,980 | 1,910 | 1,967 | |||||||||
Retained earnings | 115,623 | 109,756 | 104,304 | |||||||||
Accumulated other comprehensive loss | (39,989 | ) | (39,365 | ) | (43,743 | ) | ||||||
Total shareholders' equity | 124,312 | 121,016 | 112,370 | |||||||||
Total liabilities and shareholders' equity | $ | 1,655,398 | $ | 1,635,910 | $ | 1,611,574 | ||||||
CONSOLIDATED STATEMENTS OF INCOME
For the three and six months ended June 30, 2024 and 2023
(Dollars in thousands, except per share amounts)
| Three months ended | Six months ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
INTEREST INCOME: | ||||||||||||||||
Interest and fees on loans | $ | 15,571 | $ | 13,667 | $ | 30,709 | $ | 26,550 | ||||||||
Interest on due from banks | 725 | 517 | 1,632 | 900 | ||||||||||||
Interest on investment securities: | ||||||||||||||||
U.S. Government sponsored enterprises | 2,551 | 2,280 | 5,142 | 4,510 | ||||||||||||
State and political subdivisions | 695 | 696 | 1,390 | 1,558 | ||||||||||||
Other | 528 | 439 | 1,007 | 882 | ||||||||||||
Total interest income | 20,070 | 17,599 | 39,880 | 34,400 | ||||||||||||
INTEREST EXPENSE: | ||||||||||||||||
Interest-bearing demand, MMDA & savings deposits | 2,438 | 1,648 | 4,498 | 3,136 | ||||||||||||
Time deposits | 3,628 | 1,638 | 7,309 | 2,154 | ||||||||||||
Junior subordinated debentures | 283 | 259 | 567 | 507 | ||||||||||||
Other | 305 | 283 | 786 | 494 | ||||||||||||
Total interest expense | 6,654 | 3,828 | 13,160 | 6,291 | ||||||||||||
NET INTEREST INCOME | 13,416 | 13,771 | 26,720 | 28,109 | ||||||||||||
PROVISION FOR CREDIT LOSSES | (468 | ) | 375 | (377 | ) | 599 | ||||||||||
NET INTEREST INCOME AFTER | ||||||||||||||||
PROVISION FOR CREDIT LOSSES | 13,884 | 13,396 | 27,097 | 27,510 | ||||||||||||
NON-INTEREST INCOME: | ||||||||||||||||
Service charges | 1,346 | 1,328 | 2,686 | 2,669 | ||||||||||||
Other service charges and fees | 180 | 163 | 364 | 345 | ||||||||||||
Loss on sale of securities | - | - | - | (2,488 | ) | |||||||||||
Mortgage banking income | 74 | 39 | 125 | 132 | ||||||||||||
Insurance and brokerage commissions | 219 | 206 | 465 | 434 | ||||||||||||
Appraisal management fee income | 3,181 | 2,590 | 5,595 | 4,684 | ||||||||||||
Miscellaneous | 2,521 | 2,077 | 4,324 | 4,238 | ||||||||||||
Total non-interest income | 7,521 | 6,403 | 13,559 | 10,014 | ||||||||||||
NON-INTEREST EXPENSES: | ||||||||||||||||
Salaries and employee benefits | 6,827 | 6,286 | 13,807 | 12,786 | ||||||||||||
Occupancy | 2,105 | 1,981 | 4,216 | 3,995 | ||||||||||||
Appraisal management fee expense | 2,523 | 2,049 | 4,427 | 3,699 | ||||||||||||
Other | 3,676 | 3,303 | 7,197 | 6,841 | ||||||||||||
Total non-interest expense | 15,131 | 13,619 | 29,647 | 27,321 | ||||||||||||
EARNINGS BEFORE INCOME TAXES | 6,274 | 6,180 | 11,009 | 10,203 | ||||||||||||
INCOME TAXES | 1,386 | 1,372 | 2,173 | 2,223 | ||||||||||||
NET EARNINGS | $ | 4,888 | $ | 4,808 | $ | 8,836 | $ | 7,980 | ||||||||
PER SHARE AMOUNTS | ||||||||||||||||
Basic net earnings | $ | 0.93 | $ | 0.88 | $ | 1.67 | $ | 1.46 | ||||||||
Diluted net earnings | $ | 0.89 | $ | 0.85 | $ | 1.61 | $ | 1.41 | ||||||||
Cash dividends | $ | 0.19 | $ | 0.19 | $ | 0.54 | $ | 0.53 | ||||||||
Book value | $ | 23.49 | $ | 20.71 | $ | 23.49 | $ | 20.71 | ||||||||
FINANCIAL HIGHLIGHTS
For the three and six months ended June 30, 2024 and 2023, and the year ended December 31, 2023
(Dollars in thousands)
| Three months ended | Six months ended | Year ended | ||||||||||||||||||
| June 30, | June 30, | December 31, | ||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2023 | ||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | ||||||||||||||||
SELECTED AVERAGE BALANCES: | ||||||||||||||||||||
Available for sale securities | $ | 445,098 | $ | 450,666 | $ | 444,289 | $ | 463,387 | $ | 454,823 | ||||||||||
Loans | 1,108,684 | 1,056,062 | 1,100,671 | 1,046,646 | 1,061,075 | |||||||||||||||
Earning assets | 1,610,811 | 1,550,703 | 1,608,396 | 1,549,822 | 1,561,825 | |||||||||||||||
Assets | 1,650,008 | 1,603,916 | 1,648,905 | 1,600,262 | 1,605,386 | |||||||||||||||
Deposits | 1,461,596 | 1,403,751 | 1,444,950 | 1,410,542 | 1,395,265 | |||||||||||||||
Shareholders' equity | 119,443 | 114,090 | 120,927 | 113,965 | 116,295 | |||||||||||||||
SELECTED KEY DATA: | ||||||||||||||||||||
Net interest margin (tax equivalent) (1) | 3.35 | % | 3.56 | % | 3.34 | % | 3.67 | % | 3.51 | % | ||||||||||
Return on average assets | 1.19 | % | 1.20 | % | 1.08 | % | 1.01 | % | 0.97 | % | ||||||||||
Return on average shareholders' equity | 16.46 | % | 16.90 | % | 14.69 | % | 14.12 | % | 13.37 | % | ||||||||||
Average shareholders' equity to total average assets | 7.24 | % | 7.11 | % | 7.33 | % | 7.12 | % | 7.24 | % | ||||||||||
| June 30, 2024 | June 30, 2023 | December 31, 2023 | ||||||||||||||||||
| (Unaudited) | (Unaudited) | (Audited) | ||||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES: | ||||||||||||||||||||
Allowance for credit losses on loans | $ | 10,016 | $ | 9,789 | $ | 11,041 | ||||||||||||||
Allowance for credit losses on unfunded commitments | 1,565 | 2,259 | 1,770 | |||||||||||||||||
Provision for credit losses (2) | (377 | ) | 599 | 1,566 | ||||||||||||||||
Charge-offs (2) | (1,228 | ) | (343 | ) | (698 | ) | ||||||||||||||
Recoveries (2) | 375 | 240 | 392 | |||||||||||||||||
ASSET QUALITY: | ||||||||||||||||||||
Non-accrual loans | $ | 4,156 | $ | 3,561 | $ | 3,887 | ||||||||||||||
90 days past due and still accruing | - | - | - | |||||||||||||||||
Other real estate owned | - | - | - | |||||||||||||||||
Total non-performing assets | $ | 4,156 | $ | 3,561 | $ | 3,887 | ||||||||||||||
Non-performing assets to total assets | 0.25 | % | 0.22 | % | 0.24 | % | ||||||||||||||
Allowance for credit losses on loans to non-performing assets | 241.00 | % | 274.89 | % | 284.05 | % | ||||||||||||||
Allowance for credit losses on loans to total loans | 0.90 | % | 0.93 | % | 1.01 | % | ||||||||||||||
LOAN RISK GRADE ANALYSIS: | ||||||||||||||||||||
Percentage of loans by risk grade | ||||||||||||||||||||
Risk Grade 1 (excellent quality) | 0.29 | % | 0.27 | % | 0.30 | % | ||||||||||||||
Risk Grade 2 (high quality) | 19.57 | % | 19.90 | % | 19.78 | % | ||||||||||||||
Risk Grade 3 (good quality) | 72.99 | % | 73.82 | % | 72.96 | % | ||||||||||||||
Risk Grade 4 (management attention) | 5.95 | % | 4.97 | % | 5.59 | % | ||||||||||||||
Risk Grade 5 (watch) | 0.66 | % | 0.49 | % | 0.84 | % | ||||||||||||||
Risk Grade 6 (substandard) | 0.54 | % | 0.55 | % | 0.53 | % | ||||||||||||||
Risk Grade 7 (doubtful) | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||||||
Risk Grade 8 (loss) | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||||||
At June 30, 2024, including non-accrual loans, there were two relationships exceeding $1.0 million in the Watch risk grade, which totaled $3.0 million; there were no relationships exceeding $1.0 million in the Substandard risk grade. At December 31, 2023, including non-accrual loans, there were two relationships exceeding $1.0 million in the Watch risk grade, which totaled $4.9 million; there were no relationships exceeding $1.0 million in the Substandard risk grade.
(1) This amount reflects the tax benefit that the Company receives related to its tax-exempt loans and securities, which carry interest rates lower than similar taxable investments due to their tax-exempt status. This amount has been computed using an effective tax rate of 22.98% and is reduced by the related nondeductible portion of interest expense.
(2) For the six months ended June 30, 2024 and 2023 and the year ended December 31, 2023.
Contact:
Lance A. Sellers
President and Chief Executive Officer
Jeffrey N. Hooper
Executive Vice President and Chief Financial Officer
828-464-5620, Fax 828-465-6780
SOURCE: Peoples Bancorp of North Carolina, Inc.
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