Peoples Bancorp of North Carolina(PEBK) - 2024 Q4 - Annual Results

Financial Performance - Net earnings for Q4 2024 were $3.6 million, or $0.67 per share, compared to $3.4 million, or $0.64 per share, in Q4 2023, reflecting a 5.9% increase in earnings per share [3]. - For the full year 2024, net earnings were $16.4 million, or $3.08 per share, compared to $15.5 million, or $2.87 per share, in 2023, indicating a 7.4% increase in earnings per share [8]. - Net earnings for the year ended December 31, 2024, reached $16,353 thousand, up 5.2% from $15,546 thousand in 2023 [21]. - Basic net earnings per share for the year ended December 31, 2024, were $3.08, up from $2.87 in 2023, representing a growth of 7.3% [21]. Income and Expenses - Net interest income for Q4 2024 was $13.8 million, up from $13.3 million in Q4 2023, driven by a $1.2 million increase in interest income [4]. - Non-interest income for Q4 2024 was $7.1 million, an increase from $6.1 million in Q4 2023, primarily due to a $900,000 rise in appraisal management fee income [6]. - Non-interest expense for Q4 2024 was $16.5 million, compared to $14.6 million in Q4 2023, reflecting a 12.9% increase [7]. - Interest income for the year ended December 31, 2024, was $80,733 thousand, a 12.3% increase from $71,862 thousand in 2023 [21]. Loans and Deposits - Total loans increased to $1.14 billion as of December 31, 2024, compared to $1.09 billion a year earlier, marking a 4.6% growth [5]. - Total deposits reached $1.48 billion as of December 31, 2024, up from $1.39 billion a year prior, representing a 6.5% increase [16]. - Total deposits increased to $1,484,731 thousand in 2024, compared to $1,392,045 thousand in 2023, an increase of 6.6% [19]. - Net loans rose to $1,128,409 thousand in 2024, up from $1,082,025 thousand in 2023, marking an increase of 4.3% [19]. Credit Quality - The provision for credit losses for Q4 2024 was a recovery of $205,000, compared to an expense of $405,000 in Q4 2023, indicating improved credit quality [4]. - Non-performing assets were $4.4 million, or 0.27% of total assets, at December 31, 2024, compared to $3.9 million, or 0.24% of total assets, at December 31, 2023 [5]. - The allowance for credit losses on loans decreased to $10.0 million, or 0.88% of total loans, at December 31, 2024, down from $11.0 million, or 1.01%, at December 31, 2023 [15]. - The allowance for credit losses on loans decreased to $9,995 thousand in 2024 from $11,041 thousand in 2023, a reduction of 9.5% [25]. - Non-performing assets increased to $4,809 thousand in 2024, compared to $3,887 thousand in 2023, reflecting a rise of 23.7% [25]. Assets and Margins - Total assets increased to $1,651,962 thousand as of December 31, 2024, compared to $1,635,910 thousand in 2023, reflecting a growth of 0.8% [19]. - The net interest margin (tax equivalent) improved to 3.39% for the three months ended December 31, 2024, compared to 3.32% in 2023 [24]. - The return on average assets for the year ended December 31, 2024, was 0.85%, slightly up from 0.84% in 2023 [24]. Tax and Risk - The Company benefits from tax-exempt loans and securities, computed using an effective tax rate of 22.98% [26]. - For the years ended December 31, 2024 and 2023, the risk grade remains at 0.00% [27].