Peoples Bancorp of North Carolina(PEBK) - 2025 Q1 - Quarterly Results

Financial Performance - Net earnings for Q1 2025 were $4.3 million, or $0.82 per share, compared to $3.9 million, or $0.74 per share, in Q1 2024, representing a 10.3% increase in earnings per share [3]. - Net earnings for the first quarter of 2025 were $4,345 thousand, reflecting an increase of 10.0% from $3,948 thousand in Q1 2024 [17]. - The return on average assets improved to 1.07% for the three months ended March 31, 2025, compared to 0.96% in Q1 2024 [18]. - Cash dividends increased to $0.36 per share in Q1 2025, compared to $0.35 per share in the prior year period [6]. - The effective tax rate for Q1 2025 was 22.85%, up from 16.62% in Q1 2024, primarily due to prior tax adjustments [8]. Income and Revenue - Net interest income increased to $13.9 million in Q1 2025 from $13.3 million in Q1 2024, driven by an increase in interest income on loans [4]. - Net interest income for the three months ended March 31, 2025, was $13,944 thousand, up 4.8% from $13,304 thousand in the same period of 2024 [17]. - Non-interest income rose to $6.5 million in Q1 2025, up from $6.0 million in Q1 2024, primarily due to a $628,000 increase in appraisal management fee income [5]. - Total non-interest income rose to $6,529 thousand, an increase of 8.1% from $6,038 thousand in Q1 2024 [17]. Assets and Loans - Total loans reached $1.15 billion as of March 31, 2025, compared to $1.14 billion at December 31, 2024, indicating a growth in lending activity [6]. - Net loans reached $1,142,033 thousand, a rise of 1.2% from $1,128,409 thousand at the end of 2024 [16]. - Total assets increased to $1,692,985 thousand as of March 31, 2025, up from $1,651,962 thousand at December 31, 2024, representing a growth of 2.0% [16]. Deposits and Equity - Total deposits increased to $1.52 billion as of March 31, 2025, up from $1.48 billion at December 31, 2024, reflecting a strong deposit base [12]. - Total deposits grew to $1,517,569 thousand, an increase of 2.2% compared to $1,484,731 thousand at December 31, 2024 [16]. - Shareholders' equity rose to $138.5 million, or 8.18% of total assets, as of March 31, 2025, compared to $130.6 million, or 7.90% of total assets, at December 31, 2024 [13]. Credit Quality - Non-performing assets were $5.1 million, or 0.30% of total assets, as of March 31, 2025, compared to $4.8 million, or 0.29% of total assets, at December 31, 2024 [10]. - The allowance for credit losses on loans was $10.0 million, or 0.87% of total loans, as of March 31, 2025, consistent with the previous quarter [11]. - The provision for credit losses was $268 thousand for the three months ended March 31, 2025, compared to $91 thousand in the same period of 2024 [18]. - The allowance for credit losses on loans decreased to $10,047 thousand as of March 31, 2025, down from $10,847 thousand a year earlier [18]. Margins - The net interest margin (tax equivalent) increased to 3.51% for the three months ended March 31, 2025, up from 3.33% in the same period of 2024 [18].