Peoples Bancorp of North Carolina(PEBK) - 2025 Q2 - Quarterly Report

Earnings and Income - For the three months ended June 30, 2025, the basic earnings per share was $0.97, with net earnings of $5,160,000 and a weighted average of 5,303,370 shares outstanding[38]. - For the six months ended June 30, 2025, the basic earnings per share was $1.79, with net earnings of $9,505,000 and a weighted average of 5,300,841 shares outstanding[39]. - The Company reported a net income of $5,160,000 for the three months ended June 30, 2025, compared to $4,888,000 for the same period in 2024, an increase of about 5.5%[113]. - Year-to-date net earnings for the first half of 2025 were $9.5 million, or $1.79 per share, compared to $8.8 million, or $1.67 per share, in the same period of 2024, representing a growth of about 7.9%[125]. - Net interest income for the three months ended June 30, 2025, was $14,597,000, compared to $13,416,000 for the same period in 2024, reflecting an increase of about 8.8%[113]. - Noninterest income for the three months ended June 30, 2025, was $3,720,000, down from $4,340,000 in the same period of 2024, showing a decline of approximately 14.3%[113]. - Interest income for the six months ended June 30, 2025, totaled $40,690,000, compared to $39,880,000 for the same period in 2024, reflecting a growth of approximately 2.0%[113][114]. Investment Securities - The total fair value of investment securities available for sale as of June 30, 2025, was $371,614,000, with unrealized losses totaling $41,924,000[40]. - The unrealized losses in the investment securities portfolio relating to debt securities totaled $41.9 million as of June 30, 2025, attributed to changing interest rates[42]. - The total gross amortized cost of investment securities available for sale was $413,323,000 as of June 30, 2025[40]. - The amortized cost of investment securities available for sale was $413.323 million, with a fair value of $371.614 million as of June 30, 2025[43]. - Proceeds from sales of securities available for sale during the six months ended June 30, 2025, were $12.7 million, resulting in gross losses of $47,000[43]. Loans and Credit Quality - As of June 30, 2025, total loans amounted to $1,157.975 million, an increase from $1,138.404 million as of December 31, 2024, representing a growth of approximately 1.5%[45]. - The total net loans after allowance for credit losses was $1,148.183 million as of June 30, 2025, compared to $1,128.409 million at the end of 2024, indicating a net increase of about 1.8%[45]. - The total real estate loans reached $1,082.498 million as of June 30, 2025, up from $1,047.952 million at December 31, 2024, reflecting an increase of approximately 3.3%[45]. - Non-accrual loans totaled $4.607 million as of June 30, 2025, compared to $4.183 million at December 31, 2024, showing an increase of about 10.1%[48]. - The allowance for credit losses was $9.792 million as of June 30, 2025, slightly down from $9.995 million at the end of 2024[45]. - The total allowance for credit losses, including loan commitments, was $11,050 thousand as of June 30, 2025, compared to $9,995 thousand at the beginning of the year, reflecting a 10.6% increase[66]. - The provision for loan losses for the three months ended June 30, 2025, was a recovery of $185 thousand, indicating improved credit quality[65]. - The total charge-offs for the six months ended June 30, 2025, are to be detailed in the upcoming report[75]. Assets and Liabilities - As of June 30, 2025, total assets amounted to $1,693,845,000, an increase from $1,655,398,000 as of June 30, 2024, representing a growth of approximately 2.3%[113]. - Total liabilities, including deposits, were $1,516,160,000 as of June 30, 2025, compared to $1,487,475,000 as of December 31, 2024, indicating an increase in funding sources[113]. - The liquidity ratio for the Bank was 29.56% at June 30, 2025, up from 28.16% at December 31, 2024, exceeding the minimum required ratio of 10%[184]. - Shareholders' equity increased to $144.0 million (8.50% of total assets) at June 30, 2025, compared to $130.6 million (7.90% of total assets) at December 31, 2024[186]. Capital and Regulatory Compliance - The Company's Tier 1 capital ratio was 14.92% at June 30, 2025, compared to 14.47% at December 31, 2024, indicating strong capital adequacy[191]. - The total risk-based capital ratio was 15.78% at June 30, 2025, up from 15.34% at December 31, 2024, reflecting improved capital strength[191]. - The Company is considered "well capitalized" as of June 30, 2025, meeting all regulatory capital requirements[193]. - The annualized return on average equity for the six months ended June 30, 2025, was 14.06%, down from 14.69% for the same period in 2024[187]. Other Financial Metrics - The effective tax rate for the six months ended June 30, 2025, was 22.69%, up from 19.74% for the same period in 2024[150]. - The average yield on earning assets increased to 5.05% for the six months ended June 30, 2025, compared to 4.99% for the same period in 2024[137]. - The average rate paid on interest-bearing liabilities decreased to 2.19% in Q2 2025 from 2.46% in Q2 2024, reflecting a reduction in funding costs[131]. - The average yield on loans for Q2 2025 was 5.78%, up from 5.65% in Q2 2024, showing improved loan profitability[130].