Peoples Bancorp of North Carolina(PEBK) - 2025 Q4 - Annual Results

Financial Performance - Net earnings for Q4 2025 were $6.6 million, or $1.25 per share, compared to $3.6 million, or $0.67 per share, in Q4 2024, representing an 83.33% increase in earnings per share [3]. - Net earnings for the year ended December 31, 2025, were $19,830,000, an increase from $16,353,000 in 2024, representing a growth of about 21.1% [24]. - Basic net earnings per share increased to $3.74 in 2025 from $3.08 in 2024, reflecting a rise of approximately 21.4% [24]. - Cash dividends for the year ended December 31, 2025, were $0.96 per share, up from $0.92 per share in the prior year, indicating a 4.35% increase [5]. - Cash dividends per share increased to $0.96 in 2025 from $0.92 in 2024, reflecting a growth of about 4.3% [24]. Income and Revenue - Net interest income for Q4 2025 was $15.4 million, up from $13.8 million in Q4 2024, reflecting an increase of 11.59% [4]. - Non-interest income for Q4 2025 was $9.6 million, compared to $7.1 million in Q4 2024, marking a 35.21% increase, primarily due to a $3.0 million net gain on the NCDOT acquisition [6]. - Non-interest income for the year ended December 31, 2025, totaled $30,980,000, compared to $27,715,000 in 2024, reflecting a growth of approximately 8.2% [24]. Assets and Loans - Total assets increased to $1,702,148,000 as of December 31, 2025, compared to $1,651,962,000 in 2024, reflecting a growth of approximately 3.0% [20]. - Total loans reached $1.20 billion as of December 31, 2025, an increase of 5.26% from $1.14 billion at the end of 2024 [5]. - Net loans rose to $1,194,262,000 in 2025, up from $1,128,409,000 in 2024, representing an increase of about 5.8% [20]. - Total deposits were $1.51 billion as of December 31, 2025, compared to $1.48 billion at the end of 2024, reflecting a growth of 2.03% [17]. - Total deposits increased to $1,509,225,000 in 2025, compared to $1,484,731,000 in 2024, marking a growth of approximately 1.6% [20]. - Total deposits increased to $1,550,863 million from $1,493,385 million, reflecting a growth of approximately 3.8% [27]. Asset Quality and Credit Losses - Non-performing assets decreased to $4.2 million, or 0.25% of total assets, from $4.8 million, or 0.29% of total assets, year-over-year [15]. - The provision for credit losses for the year ended December 31, 2025, was an expense of $938,000, compared to a recovery of $285,000 in 2024 [9]. - The provision for credit losses was $353,000 for the three months ended December 31, 2025, compared to a reversal of $205,000 in 2024 [24]. - Non-accrual loans decreased to $4,176 million from $4,440 million, indicating a reduction in credit risk [27]. - The percentage of loans classified as Risk Grade 1 (excellent quality) decreased to 0.24% from 0.33% [28]. - Allowance for credit losses on loans to non-performing assets ratio improved to 242.48%, compared to 207.84% in the previous year [27]. Return Ratios - Return on average assets rose to 1.52%, compared to 0.85% in the prior year, representing an increase of 78.8% [27]. - Return on average shareholders' equity reached 17.25%, up from 10.77%, marking a significant increase of 60.5% [27]. Margins - Net interest margin for the year ended December 31, 2025, was 3.57%, up from 3.36% in 2024 [5]. - Net interest margin improved to 3.62%, up from 3.39% in the previous year, indicating a 6.8% increase [27].