Peoples Bancorp of North Carolina(PEBK) - 2024 Q1 - Quarterly Results

Financial Performance - Net earnings for Q1 2024 were $3.9 million, or $0.74 per share, compared to $3.2 million, or $0.58 per share, in Q1 2023, representing a 21.88% increase in earnings per share [3]. - Net earnings for Q1 2024 were $3,948,000, representing a 24.5% increase from $3,172,000 in Q1 2023 [15]. - Basic net earnings per share increased to $0.74, up from $0.58 in the prior year, marking a growth of 27.6% [15]. - The return on average assets improved to 0.96% in Q1 2024, compared to 0.81% in Q1 2023 [16]. Income and Expenses - Net interest income decreased to $13.3 million in Q1 2024 from $14.3 million in Q1 2023, primarily due to a $4.0 million increase in interest expense [4]. - Total interest income for Q1 2024 was $19,810,000, an increase of 17.9% from $16,801,000 in Q1 2023 [15]. - Net interest income after provision for credit losses was $13,213,000, compared to $14,114,000 in the same period last year, reflecting a decrease of 6.4% [15]. - Total non-interest income increased significantly to $6.0 million in Q1 2024 from $3.6 million in Q1 2023, attributed to the absence of losses on securities sales [5]. - Total non-interest income increased significantly to $6,038,000, up 67.3% from $3,611,000 in Q1 2023 [15]. - Total non-interest expenses rose to $14,516,000, an increase of 5.9% from $13,702,000 in Q1 2023 [15]. Assets and Liabilities - Total assets grew to $1.7 billion as of March 31, 2024, compared to $1.6 billion at December 31, 2023 [8]. - Total loans remained stable at $1.1 billion as of March 31, 2024, consistent with December 31, 2023 [5]. - Total deposits increased to $1.5 billion as of March 31, 2024, up from $1.4 billion at December 31, 2023 [5]. Credit Quality - Non-performing assets were $4.0 million, or 0.24% of total assets, unchanged from December 31, 2023 [9]. - Non-performing assets totaled $3,991,000, slightly increasing from $3,644,000 in the previous year [16]. - The allowance for credit losses on loans was $10.9 million, or 0.98% of total loans, down from $11.0 million, or 1.01%, at December 31, 2023 [10]. - The allowance for credit losses on loans was $10,847,000, up from $9,617,000 in Q1 2023 [16]. Dividends and Tax - Cash dividends increased to $0.35 per share in Q1 2024, compared to $0.34 per share in the prior year [5]. - The effective tax rate decreased to 16.62% in Q1 2024 from 21.15% in Q1 2023, primarily due to a tax credit adjustment [7]. Margins - The net interest margin (tax equivalent) decreased to 3.33% from 3.77% year-over-year [16].