Peoples Bancorp of North Carolina, Inc. Reports Un-Audited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2017
January 22, 2018 at 09:07 am
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Peoples Bancorp of North Carolina, Inc. reported un-audited consolidated earnings results for the fourth quarter and year ended December 31, 2017. For the quarter, the company reported net earnings were $2.0 million or $0.34 basic and diluted share as compared to $1.3 million or $0.22 basic and diluted for the same period one year ago. Net interest income was $10.2 million compared to $9.3 million for the three months ended December 31, 2016. The increase in net interest income was primarily due to a $620,000 increase in interest income, which was primarily attributable to an increase in the average outstanding balance of loans and a 0.75% increase in the prime rate since December 2016, combined with a $313,000 decrease in interest expense, which was primarily attributable to a decrease in the average outstanding balances of FHLB borrowings during the three months ended December 31, 2017, as compared to the same period one year ago. The company reported total interest income of $10.7 million compared to $10.1 million in last year. The company reported earnings before income taxes of $3.3 million compared to $1.3 million in last year. Return on average assets was 0.72% compared to 0.47% and return on average shareholders' equity was 6.87% compared to 4.74% for the last year. Net interest income after provision for loan losses was $10,321,000 compared to $9,384,000 a year ago.
For the year, the company reported net earnings of $10.3 million or $1.69 per diluted share as compared to $9.2 million or $1.50 per diluted share for the same period one year ago. The increase in year-to-date net earnings is primarily attributable to an increase in net interest income and a decrease in non-interest expense, which were partially offset by a decrease in non-interest income and a decrease in the credit to the provision for loan losses. Net interest income was $39.6 million compared to $36.5 million for the same period one year ago. The increase in net interest income was primarily due to a $2.1 million increase in interest income, which was primarily attributable to an increase in the average outstanding balance of loans and a 0.75% increase in the prime rate since December 2016, combined with a $894,000 decrease in interest expense, which was primarily attributable to a decrease in the average outstanding balances of FHLB borrowings during the year ended December 31, 2017, as compared to the same period one year ago. The company reported total interest income of $41.9 million compared to $39.8 million in last year. The company reported earnings before income taxes of $14.3 million compared to $11.7 million in last year. The company reported earnings before income taxes of $3.3 million compared to $1.3 million in last year. Return on average assets was 0.93% compared to 0.85% and return on average shareholders' equity was 8.78% compared to 8.11% for the last year. Book value as at December 31, 2017 was $19.34 compared to $18.03 per share as at December 31, 2016. Net interest income after provision for loan losses was $40,079,000 compared to $37,744,000 a year ago.
Peoples Bancorp of North Carolina, Inc. serves as the holding company for Peoples Bank (the Bank). The Bank is a state-chartered commercial bank. The Bank has a diversified loan portfolio, with no foreign loans and few agricultural loans. The Bankâs loan portfolio also includes Individual Taxpayer Identification Number (ITIN) mortgage loans generated through its former Banco offices. It has four subsidiaries, such as Peoples Investment Services, Inc., Real Estate Advisory Services, Inc., Community Bank Real Estate Solutions, LLC (CBRES) and PB Real Estate Holdings, LLC. Peoples Investment Services, Inc. provides the Bankâs customers access to investment counseling and non-deposit investment products. Real Estate Advisory Services, Inc. provides real estate appraisal and real estate brokerage services. CBRES serves as a clearinghouse for appraisal services for community banks. PB Real Estate Holdings, LLC acquires, manages, and disposes of real property, other collateral, and assets.