Peoples Bancorp of North Carolina Reports Mixed Q3 Results, Increased Net Income for Nine Months

Peoples Bancorp of North Carolina, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, showing notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the third quarter of 2024, net income was $3.96 million, or $0.74 per share, a slight decrease from $4.1 million, or $0.76 per share, in Q3 2023. However, for the nine months ended September 30, 2024, net income increased to $12.79 million, or $2.41 per share, compared to $12.11 million, or $2.22 per share, for the same period in 2023. This increase was primarily driven by a rise in interest income, which reached $20.5 million in Q3 2024, up from $18.3 million in Q3 2023, attributed to higher loan volumes and interest rates.

Total assets as of September 30, 2024, were $1.66 billion, an increase from $1.59 billion at the end of 2023. Total loans also rose to $1.12 billion, up from $1.09 billion, with net loans increasing to $1.11 billion from $1.08 billion. The company’s total deposits grew to $1.48 billion, compared to $1.39 billion at the end of 2023, reflecting a strong deposit base.

The provision for credit losses for Q3 2024 was $297,000, down from $562,000 in Q3 2023, indicating improved asset quality. The allowance for credit losses decreased to $10.6 million from $11.0 million at the end of 2023, influenced by a reduction in reserves for construction loans. However, a qualitative reserve of $669,000 was established for expected losses related to Hurricane Helene.

Non-interest income for the nine months ended September 30, 2024, was $20.7 million, up from $16.8 million in the same period in 2023, driven by increased appraisal management fees and other service-related income. Non-interest expenses also rose to $44.7 million from $41.6 million, primarily due to higher occupancy costs and appraisal management fees.

The company’s capital ratios improved, with the Tier 1 capital ratio at 14.35% and total risk-based capital ratio at 15.28% as of September 30, 2024, compared to 13.94% and 14.96%, respectively, at the end of 2023. The liquidity ratio also increased to 29.26%, exceeding the minimum requirement.

Peoples Bancorp continues to navigate economic challenges while maintaining a focus on growth and risk management, particularly in light of the impacts from Hurricane Helene on its customer base.