Peoples Bancorp of North Carolina (PEBK) Q1 2025 earnings summary

Executive summary

• Net earnings for Q1 2025 were $4.3 million ($0.82 per share, $0.79 diluted), up from $3.9 million ($0.74 per share, $0.72 diluted) in Q1 2024, driven by higher net interest and non-interest income, partially offset by increased provision for credit losses and non-interest expense.

• Annualized return on average assets was 1.07% and return on average equity was 13.52% for Q1 2025, both slightly higher than the prior year period.

• Total assets reached $1.69 billion, with total loans at $1.15 billion and deposits at $1.52 billion as of March 31, 2025.

Financial highlights

• Net interest income rose to $13.9 million in Q1 2025 from $13.3 million in Q1 2024, with a net interest margin of 3.51% (up from 3.33%).

• Non-interest income was $6.5 million, up from $6.0 million, mainly due to higher appraisal management fee income.

• Non-interest expense was $14.6 million, up slightly from $14.5 million, with increases in appraisal management fee expense offset by lower salaries, occupancy, and other expenses.

• Book value per share rose to $26.14 from $22.89 year-over-year.

• Loans grew to $1.15 billion, up from $1.14 billion at year-end 2024; deposits rose to $1.52 billion from $1.48 billion.

Outlook and guidance

• Management expects continued growth in local markets and through expansion, with no immediate need for acquisitions.

• The company remains focused on maintaining strong liquidity, asset quality, and capital levels to manage economic and interest rate risks.

• Management expects minimal losses from Hurricane Helene and believes the allowance for credit losses is currently adequate.

• Forward-looking statements caution about risks from competition, interest rates, economic conditions, and regulatory changes.