Peoples Bank Parent Company Reports 53% Increase in Earnings

1/22/18

By Ana Irizarry, NCBIZNews

Peoples Bancorp of North Carolina Inc., the parent company of Peoples Bank, reported a 53.8 percent increase in its fourth-quarter profit Monday, according to a filing with the Securities and Exchange Commission.

The company reported net income of $2.0 million, or 34 cents per share, up from the net income of $1.3 million, or 22 cents per share, for the same quarter a year ago.

Lance Sellars, the president and CEO of the company, attributed the increase in earnings to an increase in net interest income and a decrease in fixed operating costs, which were partially offset by a decrease in non-interest income during the last three months of 2017.

The decrease in operating costs was partially offset by a $794,000 increase in salaries and benefits for the fourth quarter. The increase is primarily due to an increase in the number of full-time equivalent employees, annual salary increases and an increase in expenses associated with restricted stock units due to an increase in the company’s stock price.

In March 2017 the company announced Sellars’ overall compensation declined by 1.5 percent in 2016 because of an increase in operating costs.

Earnings for the year were $10.3 million, or $1.71 per share, up from $9.2 million, or $1.53 per share for the same period in 2016.

The allowance for loan losses for the fourth-quarter was $6.4 million, or 0.84 percent of total loans, which decreased from $7.6 million, or 1.04 percent of total loans for the same quarter in 2016.

Fourth-quarter earnings were reduced by the charge to income tax expense of $588,000 due to the revaluation of deferred taxes, as required by the passing of the Tax Cuts and Job Act in December.

Peoples Bank operates 19 banking offices entirely in North Carolina, with offices in Catawba, Alexander, Lincoln, Mecklenburg, Iredell and Wake counties. The company is not followed by any Wall Street analysts.

Its shares were trading at $32.09, up 9 cents, or 0.28 percent in afternoon trading.

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