Peoples Bancorp of North Carolina Inc (PEBK) Announces Q3 2023 Earnings: Net Earnings of $4. ...
PEBK reported Q3 2023 net earnings of $4.1 million, down from $5.3 million in Q3 2022.
Year-to-date net earnings stood at $12.1 million, slightly up from $12.0 million in the same period last year.
Total loans increased to $1.1 billion at the end of Q3 2023, up from $1.0 billion at the end of 2022.
Net interest margin remained stable at 3.39% for Q3 2023.
Peoples Bancorp of North Carolina Inc (NASDAQ:PEBK) released its earnings report for the third quarter of 2023 on October 23, 2023. The company reported net earnings of $4.1 million or $0.76 per share, a decrease from $5.3 million or $0.96 per share in the same period last year. Despite the decrease in net earnings, the company showed steady growth in total loans and maintained a stable net interest margin.
Financial Highlights
Year-to-date net earnings were $12.1 million or $2.22 per share, slightly up from $12.0 million or $2.18 per share in the same period last year. Cash dividends were $0.72 per share during the nine months ended September 30, 2023, as compared to $0.69 per share for the prior year period.
Total loans were $1.1 billion at the end of Q3 2023, up from $1.0 billion at the end of 2022. Non-performing assets remained stable at $3.7 million or 0.23% of total assets. Total deposits were $1.4 billion at the end of Q3 2023, unchanged from the end of 2022.
Company Performance Analysis
PEBK's President and Chief Executive Officer, Lance A. Sellers, attributed the decrease in third quarter net earnings to a decrease in net interest income, an increase in the provision for credit losses, and an increase in non-interest expense. However, the company's year-to-date net earnings saw a slight increase, primarily attributable to an increase in net interest income.
The company's net interest margin remained stable at 3.39% for Q3 2023. The increase in year-to-date net earnings is primarily attributable to an increase in net interest income, which was partially offset by a decrease in non-interest income, an increase in non-interest expense, and an increase in the provision for credit losses.
Looking Ahead
Despite the challenges, PEBK continues to show steady growth in total loans and maintains a stable net interest margin. The company's management believes the current level of the allowance for credit losses is adequate, but notes that changes in economic conditions, regulatory requirements, or other factors may require additional adjustments in the future.
As PEBK continues to navigate the financial landscape, the company remains committed to providing value to its shareholders and serving the needs of its customers and communities.
This article first appeared on GuruFocus.
