2 0 2 3 A N N U A L R E P O R T
Our Promise
Our Core Values:
We strive to be exceptional
Employees
and inspire others to be
exceptional too.
Our Vision
To be the bank that’s
exceptional at serving
our communities, including
We are informed,
encouraged, and committed.
Integrity
We are fair and truthful.
Exceptional Customer Service
We surpass our customers’
expectations.
employees, customers
Accountability
and shareholders.
We are accountable for our own
actions and bank goals.
Progressive and Positive
We see change as an opportunity.
Our Mission
To provide exceptional
customer service while
selling to customer needs.
2 0 2 3 A n n u a l R e p o r t
Table of Contents
Message from the President
Financial Highlights
Report of Independent Registered Public Accounting Firm
Consolidated Balance Sheets
Consolidated Statements of Earnings
Our Leadership
2
4
5
6
7
8
From the President
“ When we show
up for others in
truly meaningful
ways, they
succeed—and
we succeed.”
In 2023, the Bank marked its 111th consecutive year of delivering exceptional service
to our customers, communities, and each other, as this annual report reflects. While
our products and capabilities continue to advance, our dedication to empowering
people to be exceptional remains unchanged. Each day, our employees actively
contribute to improving the lives of our neighbors, the local business community, and
the communities we serve. Thank you for being truly exceptional and for helping to
bring out the exceptional in others.
Year-to-date highlights are as follows:
l Net earnings were $15.5 million or $2.87 per share and $2.77 per diluted share for
the year ended December 31, 2023, as compared to $16.1 million or $2.94 per share
and $2.85 per diluted share for the year ended December 31, 2022.
l Total loans were $1.1 billion at December 31, 2023, as compared to $1.0 billion at
December 31, 2022.
l Total deposits were $1.4 billion at December 31, 2023 and December 31, 2022.
Deposit balances covered by FDIC insurance amounted to 72.55% of total deposits
at December 31, 2023 and 69.36% of total deposits at December 31, 2022.
Peoples Bank continues to be a well-capitalized Bank with robust earnings and
operating standards. While we applaud the contributions of our employees who
are the driving force behind the Bank’s success, we also wish to thank our board of
directors for their guidance, support, vision, and expertise. You lead with integrity,
serve with passion, and demonstrate wisdom and care.
Here is a recap of some of our more noteworthy achievements and announcements
this year.
Investment in Technology
We launched a new customer service platform. With this platform, we have
streamlined the account opening process, centralized business account opening,
and provided an easy-to-use interface for employees. This new platform enhances
our customer service experience and improves our overall efficiency.
Mooresville Relocation
We strategically relocated our Mooresville business center to a more prominent and
accessible area, positioning ourselves to capitalize on greater opportunities. The
new address is 163 Plantation Ridge Dr, Mooresville, and officially opened on April
4th. This relocation represents a pivotal opportunity and is a significant stride in
reinforcing our presence and expanding our influence in the area..
2
2 0 2 3 A n n u a l R e p o r t
Supporting our Communities
In 2023, we significantly increased our community involvement through volunteering, with an increase of 134% in
volunteer hours and a 54% rise in total number of employee volunteers. Notably, Catawba County accounted for 51%
of our volunteer hours, demonstrating our dedication to volunteering within the community. We are dedicated to our
partnerships with non-profit organizations and education, which comprised 74% of our volunteer hours. This underscores
our strong commitment to supporting important institutions and prioritizing youth education.
In addition to the Bank, which operates as a wholly-owned subsidiary of the Company, we would like to remind you of
our three subsidiary companies:
Peoples Investment Services, Inc., licensed financial advisors who provide access to investment products, which include
stocks, bonds, mutual funds, annuities, and other suitable monetary investments through our affiliation with Raymond
James Financial Services, Inc.
Real Estate Advisory Services, Inc., which provides real estate appraisals (both residential and commercial) to the
Peoples Bank market area, is a valued partner with respect to real estate lending.
Community Bank Real Estate Solutions, LLC, assists community banks across the country with appraisal management
services.
Thank you for your support and for recommending our Bank and subsidiary companies to members of your
communities.
Sincerely,
Lance A. Sellers
President and Chief Executive Officer
3
Financial Highlights
Dollars in Thousands Except Per Share Amounts
Interest income
Interest expense
Net interest earnings
Provision for (recovery of) credit losses
Net interest earnings after provision for credit losses
Non-interest income
Non-interest expense
Income taxes
Net earnings
Per Share of Common Stock
Basic net earnings
Diluted net earnings
Cash dividends
Market price at December 31
Book value at December 31
At Year-end
Loans, net
Available for sale securities
Assets
Deposits
Shareholders’ equity
2023
2022
Change
$
$
$
71,862
17,143
54,719
1,566
53,153
22,914
56,144
4,377
15,546
2.87
2.77
0.91
30.94
22.53
54,431
3,323
51,108
1,472
49,636
26,689
56,030
4,172
16,123
2.94
2.85
0.87
32.56
19.24
$
1,082,025
1,022,114
391,924
1,635,910
1,392,045
121,016
445,394
1,620,927
1,435,215
105,195
32%
416%
7%
6%
7%
-14%
0%
5%
-4%
-2%
-3%
5%
-5%
17%
6%
-12%
1%
-3%
15%
Key Performance Ratios
Return on average assets
Return on average shareholders’ equity
Dividend payout ratio
Average shareholders’ equity to total average assets
0.97%
13.37%
32.86%
7.24%
0.97%
13.01%
30.61%
7.45%
4
2 0 2 3 A n n u a l R e p o r t
Report of Independent Registered Public Accounting Firm
To the Shareholders and the Board of Directors of Peoples Bancorp of North Carolina, Inc.
We have audited, in accordance with the standards of the Public Company Accounting Oversight Board
Report of Independent Registered Public Accounting Firm
(United States), the consolidated balance sheets of Peoples Bancorp of North Carolina, Inc. as of
December 31, 2018 and 2017, and the related consolidated statements of earnings, comprehensive
income, shareholders' equity and cash flows for each of the three years in the period ended December
To the Shareholders and the Board of Directors of Peoples Bancorp of North Carolina, Inc.
31, 2018 (not presented herein); and in our report, dated March 14, 2019, we expressed an unqualified
We have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United
opinion on those consolidated financial statements.
States), the consolidated balance sheets of Peoples Bancorp of North Carolina, Inc. as of December 31, 2023 and
2022, and the related consolidated statements of earnings, comprehensive income (loss), changes in
In our opinion, the information set forth in the accompanying condensed consolidated financial
shareholders' equity and cash flows for each of the three years in the period ended December 31, 2023 (not
statements is fairly stated, in all material respects, in relation to the consolidated financial statements
presented herein); and in our report, dated March 7, 2024, we expressed an unqualified opinion on those
from which it has been derived.
consolidated financial statements.
In our opinion, the information set forth in the accompanying condensed consolidated financial statements is
fairly stated, in all material respects, in relation to the consolidated financial statements from which it has been
derived.
Charlotte, North Carolina
March 14, 2019
Raleigh, North Carolina
March 7, 2024
elliottdavis.com
elliottdavis.com
5
Consolidated Balance Sheets
December 31, 2023 and December 31, 2022
(Dollars in thousands)
Assets
Cash and due from banks, including reserve requirements
of $0 at both 12/31/23 and 12/31/22
Interest-bearing deposits
Cash and cash equivalents
Investment securities available for sale
Other investments
Total securities
Mortgage loans held for sale
Loans
Less allowance for credit losses
Net loans
Premises and equipment, net
Cash surrender value of life insurance
Right of use lease asset
Accrued interest receivable and other assets
Total assets
Liabilities and Shareholders’ Equity
Deposits:
Noninterest-bearing demand
Interest-bearing demand, MMDA & savings
Time, $250,000 or more
Other time
Total deposits
Securities sold under agreements to repurchase
Junior subordinated debentures
Lease liability
Accrued interest payable and other liabilities
Total liabilities
Commitments
Shareholders’ equity:
Preferred stock, no par value; authorized
5,000,000 shares; no shares issued and outstanding
Common stock, no par value; authorized
20,000,000 shares; issued and outstanding 5,534,499 shares
at December 31, 2023 and 5,636,830 shares at December 31, 2022
Common stock, held by deferred compensation trust, at cost:
163.702 shares at December 31, 2023 and
169,094 shares at December 31, 2022
Deferred compensation
Retained earnings
Accumulated other comprehensive loss
Total shareholders’ equity
Total liabilities and shareholders’ equity
December 31,
December 31,
2023
(Audited)
$
32,819
49,556
82,375
391,924
2,874
394,798
686
1,093,066
(11,041)
1,082,025
16,702
18,134
4,731
36,459
$
1,635,910
$
432,687
620,244
148,904
190,210
1,392,045
86,715
15,464
4,832
15,838
2 022
(Audited)
50,061
21,535
71,596
445,394
2,656
448,050
211
1,032,608
(10,494)
1,022,114
18,205
17,703
5,116
37,932
1,620,927
523,088
814,128
31,001
66,998
1,435,215
47,688
15,464
5,185
12,180
1,514,894
1,515,732
-
-
50,625
52,636
(1,910)
1,910
109,756
(39,365)
121,016
(2,181)
2,181
100,156
(47,597)
105,195
$
1,635,910
1,620,927
See accompanying Notes to Consolidated Financial Statements.
See Appendix A to the Peoples Bancorp of North Carolina, Inc. Proxy Statement for a complete set of Consolidated Financial Statements.
6
Consolidated Statements of Earnings
For the Years Ended December 31, 2023, 2022 and 2021
2 0 2 3 A n n u a l R e p o r t
(Dollars in thousands, except per share amounts)
Interest income:
Interest and fees on loans
Interest on due from banks
Interest on investment securities:
U.S. Government sponsored enterprises
States and political subdivisions
Other
Total interest income
Interest expense:
Demand deposits, MMDA & savings deposits
Time deposits
Junior subordinated debentures
Other
Total interest expense
Net interest income
Provision for (recovery of) credit losses
Net interest income after provision for credit losses
Non-interest income:
Service charges
Other service charges and fees
Loss on sale of securities, net
Mortgage banking income
Insurance and brokerage commissions
Appraisal management fee income
Gain (loss) on sale of premises and equipment
Gain on sale of other real estate, net
Miscellaneous
Total non-interest income
Non-interest expense:
Salaries and employee benefits
Occupancy
Professional fees
Advertising
Debit card expense
FDIC insurance
Appraisal management fee expense
Other
Total non-interest expense
Earnings before income taxes
Income tax expense
Net earnings
Basic net earnings per share
Diluted net earnings per share
Cash dividends declared per share
2023
(Audited)
55,507
2,216
9,365
2,949
1,825
71,862
6,731
7,916
1,079
1,417
17,143
54,719
1,566
53,153
5,496
697
(2,488)
301
929
9,592
184
-
8,203
22,914
26,640
7,962
1,716
750
1,255
745
7,559
9,517
56,144
19,923
4,377
15,546
2.87
2.77
0.91
$
$
$
$
$
2022
(Audited)
43,077
2,223
4,150
4,075
906
54,431
2,019
562
529
213
3,323
51,108
1,472
49,636
5,290
734
-
393
945
11,663
(85)
-
7,749
26,689
26,130
8,048
1,915
693
1,224
461
9,264
8,295
56,030
20,295
4,172
16,123
2.94
2.85
0.87
2 021
(Audited)
41,186
258
2,478
3,146
111
47,179
2,029
752
280
144
3,205
43,974
(1,163)
45,137
3,921
803
-
2,505
1,035
8,890
105
21
7,639
24,919
24,506
7,858
1,826
536
1,000
415
7,112
7,874
51,127
18,929
3,796
15,133
2.71
2.63
0.66
See accompanying Notes to Consolidated Financial Statements.
See Appendix A to the Peoples Bancorp of North Carolina, Inc. Proxy Statement for a complete set of Consolidated Financial Statements.
7
Our Leadership
Lance Sellers
President & CEO
Jeffrey N. Hooper
EVP, Chief Financial Officer
Bill Cable
EVP, Chief Operating Officer
Kim Boyd-Leaks
EVP, Chief Retail Banking
Support Officer
Tim Turner
EVP, Chief Credit Officer
Jim Perry
EVP, Chief Retail Banking Officer
8
Peoples Bank
and Peoples Bancorp
Board of Directors
Robert C. Abernethy
Chairman of the Board
Peoples Bancorp of North Carolina,
Inc. and Peoples Bank
President, Secretary and Treasurer
Carolina Glove Company, Inc.
James S. Abernethy
President and Assistant Secretary
Midstate Contractors, Inc.
Kim Boyd-Leaks
EVP, Chief Retail Banking
Support Officer
Peoples Bank
Douglas S. Howard
Vice President and Treasurer
Denver Equipment Company of
Charlotte, Inc.
John W. Lineberger, Jr.
Vice President
Lineberger Brothers, Inc.
Gary E. Matthews
President and Director
Matthews Construction Company, Inc.
Billy L. Price, Jr., M.D.
Practitioner of Internal Medicine
BL Price Jr Medical Consultants, PLLC
Larry E. Robinson
Chairman of the Board
and Chief Executive Officer
The Blue Ridge Distributing
Company, Inc.
W. Gregory Terry
President
Clemson Legacy Designs
Collegiate Legacy Designs
Director/Consultant
Drum & Willis-Reynolds
Funeral Home & Crematory
Dan Ray Timmerman, Sr.
Chairman of the Board and
Chief Executive Officer
Timmerman Manufacturing, Inc.
Benjamin I. Zachary
President, Treasurer,
General Manager and Director
Alexander Railroad Company
Peoples Bank Subsidiaries’
Board of Directors and Officers
Shareholder and
General Information
2 0 2 3 A n n u a l R e p o r t
Community Bank Real Estate Solutions, LLC
Board of Directors
Officers
Robert C. Abernethy
David E. Reitzel
Dan Ray Timmerman, Sr.
Lance A. Sellers
David E. Reitzel
President
Lance A. Sellers
Vice President
John Noonan
Vice President
Krissy O. Price
Secretary
Jeffrey N. Hooper
Treasurer
Peoples Investment Services, Inc.
Board of Directors
Officers
Robert C. Abernethy
Billy L. Price, Jr., M.D.
David C. Brown
Larry E. Robinson
Douglas S. Howard
Lance A. Sellers
William D. Cable, Sr.
David C. Brown
President
Lance A. Sellers
Vice President and
Assistant Secretary
Krissy O. Price
Secretary
Jeffrey N. Hooper
Treasurer
Real Estate Advisory Services, Inc.
Board of Directors
Officers
Robert C. Abernethy
Dan Ray Timmerman, Sr.
David E. Reitzel
Lance A. Sellers
David E. Reitzel
President
Lance A. Sellers
Vice President
John Noonan
Vice President
Krissy O. Price
Secretary
Jeffrey N. Hooper
Treasurer
Annual Meeting
The Annual Meeting of Shareholders of Peoples Bancorp will be
conducted in a virtual-only format at 11:00 a.m. on Thursday, May 2,
2024.
Common Stock
Peoples Bancorp common stock is listed on the NASDAQ (National
Association of Securities Dealers Automated Quotations) Global Market,
where our symbol is PEBK.
Dividend Reinvestment & Stock Purchase
Peoples Bancorp offers a Dividend Reinvestment and Stock
Purchase Plan for the benefit of the Company’s shareholders. The
Plan provides for the full or partial reinvestment of cash dividends,
optional cash purchases of the Company’s stock, safekeeping of
the share certificates, liquidation of shares, and gifting of shares
and enrollment of the designated recipients.
Broadridge Corporate Issuer Solutions, Inc. is the Plan Administrator.
For more information, one may call Peoples Bancorp at 828-464-5620
or 800-948-7195 or contact the Plan Administrator at 855-263-4988.
Shareholders of Peoples Bancorp are entitled to receive dividends
when and as declared by the Board of Directors out of funds legally
available therefore.
Such dividend payments are declared based upon the guidelines
of North Carolina and federal banking law.
Corporate Office
Peoples Bancorp of North Carolina, Inc.
518 West C Street
PO Box 467
Newton, NC 28658
828-464-5620
Stock Transfer Agent & Registrar
Broadridge Corporate Issuer Solutions, Inc.
P.O. Box 1342
Brentwood, NY 11717
www.broadridge.com
Independent Auditors
Elliott Davis, PLLC
5410 Trinity Road, Suite 320
Raleigh, NC 27607