2 0 2 4 A n n u a l R e p o r t
Our Promise
We strive to be exceptional
and inspire others to be
exceptional too.
Our Vision
To be the bank that’s exceptional
at serving our communities,
including employees, customers
and shareholders.
Our Mission
To provide exceptional
customer service while selling
to customer needs.
Our Core Values:
Employees
We are informed,
encouraged, and committed.
Integrity
We are fair and truthful.
Exceptional Customer Service
We surpass our customers’ expectations.
Accountability
We are accountable for our own actions
and bank goals.
Progressive and Positive
We see change as an opportunity.
Table of Contents
Message from the President
2
Reports of Independent Registered Public Accounting Firms
4
Consolidated Balance Sheets
6
Consolidated Statements of Earnings
7
Our Leadership
8
2 0 2 4 A n n u a l R e p o r t
In 2024, the Bank marked its 112th consecutive year of channeling our resources, expertise,
passion, and commitment to serve our customers, communities, and each other. It has been
a year of great change, as well as a year of staying true to who we are. One significant
change is my appointment to the role of President and CEO. While change in leadership is
always significant, I have worked closely with our board and my predecessor, Lance Sellers,
for many years as Chief Operating Officer, and I plan to continue to build upon our proud
legacy.
It is a great honor to serve as the 11th President and CEO of Peoples Bank, to lead us into
the future as a strong, independent community bank that is exceptional at serving our
communities. Thank you to our talented and dedicated team of senior executives who have
helped to create a seamless transition in leadership.
To all the employees of Peoples Bank, you play a vital role in helping our communities grow
and prosper, in helping people live better lives. Thank you for being exceptional at what you
do. You are Peoples Bank and it is a privilege to serve you.
2024 highlights for Peoples Bancorp of North Carolina, Inc. are as follows:
l 2024 marked a record earning year with net earnings of $16.4 million or $3.08 per
share and $2.98 per diluted share for the year ended December 31, 2024, compared
to $15.5 million or $2.87 per share and $2.77 per diluted share for the year ended
December 31, 2023.
l Total loans were $1.14 billion at December 31, 2024, compared to $1.09 billion at
December 31, 2023.
l Total deposits were $1.48 billion at December 31, 2024, compared to $1.39 billion
at December 31, 2023. Deposit balances covered by FDIC insurance amounted to 73.29%
of total deposits at December 31, 2024 and 72.55% of total deposits at December 31, 2023.
Peoples Bank continues to be well-capitalized with robust earnings and operating standards.
As we commend our employees for their many and varied contributions to the success of
the Bank, we also wish to express our appreciation and gratitude to our board of directors
for their unique perspectives, invaluable insights, and extraordinary guidance, leadership,
and support.
Here is a recap of some of our more noteworthy achievements and announcements
during this past year.
Sound & Secure Banking
In early 2024, amidst industry-wide concerns of bank failures, we demonstrated exceptional
leadership, soundness and financial security. Our steadfast dedication to our core values
helped instill confidence among our customers, solidifying our role as a stable, trusted, and
reliable financial partner during turbulent times.
Community Involvement and Growth
This past year, our community involvement reached new heights with approximately 1,600
total volunteer hours, including 318 CRA-eligible hours, marking a 13% overall increase.
Volunteer time and giving was focused primarily on non-profits and education—areas
that align perfectly with our strategic priorities of supporting our communities. These
From the President
“It is a great
honor for me to
serve you as the
11th President
and CEO of
Peoples Bank.”
2
achievements, coupled with a 15% rise in CRA volunteer contributions, showcase our dedication to fostering meaningful
change in the communities we serve.
Expanding Expertise on Our Board of Directors
Peoples Bank proudly welcomed three distinguished professionals—Ashton Abernethy, Robert C. Abernethy Jr., and Dan R.
Timmerman Jr.—to its Board of Directors. Each new member brings extensive expertise in leadership, strategic planning, and
community engagement, reinforcing the Bank’s dedication to serving customers and fostering growth.
Peoples Bank Makes Two Key Promotions
Carol Shinn was promoted to Executive Vice President, Chief Operations Officer. Carol will be responsible for overseeing the
Bank’s technology strategy and implementation, deposit operations, digital banking, project management, and more. Jody
Street was promoted to Executive Vice President, Chief Commercial Banking Officer. Jody will be responsible for leading the
commercial banking team with a focus of expanding our markets and services across our footprint.
In addition to the Bank, which operates as a wholly-owned subsidiary of Peoples Bancorp of North Carolina, Inc. (the
“Company”) we would like to remind you of our three subsidiary companies:
Peoples Investment Services, Inc. provides 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. provides residential and commercial real estate appraisals to the Peoples Bank market
area and 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. Despite a challenging rate environment in 2024, CBRES achieved a record year in growth and earnings.
Thank you for your support and for recommending our Bank and subsidiary companies to members of your communities.
Sincerely,
Bill Cable
President and Chief Executive Officer
3
2 0 2 4 A n n u a l R e p o r t
Lance Sellers Retires as President and CEO
Peoples Bank is deeply committed to its core values, one of which is conducting
business with integrity and doing what is right. Lance Sellers exemplified this
commitment throughout his distinguished 40-year career in the banking industry,
including 26 years of dedicated service at Peoples Bank. Over the past 12 years, he
has served as President and CEO, guiding the Bank with exceptional leadership.
Under Lance’s tenure, Peoples Bank achieved significant growth and success. The
Bank’s assets expanded from $1 billion to $1.6 billion, and it experienced five years of
record earnings, reflecting remarkable progress and financial stability. His leadership
has strengthened the Bank and positioned it for continued success in the future.
We extend our sincere gratitude to Lance for his exemplary service and lasting
contributions. We celebrate his many achievements and wish him every success and
fulfillment in his retirement.
4
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
(United States), the consolidated balance sheet of Peoples Bancorp of North Carolina, Inc. as of December
31, 2024, and the related consolidated statements of earnings, comprehensive income (loss), changes in
shareholders’ equity and cash flows for the year ended December 31, 2024 (not presented herein); and
in our report dated March 12, 2025, we expressed an unqualified opinion on those 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, NC
March 12, 2025
5
2 0 2 4 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
(United States), the consolidated balance sheet of Peoples Bancorp of North Carolina, Inc. as of December
31, 2023, and the related consolidated statements of earnings, comprehensive income (loss), changes in
shareholders’ equity and cash flows for each of the years in the periods ended December 31, 2023 and 2022
(not presented herein); and in our report, dated March 7, 2024, we expressed an unqualified opinion on those
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.
Raleigh, North Carolina
March 7, 2024
elliottdavis.com
Consolidated Balance Sheets
December 31, 2024 and December 31, 2023
(Dollars in thousands)
December 31,
December 31,
Assets
2024
2023
Cash and due from banks
$
30,919
32,819
Interest-bearing deposits
28,347
49,556
Cash and cash equivalents
59,266
82,375
Investment securities available for sale
388,003
391,924
Other investments
2,728
2,874
Total securities
390,731
394,798
Mortgage loans held for sale
1,367
686
Loans
1,138,404
1,093,066
Less allowance for credit losses
(9,995)
(11,041)
Net loans
1,128,409
1,082,025
Premises and equipment, net
14,847
16,702
Cash surrender value of life insurance
17,675
18,134
Other real estate
369
-
Right of use lease asset
4,013
4,731
Accrued interest receivable and other assets
35,285
36,459
Total assets
$
1,651,962
1,635,910
Liabilities and Shareholders’ Equity
Deposits:
Noninterest-bearing demand
$
402,254
432,687
Interest-bearing demand, MMDA & savings
741,363
620,244
Time, over $250,000
145,939
148,904
Other time
195,175
190,210
Total deposits
1,484,731
1,392,045
Securities sold under agreements to repurchase
-
86,715
Junior subordinated debentures
15,464
15,464
Lease liability
4,136
4,832
Accrued interest payable and other liabilities
17,068
15,838
Total liabilities
1,521,399
1,514,894
Commitments and Contingencies
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 5,457,646 shares
at December 31, 2024 and 5,534,499 shares at December 31, 2023
48,658
50,625
Common stock held by deferred compensation trust, at cost;
158,580 shares at December 31, 2024 and
163,702 shares at December 31, 2023
(1,757)
(1,910)
Deferred compensation
1,757
1,910
Retained earnings
121,062
109,756
Accumulated other comprehensive loss
(39,157)
(39,365)
Total shareholders’ equity
130,563
121,016
Total liabilities and shareholders’ equity
$
1,651,962
1,635,910
Derived from audited financial statements. See Appendix A to the Peoples Bancorp of North Carolina, Inc. Proxy Statement for a complete set of audited financial statements.
6
2 0 2 3 A n n u a l R e p o r t
(Audited)
(Audited)
(Audited)
Consolidated Statements of Earnings
For the Years Ended December 31, 2024, 2023 and 2022
(Dollars in thousands, except per share amounts)
2024
2023
2022
Interest income:
Interest and fees on loans
$
62,920
55,507
43,077
Interest on due from banks
2,796
2,216
2,223
Interest on investment securities:
U.S. Government sponsored enterprises
9,979
9,365
4,150
States and political subdivisions
2,779
2,949
4,075
Other
2,259
1,825
906
Total interest income
80,733
71,862
54,431
Interest expense:
Demand deposits, MMDA & savings deposits
10,237
6,731
2,019
Time deposits
14,316
7,916
562
Junior subordinated debentures
1,116
1,079
529
Other
985
1,417
213
Total interest expense
26,654
17,143
3,323
Net interest income
54,079
54,719
51,108
Provision for (recovery of) credit losses
(285)
1,566
1,472
Net interest income after provision for credit losses
54,364
53,153
49,636
Non-interest income:
Service charges
5,653
5,496
5,290
Other service charges and fees
685
697
734
Gain (loss) on sale of securities, net
5
(2,488)
-
Mortgage banking income
357
301
393
Insurance and brokerage commissions
989
929
945
Appraisal management fee income
11,691
9,592
11,663
Gain (loss) on sale of premises and equipment
-
184
(85)
Miscellaneous
8,335
8,203
7,749
Total non-interest income
27,715
22,914
26,689
Non-interest expense:
Salaries and employee benefits
28,209
26,640
26,130
Occupancy
8,686
7,962
8,048
Professional fees
2,316
1,716
1,915
Advertising
791
750
693
Debit card expense
1,391
1,255
1,224
FDIC insurance
764
745
461
Appraisal management fee expense
9,263
7,559
9,264
Other
9,730
9,517
8,295
Total non-interest expense
61,150
56,144
56,030
Earnings before income taxes
20,929
19,923
20,295
Income tax expense
4,576
4,377
4,172
Net earnings
$
16,353
15,546
16,123
Basic net earnings per share
$
3.08
2.87
2.94
Diluted net earnings per share
$
2.98
2.77
2.85
Cash dividends declared per share
$
0.92
0.91
0.87
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.
(Audited)
(Audited)
(Audited)
7
2 0 2 4 A n n u a l R e p o r t
Consolidated Statements of Earnings
For the Years Ended December 31, 2024, 2023 and 2022
(Dollars in thousands, except per share amounts)
2024
2023
2022
Interest income:
Interest and fees on loans
$
62,920
55,507
43,077
Interest on due from banks
2,796
2,216
2,223
Interest on investment securities:
U.S. Government sponsored enterprises
9,979
9,365
4,150
States and political subdivisions
2,779
2,949
4,075
Other
2,259
1,825
906
Total interest income
80,733
71,862
54,431
Interest expense:
Now, MMDA & savings deposits
10,237
6,731
2,019
Time deposits
14,316
7,916
562
Junior subordinated debentures
1,116
1,079
529
Other
985
1,417
213
Total interest expense
26,654
17,143
3,323
Net interest income
54,079
54,719
51,108
Provision for (recovery of) credit losses
(285)
1,566
1,472
Net interest income after provision for credit losses
54,364
53,153
49,636
Non-interest income:
Service charges
5,653
5,496
5,290
Other service charges and fees
685
697
734
Gain (loss) on sale of securities, net
5
(2,488)
-
Mortgage banking income
357
301
393
Insurance and brokerage commissions
989
929
945
Appraisal management fee income
11,691
9,592
11,663
Gain (loss) on sale of premises and equipment
-
184
(85)
Miscellaneous
8,335
8,203
7,749
Total non-interest income
27,715
22,914
26,689
Non-interest expense:
Salaries and employee benefits
28,209
26,640
26,130
Occupancy
8,686
7,962
8,048
Professional fees
2,316
1,716
1,915
Advertising
791
750
693
Debit card expense
1,391
1,255
1,224
FDIC insurance
764
745
461
Appraisal management fee expense
9,263
7,559
9,264
Other
9,730
9,517
8,295
Total non-interest expense
61,150
56,144
56,030
Earnings before income taxes
20,929
19,923
20,295
Income tax expense
4,576
4,377
4,172
Net earnings
$
16,353
15,546
16,123
Basic net earnings per share
$
3.08
2.87
2.94
Diluted net earnings per share
$
2.98
2.77
2.85
Cash dividends declared per share
$
0.92
0.91
0.87
Derived from audited financial statements. See Appendix A to the Peoples Bancorp of North Carolina, Inc. Proxy Statement for a complete set of audited financial statements.
Peoples Bank
and Peoples Bancorp
Board of Directors
Robert C. Abernethy Sr.
Chairman of the Board
Peoples Bancorp of North Carolina, Inc.
and Peoples Bank
President, Secretary and Treasurer
Carolina Glove & Safety Company Inc.
James S. Abernethy
Vice Chairman of the Board
Peoples Bancorp of North Carolina, Inc.
and Peoples Bank
President and Assistant Secretary
Midstate Contractors, Inc.
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
Dan R. Timmerman Jr.
President & Co-Owner
Timmerman Manufacturing Inc
Ashton Abernethy
Vice President of Sales & Behavioral Health
Medusind Behavioral Health
Robert C. Abernethy Jr.
Executive Vice President & Board Member
Carolina Glove & Safety Company Inc.
Our Leadership
8
Bill Cable
President & CEO
Jeffrey Hooper
EVP, Chief Financial Officer
Jim Perry
EVP, Chief Banking Officer
Tim Turner
EVP, Chief Credit Officer
Carol Shinn
EVP, Chief Operations Officer
Jody Street
EVP, Chief Commercial Banking Officer
Community Bank Real Estate Solutions, LLC
Board of Directors
Robert C. Abernethy Sr.
David E. Reitzel
Dan Ray Timmerman, Sr.
William D. Cable Sr.
Peoples Investment Services, Inc.
Board of Directors
Robert C. Abernethy Sr.
Billy L. Price Jr., M.D.
David C. Brown
Larry E. Robinson
Douglas S. Howard
William D. Cable Sr.
Real Estate Advisory Services, Inc.
Board of Directors
Robert C. Abernethy Sr.
Dan Ray Timmerman Sr.
David E. Reitzel
William D. Cable Sr.
Officers
David E. Reitzel
President
William D. Cable Sr.
Vice President
John Noonan
Vice President
Krissy O. Price
Secretary
Jeffrey N. Hooper
Treasurer
Officers
David C. Brown
President
William D. Cable Sr.
Vice President and
Assistant Secretary
Krissy O. Price
Secretary
Jeffrey N. Hooper
Treasurer
Officers
David E. Reitzel
President
William D. Cable Sr.
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 1, 2025 .
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 Auditor
Forvis Mazars , LLP
4350 Congress Street, Suite 900, Charlotte, NC 28209
Peoples Bank Subsidiaries’
Board of Directors and Officers
Shareholder and
General Information
2 0 2 4 A n n u a l R e p o r t
In 2024, Peoples Bank lost an exceptional servant leader. Kim Boyd Leaks was a friend,
mentor, role model, believer, encourager, and inspiration to all who knew her. During her
30-year tenure with Peoples Bank, she served as Executive Vice President, Chief Banking
Support Officer, and as a Director. Prior to Kim’s passing, she had retired from Peoples Bank in
2024 after 40 laudable years in the banking field. Kim was responsible for many significant
achievements of the Bank, including helping us define, communicate, and live out our vision
and mission of wanting to be exceptional at serving others.
Throughout her life—with every pursuit, and in every relationship she forged—Kim
exemplified our credo to Be Exceptional.
Kim Boyd-Leaks Exemplified “Be Exceptional”