Filed by the Registrant | [X] | |
Filed by a Party other than the Registrant | [ ] |
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[ ] |
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Preliminary
Proxy Statement |
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[ ] |
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Confidential,
for Use of the Commission |
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[X] |
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Definitive
Proxy Statement |
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Only
(as permitted by Rule 14a-6(e)(2)) |
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[ ] |
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Definitive
Additional Materials |
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[ ] |
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Soliciting
Material Pursuant to |
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§240.14a-12 |
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Payment
of Filing Fee (Check the appropriate box): | |||
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[X]
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No
fee required. |
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[ ]
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Fee
computed on table below per Exchange Act Rules 14a-6(i)(1) and
0-11. |
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(1) |
Title
of each class of securities to which transaction
applies: | |
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(2) |
Aggregate
number of securities to which transaction applies: | |
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(3) |
Per
unit price or other underlying value of transaction computed pursuant to
Exchange Act Rule 0-11 (set forth the amount on which the filing fee
is calculated and state how it was determined): | |
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(4) |
Proposed
maximum aggregate value of transaction: | |
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(5) |
Total
fee paid: | |
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[ ]
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Fee
paid previously with preliminary materials: |
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Check
box if any part of the fee is offset as provided by Exchange Act
Rule 0-11(a)(2) and identify the filing for which the offsetting fee
was paid previously. Identify the previous filing by registration
statement number, or the Form or Schedule and the date of its
filing. |
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(1) |
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Previously Paid: | |
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(2) |
Form,
Schedule or Registration Statement No.: | |
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(3) |
Filing
Party: | |
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(4) |
Date
Filed: |
Page | ||
Notice of 2005 Annual Meeting of Shareholders................................................................................................................................................................ ii | ||
Proxy Statement........................................................................................................................................................................................................................... | ||
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Solicitation, Voting and Revocability of Proxies.................................................................................................................................................. 1 | |
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Security Ownership of Certain Beneficial Owners............................................................................................................................................... 2 | |
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Section 16(a) Beneficial Ownership Reporting Compliance............................................................................................................................... 5 | |
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Proposal 1 - Election of Directors........................................................................................................................................................................... 5 | |
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Report of Governance Committee with Respect to Compensation.................................................................................................................. 19 | |
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Governance Committee Interlocks and Insider Participation............................................................................................................................ 20 | |
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Report
of Audit
Committee.................................................................................................................................................................................... 20 | |
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Performance Graph ................................................................................................................................................................................................. 21 | |
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Proposal 2 - Ratification of Selection of Independent Auditor........................................................................................................................ 22 | |
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Date of Receipt of Shareholder Proposals ...........................................................................................................................................................23 | |
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Other Matters........................................................................................................................................................................................................... 23 | |
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Miscellaneous ..........................................................................................................................................................................................................23 | |
Appendix A: Annual Report....................................................................................................................................................................................................... | ||
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General Description of the Business................................................................................................................................................................. A-1 | |
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Selected Financial Data ........................................................................................................................................................................................A-2 | |
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Management's Discussion and Analysis of Financial Condition and Results of Operations................................................................. A-3 | |
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Quantitative and Qualitative Disclosures About Market Risk ....................................................................................................................A-21 | |
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Market For The Company's Common Equity and Related Shareholder Matters ......................................................................................A-23 | |
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Directors and Officers of the Company ...........................................................................................................................................................A-24 | |
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Report of Independent Certified Public Accountants ..................................................................................................................................A-25 | |
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Consolidated Balance Sheets - December 31, 2004 and 2003 .......................................................................................................................A-26 | |
Consolidated Statements of Earnings - For the Years Ended December 31, 2004, 2003 | ||
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and 2002 ...................................................................................................................................................................................................A-27 | |
Consolidated Statements of Changes in Shareholders' Equity - For the Years Ended | ||
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December 31, 2004, 2003 and 2002 .......................................................................................................................................................A-28 | |
Consolidated Statements of Comprehensive Income - For the Years Ended | ||
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December 31, 2004, 2003 and 2002........................................................................................................................................................A-29 | |
Consolidated Statements of Cash Flows - For the Years Ended December 31, 2004, | ||
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2003 and 2002.......................................................................................................................................................................................... A-30 | |
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Notes to Consolidated Financial Statements.................................................................................................................................................A-32 |
1. |
To
elect three persons who will serve as directors of the Company for a
three-year term expiring in 2008, or until their successors are duly
elected and qualified; |
2. |
To
ratify the appointment of Porter Keadle Moore, LLP (“PKM”) as the
independent auditor for the Company for the fiscal year ending December
31, 2005; and |
3. |
To
transact such other business as may properly come before the Meeting or
any adjournments thereof. The board of directors of the Company (the
“Board of Directors”) is not aware of any other business to be considered
at the Meeting. |
Name and Address of | Amount and Nature of | Percent | ||||
Beneficial Owner | Beneficial Ownership 1 | of Class 2 | ||||
|
Christine
S. Abernethy |
|
379,732
3 |
11.00% | ||
P.O. Box 820 | ||||||
Newton, NC 28658 | ||||||
|
Banc
Funds Company, LLC |
|
201,363
|
5.83% | ||
208 South LaSalle St. | ||||||
Suite 1680 | ||||||
Chicago, IL 60604 | ||||||
|
Tontine
Partners, LP |
|
311,065
|
9.01% | ||
55 Railroad Ave., 3rd Floor | ||||||
Greenwich, CT 06830-6378 |
1 |
Unless
otherwise noted, all shares are owned directly of record by the named
individuals, by their spouses and minor children, or by other entities by
the named individuals. Voting and investment power is not shared
unless otherwise indicated. |
2 |
Based
upon a total of 3,451,406 shares of Common Stock outstanding as of the
Record Date. |
3 |
Carolina
Glove Company, Inc. owns 63,116 shares of Common Stock. These shares are
included in the calculation of Ms. Abernethy’s total beneficial ownership
interest. Ms. Abernethy owns approximately 50% of the stock of Carolina
Glove Company, Inc. The business is operated by a family committee. Ms.
Abernethy has no active day-to-day participation in the business affairs
of Carolina Glove Company, Inc. |
|
|
Amount
and |
|||
|
|
Nature
of |
Percentage |
||
|
|
Beneficial |
of |
||
Name
and Address |
|
Ownership
1 |
Class
2 |
||
James
S. Abernethy |
|
108,908
3 |
3.07% |
||
Post Office Box 327 | |||||
Newton, NC 28658 | |||||
Robert
C. Abernethy |
|
123,577
4 |
3.48% |
||
Post Office Box 366 | |||||
Newton, NC 28658 | |||||
Joseph
F. Beaman, Jr. |
|
22,193
5 |
* |
||
Post Office Box 467 | |||||
Newton, NC 28658 | |||||
William
D. Cable |
|
14,563
6 |
* |
||
Post Office Box 467 | |||||
Newton, NC 28658 | |||||
Douglas
S. Howard |
|
2,012
7 |
* |
||
P.O. Box 587 | |||||
Denver, NC 28037 | |||||
A.
Joseph Lampron |
|
9,246
8 |
* |
||
Post Office Box 467 | |||||
Newton, NC 28658 | |||||
John
W. Lineberger, Jr. |
|
363
|
* |
||
6154 Vesuvius Furnace Road | |||||
Iron Station, NC 28080 |
Gary
E. Matthews |
|
6,455
|
* |
||
210 First Avenue South | |||||
Conover, NC 28613 | |||||
Charles
F. Murray |
|
62,492
9 |
1.76% |
||
Post Office Box 1118 | |||||
Claremont, NC 28610 | |||||
Billy L.
Price, Jr., M.D. |
|
398 |
* |
||
540 11th Ave. Place NW | |||||
Hickory, NC 28601 | |||||
Larry
E. Robinson |
|
26,90710 |
* |
||
Post Office 723 | |||||
Newton, NC 28658 |
|
|
Amount
and |
|||
|
|
Nature
of |
Percentage |
||
|
Beneficial |
of |
|||
Name
and Address |
|
Ownership 1 |
Class
2 |
||
Lance
A. Sellers |
|
18,403
11 |
|
* |
|
Post Office Box 467 | |||||
Newton, NC 28658 | |||||
Fred
L. Sherrill, Jr. |
|
15,796
12 |
* |
||
Post Office Box 816 | |||||
Conover, NC 28613 | |||||
William Gregory
Terry |
|
1,369
|
* |
||
706 South College Ave. | |||||
Newton, NC 28658 | |||||
Dan
Ray Timmerman, Sr. |
|
34,712
13 |
* |
||
Post Office Box 1148 | |||||
Conover, NC 28613 | |||||
Tony
W. Wolfe |
|
39,722
14 |
1.12% |
||
Post Office Box 467 | |||||
Newton, NC 28658 | |||||
Benjamin
I. Zachary |
|
45,160
15 |
1.27% |
||
Post Office Box 277 | |||||
Taylorsville, NC 28681 |
All
current directors and nominees and |
|
497,480
16,17 |
14.03% |
||
executive officers as a group (17 people) |
1 |
Unless
otherwise noted, all shares are owned directly of record by the named
individuals, by their spouses and minor children, or by other entities
controlled by the named individuals. Voting and investment power is not
shared unless otherwise indicated. |
2 |
Based
upon a total of 3,451,406 shares of Common Stock outstanding as of the
Record Date and 95,312 stock options exercisable within 60 days with
respect to the designated recipient(s). |
3 |
Includes
38,811 shares of Common Stock owned by Alexander Railroad Company. Mr. J.
Abernethy is Vice President, Secretary and Chairman of the Board of
Directors of Alexander Railroad Company. |
4 |
Includes
2,902 shares of Common Stock owned by Mr. R. Abernethy’s spouse, for which
Mr. R. Abernethy disclaims beneficial
ownership. |
5 |
Includes
19,476 shares of Common Stock in which Mr. Beaman has the right to acquire
beneficial interest within 60 days by the exercise of stock options
granted under the Omnibus Stock Ownership and Long Term Incentive
Plan. |
6 |
Includes
12,045 shares of Common Stock in which Mr. Cable has the right to acquire
beneficial interest within 60 days by the exercise of stock options
granted under the Omnibus Stock Ownership and Long Term Incentive
Plan. |
7 |
Includes
550 shares of Common
Stock owned by Mr. Howard’s mother over which Mr. Howard holds a power of
attorney. |
8 |
Includes
8,951 shares of Common Stock in which Mr. Lampron has the right to acquire
beneficial interest within 60 days by the exercise of stock options
granted under the Omnibus Stock Ownership and Long Term Incentive
Plan. |
9 |
Includes
970 shares of Common Stock owned by Mr. Murray’s spouse, for which Mr.
Murray disclaims beneficial ownership. Also includes 1,815 shares owned by
Murray’s Hatchery, Inc. Mr. Murray is President of Murray’s Hatchery,
Inc. |
10 |
Includes
4,043 shares of Common Stock owned by Mr. Robinson’s spouse, for which Mr.
Robinson disclaims beneficial ownership. |
11 |
Includes
18,280 shares of Common Stock in which Mr. Sellers has the right to
acquire beneficial interest within 60 days by the exercise of stock
options granted under the Omnibus Stock Ownership and Long Term
Incentive Plan. |
12 |
Includes
6,259 shares of Common Stock owned by Mr. Sherrill’s spouse, for which Mr.
Sherrill disclaims beneficial ownership. |
13 |
Includes 1,650
shares of Common Stock owned by Timmerman Manufacturing , Inc. Mr.
Timmerman is President and a Director of Timmerman Manufacturing, Inc.
|
14 |
Includes
36,560 shares of Common Stock in which Mr. Wolfe has the right to acquire
beneficial interest within 60 days by the exercise of stock options
granted under the Omnibus Stock Ownership and Long Term Incentive
Plan. |
15 |
Includes
38,811 shares of Common Stock owned by Alexander Railroad Company. Mr.
Zachary is President, Treasurer, General Manager and a Director of
Alexander Railroad Company. |
16 |
The
38,811 shares owned by Alexander Railroad Company and attributed to Mr. J.
Abernethy and Mr. Zachary are only included once in calculating this
total. |
17 |
Includes
95,312 shares of Common Stock in which the executive officers, as a group,
have the right to acquire beneficial interest within 60 days by the
exercise of stock options granted under the Omnibus Stock Ownership and
Long Term Incentive Plan. |
|
Age
on |
Principal Occupation |
Director
|
||||
Name |
|
December
31, 2004 |
During
Last Five Years |
Since |
|||
Charles
F. Murray |
|
61 |
President, Murray's Hatchery, Inc. |
1990 |
|||
Douglas
S. Howard |
|
45 |
Vice President, Howard Ventures, Inc.; |
2004 |
|||
Secretary/Treasurer, Denver Equipment of | |||||||
Charlotte, Inc. | |||||||
Billy
L. Price, Jr., M.D. |
|
48 |
Practicing Internist and Partner in Catawba |
2004 |
|||
Valley Internal Medicine, P.A.; Clinical | |||||||
Instructor, Wake Forest University School of | |||||||
Medicine |
|
|
Age
on |
Principal
Occupation |
Director |
Term |
Name |
|
December
31, 2004 |
During
Last Five Years |
Since |
Expires |
Robert
C. Abernethy |
|
54 |
President,
Secretary and Treasurer, |
1976 |
2006 |
Carolina Glove Company, Inc. (glove | |||||
manufacturer); Secretary and Assistant | |||||
Treasurer, Midstate Contractors, Inc. | |||||
(paving company) | |||||
James
S. Abernethy |
|
50 |
Vice
President, Carolina Glove |
1992 |
2006 |
Company, Inc. (glove manufacturer); | |||||
President and Assistant Secretary, | |||||
Midstate Contractors, Inc. (paving | |||||
company); Vice President, Secretary and | |||||
Chairman of the Board of Directors, | |||||
Alexander Railroad Company | |||||
Larry
E. Robinson |
|
59 |
President
and Chief Executive Officer, |
1993 |
2006 |
The Blue Ridge Distributing, Inc. (beer | |||||
and wine distributor) | |||||
William
Gregory Terry |
|
37 |
Executive Vice President, Drum & |
2004 |
2006 |
Willis-Reynolds Funeral Homes and | |||||
Crematory | |||||
John
W. Lineberger, Jr. |
|
54 |
President, Lincoln Bonded Warehouse |
2004 |
2007 |
Company (commercial warehousing | |||||
facility) |
|
|
Age
on |
Principal
Occupation |
Director |
Term |
Name |
|
December
31, 2004 |
During
Last Five Years |
Since |
Expires |
Gary
E. Matthews |
|
49 |
President
and Director, Matthews |
2001 |
2007 |
Construction Company, Inc. | |||||
Dan
Ray Timmerman, Sr. |
|
57 |
President, Timmerman Manufacturing, |
1995 |
2007 |
Inc. (wrought iron furniture | |||||
manufacturer) | |||||
Benjamin
I. Zachary |
|
48 |
President, Treasurer, and member of the |
1995 |
2007 |
Board of Directors, Alexander Railroad | |||||
Company | |||||
|
Age
on |
|
Employed
By |
|
December
31, |
Positions
and Occupations |
the
Company or |
Name |
2004 |
During
Last Five Years |
the
Bank Since |
Tony
W. Wolfe |
58 |
President
and Chief Executive Officer |
1990 |
of the Company and the Bank | |||
Joseph
F. Beaman, Jr. |
55 |
Executive
Vice President and Corporate |
1977 |
Secretary of the Company; Executive | |||
Vice President, Chief Administrative | |||
Officer and Secretary of the Bank; Prior | |||
to 2001, Chief Financial Officer of the | |||
Company and the Bank | |||
William
D. Cable |
36 |
Executive
Vice President and Assistant |
1995 |
Corporate Treasurer of the Company; | |||
Executive Vice President and Chief | |||
Operations Officer of the Bank; Prior to | |||
2002, Bank Senior Vice President - | |||
Information Services. | |||
Lance
A. Sellers |
42 |
Executive
Vice President and Assistant |
1998 |
Corporate Secretary of the Company; | |||
Executive Vice President and Chief | |||
Banking Officer of the Bank; Prior to | |||
2001, Bank Executive Vice President - | |||
Credit Administration, Mortgage | |||
Lending and Commercial Banking. | |||
A.
Joseph Lampron |
50 |
Executive
Vice President, Chief |
2001 |
Financial Officer and Corporate | |||
Treasurer of the Company; Executive | |||
Vice President and Chief Financial | |||
Officer of the Bank. Prior to December | |||
2001, Vice President/Senior Change | |||
Manager at a large North Carolina bank. |
|
All
Other | ||||||
|
|
Long
Term Compensation Awards |
Compensation
2,3,4,5,6 | ||||
|
Securities
Underlying |
||||||
|
|
Restricted |
Options/Stock |
||||
Name
and |
|
|
|
Other
Annual |
Stock |
Appreciation
Rights |
|
Principal
Position |
Year |
Salary |
Bonus |
Compensation |
Awards |
("SARS")
(in shares) |
|
Tony
W. Wolfe |
2004 |
$212,949 |
$0 |
$-- |
-- |
$0/0 |
$11,223 |
President
and Chief Executive |
2003 |
206,828 |
0 |
-- |
-- |
0/0 |
12,237 |
Officer
of the Company and the |
2002 |
207,840 |
0 |
-- |
-- |
11,000/0
7 |
11,827 |
Bank | |||||||
Joseph
F. Beaman, Jr. |
2004 |
$139,222 |
$0 |
$--
|
-- |
$0/0 |
$7,807 |
Executive
Vice President and |
2003 |
152,214 |
0 |
-- |
-- |
0/0 |
7,963 |
Corporate
Secretary of the |
2002 |
148,509 |
3,750 |
-- |
-- |
4,400/0
7 |
7,963 |
Company; Executive Vice President, | |||||||
Chief Administrative Officer and | |||||||
Secretary of the Bank | |||||||
Lance
A. Sellers |
2004 |
$156,205 |
$0 |
$--
|
-- |
$0/0 |
$7,950 |
Executive
Vice President and |
2003 |
150,031 |
0 |
-- |
-- |
0/0 |
7,648 |
Assistant
Corporate Secretary of the |
2002 |
140,994 |
0 |
-- |
-- |
7,700/0
7 |
7,164 |
Company; Executive Vice President | |||||||
and Chief Banking Officer of the | |||||||
Bank | |||||||
A.
Joseph Lampron |
2004 |
$131,067 |
$0 |
$-- |
-- |
$0/0 |
$6,327 |
Executive
Vice President, Chief |
2003 |
111,593 |
0 |
-- |
-- |
0/0 |
5,871 |
Financial
Officer and Corporate |
2002 |
101,751 |
10,000 |
-- |
-- |
6,600/0
7 |
5,283 |
Treasurer of the Company; | |||||||
Executive Vice President and Chief | |||||||
Financial Officer of the Bank | |||||||
William
D. Cable |
2004 |
$123,689 |
$0 |
$-- |
-- |
$0/0 |
$6,250 |
Executive
Vice President and |
2003 |
118,135 |
0 |
-- |
-- |
0/0 |
5,977 |
Assistant
Corporate Treasurer of the |
2002 |
110,814 |
0 |
-- |
-- |
6,600/0
7 |
5,572 |
Company; Executive Vice President | |||||||
and Chief Operations Officer of the | |||||||
Bank | |||||||
1 |
Perquisites
for the fiscal year did not exceed the lesser of $50,000, or 10% of salary
and bonus as reported for the named employee. |
2 |
For
Mr. Wolfe, includes: for 2004, $9,324 under the 401(k) plan and a $1,899
premium paid for group term life insurance in excess of $50,000; for 2003,
$10,410 under the 401(k) plan and a $1,827 premium paid for group term
life insurance in excess of $50,000; and for 2002, $10,000 under the
401(k) plan and a $1,827 premium paid for group life insurance in excess
of $50,000. |
3 |
For
Mr. Beaman, includes: for 2004, $6,816 under the 401(k) plan and a $991
premium paid for group term life insurance in excess of $50,000; for 2003,
$7,296 under the 401(k) plan and a $667 premium paid for group term life
insurance in excess of $50,000; for 2002, $7,296 under the 401(k) plan and
a $667 premium paid for group life insurance in excess of $50,000.
|
4 |
For
Mr. Sellers, includes: for: 2004, $7,643 under the 401(k) plan and a $307
premium paid for group term life insurance in excess of $50,000; for 2003,
$7,355 under the 401(k) plan and a $293 premium paid for group term life
insurance in excess of $50,000; for 2002, $6,893 under the 401(k) plan and
a $271 premium paid for group life insurance in excess of
$50,000. |
5 |
For
Mr. Lampron, includes: for 2004, $5,819 under the 401(k) plan and a $508
premium paid for group term life insurance in excess of $50,000; for 2003,
$5,561 under the 401(k) plan and a $310 premium paid for group term life
insurance in excess of $50,000; for 2002: $5,013 under the 401(k) plan and
a $270 premium paid for group life insurance in excess of
$50,000. |
6 |
For
Mr. Cable, includes: for 2004, $6,043 under the 401(k) plan and a $207
premium paid for group term life insurance in excess of $50,000; for 2003,
$5,780 under the 401(k) plan and a $197 premium paid for group term life
insurance in excess of $50,000; for 2002: $5,411 under the 401(k) plan and
a $161 premium paid for group life insurance in excess of
$50,000. |
7 |
Includes
11,000; 4,400; 7,700; 6,600 and 6,600 shares subject to option granted on
December 17, 2002, to Mr. Wolfe, Mr. Beaman, Mr. Sellers, Mr. Lampron, and
Mr. Cable respectively. These options, granted pursuant to the Omnibus
Plan, entitle Messrs. Wolfe, Beaman, Sellers, Lampron and Cable to
purchase at any time after vesting and before December 17, 2012, shares of
Common Stock in exchange for an exercise price of $12.82 per share, which
was the fair market per share value of the Common Stock on the date of
grant. Of these options granted to Messrs. Wolfe, Beaman, Sellers, Lampron
and Cable, one-third of the options vested on December 17, 2003, one-third
vested on December 17, 2004, and the final third will vest on December 17,
2005. All options become 100% vested upon death, disability or a change in
control of the Bank. |
Plan
Category
|
Number
of securities to be issued upon exercise of outstanding options, warrants
and rights
|
Weighted-average
exercise price of outstanding options, warrants and
rights
|
Number
of securities remaining available for future issuance under equity
compensation plans (excluding securities reflected in
column
(a))
|
(a)
|
(b)
|
(c)
| |
Equity
compensation plans approved by security holders
|
219,1101
|
$13.342
|
33,168
|
Equity
compensation plans not approved by security holders
|
0
|
0
|
0
|
Total
|
219,110
|
$13.34
|
33,168
|
Name |
Shares
Acquired
on
Exercise
(#)
|
Value
Realized
($)
|
Number
of Securities
Underlying
Unexercised
Options/SARs
at
Fiscal
Year End1,
2
|
Value
of Unexercised
In-the-Money
Options/SARs
at
Fiscal
Year End3
| ||
Exercisable |
Unexercisable
|
Exercisable
|
Unexercisable
| |||
Tony
W. Wolfe
|
0
|
$0
|
36,560/0
|
3,668/0
|
$597,996.94/$0
|
$59,976.01/$0
|
Joseph
F. Beaman, Jr.
|
0
|
$0
|
19,476/0
|
1,467/0
|
$318,555.08/$0
|
$24,007.68/$0
|
Lance
A. Sellers
|
0
|
$0
|
18,280/0
|
2,568/0
|
$298,998.47/$0
|
$41,999.04/$0
|
A.
Joseph Lampron
|
0
|
$0
|
8,951/0
|
2,200/0
|
$79,264.12/$0
|
$19,480.00/$0
|
William
D. Cable
|
0
|
$0
|
12,045/0
|
2,200/0
|
$197,041.41/$0
|
$35,980.93/$0
|
1 |
Options
to purchase 16,627 shares of Common Stock (adjusted to reflect the April
24, 2000 10% stock dividend and the 10% stock dividend on March 16, 2005)
were granted to Messrs. Wolfe, Beaman, Sellers and Cable as of September
28, 1999. Pursuant to an amendment to the Stock Option Grant Agreements
dated September 25, 2000 these options vest 20% each year over a five-year
period beginning on September 28, 2000, with the last 20% vesting on
September 28, 2004. Options to purchase 24,953 shares of Common Stock were
granted to the Messr. Wolfe, Beaman, Sellers and Cable as of September 25,
2000. One-third of these options vested on September 25, 2001, one-third
vested on September 25, 2002 and one-third vested on September 25,
2003.
Options to purchase 24,984 shares of Common Stock were granted to
Messr.
Wolfe, Beaman, Sellers and Cable as
of October 30, 2001. One-third vested on October 30, 2002, one-third
vested on October 30, 2003, and one-third vested on October 30, 2004.
Options to purchase 36,300 shares of Common Stock were granted to all the
named persons (including Mr. Lampron) as of December 17, 2002. One-third
vested on December 17, 2003, one-third vested on December 17, 2004, and
one-third will vest on December 17, 2005. |
2 |
Options
to purchase 4,551 shares of Common Stock were granted to Mr. Lampron as of
December 18, 2001. One-third vested on December 18, 2002, one-third vested
on December 18, 2003 and one-third vested on December 18, 2004.
|
3 |
The
exercise price of the stock options granted to Messr. Wolfe, Beaman,
Sellers and Cable on September 28, 1999 is $14.88 (adjusted to reflect the
April 24, 2000 10% stock dividend). The exercise price of the stock
options granted to them on September 25, 2000 is $11.53. The exercise
price of the stock options granted to them on October 30, 2001 is $14.49.
The exercise price of stock options granted to Mr. Lampron on December 18,
2001 is $13.37. The exercise price of stock options granted to all named
persons on December 17, 2002 is $12.82. On December 31, 2004, the closing
market price for the Common Stock as reported on the Nasdaq National
Market was $17.52. |
Robert C. Abernethy | John W. Lineberger, Jr. | |||
Larry E. Robinson | James S. Abernethy | |||
William G. Terry | Dan Ray Timmerman, Sr. | |||
Benjamin I. Zachary |
Robert C. Abernethy | Douglas S. Howard | |||
Charles F. Murray | Billy L. Price, Jr., M.D. | |||
Larry E. Robinson | Dan Ray Timmerman, Sr. | |||
Fred L. Sherrill, Jr. | Benjamin I. Zachary | |||
Gary E. Matthews |
Period Ending | |||||||
Index |
|
12/31/99 |
12/31/00 |
12/31/01 |
12/31/02 |
12/31/03 |
12/31/04 |
Peoples Bancorp of North | |||||||
Carolina,
Inc. |
|
100.00 |
103.87 |
113.32 |
114.67 |
156.57 |
163.45 |
NASDAQ
- Total US* |
|
100.00 |
60.82 |
48.16 |
33.11 |
49.93 |
54.49 |
SNL
Southeast Bank Index |
|
100.00 |
100.41 |
125.09 |
138.18 |
173.52 |
205.78 |
SELECTED
FINANCIAL DATA | |||||||
Dollars
in Thousands Except Per Share Amounts | |||||||
2004 |
2003 |
2002 |
2001 |
2000 | |||
Summary
of Operations |
|||||||
Interest
income |
$ |
36,255
|
34,854
|
36,624
|
41,898
|
40,859
| |
Interest
expense |
12,335
|
12,749
|
15,777
|
23,027
|
19,432
| ||
Net
interest income |
23,920
|
22,105
|
20,847
|
18,871
|
21,427
| ||
Provision
for loan losses |
3,256
|
6,744
|
5,432
|
3,545
|
1,879
| ||
Net
interest income after provision for loan losses |
20,664
|
15,361
|
15,415
|
15,326
|
19,548
| ||
Non-interest
income |
6,057
|
5,926
|
6,491
|
8,263
|
3,915
| ||
Non-interest
expense |
20,057
|
18,228
|
16,758
|
16,752
|
15,509
| ||
Income
before taxes |
6,664
|
3,059
|
5,148
|
6,837
|
7,954
| ||
Income
taxes |
2,233
|
1,055
|
1,712
|
2,262
|
2,576
| ||
Net
income |
$ |
4,431
|
2,004
|
3,436
|
4,575
|
5,378
| |
Selected
Year-End Balances |
|||||||
Assets |
$ |
686,348
|
674,032
|
645,638
|
619,505
|
519,002
| |
Available
for sale securities |
105,598
|
79,460
|
71,736
|
84,286
|
71,565
| ||
Loans,
net |
527,419
|
542,404
|
519,122
|
484,517
|
406,226
| ||
Mortgage
loans held for sale |
3,783
|
587
|
5,065
|
5,339
|
1,564
| ||
Interest-earning
assets |
652,678
|
639,501
|
608,619
|
586,496
|
490,449
| ||
Deposits |
556,522
|
549,802
|
515,739
|
490,223
|
450,073
| ||
Interest-bearing
liabilities |
553,135
|
550,357
|
527,525
|
516,422
|
420,594
| ||
Shareholders'
equity |
$ |
50,938
|
48,554
|
48,605
|
45,401
|
43,039
| |
Shares
outstanding* |
3,448,581
|
3,448,722
|
3,446,902
|
3,540,585
|
3,540,585
| ||
Selected
Average Balances |
|||||||
Assets |
$ |
684,384
|
660,644
|
624,796
|
575,142
|
469,536
| |
Available
for sale securities |
93,770
|
72,072
|
77,414
|
84,549
|
66,218
| ||
Loans |
547,753
|
539,559
|
507,879
|
454,371
|
374,226
| ||
Interest-earning
assets |
650,095
|
625,764
|
592,947
|
545,945
|
447,645
| ||
Deposits |
558,141
|
533,704
|
499,224
|
481,289
|
408,210
| ||
Interest-bearing
liabilities |
553,880
|
540,676
|
516,747
|
472,868
|
373,167
| ||
Shareholders'
equity |
$ |
51,978
|
49,914
|
48,257
|
47,432
|
42,852
| |
Shares
outstanding* |
3,459,379
|
3,447,056
|
3,467,173
|
3,540,585
|
3,540,585
| ||
Profitability
Ratios |
|||||||
Return
on average total assets |
0.65% |
0.30% |
0.55% |
0.80% |
1.15% | ||
Return
on average shareholders' equity |
8.52% |
4.01% |
7.12% |
9.65% |
12.55% | ||
Dividend
payout ratio |
28.37% |
62.56% |
36.58% |
28.14% |
23.39% | ||
Liquidity
and Capital Ratios (averages) |
|||||||
Loan
to deposit |
98.14% |
101.10% |
101.73% |
94.41% |
91.67% | ||
Shareholders'
equity to total assets |
7.59% |
7.56% |
7.72% |
8.25% |
9.13% | ||
Per
share of common stock* |
|||||||
Basic
net income |
$ |
1.28
|
0.58
|
0.99
|
1.29
|
1.52
| |
Diluted
net income |
$ |
1.26
|
0.58
|
0.99
|
1.29
|
1.52
| |
Cash
dividends |
$ |
0.36
|
0.36
|
0.36
|
0.36
|
0.32
| |
Book
value |
$ |
14.77
|
14.08
|
14.10
|
12.83
|
11.05
| |
*Shares
outstanding and per share computations have been retroactively restated to
reflect a 10% stock dividend during first | |||||||
quarter
2005 and a 10% stock dividend during second quarter
2000. |
Table
1- Average Balance Table |
||||||||||||||||||||||||||||
December
31, 2004 |
December
31, 2003 |
December
31, 2002 | ||||||||||||||||||||||||||
(Dollars
in Thousands) |
Average
Balance |
|
Interest
|
|
Yield
/ Rate |
|
Average
Balance |
|
Interest
|
|
Yield
/ Rate |
|
Average
Balance |
|
Interest
|
|
Yield
/ Rate |
|||||||||||
Interest-earning
assets: |
||||||||||||||||||||||||||||
Loans |
$ |
547,753 |
29,826
|
5.45 |
% |
539,559
|
28,700
|
5.32 |
% |
507,879
|
30,256
|
5.96 |
% | |||||||||||||||
Interest
rate swap agreements |
-
|
1,056
|
2.21 |
% |
-
|
1,522
|
3.22 |
% |
-
|
509
|
1.16 |
% | ||||||||||||||||
Loan
fees |
-
|
1,371
|
0.29 |
% |
-
|
1,310
|
0.28 |
% |
-
|
1,274
|
0.29 |
% | ||||||||||||||||
Total
loans |
547,753
|
32,252
|
5.89 |
% |
539,559
|
31,532
|
5.84 |
% |
507,879
|
32,039
|
6.31 |
% | ||||||||||||||||
Investments
- taxable |
35,920
|
1,545
|
4.30 |
% |
49,082
|
2,186
|
4.45 |
% |
63,792
|
3,726
|
5.84 |
% | ||||||||||||||||
Investments
- nontaxable* |
57,850
|
2,741
|
4.74 |
% |
22,990
|
1,228
|
5.34 |
% |
13,622
|
929
|
6.82 |
% | ||||||||||||||||
Federal
funds sold |
3,363
|
35
|
1.05 |
% |
5,981
|
58
|
0.98 |
% |
3,356
|
45
|
1.34 |
% | ||||||||||||||||
Other |
5,209
|
141
|
2.70 |
% |
8,152
|
174
|
2.14 |
% |
4,298
|
201
|
4.68 |
% | ||||||||||||||||
Total
interest-earning assets |
650,095
|
36,714
|
5.65 |
% |
625,764
|
35,178
|
5.62 |
% |
592,947
|
36,940
|
6.23 |
% | ||||||||||||||||
Cash
and due from banks |
13,058
|
12,587
|
11,351
|
|||||||||||||||||||||||||
Other
assets |
30,601
|
31,008
|
27,536
|
|||||||||||||||||||||||||
Allowance
for loan losses |
(9,369 |
) |
(8,282 |
) |
(6,607 |
) |
||||||||||||||||||||||
Total
assets |
$ |
684,384 |
661,077
|
625,227
|
||||||||||||||||||||||||
Interest-bearing
liabilities: |
||||||||||||||||||||||||||||
NOW
accounts |
$ |
106,832 |
1,292
|
1.21 |
% |
75,757
|
688
|
0.91 |
% |
60,757
|
628
|
1.03 |
% | |||||||||||||||
Regular
savings accounts |
21,845
|
72
|
0.33 |
% |
21,131
|
75
|
0.35 |
% |
21,908
|
95
|
0.44 |
% | ||||||||||||||||
Money
market accounts |
51,069
|
535
|
1.05 |
% |
58,134
|
556
|
0.96 |
% |
72,170
|
1,282
|
1.78 |
% | ||||||||||||||||
Time
deposits |
300,175
|
7,145
|
2.38 |
% |
310,991
|
8,157
|
2.62 |
% |
285,133
|
10,358
|
3.63 |
% | ||||||||||||||||
FHLB
borrowings |
58,656
|
2,603
|
4.44 |
% |
59,305
|
2,597
|
4.38 |
% |
60,956
|
2,659
|
4.36 |
% | ||||||||||||||||
Demand
notes payable to U.S. Treasury |
678
|
8
|
1.14 |
% |
710
|
7
|
0.99 |
% |
811
|
12
|
1.46 |
% | ||||||||||||||||
Trust
preferred securities |
14,433
|
677
|
4.69 |
% |
14,433
|
668
|
4.62 |
% |
14,433
|
735
|
5.09 |
% | ||||||||||||||||
Other |
192
|
3
|
1.46 |
% |
215
|
1
|
0.47 |
% |
579
|
8
|
1.38 |
% | ||||||||||||||||
Total
interest-bearing liabilities |
553,880
|
12,335
|
2.23 |
% |
540,676
|
12,749
|
2.36 |
% |
516,747
|
15,777
|
3.05 |
% | ||||||||||||||||
Demand
deposits |
78,221
|
67,690
|
59,256
|
|||||||||||||||||||||||||
Other
liabilities |
2,137
|
2,800
|
2,326
|
|||||||||||||||||||||||||
Shareholders'
equity |
51,978
|
49,971
|
48,257
|
|||||||||||||||||||||||||
Total
liabilities and shareholder's equity |
$ |
686,216 |
661,137
|
626,586
|
||||||||||||||||||||||||
Net
interest spread |
$ |
24,379 |
3.42 |
% |
22,430
|
3.26 |
% |
21,163
|
3.18 |
% | ||||||||||||||||||
Net
yield on interest-earning assets |
3.75 |
% |
3.58 |
% |
3.57 |
% | ||||||||||||||||||||||
Taxable
equivalent adjustment |
||||||||||||||||||||||||||||
Investment
securities |
$ |
459 |
324
|
316
|
||||||||||||||||||||||||
Net
interest income |
$ |
23,920 |
22,106
|
20,847
|
||||||||||||||||||||||||
*Includes
$40.4 million of U.S. government agency securities that are non-taxable
for state income tax purposes. An effective tax rate of 6.90% was used to
calculate the tax equivalent yield on these
securities. |
Table
2 - Rate/Volume Variance Analysis-Tax Equivalent
Basis |
|||||||||||||||||||
|
|
|
December
31, 2004 |
December
31, 2003 | |||||||||||||||
(Dollars
in Thousands) |
Changes
in average volume |
|
|
Changes
in average rates |
|
|
Total
Increase (Decrease) |
|
|
Changes
in average volume |
|
|
Changes
in average rates |
|
|
Total
Increase (Decrease) |
| ||
Interest
Income: |
|||||||||||||||||||
Loans,
net of unearned income |
$ |
480 |
241
|
721
|
1,925
|
(2,432 |
) |
(507 |
) | ||||||||||
Investments
- taxable |
(575 |
) |
(66 |
) |
(641 |
) |
(757 |
) |
(783 |
) |
(1,540 |
) | |||||||
Investments
- nontaxable |
1,756
|
(243 |
) |
1,513
|
570
|
(271 |
) |
299
|
|||||||||||
Federal
funds sold |
(26 |
) |
3
|
(23 |
) |
30
|
(17 |
) |
13
|
||||||||||
Other |
(73 |
) |
40
|
(33 |
) |
34
|
(61 |
) |
(27 |
) | |||||||||
Total
interest income |
$ |
1,562 |
(25 |
) |
1,537
|
1,802
|
(3,564 |
) |
(1,762 |
) | |||||||||
Interest
expense: |
|||||||||||||||||||
NOW
accounts |
$ |
329 |
275
|
604
|
146
|
(86 |
) |
60
|
|||||||||||
Regular
savings accounts |
2
|
(5 |
) |
(3 |
) |
(3 |
) |
(17 |
) |
(20 |
) | ||||||||
Money
market accounts |
(71 |
) |
50
|
(21 |
) |
(192 |
) |
(534 |
) |
(726 |
) | ||||||||
Time
deposits |
(271 |
) |
(741 |
) |
(1,012 |
) |
809
|
(3,010 |
) |
(2,201 |
) | ||||||||
FHLB
borrowings |
(28 |
) |
34
|
6
|
(72 |
) |
10
|
(62 |
) | ||||||||||
Demand
notes payable to U.S. Treasury |
-
|
1
|
1
|
(1 |
) |
(4 |
) |
(5 |
) | ||||||||||
Junior
subordinated debentures |
-
|
9
|
9
|
-
|
(67 |
) |
(67 |
) | |||||||||||
Other
|
-
|
2
|
2
|
(3 |
) |
(4 |
) |
(7 |
) | ||||||||||
Total
interest expense |
$ |
(39 |
) |
(375 |
) |
(414 |
) |
684
|
(3,712 |
) |
(3,028 |
) | |||||||
Net
interest income |
$ |
1,601 |
350
|
1,951
|
1,118
|
147
|
1,266
|
Table
3 - Non-Interest Income |
|||
(Dollars
in Thousands) |
2004 |
2003 |
2002 |
Service
charges |
$
3,435 |
3,267
|
3,061
|
Other
service charges and fees |
677
|
611
|
503
|
Gain
(loss) on sale of securities |
(64) |
(53) |
626
|
Mortgage
banking income |
394
|
685
|
702
|
Insurance
and brokerage commissions |
430
|
421
|
478
|
Loss
on foreclosed and repossessed assets |
(179) |
(747) |
(1) |
Gain
on sale of loans |
-
|
479
|
-
|
Miscellaneous |
1,365
|
1,263
|
1,122
|
Total
non-interest income |
$
6,058 |
5,926
|
6,491
|
Table
4 - Non-Interest Expense |
||||||||||
(Dollars
in Thousands) |
2004 |
|
2003 |
|
2002 |
|||||
Salaries
and wages |
$ |
8,240 |
7,733
|
7,376
|
||||||
Employee
benefits |
3,237
|
2,367
|
2,193
|
|||||||
Total
personnel expense |
11,477
|
10,100
|
9,569
|
|||||||
Occupancy
expense |
3,672
|
3,390
|
3,143
|
|||||||
Office
supplies |
314
|
270
|
283
|
|||||||
FDIC
deposit insurance |
81
|
82
|
157
|
|||||||
Professional
services |
290
|
333
|
264
|
|||||||
Postage |
211
|
217
|
221
|
|||||||
Telephone |
337
|
333
|
315
|
|||||||
Director
fees and expense |
351
|
234
|
352
|
|||||||
Marketing
and public relations |
620
|
541
|
219
|
|||||||
Merchant
processing expense |
-
|
-
|
78
|
|||||||
Consulting
fees |
306
|
280
|
160
|
|||||||
Taxes
and licenses |
200
|
443
|
40
|
|||||||
Other
operating expense |
2,198
|
2,005
|
1,957
|
|||||||
Total
non-interest expense |
$ |
20,057 |
18,228
|
16,758
|
Table
5 - Interest Sensitivity Analysis |
|||||||||||||||||||
|
|
|
Total
Within |
Over
One year |
|||||||||||||||
(Dollars
in Thousands) |
Immediate |
|
1-3
months |
|
4-12
months |
|
One
year |
|
&
non-sensitive |
|
Total |
||||||||
Interest-earning
assets: |
|||||||||||||||||||
Loans |
$ |
422,746 |
14,944
|
9,009
|
446,699
|
88,769
|
$ |
535,468 |
|||||||||||
Mortgage
loans available for sale |
3,783
|
-
|
-
|
3,783
|
-
|
3,783
|
|||||||||||||
Investment
securities |
-
|
2,076
|
-
|
2,076
|
103,522
|
105,598
|
|||||||||||||
Federal
funds sold |
1,723
|
-
|
-
|
1,723
|
-
|
1,723
|
|||||||||||||
Interest-bearing
deposit accounts |
1,729
|
-
|
-
|
1,729
|
-
|
1,729
|
|||||||||||||
Other
interest-earning assets |
-
|
-
|
-
|
-
|
4,377
|
4,377
|
|||||||||||||
Total
interest-earning assets |
$ |
429,981 |
17,020
|
9,009
|
456,010
|
196,668
|
$ |
652,678 |
|||||||||||
Interest-bearing
liabilities: |
|||||||||||||||||||
NOW,
savings, and money market deposits |
$ |
193,918 |
-
|
-
|
193,918
|
-
|
$ |
193,918 |
|||||||||||
Time
deposits |
59,182
|
57,023
|
105,738
|
221,943
|
62,637
|
284,580
|
|||||||||||||
Other
short term borrowings |
1,204
|
-
|
-
|
1,204
|
-
|
1,204
|
|||||||||||||
FHLB
borrowings |
7,000
|
-
|
5,000
|
12,000
|
47,000
|
59,000
|
|||||||||||||
Trust
preferred securities |
-
|
14,433
|
-
|
14,433
|
-
|
14,433
|
|||||||||||||
Total
interest-bearing liabilities |
$ |
261,304 |
71,456
|
110,738
|
443,498
|
109,637
|
$ |
553,135 |
|||||||||||
Interest-sensitive
gap |
$ |
168,677 |
(54,436 |
) |
(101,729 |
) |
12,512
|
87,031
|
$ |
99,543 |
|||||||||
Cumulative
interest-sensitive gap |
$ |
168,677 |
114,241
|
12,512
|
12,512
|
99,543
|
|||||||||||||
Interest-earning
assets as a percentage of interest-bearing
liabilities |
164.55 | % | 23.82 | % | 8.14 | % | 102.82 | % |
Table
6 - Summary of Investment Portfolio |
||||||||||
(Dollars
in Thousands) |
2004 |
|
2003 |
|
2002 |
|||||
Obligations
of United States government |
||||||||||
agencies
and corporations |
$ |
46,570 |
34,517
|
-
|
||||||
Obligations
of states and political subdivisions |
20,649
|
14,950
|
14,350
|
|||||||
Mortgage
backed securities |
36,543
|
24,920
|
52,386
|
|||||||
Trust
preferred securities |
1,750
|
5,000
|
5,000
|
|||||||
Equity
securities |
86
|
73
|
-
|
|||||||
Total
securities |
$ |
105,598 |
79,460
|
71,736
|
Table
7 - Maturity Distribution and Weighted Average Yield on
Investments |
|||||||||||||||||||||||||||||||
One
Year or Less |
After
One Year Through 5 Years |
After
5 Years Through 10 Years |
After
10 Years |
Totals |
|||||||||||||||||||||||||||
(Dollars
in Thousands) |
Amount
|
Yield |
Amount
|
Yield |
Amount
|
Yield |
Amount
|
Yield |
Amount
|
Yield | |||||||||||||||||||||
Book
value: |
|||||||||||||||||||||||||||||||
United
States Government agencies |
$ |
- |
-
|
21,500
|
3.48 |
% |
24,999
|
4.47 |
% |
-
|
-
|
$ |
46,499 |
4.01 |
% | ||||||||||||||||
States
and political subdivisions |
981
|
7.07 |
% |
4,687
|
6.06 |
% |
10,620
|
4.46 |
% |
3,924
|
7.08 |
% |
20,212
|
5.47 |
% | ||||||||||||||||
Mortgage
backed securities |
-
|
-
|
-
|
-
|
14,998
|
3.93 |
% |
21,495
|
4.37 |
% |
36,493
|
4.19 |
% | ||||||||||||||||||
Trust
preferred securities |
-
|
-
|
-
|
-
|
-
|
-
|
1,750
|
5.50 |
% |
1,750
|
5.50 |
% | |||||||||||||||||||
Equity
securities |
-
|
-
|
-
|
-
|
-
|
-
|
100
|
1.58 |
% |
100
|
1.58 |
% | |||||||||||||||||||
Total
securities |
$ |
981 |
7.07 |
% |
26,187
|
3.94 |
% |
50,617
|
4.31 |
% |
27,269
|
4.82 |
% |
$ |
105,054 |
4.38 |
% |
Table
8 - Loan Portfolio |
|||||||||||||||||||||||||||||||
2004 |
2003 |
2002 |
2001 |
2000 |
|||||||||||||||||||||||||||
(Dollars
in Thousands) |
Amount |
|
%
of Loans |
|
Amount |
|
%
of Loans |
|
Amount |
|
%
of Loans |
|
Amount |
|
%
of Loans |
|
Amount |
|
%
of Loans |
||||||||||||
Breakdown
of loan receivables: |
|||||||||||||||||||||||||||||||
Commercial |
$ |
79,189 |
14.79 |
% |
90,558
|
16.41 |
% |
92,141
|
17.51 |
% |
102,409
|
20.87 |
% |
96,882
|
23.58 |
% | |||||||||||||||
Real
estate - mortgage |
312,988
|
58.45 |
% |
332,730
|
60.26 |
% |
322,987
|
61.36 |
% |
277,737
|
56.61 |
% |
229,260
|
55.79 |
% | ||||||||||||||||
Real
estate - construction |
127,042
|
23.73 |
% |
110,392
|
19.99 |
% |
80,552
|
15.30 |
% |
82,791
|
16.88 |
% |
58,939
|
14.34 |
% | ||||||||||||||||
Consumer |
16,249
|
3.03 |
% |
18,446
|
3.34 |
% |
30,690
|
5.83 |
% |
27,671
|
5.64 |
% |
25,858
|
6.29 |
% | ||||||||||||||||
Total
loans |
$ |
535,468 |
100.00 |
% |
552,126
|
100.00 |
% |
526,370
|
100.00 |
% |
490,608
|
100.00 |
% |
410,939
|
100.00 |
% | |||||||||||||||
Less:
Allowance for loan losses |
$ |
8,049 |
9,722
|
7,248
|
6,091
|
4,713
|
|||||||||||||||||||||||||
Net
loans |
$ |
527,419 |
542,404
|
519,122
|
484,517
|
406,226
|
Table
9 - Maturity and Repricing Data for Loans |
|||||||||||||
(Dollars
in Thousands) |
Within
one year or less |
|
After
one year through five years |
|
After
five years |
|
Total
Loans |
||||||
Commercial |
$ |
73,727 |
4,249
|
1,213
|
$ |
79,189 |
|||||||
Real
estate - mortgage |
246,341
|
34,265
|
32,382
|
312,988
|
|||||||||
Real
estate - construction |
119,732
|
6,962
|
348
|
127,042
|
|||||||||
Consumer |
6,899
|
8,351
|
999
|
16,249
|
|||||||||
Total
loans |
$ |
446,699 |
53,827
|
34,942
|
$ |
535,468 |
|||||||
Total
fixed rate loans |
$ |
13,514 |
53,040
|
34,942
|
$ |
101,496 |
|||||||
Total
floating rate loans |
433,185
|
787
|
-
|
433,972
|
|||||||||
Total
loans |
$ |
446,699 |
53,827
|
34,942
|
$ |
535,468 |
· |
the
Bank’s loan loss experience; |
· |
the
amount of past due and non-performing loans;
|
· |
specific
known risks; |
· |
the
status and amount of other past due and non-performing
assets; |
· |
underlying
estimated values of collateral securing loans;
|
· |
current
and anticipated economic conditions; and |
· |
other
factors which management believes affect the allowance for potential
credit losses. |
Table
10 - Loan Risk Grade Analysis |
|||||||||||||
Percentage
of Loans |
General
Reserve | ||||||||||||
|
By
Risk Grade |
Percentage | |||||||||||
Risk
Grade |
2004 |
2003 |
2004 |
2003 | |||||||||
Risk
1 (Excellent Quality) |
13.44 |
% |
11.36 |
% |
0.15 |
% |
0.15 |
% | |||||
Risk
2 (High Quality) |
23.03 |
% |
24.03 |
% |
0.50 |
% |
0.50 |
% | |||||
Risk
3 (Good Quality) |
53.89 |
% |
53.80 |
% |
1.00 |
% |
1.00 |
% | |||||
Risk
4 (Management Attention) |
5.67 |
% |
5.11 |
% |
2.50 |
% |
2.50 |
% | |||||
Risk
5 (Watch) |
0.95 |
% |
1.15 |
% |
7.00 |
% |
7.00 |
% | |||||
Risk
6 (Substandard) |
0.61 |
% |
2.43 |
% |
12.00 |
% |
12.00 |
% | |||||
Risk
7 (Low Substandard) |
1.46 |
% |
1.33 |
% |
25.00 |
% |
25.00 |
% | |||||
Risk
8 (Doubtful) |
0.00 |
% |
0.00 |
% |
50.00 |
% |
50.00 |
% | |||||
Risk
9 (Loss) |
0.00 |
% |
0.00 |
% |
100.00 |
% |
100.00 |
% |
Table
11 - Analysis of Allowance for Loan Losses |
|||||
(Dollars
in Thousands) |
2004 |
2003 |
2002 |
2001 |
2000 |
Reserve
for loan losses at beginning |
$ 9,722
|
7,248
|
6,091
|
4,713
|
3,924
|
Loans
charged off: |
|||||
Commercial |
1,004
|
1,179
|
3,737
|
842
|
857
|
Real
estate - mortgage |
3,842
|
2,422
|
158
|
790
|
10
|
Real
estate - construction |
4
|
251
|
-
|
51
|
36
|
Consumer |
535
|
630
|
546
|
675
|
255
|
Total
loans charged off |
5,385
|
4,482
|
4,441
|
2,358
|
1,158
|
Recoveries
of losses previously charged off: |
|||||
Commercial |
162
|
36
|
40
|
84
|
20
|
Real
estate - mortgage |
144
|
18
|
-
|
-
|
-
|
Real
estate - construction |
-
|
1
|
4
|
6
|
-
|
Consumer |
150
|
157
|
122
|
101
|
48
|
Total
recoveries |
456
|
212
|
166
|
191
|
68
|
Net
loans charged off |
4,929
|
4,270
|
4,275
|
2,167
|
1,090
|
Provision
for loan losses |
3,256
|
6,744
|
5,432
|
3,545
|
1,879
|
Reserve
for loan losses at end of year |
$ 8,049
|
9,722
|
7,248
|
6,091
|
4,713
|
Loans
charged off net of recoveries, as |
|||||
a
percent of average loans outstanding |
0.90% |
0.79% |
0.84% |
0.48% |
0.29% |
Table
12 - Non-performing Assets |
||||||||||||||||
(Dollars
in Thousands) |
2004 |
|
|
2003 |
|
|
2002 |
|
|
2001 |
|
|
2000 |
|||
Non-accrual
loans |
$ |
5,097 |
4,343
|
4,602
|
3,756
|
5,421
|
||||||||||
Loans
90 days or more past due and still accruing |
245
|
271
|
239
|
655
|
545
|
|||||||||||
Total
non-performing loans |
5,342
|
4,614
|
4,841
|
4,411
|
5,966
|
|||||||||||
All
other real estate owned |
682
|
1,447
|
240
|
256
|
112
|
|||||||||||
All
other repossessed assets |
-
|
206
|
1,538
|
4
|
3
|
|||||||||||
Total
non-performing assets |
$ |
6,024 |
6,267
|
6,619
|
4,671
|
6,081
|
||||||||||
As
a percent of total loans at year end |
||||||||||||||||
Non-accrual
loans |
0.95 |
% |
0.79 |
% |
0.87 |
% |
0.77 |
% |
1.32 |
% | ||||||
Loans
90 days or more past due and still accruing |
0.05 |
% |
0.05 |
% |
0.05 |
% |
0.13 |
% |
0.13 |
% | ||||||
Total
non-performing assets |
1.12 |
% |
1.14 |
% |
1.26 |
% |
0.95 |
% |
1.48 |
% |
Table
13 - Maturities of Time Deposits over $100,000 |
||||
(Dollars
in Thousands) |
2004 |
|||
Three
months or less |
$ |
52,243 |
||
Over
three months through six months |
19,933
|
|||
Over
six months through twelve months |
31,784
|
|||
Over
twelve months |
50,341
|
|||
Total |
$ |
154,301 |
Table
14 - Contractual Obligations and Other
Commitments |
||||||||||||||||
(Dollars
in Thousands) |
Within
one year |
|
One
to Three Years |
|
Three
to Five Years |
|
Five
Years or More |
|
Total |
|||||||
Contractual
Cash Obligations |
||||||||||||||||
Long-term
borrowings* |
$ |
10,000 |
-
|
-
|
47,000
|
$ |
57,000 |
|||||||||
Junior
subordinated debentures |
-
|
-
|
-
|
14,433
|
14,433
|
|||||||||||
Operating
lease obligations |
811,653
|
1,324,960
|
1,316,550
|
4,826,917
|
8,280,080
|
|||||||||||
Total |
$ |
821,653 |
1,324,960
|
1,316,550
|
4,888,350
|
$ |
8,351,513 |
|||||||||
Other
Commitments |
||||||||||||||||
Commitments
to extend credit |
$ |
48,441 |
12,070
|
15,354
|
47,229
|
$ |
123,094 |
|||||||||
Standby
letters of credit |
||||||||||||||||
and
financial guarantees written |
3,144
|
134
|
-
|
-
|
3,278
|
|||||||||||
Total |
$ |
51,585 |
12,204
|
15,354
|
47,229
|
$ |
126,372 |
|||||||||
*Excludes
$2.0 million adjustable rate credit due to the FHLB, which matured in
February 2005. |
Table
15 - Equity Ratios |
|||
2004 |
2003 |
2002 | |
Return
on average assets |
0.65% |
0.30% |
0.55% |
Return
on average equity |
8.52% |
4.01% |
7.12% |
Dividend
payout ratio |
28.37% |
62.56% |
36.58% |
Average
equity to average assets |
7.59% |
7.56% |
7.72% |
Table
16 - Quarterly Financial Data |
|||||||||||||||||||||||||
2004
|
2003
|
||||||||||||||||||||||||
(Dollars
in thousands, except
per
share amounts) |
First
|
|
|
Second
|
|
|
Third
|
|
|
Fourth
|
|
|
First
|
|
|
Second
|
|
|
Third
|
|
|
Fourth
|
|||
Total
interest income |
$ |
8,928 |
8,841
|
9,125
|
9,361
|
$ |
8,694 |
8,651
|
8,610
|
8,899
|
|||||||||||||||
Total
interest expense |
3,066
|
3,002
|
3,103
|
3,164
|
3,238
|
3,216
|
3,193
|
3,101
|
|||||||||||||||||
Net
interest income |
5,862
|
5,839
|
6,022
|
6,197
|
5,456
|
5,435
|
5,417
|
5,798
|
|||||||||||||||||
Provision
for loan losses |
859
|
868
|
931
|
598
|
793
|
2,277
|
1,560
|
2,114
|
|||||||||||||||||
Other
income |
1,508
|
1,536
|
1,559
|
1,455
|
1,984
|
1,056
|
1,590
|
1,295
|
|||||||||||||||||
Other
expense |
4,720
|
4,873
|
4,990
|
5,474
|
4,447
|
4,175
|
4,821
|
4,785
|
|||||||||||||||||
Income
before income taxes |
1,791
|
1,634
|
1,660
|
1,580
|
2,200
|
39
|
626
|
194
|
|||||||||||||||||
Income
taxes |
613
|
547
|
552
|
522
|
782
|
(52 |
) |
307
|
18
|
||||||||||||||||
Net
earnings |
$ |
1,178 |
1,087
|
1,108
|
1,058
|
$ |
1,418 |
91
|
319
|
176
|
|||||||||||||||
Basic
earnings per share |
$ |
0.38 |
0.35
|
0.35
|
0.34
|
$ |
0.45 |
0.03
|
0.10
|
0.06
|
|||||||||||||||
Diluted
earnings per share |
$ |
0.37 |
0.34
|
0.35
|
0.33
|
$ |
0.45 |
0.03
|
0.10
|
0.06
|
Table
17 - Market Risk Table |
||||||||||||||||||||||
(Dollars
In Thousands) |
Principal/Notional
Amount Maturing in Year Ended December 31, |
|||||||||||||||||||||
Loans
Receivable |
2005 |
|
|
2006 |
|
|
2007 |
|
|
2008
& 2009 |
|
|
Thereafter |
|
|
Total |
|
|
Fair
Value |
|||
Fixed
rate |
$ |
21,608 |
14,883
|
13,375
|
24,393
|
27,237
|
$ |
101,496 |
$ |
99,895 |
||||||||||||
Average
interest rate |
6.78 |
% |
7.09 |
% |
7.08 |
% |
6.51 |
% |
6.44 |
% |
||||||||||||
Variable
rate |
$ |
164,485 |
58,032
|
47,387
|
69,035
|
95,033
|
$ |
433,972 |
$ |
433,972 |
||||||||||||
Average
interest rate |
6.04 |
% |
5.97 |
% |
6.03 |
% |
6.11 |
% |
5.89 |
% |
||||||||||||
$ |
535,468 |
$ |
533,867 |
|||||||||||||||||||
Investment
Securities |
||||||||||||||||||||||
Interest-bearing
cash |
$ |
- |
-
|
-
|
-
|
1,729
|
$ |
1,729 |
$ |
1,729 |
||||||||||||
Average
interest rate |
-
|
-
|
-
|
-
|
2.13 |
% |
||||||||||||||||
Federal
funds sold |
$ |
1,723 |
-
|
-
|
-
|
-
|
$ |
1,723 |
$ |
1,723 |
||||||||||||
Average
interest rate |
2.09 |
% |
-
|
-
|
-
|
-
|
||||||||||||||||
Securities
available for sale |
$ |
23,132 |
2,433
|
1,633
|
28,948
|
49,452
|
$ |
105,598 |
$ |
105,598 |
||||||||||||
Average
interest rate |
4.64 |
% |
3.40 |
% |
6.15 |
% |
3.18 |
% |
4.48 |
% |
||||||||||||
Nonmarketable
equity securities |
$ |
- |
-
|
-
|
-
|
4,377
|
$ |
4,377 |
$ |
4,377 |
||||||||||||
Average
interest rate |
-
|
-
|
-
|
-
|
3.42 |
% |
||||||||||||||||
Debt
Obligations |
||||||||||||||||||||||
Deposits |
$ |
192,910 |
37,496
|
43,025
|
13,782
|
269,309
|
$ |
556,522 |
$ |
555,808 |
||||||||||||
Average
interest rate |
2.04 |
% |
2.73 |
% |
3.58 |
% |
3.57 |
% |
0.90 |
% |
||||||||||||
Advances
from FHLB |
$ |
12,000 |
35,000
|
-
|
12,000
|
-
|
$ |
59,000 |
$ |
61,637 |
||||||||||||
Average
interest rate |
4.22 |
% |
4.08 |
% |
-
|
6.04 |
% |
-
|
||||||||||||||
Demand
notes payable to U.S. Treasury |
$ |
1,184 |
-
|
-
|
-
|
-
|
$ |
1,184 |
$ |
1,184 |
||||||||||||
Average
interest rate |
2.19 |
% |
-
|
-
|
-
|
-
|
||||||||||||||||
Junior
subordinated debentures |
$ |
- |
-
|
-
|
-
|
14,433
|
$ |
14,433 |
$ |
14,433 |
||||||||||||
Average
interest rate |
-
|
-
|
-
|
-
|
5.47 |
% |
Table
18 - Interest Rate Risk |
|||||||
(Dollars
in thousands) |
|||||||
Estimated
Resulting Theoretical
Net
Interest Income | |||||||
Hypothetical
rate change
(ramp
over 12 months) |
Amount
|
% Change | |||||
+2% |
$ |
28,572 |
7.66% |
| |||
+1% |
$ |
27,591 |
3.96% |
| |||
0% |
$ |
26,540 |
0.00% |
| |||
-1% |
$ |
25,501 |
-3.91% |
| |||
-2% |
$ |
24,619 |
-7.24% |
| |||
|
Estimated
Resulting Theoretical
Market
Value of Equity | ||||||
Hypothetical
rate change
(immediate
shock) |
Amount |
|
% Change | ||||
+2% |
$ |
48,415 |
-8.31% |
| |||
+1% |
$ |
51,097 |
-3.23% |
| |||
0% |
$ |
52,801 |
0.00% |
| |||
-1% |
$ |
52,629 |
-0.33% |
| |||
-2% |
$ |
51,181 |
-3.07% |
|
Table
19 - Market and Dividend Data |
||||||||||
Cash
Dividend |
||||||||||
2004 |
Low Bid |
High Bid |
Per
Share | |||||||
First Quarter |
$ |
17.42 |
$ |
20.07 |
$ |
0.10 |
||||
Second Quarter |
$ |
17.70 |
$ |
19.74 |
$ |
0.10 |
||||
Third Quarter |
$ |
18.19 |
$ |
19.90 |
$ |
0.10 |
||||
Fourth Quarter |
$ |
18.03 |
$ |
20.00 |
$ |
0.10 |
||||
|
|
|
|
|
|
|
|
|
Cash
Dividend |
|
2003 |
Low
Bid |
|
High Bid |
Per
Share | ||||||
First Quarter |
$ |
13.91 |
$ |
15.10 |
$ |
0.10 |
||||
Second Quarter |
$ |
14.75 |
$ |
18.25 |
$ |
0.10 |
||||
Third Quarter |
$ |
16.38 |
$ |
19.00 |
$ |
0.10 |
||||
Fourth Quarter |
$ |
16.91 |
$ |
20.82 |
$ |
0.10 |
PEOPLES
BANCORP OF NORTH CAROLINA, INC. | |||||||
|
|
|
|||||
Consolidated
Balance Sheets | |||||||
|
|
|
|||||
December
31, 2004 and 2003 | |||||||
Assets |
2004
|
2003 |
|||||
Cash
and due from banks, including reserve requirements |
|||||||
of
$4,643,000 and $3,262,000 |
$ |
15,067,871 |
18,413,786
|
||||
Federal
funds sold |
1,723,000
|
2,369,000
|
|||||
Cash
and cash equivalents |
16,790,871
|
20,782,786
|
|||||
Investment
securities available for sale |
105,598,106
|
79,460,452
|
|||||
Other
investments |
5,396,959
|
4,216,973
|
|||||
Total
securities |
110,995,065
|
83,677,425
|
|||||
Mortgage
loans held for sale |
3,783,175
|
587,495
|
|||||
Loans |
535,467,733
|
552,126,189
|
|||||
Less
allowance for loan losses |
(8,048,627 |
) |
(9,722,267 |
) | |||
Net
loans |
527,419,106
|
542,403,922
|
|||||
Premises
and equipment, net |
12,742,730
|
12,537,230
|
|||||
Cash
surrender value of life insurance |
6,034,188
|
5,045,449
|
|||||
Accrued
interest receivable and other assets |
8,582,937
|
8,998,137
|
|||||
Total
assets |
$ |
686,348,072 |
674,032,444
|
||||
Liabilities
and Shareholders' Equity |
|||||||
Deposits: |
|||||||
Non
interest-bearing demand |
$ |
78,024,194 |
72,420,923
|
||||
NOW,
MMDA and savings |
193,917,507
|
158,677,445
|
|||||
Time,
$100,000 or more |
154,300,926
|
171,596,789
|
|||||
Other
time |
130,279,446
|
147,107,075
|
|||||
Total
deposits |
556,522,073
|
549,802,232
|
|||||
Demand
notes payable to U.S. Treasury |
1,184,392
|
443,384
|
|||||
FHLB
borrowings |
59,000,000
|
58,000,000
|
|||||
Junior
subordinated debentures |
14,433,000
|
14,433,000
|
|||||
Accrued
interest payable and other liabilities |
4,270,755
|
2,799,932
|
|||||
Total
liabilities |
635,410,220
|
625,478,548
|
|||||
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
3,135,074 shares in 2004 |
|||||||
and
3,135,202 shares in 2003 |
35,040,390
|
35,121,510
|
|||||
Retained
earnings |
16,018,206
|
12,844,524
|
|||||
Accumulated
other comprehensive income |
(120,744 |
) |
587,862
|
||||
Total
shareholders' equity |
50,937,852
|
48,553,896
|
|||||
Total
liabilities and shareholders' equity |
$ |
686,348,072 |
674,032,444
|
||||
See
accompanying notes to consolidated financial statements. |
PEOPLES
BANCORP OF NORTH CAROLINA, INC. |
||||||||||
Consolidated
Statements of Earnings |
||||||||||
For
the Years Ended December 31, 2004, 2003 and 2002 |
||||||||||
2004
|
2003
|
2002
|
||||||||
Interest
income: |
||||||||||
Interest
and fees on loans |
$ |
32,253,161 |
31,531,673
|
32,038,359
|
||||||
Interest
on federal funds sold |
35,236
|
58,384
|
45,271
|
|||||||
Interest
on investment securities: |
||||||||||
U.S.
Government agencies |
2,903,865
|
2,244,375
|
3,439,814
|
|||||||
States
and political subdivisions |
660,227
|
577,339
|
613,219
|
|||||||
Other |
402,080
|
441,958
|
487,284
|
|||||||
Total
interest income |
36,254,569
|
34,853,729
|
36,623,947
|
|||||||
Interest
expense: |
||||||||||
NOW,
MMDA and savings deposits |
1,899,249
|
1,318,820
|
2,006,077
|
|||||||
Time
deposits |
7,145,486
|
8,157,388
|
10,358,168
|
|||||||
FHLB
borrowings |
2,602,866
|
2,597,043
|
2,658,742
|
|||||||
Junior
subordinated debentures |
676,547
|
667,526
|
735,000
|
|||||||
Other |
10,518
|
7,891
|
19,344
|
|||||||
Total
interest expense |
12,334,666
|
12,748,668
|
15,777,331
|
|||||||
Net
interest income |
23,919,903
|
22,105,061
|
20,846,616
|
|||||||
Provision
for loans losses |
3,256,000
|
6,743,900
|
5,431,600
|
|||||||
Net
interest income after provision for loan losses |
20,663,903
|
15,361,161
|
15,415,016
|
|||||||
Other
income: |
||||||||||
Service
charges |
3,434,544
|
3,266,949
|
3,060,581
|
|||||||
Other
service charges and fees |
677,191
|
610,591
|
503,165
|
|||||||
Gain
(loss) on sale of securities |
(63,688 |
) |
(52,855 |
) |
625,616
|
|||||
Mortgage
banking income |
394,456
|
685,343
|
702,290
|
|||||||
Insurance
and brokerage commissions |
429,788
|
420,762
|
477,765
|
|||||||
Gain
(loss) on sale of repossessed assets |
(179,886 |
) |
(746,543 |
) |
(564 |
) | ||||
Gain
on sale of loans |
-
|
478,759
|
-
|
|||||||
Miscellaneous |
1,365,397
|
1,262,883
|
1,121,762
|
|||||||
Total
other income |
6,057,802
|
5,925,889
|
6,490,615
|
|||||||
Other
expense: |
||||||||||
Salaries
and employee benefits |
11,477,495
|
10,099,811
|
9,569,016
|
|||||||
Occupancy |
3,672,051
|
3,389,857
|
3,142,712
|
|||||||
Other |
4,907,923
|
4,738,253
|
4,046,347
|
|||||||
Total
other expenses |
20,057,469
|
18,227,921
|
16,758,075
|
|||||||
Earnings
before income taxes |
6,664,236
|
3,059,129
|
5,147,556
|
|||||||
Income
taxes |
2,233,300
|
1,055,538
|
1,712,000
|
|||||||
Net
earnings |
$ |
4,430,936 |
2,003,591
|
3,435,556
|
||||||
Basic
earnings per share |
$ |
1.28 |
0.58
|
0.99
|
||||||
Diluted
earnings per share |
$ |
1.26 |
0.58
|
0.99
|
||||||
Cash
dividends per share |
$ |
0.36 |
0.36
|
0.36
|
||||||
See
accompanying notes to consolidated financial statements. |
PEOPLES
BANCORP OF NORTH CAROLINA, INC. |
||||||||||||||||
Consolidated
Statements of Changes in Shareholders' Equity |
||||||||||||||||
For
the Years Ended December 31, 2004, 2003 and 2002 |
||||||||||||||||
Accumulated |
||||||||||||||||
Other |
||||||||||||||||
Common Stock |
Retained |
Comprehensive |
||||||||||||||
Shares |
Amount |
Earnings |
Income (Loss) |
Total |
||||||||||||
Balance,
December 31, 2001 |
3,218,714
|
$ |
36,407,798 |
9,915,399
|
(922,094 |
) |
45,401,103
|
|||||||||
Cash
dividends declared |
- |
|
|
- |
(1,256,592 |
) |
- |
(1,256,592 |
) | |||||||
Repurchase
and retirement of common |
||||||||||||||||
stock |
(85,500 |
) |
(1,314,250 |
) |
- |
- |
(1,314,250 |
) | ||||||||
Exercise
of stock options |
333
|
4,225
|
- |
- |
4,225
|
|||||||||||
Net
earnings |
- |
- |
3,435,556
|
- |
3,435,556
|
|||||||||||
Change
in accumulated other |
||||||||||||||||
comprehensive
income (loss), net of tax |
- |
- |
- |
2,334,691
|
2,334,691
|
|||||||||||
Balance,
December 31, 2002 |
3,133,547
|
35,097,773
|
12,094,363
|
1,412,597
|
48,604,733
|
|||||||||||
Cash
dividends declared |
- |
- |
(1,253,430 |
) |
- |
(1,253,430 |
) | |||||||||
Exercise
of stock options |
1,655
|
23,737
|
-
|
- |
23,737
|
|||||||||||
Net
earnings |
- |
- |
2,003,591
|
- |
2,003,591
|
|||||||||||
Change
in accumulated other |
||||||||||||||||
comprehensive
income (loss), net of tax |
- |
- |
- |
(824,735 |
) |
(824,735 |
) | |||||||||
Balance,
December 31, 2003 |
3,135,202
|
35,121,510
|
12,844,524
|
587,862
|
48,553,896
|
|||||||||||
Cash
dividends declared |
- |
- |
(1,257,254 |
) |
- |
(1,257,254 |
) | |||||||||
Repurchase
and retirement of common |
||||||||||||||||
stock |
(15,100 |
) |
(290,826 |
) |
- |
- |
(290,826 |
) | ||||||||
Exercise
of stock options |
14,972
|
209,706
|
- |
- |
209,706
|
|||||||||||
Net
earnings |
- |
- |
4,430,936
|
- |
4,430,936
|
|||||||||||
Change
in accumulated other |
||||||||||||||||
comprehensive
income (loss), net of tax |
- |
- |
- |
(708,606 |
) |
(708,606 |
) | |||||||||
Balance,
December 31, 2004 |
3,135,074
|
$ |
35,040,390 |
16,018,206
|
(120,744 |
) |
50,937,852
|
|||||||||
See
accompanying notes to consolidated financial statements. |
PEOPLES
BANCORP OF NORTH CAROLINA, INC. |
||||||||||
|
|
|
||||||||
Consolidated
Statements of Comprehensive Income |
||||||||||
|
|
|
||||||||
For
the Years Ended December 31, 2004, 2003 and 2002 |
||||||||||
2004 |
2003 |
2002 |
||||||||
Net
earnings |
$ |
4,430,936 |
2,003,591
|
3,435,556
|
||||||
Other
comprehensive income (loss): |
||||||||||
Unrealized
holding gains (losses) on securities |
||||||||||
available
for sale arising during the year |
30,988
|
(419,147 |
) |
2,951,843
|
||||||
Reclassification
adjustment for gains (losses) on |
||||||||||
sales
of securities available for sale included |
||||||||||
in
net earnings |
63,688
|
52,855
|
(625,616 |
) | ||||||
Unrealized
holding gains (losses) on derivative |
||||||||||
financial
instruments qualifying as cash flow |
||||||||||
hedges
arising during the year |
(702,000 |
) |
(284,000 |
) |
1,498,000
|
|||||
Reclassification
adjustment for gains on derivative |
||||||||||
financial
instruments qualifying as cash flow |
||||||||||
hedges
included in net earnings |
(553,375 |
) |
(700,626 |
) |
- |
|||||
Total
other comprehensive income (loss), |
||||||||||
before
income taxes |
(1,160,699 |
) |
(1,350,918 |
) |
3,824,227
|
|||||
Income
tax expense (benefit) related to other |
||||||||||
comprehensive
income: |
||||||||||
Unrealized
holding gains (losses) on securities |
||||||||||
available
for sale arising during the year |
12,070
|
(163,258 |
) |
1,149,742
|
||||||
Reclassification
adjustment for gains (losses) on |
||||||||||
sales
of securities available for sale included |
||||||||||
in
net earnings |
24,806
|
20,587
|
(243,677 |
) | ||||||
Unrealized
holding gains (losses) on derivative |
||||||||||
financial
instruments qualifying as cash flow |
||||||||||
hedges
arising during the year |
(273,429 |
) |
(110,618 |
) |
583,471
|
|||||
Reclassification
adjustment for gains on derivative |
||||||||||
financial
instruments qualifying as cash flow |
||||||||||
hedges
included in net earnings |
(215,540 |
) |
(272,894 |
) |
-
|
|||||
Total
income tax expense (benefit) related to |
||||||||||
other
comprehensive income |
(452,093 |
) |
(526,183 |
) |
1,489,536
|
|||||
Total
other comprehensive income (loss), |
||||||||||
net
of tax |
(708,606 |
) |
(824,735 |
) |
2,334,691
|
|||||
Total
comprehensive income |
$ |
3,722,330 |
1,178,856
|
5,770,247
|
||||||
See
accompanying notes to consolidate financial statements. |
PEOPLES
BANCORP OF NORTH CAROLINA, INC. |
||||||||||
|
|
|
||||||||
Consolidated
Statements of Cash Flows |
||||||||||
|
|
|
||||||||
For
the Years Ended December 31, 2004, 2003 and 2002 |
||||||||||
2004 |
2003 |
2002 |
||||||||
Cash
flows from operating activities: |
$ |
4,430,936 |
2,003,591
|
3,435,556
|
||||||
Net
earnings |
||||||||||
Adjustments
to reconcile net earnings to |
||||||||||
net
cash provided by operating activities: |
||||||||||
Depreciation,
amortization and accretion |
1,563,245
|
1,963,995
|
1,685,715
|
|||||||
Provision
for loan losses |
3,256,000
|
6,743,900
|
5,431,600
|
|||||||
Deferred
income taxes |
341,441
|
(1,526,062 |
) |
(318,921 |
) | |||||
Loss
(gain) on sale of investment securities |
63,688
|
52,855
|
(625,616 |
) | ||||||
Recognition
of gain on sale of derivative instruments |
(553,375 |
) |
(700,626 |
) |
- |
|||||
Gain
on sale of loans |
- |
(478,759 |
) |
- |
||||||
Amortization
of deferred gain on sale of premises |
(22,412 |
) |
- |
- |
| |||||
Loss
(gain) on sale of repossessed assets |
15,412
|
262,840
|
(19,981 |
) | ||||||
Writedown
of other real estate and repossessions |
164,474
|
483,703
|
- |
|||||||
Change
in: |
||||||||||
Mortgage
loans held for sale |
(3,195,680 |
) |
4,477,140
|
274,296
|
||||||
Cash
surrender value of life insurance |
(988,739 |
) |
(216,741 |
) |
(245,708 |
) | ||||
Other
assets |
(3,442,472 |
) |
377,900
|
(595,240 |
) | |||||
Other
liabilities |
1,470,823
|
(4,582 |
) |
178,282
|
||||||
Net
cash provided by operating activities |
3,103,341
|
13,439,154
|
9,199,983
|
|||||||
Cash
flows from investing activities: |
||||||||||
Purchases
of investment securities available for sale |
(48,667,610 |
) |
(55,439,455 |
) |
(48,339,951 |
) | ||||
Proceeds
from calls and maturities of investment securities |
||||||||||
available
for sale |
19,413,975
|
27,158,675
|
28,609,785
|
|||||||
Proceeds
from sales of investment securities available |
||||||||||
for
sale |
2,986,313
|
19,896,324
|
35,191,263
|
|||||||
Purchases
of other investments |
(4,822,500 |
) |
(925,000 |
) |
(300,000 |
) | ||||
Proceeds
from sale of other investments |
3,642,514
|
953,600
|
557,200
|
|||||||
Net
change in loans |
12,578,820
|
(31,533,937 |
) |
(42,113,346 |
) | |||||
Proceeds
from sale of loans |
- |
4,207,206
|
- |
|||||||
Purchases
of premises and equipment |
(1,502,346 |
) |
(1,913,876 |
) |
(2,614,380 |
) | ||||
Proceeds
from sale of premises and equipment |
- |
-
|
412,289
|
|||||||
Proceeds
from sale of repossessed assets |
2,153,103
|
1,502,891
|
488,647
|
|||||||
Proceeds
from sale of derivative financial instruments |
- |
1,254,000
|
- |
|||||||
Net
cash used by investing activities |
(14,217,731 |
) |
(34,839,572 |
) |
(28,108,493 |
) | ||||
Cash
flows from financing activities: |
||||||||||
Net
change in deposits |
6,719,841
|
34,063,277
|
25,515,766
|
|||||||
Net
change in demand notes payable to U.S. Treasury |
741,008
|
(1,156,616 |
) |
1,482,013
|
||||||
Proceeds
from FHLB borrowings |
95,850,000
|
46,650,000
|
68,100,000
|
|||||||
Repayments
of FHLB borrowings |
(94,850,000 |
) |
(51,721,429 |
) |
(73,242,857 |
) | ||||
Transaction
costs associated with junior |
||||||||||
subordinated
debentures |
- |
- |
(105,450 |
) | ||||||
Proceeds
from exercise of stock options |
209,706
|
23,737
|
4,225
|
|||||||
Common
stock repurchased |
(290,826 |
) |
- |
(1,314,250 |
) | |||||
Cash
dividends paid |
(1,257,254 |
) |
(1,253,430 |
) |
(1,256,592 |
) | ||||
Net
cash provided by financing activities |
7,122,475
|
26,605,539
|
19,182,855
|
|||||||
Net
change in cash and cash equivalent |
(3,991,915 |
) |
5,205,121
|
274,345
|
||||||
Cash
and cash equivalents at beginning of period |
20,782,786
|
15,577,665
|
15,303,320
|
|||||||
Cash
and cash equivalents at end of period |
$ |
16,790,871 |
20,782,786
|
15,577,665
|
||||||
PEOPLES
BANCORP OF NORTH CAROLINA, INC. |
||||||||||
|
|
|
||||||||
Consolidated
Statements of Cash Flows, continued |
||||||||||
|
|
|
||||||||
For
the Years ended December 31, 2004, 2003 and 2002 |
||||||||||
2004
|
|
2003
|
|
2002
|
||||||
Supplemental
disclosures of cash flow information: |
||||||||||
Cash
paid during the year for: |
||||||||||
Interest |
$ |
11,833,234 |
12,975,587
|
16,006,155
|
||||||
Income
taxes |
$ |
2,483,394 |
2,093,000
|
2,235,500
|
||||||
Noncash
investing and financing activities: |
||||||||||
Change
in unrealized gain (loss) on investment securities |
||||||||||
available
for sale, net |
$ |
57,800 |
(223,621 |
) |
2,334,691
|
|||||
Change
in unrealized gain (loss) on derivative financial |
||||||||||
instruments,
net |
$ |
(766,406 |
) |
(173,382 |
) |
- |
||||
Transfer
of loans to other real estate and repossessions |
$ |
1,362,138 |
3,382,633
|
2,077,057
|
||||||
Financed
portion of sale of other real estate |
$ |
2,212,142 |
1,258,500
|
- |
||||||
Financed
portion of sale of premises and equipment |
$ |
-
|
3,729,932
|
- |
||||||
See
accompanying notes to consolidated financial statements. |
Buildings
and improvements |
10
- 50 years | |
Furniture
and equipment |
3
- 10 years |
2004 |
2003 |
2002 |
|||||||||||
Net
earnings |
As
reported |
$ |
4,430,936 |
2,003,591
|
3,435,556
|
||||||||
|
Effect
of grants, net of tax |
(190,747 |
) |
-
|
(276,415 |
) | |||||||
|
Effect
of forfeitures, net of tax |
8,603
|
-
|
42,982
|
|||||||||
|
Proforma |
$ |
4,248,792 |
2,003,591
|
3,202,123
|
||||||||
Basic
earnings per share |
As
reported |
$ |
1.28 |
0.58
|
0.99
|
||||||||
|
Proforma |
$ |
1.23 |
0.58
|
0.92
|
||||||||
Diluted
earnings per share |
As
reported |
$ |
1.26 |
0.58
|
0.99
|
||||||||
|
Proforma |
$ |
1.21 |
0.58
|
0.92
|
For
the year ended December 31, 2004: |
Net
Earnings |
|
Common
Shares
|
|
|
Per
Share Amount | |
Basic
earnings per share |
$ |
4,430,936
|
|
3,459,379
|
$ |
1.28
| |
Effect
of dilutive securities: |
|||||||
Stock
options |
-
|
|
47,604
|
||||
Diluted
earnings per share |
$ |
4,430,936
|
|
3,506,983
|
$ |
1.26
|
For
the year ended December 31, 2003: |
Net
Earnings |
|
Common
Shares
|
|
|
Per
Share Amount | |
Basic
earnings per share |
$ |
2,003,591
|
|
3,447,056
|
$ |
0.58
| |
Effect
of dilutive securities: |
|||||||
Stock
options |
|
-
|
|
29,703
|
|||
Diluted
earnings per share |
$ |
2,003,591
|
|
3,476,759
|
$ |
0.58
| |
For
the year ended December 31, 2002: |
Net
Earnings |
|
Common
Shares
|
|
|
Per
Share Amount | |
Basic
earnings per share |
$ |
3,435,556
|
|
3,467,173
|
$ |
0.99
| |
Effect
of dilutive securities: |
|||||||
Stock
options |
-
|
|
8,023
|
||||
Diluted
earnings per share |
$ |
3,435,556
|
|
3,475,196
|
$ |
0.99
|
December
31, 2004 |
|||||||||||||
Amortized
Cost
|
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Estimated
Fair Value |
|||||||
Mortgage-backed
securities |
$ |
36,492,826 |
188,816
|
138,443
|
36,543,199
|
||||||||
U.S.
government agencies |
46,498,958
|
170,574
|
99,195
|
46,570,337
|
|||||||||
State
and political subdivisions |
20,212,105
|
546,905
|
110,189
|
20,648,821
|
|||||||||
Trust
preferred securities |
1,750,000
|
-
|
-
|
1,750,000
|
|||||||||
Equity
securities |
99,995
|
-
|
14,246
|
85,749
|
|||||||||
Total |
$ |
105,053,884 |
906,295
|
362,073
|
105,598,106
|
||||||||
|
|
|
December
31, 2003 |
||||||||||
|
Amortized
Cost |
|
|
Gross
Unrealized Gains |
|
|
Gross
Unrealized Losses |
|
|
Estimated
Fair Value |
|||
Mortgage-backed
securities |
$ |
24,911,000 |
96,142
|
87,282
|
24,919,860
|
||||||||
U.S.
government agencies |
34,545,774
|
107,847
|
136,375
|
34,517,246
|
|||||||||
State
and political subdivisions |
14,454,137
|
559,907
|
64,137
|
14,949,907
|
|||||||||
Trust
preferred securities |
5,000,000
|
-
|
-
|
5,000,000
|
|||||||||
Equity
securities |
99,995
|
-
|
26,556
|
73,439
|
|||||||||
Total |
$ |
79,010,906 |
763,896
|
314,350
|
79,460,452
|
December
31, 2004 | ||||||||||||
Less
than 12 Months |
12
Months or More |
Total
| ||||||||||
Fair
Value |
Unrealized
Losses |
Fair
Value |
Unrealized
Losses |
Fair
Value |
Unrealized
Losses | |||||||
Mortgage-backed
securities |
$ |
9,706,756
|
100,854
|
2,625,755
|
37,589
|
12,332,511
|
138,443
| |||||
U.S.
government agencies |
14,910,156
|
85,488
|
2,986,293
|
13,707
|
17,896,449
|
99,195
| ||||||
State
and political subdivisions |
7,118,463
|
110,189
|
- |
- |
7,118,463
|
110,189
| ||||||
Equity
securities |
- |
- |
85,749
|
14,246
|
85,749
|
14,246
| ||||||
Total |
$ |
31,735,375
|
|
296,531
|
|
5,697,797
|
|
65,542
|
|
37,433,172
|
|
362,073
|
December
31, 2003 | ||||||||||||
Less
than 12 Months |
12
Months or More |
Total
| ||||||||||
Fair
Value |
Unrealized
Losses |
Fair
Value |
Unrealized
Losses |
Fair
Value |
Unrealized
Losses | |||||||
Mortgage-backed
securities |
$ |
11,510,389
|
87,282
|
- |
- |
11,510,389
|
87,282
| |||||
U.S.
government agencies |
7,911,840
|
136,375
|
- |
- |
7,911,840
|
136,375
| ||||||
State
and political subdivisions |
2,267,965
|
64,137
|
- |
- |
2,267,965
|
64,137
| ||||||
Equity
securities |
73,439
|
26,556
|
- |
- |
73,439
|
26,556
| ||||||
Total |
$ |
21,763,633
|
|
314,350
|
|
- |
|
- |
|
21,763,633
|
|
314,350
|
Amortized
Cost
|
Estimated
Fair
Value
| ||||
Due
within one year |
$ |
981,041
|
990,079
| ||
Due
from one to five years |
26,186,619
|
26,351,012
| |||
Due
from five to ten years |
35,619,670
|
35,725,854
| |||
Due
after ten years |
5,673,733
|
5,902,213
| |||
Mortgage-backed
securities |
36,492,826
|
36,543,199
| |||
Equity
securities |
99,995
|
85,749
| |||
Total |
$ |
105,053,884
|
|
105,598,106
|
2004 |
2003 | ||||
Commercial |
$ |
79,189,073
|
90,557,643
| ||
Real
estate - mortgage |
312,988,293
|
332,729,979
| |||
Real
estate - construction |
127,041,980
|
110,392,005
| |||
Consumer |
16,248,387
|
18,446,562
| |||
Total
loans |
535,467,733
|
|
552,126,189
| ||
Less
allowance for loan losses |
8,048,627
|
|
9,722,267
| ||
Total
net loans |
$ |
527,419,106
|
|
542,403,922
|
2004 |
2003 |
2002 | ||||
Balance
at beginning of year |
$ |
9,722,267
|
7,247,906
|
6,090,570
| ||
Amounts
charged off |
(5,385,199) |
(4,481,548) |
(4,441,007) | |||
Recoveries
on amounts previously charged off |
455,559
|
212,009
|
166,743
| |||
Provision
for loan losses |
3,256,000
|
6,743,900
|
5,431,600
| |||
Balance
at end of year |
$ |
8,048,627
|
|
9,722,267
|
|
7,247,906
|
2004 |
2003 | |||
Land |
$ |
2,170,514
|
1,915,954
| |
Buildings
and improvements |
10,138,526
|
9,982,688
| ||
Furniture
and equipment |
11,679,698
|
10,618,908
| ||
Total
premises and equipment |
23,988,738
|
|
22,517,550
| |
Less
accumulated depreciation |
11,246,008
|
|
9,980,320
| |
Total
net premises and equipment |
$ |
12,742,730
|
|
12,537,230
|
2005 |
$ |
221,940,040
| |
2006 |
30,697,184
| ||
2007 |
18,161,287
| ||
2008 |
6,660,115
| ||
2009
and thereafter |
7,121,746
| ||
Total |
$ |
284,580,372
|
Maturity
Date |
Call Date |
Rate |
Rate
Type |
Amount | |
February
5, 2005 |
N/A |
2.440% |
Daily
Rate |
$ |
2,000,000
|
July
5, 2005 |
October
5, 2000 and every three |
||||
months
thereafter |
6.160% |
Convertible |
5,000,000
| ||
March
30, 2010 |
March
30, 2001 and every three |
||||
months
thereafter |
6.020% |
Convertible |
5,000,000
| ||
March
30, 2010 |
September
30, 2000 and every three |
||||
months
thereafter |
5.880% |
Convertible |
5,000,000
| ||
May
24, 2010 |
May
24, 2001 and every three |
||||
months
thereafter |
6.490% |
Convertible |
2,000,000
| ||
January
10, 2011 |
January
10, 2002 and every three |
||||
months
thereafter |
4.200% |
Convertible |
5,000,000
| ||
May
2, 2011 |
May
2, 2002 and every three |
||||
months
thereafter |
4.055% |
Convertible |
30,000,000
| ||
January
26, 2005 |
N/A |
2.190% |
Adjustable |
5,000,000
| |
$ |
59,000,000
|
2004
|
2003
|
2002
| ||||
Current |
$ |
1,891,859
|
2,581,600
|
2,030,921
| ||
Deferred |
341,441
|
(1,526,062) |
(318,921) | |||
Total |
$ |
2,233,300
|
|
1,055,538
|
|
1,712,000
|
2004 |
2003 |
2002 | ||||
Pre-tax
income at statutory rates (34%) |
$ |
2,265,840
|
|
1,040,104
|
|
1,750,169
|
Differences: |
||||||
Tax
exempt interest income |
(243,346) |
|
(216,431) |
|
(231,395) | |
Nondeductible
interest and other expense |
21,588
|
|
18,668
|
|
24,088
| |
Cash
surrender value of life insurance |
|
(65,871) |
|
(73,692) |
|
(83,541) |
State
taxes, net of federal benefits |
236,544
|
|
270,493
|
|
230,088
| |
Other,
net |
18,545
|
|
16,396
|
|
22,591
| |
| ||||||
Total |
$ |
2,233,300
|
|
1,055,538
|
|
1,712,000
|
2004
|
|
2003
| |||
Deferred
tax assets: |
|||||
Allowance
for loan losses |
$ |
3,103,068
|
|
3,566,467
| |
Amortizable
intangible assets |
173,548
|
|
209,849
| ||
Accrued
retirement expense |
454,446
|
|
332,575
| ||
Income
from non-accrual loans |
23,309
|
|
23,309
| ||
Deferred
gain on sale of premises |
228,932
|
|
-
| ||
Deferred
gain on sale of cash flow hedges |
-
|
|
217,284
| ||
Unrealized
loss on cash flow hedges |
289,009
|
|
15,580
| ||
Other |
28,965
|
|
25,047
| ||
Total
gross deferred tax assets |
4,301,277
|
|
4,390,111
| ||
Deferred
tax liabilities: |
|||||
Unrealized
gains on available for sale securities |
211,974
|
|
175,098
| ||
Unrealized
gains on sale of cash flow hedges |
-
|
|
215,540
| ||
Deferred
loan fees |
1,060,798
|
|
1,103,661
| ||
Premises
and equipment |
477,285
|
|
421,316
| ||
Deferred
income from servicing rights |
108,920
|
|
142,848
| ||
Total
gross deferred tax liabilities |
1,858,977
|
|
2,058,463
| ||
Net
deferred tax asset |
$ |
2,442,300
|
|
2,331,648
|
Beginning
balance |
$ |
9,945,349
| |
New
loans |
3,734,875
| ||
Repayments |
5,115,079
| ||
Ending
balance |
$ |
8,565,145
|
Year |
|||
2005 |
$ |
811,653
| |
2006 |
650,845
| ||
2007 |
674,115
| ||
2008 |
685,603
| ||
2009 |
630,947
| ||
Thereafter |
4,826,917
| ||
Total
minimum obligation |
$ |
8,280,080
|
Contractual
Amount | |||||
2004
|
|
2003 | |||
Financial
instruments whose contract amount represent credit risk: |
|||||
Commitments
to extend credit |
$ |
124,674,707
|
|
104,729,455
| |
Standby
letters of credit and financial guarantees written |
$ |
3,278,326
|
|
3,876,430
|
2004 |
2003 | ||||
Accumulated
postretirement benefit obligation |
$ |
215,985
|
222,541
| ||
Unrecognized
gain (loss) |
(49,038) |
(52,203) | |||
Net
liability recognized |
$ |
166,947
|
|
170,338
|
2004
|
|
2003
|
|
2002
| ||||||||
|
Weighted
|
|
|
|
Weighted
|
|
|
|
Weighted
| |||
Average
|
|
|
|
Average
|
|
|
|
Average
| ||||
Option
Price |
|
|
|
Option
Price |
|
|
|
Option
Price | ||||
Shares
|
|
Per
Share |
|
Shares
|
|
Per
Share |
|
Shares
|
|
Per
Share | ||
Outstanding,
beginning of period |
197,024
|
|
$ 14.59
|
|
198,679
|
|
$
14.58 |
|
139,703
|
|
$
14.82 | |
Granted
during the period |
4,000 |
|
$
18.95 |
|
-
|
|
-
|
|
67,550 |
|
$
14.10 | |
Forfeited
during the period |
(2,055) |
|
$
14.51 |
|
-
|
|
-
|
|
(8,241) |
|
$
14.78 | |
Exercised
during the period |
(14,972) |
|
$
14.01 |
|
(1,655) |
|
$
14.34 |
|
(333) |
|
$
12.69 | |
Outstanding,
end of period |
183,997
|
|
$
14.73 |
|
197,024
|
|
$
14.59 |
|
198,679
|
|
$
14.58 | |
Number
of shares exercisable |
157,845
|
|
$ 14.71
|
|
128,983
|
|
$
14.52 |
|
66,292 |
|
$
14.29 |
2004
|
|
2003
|
|
2002
| ||||||||
|
Weighted
|
|
|
|
Weighted
|
|
|
|
Weighted
| |||
Average
|
|
|
|
Average
|
|
|
|
Average
| ||||
Price
of |
|
|
|
Price
of |
|
|
|
Price
of | ||||
Book
Value |
Book
Value |
Book
Value | ||||||||||
Shares
|
|
Shares
|
|
Shares
|
|
Shares
|
|
Shares
|
|
Shares
| ||
Outstanding,
beginning of period |
48,285
|
|
$ 11.73
|
|
53,650
|
|
$
11.70 |
|
53,650 |
|
$
11.70 | |
Granted
during the period |
21,460
|
|
$
15.68 |
|
-
|
|
-
|
|
- |
|
- | |
Forfeited
during the period |
(1,073) |
|
$
11.45 |
|
(5,365) |
|
$
11.45 |
|
- |
|
- | |
Exercised
during the period |
(4,292) |
|
$
11.45 |
|
- |
|
-
|
|
- |
|
-
| |
Outstanding,
end of period |
64,380
|
|
$
13.07 |
|
48,285
|
|
$
11.73 |
|
53,650
|
|
$
11.70 | |
Number
of shares exercisable |
41,577
|
|
$ 11.70
|
|
37,017
|
|
$
11.64 |
|
30,311
|
|
$
11.56
|
|
|
|
|
|
To Be Well | ||||||
|
|
|
|
|
|
|
|
|
Capitalized
Under | ||
For Capital | Prompt Corrective | ||||||||||
Actual | Adequacy Purposes | Action Provisions | |||||||||
Amount |
Ratio |
Amount |
Ratio |
Amount |
Ratio | ||||||
(dollars
in thousands) | |||||||||||
As
of December 31, 2004: |
|||||||||||
Total
Capital (to Risk-Weighted Assets) |
|||||||||||
Consolidated |
$
72,410 |
|
12.22% |
|
47,407
|
|
8.00% |
|
N/A |
|
N/A |
Bank |
$
68,503 |
|
11.60% |
|
47,240
|
|
8.00% |
|
59,050
|
|
10.00% |
Tier
1 Capital (to Risk-Weighted Assets) |
|||||||||||
Consolidated |
$
65,021 |
|
10.97% |
|
23,704
|
|
4.00% |
|
N/A |
|
N/A |
Bank |
$
61,114 |
|
10.35% |
|
23,620
|
|
4.00% |
|
35,430
|
|
6.00% |
Tier
1 Capital (to Average Assets) |
|||||||||||
Consolidated |
$
65,021 |
|
9.50% |
|
27,374
|
|
4.00% |
|
N/A |
|
N/A |
Bank |
$
61,114 |
|
8.95% |
|
27,328
|
|
4.00% |
|
34,161
|
|
5.00% |
As
of December 31, 2003: |
|||||||||||
Total
Capital (to Risk-Weighted Assets) |
|||||||||||
Consolidated |
$
69,294 |
|
11.75% |
|
47,187
|
|
8.00% |
|
N/A |
|
N/A |
Bank |
$
65,421 |
|
11.13% |
|
47,042
|
|
8.00% |
|
58,802
|
|
10.00% |
Tier
1 Capital (to Risk-Weighted Assets) |
|||||||||||
Consolidated |
$
61,914 |
|
10.50% |
|
23,594
|
|
4.00% |
|
N/A |
|
N/A |
Bank |
$
58,041 |
|
9.87% |
|
23,521
|
|
4.00% |
|
35,282
|
|
6.00% |
Tier
1 Capital (to Average Assets) |
|||||||||||
Consolidated |
$
61,914 |
|
9.37% |
|
26,424
|
|
4.00% |
|
N/A |
|
N/A |
Bank |
$
58,041 |
|
8.80% |
|
26,382
|
|
4.00% |
|
32,977
|
|
5.00% |
2004
|
2003
|
2002
| ||||
Advertising |
$ |
619,731
|
|
540,970
|
|
218,726
|
2004
|
2003
| |||||||
Carrying
Amount |
Estimated
Fair
Value |
Carrying
Amount |
Estimated
Fair
Value | |||||
(dollars
in thousands) | ||||||||
Assets: |
||||||||
Cash
and cash equivalents |
$ |
16,791
|
|
16,791
|
|
20,783
|
|
20,783
|
Investment
securities available for sale |
|
105,598
|
|
105,598
|
|
79,460
|
|
79,460
|
Other
investments |
5,397
|
|
5,397
|
|
4,217
|
|
4,217
| |
Mortgage
loans held for sale |
3,783
|
|
3,783
|
|
588
|
|
588
| |
Loans,
net |
527,419
|
|
525,818
|
|
542,404
|
|
541,770
| |
Cash
surrender value of life insurance |
6,034
|
|
6,034
|
|
5,045
|
|
5,045
| |
Mortgage
servicing rights |
283
|
|
283
|
|
371
|
|
371
| |
Liabilities: |
||||||||
Deposits
and demand notes payable |
557,706
|
|
556,993
|
|
550,246
|
|
551,558
| |
FHLB
advances |
59,000
|
|
61,637
|
|
58,000
|
|
62,175
| |
Junior
subordinated debentures |
14,433
|
|
14,433
|
|
14,433
|
|
14,433
| |
Derivative
instruments |
742
|
|
742
|
|
40
|
|
40
|
(17) |
Peoples
Bancorp of North Carolina, Inc. (Parent Company Only) Condensed Financial
Statements |
Balance
Sheets | ||||||
|
|
|
|
|
|
|
December
31, 2004 and 2003 | ||||||
Assets |
2004 |
|
2003 | |||
Cash |
$ |
517,652
|
|
689,613
| ||
Interest-bearing
time deposit |
2,000,000
|
|
2,000,000
| |||
Investment
in subsidiaries |
61,463,299
|
|
59,115,062
| |||
Other
investments |
1,050,749
|
|
788,439
| |||
Other
assets |
613,727
|
|
601,425
| |||
Total
assets |
$ |
65,645,427
|
|
63,194,539
| ||
Liabilities and Shareholders' Equity |
||||||
Accrued
expenses |
$ |
274,575
|
|
207,643
| ||
Junior
subordinated debentures |
14,433,000
|
|
14,433,000
| |||
Shareholders'
equity |
50,937,852
|
|
48,553,896
| |||
Total
liabilities and shareholders' equity |
$ |
65,645,427
|
|
63,194,539
|
Statements
of Earnings | ||||||
|
|
|
|
|
|
|
For
the Years Ended December 31, 2004, 2003 and
2002 | ||||||
Revenues: |
2004 |
|
2003 |
|
2002 | |
Dividends
from subsidiaries |
$ |
1,962,551
|
|
3,948,455
|
|
3,526,824
|
Interest
and dividend income |
63,875
|
|
43,684
|
|
- | |
Total
revenues |
2,026,426
|
|
3,992,139
|
|
3,526,824
| |
Expenses: |
||||||
Interest |
|
676,547
|
|
667,526
|
|
757,733
|
Other
operating expenses |
280,002
|
|
211,788
|
|
208,591
| |
| ||||||
Total
expenses |
|
956,549
|
|
879,314
|
|
966,324
|
Earnings
before income tax benefit and equity in |
||||||
undistributed
earnings of subsidiaries |
1,069,877
|
|
3,112,825
|
|
2,560,500
| |
Income
tax benefit |
296,700
|
|
277,200
|
|
320,800
| |
Earnings
before undistributed earnings in subsidiaries |
1,366,577
|
|
3,390,025
|
|
2,881,300
| |
Equity
in undistributed earnings in subsidiaries |
3,064,359
|
|
- |
|
554,256
| |
Dividends
paid in excess in earnings |
- |
|
(1,386,434) |
|
- | |
Net
earnings |
$ |
4,430,936
|
|
2,003,591
|
|
3,435,556
|
Statements
of Cash Flows | ||||||
|
|
|
|
|
|
|
For
the Years Ended December 31, 2004, 2003 and
2002 | ||||||
2004 |
2003 |
|
2002 | |||
Cash
flows from operating activities: |
||||||
Net
earnings |
$ |
4,430,936
|
|
2,003,591
|
|
3,435,556
|
Adjustments
to reconcile net earnings to net |
||||||
cash
provided by operating activities: |
||||||
Amortization |
17,742
|
|
17,742
|
|
16,668
| |
Book
value shares accrual |
66,933
|
|
47,078
|
|
82,800
| |
Equity
in undistributed earnings of subsidiaries |
(3,064,359) |
|
1,386,434
|
|
(554,256) | |
Deferred
income tax benefit |
(25,806) |
|
(19,173) |
|
(27,991) | |
Change
in: |
||||||
Accrued
income |
(9,033) |
|
- |
|
- | |
Other |
- |
|
7,814
|
|
(33,092) | |
Net
cash provided by operating activities |
1,416,413
|
|
3,443,486
|
|
2,919,685
| |
Cash
flows from investing activities: |
||||||
Net
change in interest-bearing time deposit |
- |
|
(2,000,000) |
|
- | |
Purchases
of investment securities available for sale |
(250,000) |
|
- |
|
- | |
Net
cash used by investing activities |
(250,000) |
|
(2,000,000) |
|
- | |
Cash
flows from financing activities: |
||||||
Transaction
costs associated with junior |
||||||
subordinated
debentures |
- |
|
- |
|
(105,450) | |
Cash
dividends paid |
(1,257,254) |
|
(1,253,430) |
|
(1,256,592) | |
Common
stock repurchased |
(290,826) |
|
- |
|
(1,314,250) | |
Proceeds
from exercise of stock options |
209,706
|
|
23,737
|
|
4,225
| |
Net
cash provided (used) by financing activities |
(1,338,374) |
|
(1,229,693) |
|
(2,672,067) | |
Net
change in cash |
(171,961) |
|
213,793
|
|
247,618
| |
Cash
at beginning of year |
689,613
|
|
475,820
|
|
228,202
| |
Cash
at end of year |
$ |
517,652
|
|
689,613
|
|
475,820
|
Table of Contents | |||
|
INTRODUCTION |
1 |
|
|
PRESIDENT'S MESSAGE |
2 |
|
|
FINANCIAL PERFORMANCE |
3 |
|
|
FINANCIAL HIGHLIGHTS |
4 |
|
|
SELECTED FINANCIAL DATA |
5 |
|
|
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM |
6 |
|
|
CONSOLIDATED BALANCE SHEETS |
7 |
|
|
CONSOLIDATED STATEMENTS OF EARNINGS |
8 |
|
|
SHAREHOLDER AND GENERAL INFORMATION |
9 |
|
|
BOARD OF DIRECTORS |
9 |
|
|
BANK OFFICERS AND SUBSIDIARIES |
10 |
dollars
in thousands except per-share amounts |
|
2004 |
2003 |
Change | |||
Interest
income |
|
$ 36,255 |
34,854 |
4% |
|||
Interest
expense |
|
12,335 |
12,749 |
-3% |
|||
Net
interest income after provision for loan loss losses |
|
20,664 |
15,361 |
35% |
|||
Non-interest
income |
|
6,057 |
5,926 |
2% |
|||
Non-interest expense |
|
20,057 |
18,228 |
10% |
|||
Income
taxes |
|
2,233 |
1,055 |
112% |
|||
Net
income |
|
$ 4,431 |
2,004 |
121% |
|||
PER SHARE* | |||||||
Basic
net income |
|
$ 1.28 |
0.58 |
121% |
|||
Diluted
net income |
|
1.26 |
0.58 |
117% |
|||
Cash
dividends |
|
0.36 |
0.36 |
0% |
|||
Market
price at December 31 |
|
17.52 |
17.15 |
2% |
|||
Book
value at December 31 |
|
14.77 |
14.08 |
5% |
|||
AT YEAR-END | |||||||
Loans,
net |
|
$
527,419 |
542,404 |
-3% |
|||
Mortgage
loans held for sale |
|
3,783 |
587 |
544% |
|||
Available
for sale securities |
|
105,598 |
79,460 |
33% |
|||
Assets |
|
686,348 |
674,032 |
2% |
|||
Deposits |
|
556,522 |
549,802 |
1% |
|||
Shareholders'
equity |
|
50,938 |
48,554 |
|
5% |
||
KEY PERFORMANCE RATIOS | |||||||
Return
on average assets |
|
0.65% |
0.30% |
||||
Return
on average shareholders' equity |
|
8.52% |
4.01% |
||||
Dividend
payout ratio |
|
28.37% |
62.56% |
||||
Average shareholders' equity to total average |
7.59% |
|
7.56% |
|
Selected
Financial Data |
||||||||||||||||
dollars
in thousands except per share amounts |
2004 |
2003 |
|
2002 |
|
2001 |
|
2000 |
||||||||
SUMMARY OF
OPERATIONS |
||||||||||||||||
Interest
income |
$ |
36,255 |
34,854
|
36,624
|
41,898
|
40,859
|
||||||||||
Interest
expense |
12,335
|
12,749
|
15,777
|
23,027
|
19,432
|
|||||||||||
Net
interest income |
23,920
|
22,105
|
20,847
|
18,871
|
21,427
|
|||||||||||
Provision
for loan losses |
3,256
|
6,744
|
5,432
|
3,545
|
1,879
|
|||||||||||
Net
interest income after provision for loan losses |
20,664
|
15,361
|
15,415
|
15,326
|
19,548
|
|||||||||||
Non-interest
income |
6,057
|
5,926
|
6,491
|
8,263
|
3,915
|
|||||||||||
Non-interest
expense |
20,057
|
18,228
|
16,758
|
16,752
|
15,509
|
|||||||||||
Income
before taxes |
6,664
|
3,059
|
5,148
|
6,837
|
7,954
|
|||||||||||
Income
taxes |
2,233
|
1,055
|
1,712
|
2,262
|
2,576
|
|||||||||||
Net
income |
$ |
4,431 |
2,004
|
3,436
|
4,575
|
5,378
|
||||||||||
SELECTED YEAR-END
BALANCES |
||||||||||||||||
Assets |
$ |
686,348 |
674,032
|
645,638
|
619,505
|
519,002
|
||||||||||
Available
for sale securities |
105,598
|
79,460
|
71,736
|
84,286
|
71,565
|
|||||||||||
Loans,
net |
527,419
|
542,404
|
519,122
|
484,517
|
406,226
|
|||||||||||
Mortgage
loans held for sale |
3,783
|
587
|
5,065
|
5,339
|
1,564
|
|||||||||||
Interest-earning
assets |
652,678
|
639,501
|
608,619
|
586,496
|
490,449
|
|||||||||||
Deposits |
556,522
|
549,802
|
515,739
|
490,223
|
450,073
|
|||||||||||
Interest-bearing
liabilities |
553,135
|
550,357
|
527,525
|
516,422
|
420,594
|
|||||||||||
Shareholders'
equity |
$ |
50,938 |
48,554
|
48,605
|
45,401
|
43,039
|
||||||||||
Shares
outstanding* |
3,448,581
|
3,448,722
|
3,446,902
|
3,540,585
|
3,540,585
|
|||||||||||
SELECTED
AVERAGE BALANCES |
||||||||||||||||
Assets |
$ |
684,384 |
660,644
|
624,796
|
575,142
|
469,536
|
||||||||||
Available
for sale securities |
93,770
|
72,072
|
77,414
|
84,549
|
66,218
|
|||||||||||
Loans |
547,753
|
539,559
|
507,879
|
454,371
|
374,226
|
|||||||||||
Interest-earning
assets |
650,095
|
625,764
|
592,947
|
545,945
|
447,645
|
|||||||||||
Deposits |
558,141
|
533,704
|
499,224
|
481,289
|
408,210
|
|||||||||||
Interest-bearing
liabilities |
553,880
|
540,676
|
516,747
|
472,868
|
373,167
|
|||||||||||
Shareholders'
equity |
$ |
51,978 |
49,914
|
48,257
|
47,432
|
42,852
|
||||||||||
Shares
outstanding* |
3,459,379
|
3,447,056
|
3,467,173
|
3,540,585
|
3,540,585
|
|||||||||||
PROFITABILITY
RATIOS |
||||||||||||||||
Return
on average total assets |
0.65 |
% |
0.30 |
% |
0.55 |
% |
0.80 |
% |
1.15 |
% | ||||||
Return
on average shareholders' equity |
8.52 |
% |
4.01 |
% |
7.12 |
% |
9.65 |
% |
12.55 |
% | ||||||
Dividend
payout ratio |
28.37 |
% |
62.56 |
% |
36.58 |
% |
28.14 |
% |
23.39 |
% | ||||||
LIQUIDITY
AND CAPITAL RATIOS (AVERAGES) |
||||||||||||||||
Loan
to deposit |
98.14 |
% |
101.10 |
% |
101.73 |
% |
94.41 |
% |
91.67 |
% | ||||||
Shareholders'
equity to total assets |
7.59 |
% |
7.56 |
% |
7.72 |
% |
8.25 |
% |
9.13 |
% | ||||||
PER
SHARE OF COMMON STOCK* |
||||||||||||||||
Basic
net income |
$ |
1.28 |
0.58
|
0.99
|
1.29
|
1.52
|
||||||||||
Diluted
net income |
$ |
1.26 |
0.58
|
0.99
|
1.29
|
1.52
|
||||||||||
Cash
dividends |
$ |
0.36 |
0.36
|
0.36
|
0.36
|
0.32
|
||||||||||
Book
value |
$ |
14.77 |
14.08
|
14.10
|
12.83
|
11.05
|
||||||||||
*Shares
outstanding and per share computations have been retroactively restated to
reflect a 10% |
||||||||||||||||
stock
dividend during first quarter 2005 and a 10% stock dividend during second
quarter 2000. |
Consolidated
Balance Sheets |
|||||||
DECEMBER
31, 2004 & 2003 |
2004
|
|
2003 |
||||
ASSETS |
|||||||
Cash
and due from banks, including reserve requirements |
|||||||
of
$4,643,000 and $3,262,000 |
$ |
15,067,871 |
18,413,786
|
||||
Federal
funds sold |
1,723,000
|
2,369,000
|
|||||
Cash
and cash equivalents |
16,790,871
|
20,782,786
|
|||||
Investment
securities available for sale |
105,598,106
|
79,460,452
|
|||||
Other
investments |
5,396,959
|
4,216,973
|
|||||
Total
securities |
110,995,065
|
83,677,425
|
|||||
Mortgage
loans held for sale |
3,783,175
|
587,495
|
|||||
Loans |
535,467,733
|
552,126,189
|
|||||
Less
allowance for loan losses |
(8,048,627 |
) |
(9,722,267 |
) | |||
Net
loans |
527,419,106
|
542,403,922
|
|||||
Premises
and equipment, net |
12,742,730
|
12,537,230
|
|||||
Cash
surrender value of life insurance |
6,034,188
|
5,045,449
|
|||||
Accrued
interest receivable and other assets |
8,582,937
|
8,998,137
|
|||||
Total
assets |
$ |
686,348,072 |
674,032,444
|
||||
LIABILITIES
AND SHAREHOLDERS' EQUITY |
|||||||
Deposits: |
|||||||
Non
interest-bearing demand |
$ |
78,024,194 |
72,420,923
|
||||
NOW,
MMDA and savings |
193,917,507
|
158,677,445
|
|||||
Time,
$100,000 or more |
154,300,926
|
171,596,789
|
|||||
Other
time |
130,279,446
|
147,107,075
|
|||||
Total
deposits |
556,522,073
|
549,802,232
|
|||||
Demand
notes payable to U.S. Treasury |
1,184,392
|
443,384
|
|||||
FHLB
borrowings |
59,000,000
|
58,000,000
|
|||||
Junior
subordinated debentures |
14,433,000
|
14,433,000
|
|||||
Accrued
interest payable and other liabilities |
4,270,755
|
2,799,932
|
|||||
Total
liabilities |
635,410,220
|
625,478,548
|
|||||
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 |
|||||||
3,135,074 shares in 2004 and 3,135,202 shares in 2003 |
35,040,390 | 35,121,510 | |||||
Retained
earnings |
16,018,206
|
12,844,524
|
|||||
Accumulated
other comprehensive income |
(120,744 |
) |
587,862
|
||||
Total
shareholders' equity |
50,937,852
|
48,553,896
|
|||||
Total
liabilities and shareholders' equity |
$ |
686,348,072 |
674,032,444
|
||||
Consolidated
Statements of Earnings |
||||||||||
YEARS
ENDED DECEMBER 31, 2004, 2003 & 2002 |
2004
|
2003
|
2002
|
|||||||
Interest
income: |
||||||||||
Interest
and fees on loans |
$ |
32,253,161 |
31,531,673
|
32,038,359
|
||||||
Interest
on federal funds sold |
35,236
|
58,384
|
45,271
|
|||||||
Interest
on investment securities: |
||||||||||
U.S.
Government agencies |
2,903,865
|
2,244,375
|
3,439,814
|
|||||||
States
and political subdivisions |
660,227
|
577,339
|
613,219
|
|||||||
Other |
402,080
|
441,958
|
487,284
|
|||||||
Total
interest income |
36,254,569
|
34,853,729
|
36,623,947
|
|||||||
Interest
expense: |
||||||||||
NOW,
MMDA and savings deposits |
1,899,249
|
1,318,820
|
2,006,077
|
|||||||
Time
deposits |
7,145,486
|
8,157,388
|
10,358,168
|
|||||||
FHLB
borrowings |
2,602,866
|
2,597,043
|
2,658,742
|
|||||||
Junior
subordinated debentures |
676,547
|
667,526
|
735,000
|
|||||||
Other |
10,518
|
7,891
|
19,344
|
|||||||
Total
interest expense |
12,334,666
|
12,748,668
|
15,777,331
|
|||||||
Net
interest income |
23,919,903
|
22,105,061
|
20,846,616
|
|||||||
Provision
for loans losses |
3,256,000
|
6,743,900
|
5,431,600
|
|||||||
Net
interest income after provision for loan losses |
20,663,903
|
15,361,161
|
15,415,016
|
|||||||
Other
income: |
||||||||||
Service
charges |
3,434,544
|
3,266,949
|
3,060,581
|
|||||||
Other
service charges and fees |
677,191
|
610,591
|
503,165
|
|||||||
Gain
(loss) on sale of securities |
(63,688 |
) |
(52,855 |
) |
625,616
|
|||||
Mortgage
banking income |
394,456
|
685,343
|
702,290
|
|||||||
Insurance
and brokerage commissions |
429,788
|
420,762
|
477,765
|
|||||||
Gain
(loss) on sale of repossessed assets |
(179,886 |
) |
(746,543 |
) |
(564 |
) | ||||
Gain
on sale of loans |
-
|
478,759
|
-
|
|||||||
Miscellaneous |
1,365,397
|
1,262,883
|
1,121,762
|
|||||||
Total
other income |
6,057,802
|
5,925,889
|
6,490,615
|
|||||||
Other
expense: |
||||||||||
Salaries
and employee benefits |
11,477,495
|
10,099,811
|
9,569,016
|
|||||||
Occupancy |
3,672,051
|
3,389,857
|
3,142,712
|
|||||||
Other |
4,907,923
|
4,738,253
|
4,046,347
|
|||||||
Total
other expenses |
20,057,469
|
18,227,921
|
16,758,075
|
|||||||
Earnings
before income taxes |
6,664,236
|
3,059,129
|
5,147,556
|
|||||||
Income
taxes |
2,233,300
|
1,055,538
|
1,712,000
|
|||||||
Net
earnings |
$ |
4,430,936 |
2,003,591
|
3,435,556
|
||||||
Basic
earnings per share |
$ |
1.28 |
0.58
|
0.99
|
||||||
Diluted
earnings per share |
$ |
1.26 |
0.58
|
0.99
|
||||||
Cash
dividends per share |
$ |
0.36 |
0.36
|
0.36
|
Corporate Office | Stock Transfer Agent & Registrar | Independent Auditors |
Peoples Bancorp of North Carolina, Inc. | Registrar and Transfer Company | Porter Keadle Moore, LLP |
518 West C Street | 10 Commerce Drive | 235 Peachtree Street, NE Suite 1800 |
P.O. Box 467 | Cranford, NJ 07016-3572 | Atlanta, GA 30303 |
Newton, NC 28658 | ||
828-464-5620 | ||
Please visit Peoples Bank at our website: www.peoplesbanknc.com |
Robert C. Abernethy | John W. Lineberger, Jr. | Larry E. Robinson |
Chairman of the Board | President | President and Chief Executive Officer |
Peoples Bancorp of North Carolina, Inc. | Lincoln Bonded Warehouse Company | The Blue Ridge Distributing Company, Inc. |
and Peoples Bank | ||
Gary E. Matthews | Fred L. Sherrill, Jr. | |
President, Secretary and Treasurer | President | Retired Furniture Manufacturer Executive |
Carolina Glove Company, Inc. | Matthews Construction Company, Inc. | |
W. Gregory Terry | ||
James
S. Abernethy |
Charles F. Murray | Executive Vice President |
President and Assistant Secretary | President | Drum and Willis-Reynolds Funeral Homes and |
Midstate Contractors, Inc. | Murray's Hatchery, Inc. | Crematory |
Douglas S. Howard | Dr. Billy L. Price, Jr., M.D. | Dan Ray Timmerman, Sr. |
Vice President | Practicing Internist and Partner | President |
Howard Ventures, Inc. | Catawba Valley Internal Medicine, P.A. | Timmerman Manufacturing, Inc. |
Secretary and Treasurer | Clinical Instructor | Benjamin I. Zachary |
Denver Equipment of Charlotte, Inc. | Wake Forest University School of Medicine | General Manager, Treasurer, Secretary and |
Member of the Board of Directors | ||
Alexander Railroad Company |
Tony W. Wolfe | Lance A. Sellers |
President and Chief Executive Officer | Executive Vice President and Assistant Corporate Secretary |
Joseph F. Beaman, Jr. | William D. Cable |
Executive Vice President and Corporate Secretary | Executive Vice President and Assistant Corporate Treasurer |
A. Joseph Lampron | |
Executive Vice President, Chief Financial Officer | |
and Corporate Treasurer |
Tony W. Wolfe - President and Chief Executive Officer | Nancy A. Anderson - Vice President, Mortgage Loan Originator |
Joseph F. Beaman, Jr. - Executive Vice President, | Leslie H. Auton - Vice President, Business Center Manager, Denver |
Chief
Administrative Officer and Corporate Secretary |
|
Patsy D. Black - Vice President, Business Center Manager, Triangle Crossing | |
A. Joseph Lampron - Executive Vice President, Chief Financial Officer | |
Christopher L. Brookshire - Vice President, RAA/GAA | |
Lance A. Sellers - Executive Vice President, Chief Banking Officer | |
Janice K. Bumgarner - Vice President, Deposit Operations | |
William D. Cable - Executive Vice President, Chief Operations Officer | |
Kay F. Deal - Vice President, Business Center Manager, Conover | |
Kimberly L. Boyd - Senior Vice President, Banking Support | |
John R. Duncan - Vice President, Problem Asset Manager | |
David E. Reitzel - Senior Vice President, Real Estate Administration | |
Barbara K. Farnsworth - Vice President, Business Center Manager, | |
Clifton A. Wike - Senior Vice President, Senior Lender |
Lincolnton |
Kimberly D. Bazzle - First Vice President, Marketing and Training | J. Louis Fletcher - Vice President, Business Development Officer |
Brenda B. Beam - First Vice President, Human Resources | Mark W. Gustafson - Vice President, Investment Account Executive |
David C. Brown - First Vice President, Certified Financial Planner | S. Randy Harrill - Vice President, Business Development Officer |
Steven F. Cloninger - First Vice President, Credit Administration | M. Beth LaBarbera - Vice President, Business Center Manager, Springs Road |
George S. Earp - First Vice President, Finance | E. Dean Lawing - Vice President, Mortgage Loan Underwriter |
Jeffrey P. Gniadek - First Vice President, Area Executive | David S. Lewis, Jr. - Vice President, Business Development Officer |
James O. Perry - First Vice President, Retail Banking Manager | Tommy C. McNeely - Vice President, Business Development Officer |
Daniel F. Richard - First Vice President, Senior Lender | Cynthia H. McRee - Vice President, Business Center Manager |
Catawba
Valley Blvd. | |
Kyle E. Sigmon - First Vice President, Mortgage Loans | |
Rick D. Moser - Vice President, Business Development Officer | |
Mark W. Sigmon - First Vice President, Area Executive | |
Tammy H. Pope - Vice President, Business Systems | |
Brenda L. Terrell - First Vice President, Application Operations Manager | |
Denelda S. Reese - Vice President, Business Center Manager, Claremont | |
J. Manuel Rey - Vice President, Director of Latino Banking | |
Jeanette R. Ringley - Vice President, Business Center Manager, Newton | |
Peter C. Teague - Vice President, Director of Network Systems |
Peoples Investment Services, Inc. | Real Estate Advisory Services, Inc. | ||||
Board of Directors | Board of Directors | ||||
Robert C. Abernethy | Dr. Billy L. Price, Jr. | Robert C. Abernethy | Dan Ray Timmerman, Sr. | ||
David C. Brown | Larry E. Robinson | David E. Reitzel | Tony W. Wolfe | ||
Douglas S. Howard | Tony W. Wolfe | ||||
Officers | Officers | ||||
Tony W. Wolfe - President | Tony W. Wolfe - President | ||||
David C. Brown - Vice President and Assistant Secretary | David E. Reitzel - Vice President | ||||
Joseph F. Beaman, Jr. - Secretary | A. Joseph Lampron - Secretary and Treasurer | ||||
A. Joseph Lampron - Treasurer |
Peoples Bancorp Center | Conover | Maiden | Triangle | Banco de la Gente |
518 West C Street | 213 First Street West | 200 Island Ford Road | 142 Highway 16 South | 6300 South Boulevard |
PO Box 467 | Conover, NC 28613 | Maiden, NC 28650 | Denver, NC 28037 | Charlotte, NC 28217 |
Newton, NC 28658 | (828) 464-8456 | (828) 428-9874 | (704) 483-7727 | (704) 554-7494 |
(828) 464-5620 | (704) 827-2370 | |||
Denver | Newton | |||
Catawba | 6125 Highway 16 South | 420 West A Street | Viewmont | |
106 North Main Street | Denver, NC 28037 | Newton, NC 28658 | 1333 2nd Street NE | |
Catawba, NC 28609 | (704) 483-3050 | (828) 464-5663 | Hickory, NC 28601 | |
(828) 345-6262 | ||||
Hiddenite | North Newton | |||
Catawba Valley | 5153 NC Highway 90 East | 2619 North Main Avenue | West Lincoln | |
Boulevard | Hiddenite, NC 28636 | Newton, NC 28658 | 760 Highway 27 West | |
2050 Catawba Valley Blvd. SE | (828) 632-0118 | (828) 464-8664 | Lincolnton, NC 28092 | |
Hickory, NC 28602 | (704) 585-6631 | (704) 736-1447 | ||
(828) 322-6372 | ||||
Springs Road | ||||
Lincolnton | 3310 Springs Road NE | Satellite Location | ||
Claremont | 1910 East Main Street | Hickory, NC 28601 | Abernethy Laurels | |
3261 East Main Street | Lincolnton, NC 28092 | (828) 256-9229 | 102 Leonard Avenue | |
Claremont, NC 28610 | (704) 732-0097 | Newton, NC 28658 | ||
(828) 459-7152 | (828) 464-3077 | |||
Please visit Peoples Bank at our website: www.peoplesbanknc.com |
Please
be sure to sign and date this Proxy in the box below.
|
Date
|
|
|