UNITED
STATES
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||
SECURITIES
AND EXCHANGE COMMISSION
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||
Washington,
D.C. 20549
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||
______________________________
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FORM
8-K
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|||||
CURRENT
REPORT PURSUANT
TO SECTION 13 OR 15(D)
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|||||
OF
THE SECURITIES EXCHANGE ACT OF 1934
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|||||
Date
of Report (Date of earliest event reported): April
17, 2006
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|||||
Peoples
Bancorp of North Carolina, Inc.
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|||||
(Exact
Name of Registrant as Specified in Its Charter)
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|||||
North
Carolina
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(State
or Other Jurisdiction of Incorporation)
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|||||
000-27205
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56-2132396
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||||
(Commission
File No.)
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(IRS
Employer Identification No.)
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||||
518
West C Street, Newton, North Carolina
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28658
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||||
(Address
of Principal Executive Offices)
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(Zip
Code)
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||||
(828)
464-5620
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|||||
(Registrant’s
Telephone Number, Including Area Code)
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Check
the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under
any
of the following provisions:
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|||||
Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
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|||||
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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|||||
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR
240.14d-2(b))
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|||||
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR
240.13e-4(c))
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Page
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|||
Item
2.02 - Results of Operations and Financial Condition
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3
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Item
9.01 - Financial Statements and Exhibits
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3
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Signatures
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4
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Exhibit
(99)(a) Press release dated April 17, 2006
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5
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SIGNATURES
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Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant
has duly caused this report to be signed on its behalf by the
undersigned
hereunto duly authorized.
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||
PEOPLES
BANCORP OF NORTH CAROLINA, INC.
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Date:
April 19, 2006
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By:
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/s/
A. Joseph Lampron
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A.
Joseph Lampron
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Executive
Vice President and Chief Financial
Officer
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EXHIBIT (99)(a)
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NEWS
RELEASE
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April 17,
2006
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|||
Contact:
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Tony
W. Wolfe
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President
and Chief Executive Officer
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A.
Joseph Lampron
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Executive
Vice President and Chief Financial Officer
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828-464-5620,
Fax 828-465-6780
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PEOPLES
BANCORP ANNOUNCES FIRST QUARTER EARNINGS RESULTS - PAGE
THREE
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||||||||||
CONSOLIDATED
BALANCE SHEETS
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||||||||||
March
31, 2006, December 31, 2005 and March 31, 2005
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March
31, 2006
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|
December
31, 2005
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|
March
31, 2005
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||||||
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(Unaudited)
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(Unaudited)
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ASSETS:
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||||||||||
Cash
and due from banks
|
$
|
22,959,163
|
$
|
18,468,999
|
$
|
14,789,934
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||||
Federal
funds sold
|
3,493,000
|
1,347,000
|
859,000
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|||||||
Cash
and cash equivalents
|
26,452,163
|
19,815,999
|
15,648,934
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|||||||
Investment
securities available for sale
|
113,758,100
|
115,158,184
|
103,913,432
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Other
investments
|
5,804,449
|
5,810,749
|
6,080,249
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|||||||
Total
securities
|
119,562,549
|
120,968,933
|
109,993,681
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|||||||
Loans
|
590,564,977
|
566,663,416
|
540,031,706
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|||||||
Mortgage
loans held for sale
|
2,571,200
|
2,247,900
|
3,090,350
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|||||||
Less:
Allowance for loan losses
|
(7,649,364
|
)
|
(7,424,782
|
)
|
(7,419,580
|
)
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||||
Net
loans
|
585,486,813
|
561,486,534
|
535,702,476
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|||||||
Premises
and equipment, net
|
12,705,399
|
12,662,153
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12,924,933
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|||||||
Cash
surrender value of life insurance
|
6,363,484
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6,311,757
|
6,148,580
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|||||||
Accrued
interest receivable and other assets
|
11,178,541
|
9,034,239
|
9,601,761
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|||||||
Total
assets
|
$
|
761,748,949
|
$
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730,279,615
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$
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690,020,365
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LIABILITIES
AND SHAREHOLDERS' EQUITY:
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||||||||||
Deposits:
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||||||||||
Non-interest
bearing demand
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$
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101,497,002
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$
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94,660,721
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$
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85,265,032
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||||
NOW,
MMDA & Savings
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172,164,020
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183,248,699
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191,331,645
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|||||||
Time,
$100,000 or more
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184,315,220
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152,410,976
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144,862,102
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|||||||
Other
time
|
155,538,776
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152,533,265
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136,795,166
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|||||||
Total
deposits
|
613,515,018
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582,853,661
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558,253,945
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|||||||
Demand
notes payable to U.S. Treasury
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121,769
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1,473,693
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1,284,709
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|||||||
Securities
sold under agreement to repurchase
|
3,905,108
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981,050
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-
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FHLB
borrowings
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69,500,000
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71,600,000
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61,000,000
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Junior
subordinated debentures
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14,433,000
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14,433,000
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14,433,000
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Accrued
interest payable and other liabilities
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4,800,560
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4,585,217
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4,315,642
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Total
liabilities
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706,275,455
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675,926,621
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639,287,296
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Shareholders'
Equity:
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Preferred
stock, no par value; authorized
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||||||||||
5,000,000
shares; no shares issued
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||||||||||
and
outstanding
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-
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-
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-
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|||||||
Common
stock, no par value; authorized
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||||||||||
20,000,000
shares; issued and
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||||||||||
outstanding
3,437,285 shares in 2006
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and
3,440,805 shares in 2005
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40,856,995
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41,096,500
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41,355,975
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Retained
earnings
|
16,511,234
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14,656,160
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10,671,056
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Accumulated
other comprehensive income
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(1,894,735
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)
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(1,399,666
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)
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(1,293,962
|
)
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Total
shareholders' equity
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55,473,494
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54,352,994
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50,733,069
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|||||||
Total
liabilities and shareholders' equity
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$
|
761,748,949
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$
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730,279,615
|
$
|
690,020,365
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PEOPLES
BANCORP ANNOUNCES FIRST QUARTER EARNINGS RESULTS - PAGE
FOUR
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CONSOLIDATED
STATEMENTS OF INCOME
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For
the three months ended March 31, 2006 and 2005
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Three
months ended
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March
31,
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2006
|
2005
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(Unaudited)
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|
(Unaudited)
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INTEREST
INCOME:
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|||||||
Interest
and fees on loans
|
$
|
11,527,479
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$
|
8,461,937
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|||
Interest
on federal funds sold
|
4,142
|
1,480
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|||||
Interest
on investment securities:
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|||||||
U.S.
Government agencies
|
1,021,674
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848,356
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|||||
States
and political subdivisions
|
192,750
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181,863
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|||||
Other
|
125,163
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87,033
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|||||
Total
interest income
|
12,871,208
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9,580,669
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|||||
INTEREST
EXPENSE:
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|||||||
NOW,
MMDA & savings deposits
|
674,737
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633,320
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Time
deposits
|
2,987,731
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1,789,677
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|||||
FHLB
borrowings
|
885,690
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711,776
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Junior
subordinated debentures
|
279,639
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207,474
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Other
|
35,543
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4,066
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|||||
Total
interest expense
|
4,863,340
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3,346,313
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|||||
NET
INTEREST INCOME
|
8,007,868
|
6,234,356
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PROVISION
FOR LOAN LOSSES
|
759,000
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690,000
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NET
INTEREST INCOME AFTER
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|||||||
PROVISION
FOR LOAN LOSSES
|
7,248,868
|
5,544,356
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NON-INTEREST
INCOME:
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Service
charges
|
924,945
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805,260
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|||||
Other
service charges and fees
|
396,017
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244,627
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|||||
Gain
(loss) on sale of securities
|
(81,800
|
)
|
-
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||||
Mortgage
banking income
|
120,608
|
103,116
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|||||
Insurance
and brokerage commission
|
103,900
|
109,759
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|||||
Miscellaneous
|
474,209
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375,306
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|||||
Total
non-interest income
|
1,937,879
|
1,638,068
|
|||||
NON-INTEREST
EXPENSES:
|
|||||||
Salaries
and employee benefits
|
3,238,770
|
3,062,501
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|||||
Occupancy
|
988,396
|
969,066
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|||||
Other
|
1,475,312
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1,227,280
|
|||||
Total
non-interest expenses
|
5,702,478
|
5,258,847
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|||||
INCOME
BEFORE INCOME TAXES
|
3,484,269
|
1,923,577
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INCOME
TAXES
|
1,249,200
|
646,800
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|||||
NET
INCOME
|
$
|
2,235,069
|
$
|
1,276,777
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|||
PER
SHARE AMOUNTS
|
|||||||
Basic
net income
|
$
|
0.66
|
$
|
0.37
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|||
Diluted
net income
|
$
|
0.64
|
$
|
0.36
|
|||
Cash
dividends
|
$
|
0.11
|
$
|
0.10
|
|||
Book
value
|
$
|
16.14
|
$
|
14.70
|
PEOPLES
BANCORP ANNOUNCES FIRST QUARTER EARNINGS RESULTS - PAGE
FIVE
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|||||||
FINANCIAL
HIGHLIGHTS
|
|||||||
For
the three months ended March 31, 2006 and 2005
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Three
months ended
|
|||||||
March
31,
|
|||||||
2006
|
2005
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||||||
(Unaudited)
|
|
(Unaudited)
|
|||||
SELECTED
AVERAGE BALANCES:
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|||||||
Available
for sale securities
|
$
|
116,648,247
|
$
|
104,489,669
|
|||
Loans
|
580,463,706
|
538,897,639
|
|||||
Earning
assets
|
704,957,468
|
650,350,681
|
|||||
Assets
|
744,167,124
|
687,980,934
|
|||||
Deposits
|
588,699,597
|
554,229,998
|
|||||
Shareholders'
equity
|
56,513,281
|
51,974,639
|
|||||
SELECTED
KEY DATA:
|
|||||||
Net
interest margin (tax equivalent)
|
4.71%
|
|
3.98%
|
|
|||
Return
of average assets
|
1.22%
|
|
0.75%
|
|
|||
Return
on average shareholders' equity
|
16.04%
|
|
9.96%
|
|
|||
Shareholders'
equity to total assets (period end)
|
7.28%
|
|
7.35%
|
|
|||
ALLOWANCE
FOR LOAN LOSSES:
|
|||||||
Balance,
beginning of period
|
$
|
7,424,782
|
$
|
8,048,627
|
|||
Provision
for loan losses
|
759,000
|
690,000
|
|||||
Charge-offs
|
(586,039
|
)
|
(1,404,263
|
)
|
|||
Recoveries
|
51,621
|
85,216
|
|||||
Balance,
end of period
|
$
|
7,649,364
|
$
|
7,419,580
|
|||
ASSET
QUALITY:
|
|||||||
Non-accrual
loans
|
$
|
4,852,504
|
$
|
7,541,426
|
|||
90
days past due and still accruing
|
-
|
68,857
|
|||||
Other
real estate owned
|
344,935
|
664,252
|
|||||
Total
non-performing assets
|
$
|
5,197,439
|
$
|
8,274,535
|
|||
Non-performing
assets to total assets
|
0.68%
|
|
1.20%
|
|
|||
Allowance
for loan losses to non-performing assets
|
147.18%
|
|
89.67%
|
|
|||
Allowance
for loan losses to total loans
|
1.30%
|
|
1.37%
|
|
|||
LOAN
RISK GRADE ANALYSIS:
|
Percentage
of Loans
|
General
Reserve
|
|||||||||||
|
|
|
By
Risk Grade*
|
Percentage
|
|||||||||
|
|
|
3/31/2006
|
3/31/2005
|
3/31/2006
|
3/31/2005
|
|
||||||
Risk
1 (excellent quality)
|
13.69%
|
|
|
14.02%
|
|
|
0.15%
|
|
|
0.15%
|
|
||
Risk
2 (high quality)
|
17.62%
|
|
|
22.65%
|
|
|
0.50%
|
|
|
0.50%
|
|
||
Risk
3 (good quality)
|
58.26%
|
|
|
54.75%
|
|
|
1.00%
|
|
|
1.00%
|
|
||
Risk
4 (management attention)
|
7.50%
|
|
|
4.78%
|
|
|
2.50%
|
|
|
2.50%
|
|
||
Risk
5 (watch)
|
1.15%
|
|
|
0.88%
|
|
|
7.00%
|
|
|
7.00%
|
|
||
Risk
6 (substandard)
|
0.37%
|
|
|
0.80%
|
|
|
12.00%
|
|
|
12.00%
|
|
||
Risk
7 (low substandard)
|
0.59%
|
|
|
0.72%
|
|
|
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%
|
|
||
*Excludes
non-accrual loans
|
|||||||||||||
At
March 31, 2006 there was one relationship exceeding $1.0 million
(which
totaled $1.8 million) in the Watch risk grade, no relationships
exceeding
$1.0 million in the Substandard risk grade, and one relationship
exceeding
$1.0 million (which totaled $3.1 million) in the Low Substandard
risk
grade. These customers continue to meet payment requirements and
these
relationships would not become non-performing assets unless they
are
unable to meet those requirements.
|
|||||||||||||
(END)
|