Peoples Bancorp of North Carolina Inc. reported unaudited consolidated earnings results for the first quarter ended March 31, 2013. For the quarter, the company reported total interest income of $9,103,000 compared with $10,362,000 for the same period last year. Net interest income was $7,640,000 compared with $8,144,000 for the same period last year. Earnings before income taxes were $2,276,000 compared with $2,204,000 for the same period last year. Net earnings available to common shareholders were $1,601,000 or $0.29 basic and diluted per share compared with $1,311,000 or $0.24 basic and diluted per share for the same period last year. Book value per share was $15.28 as at March 31, 2013 compared with $14.31 as at March 31, 2012. Net interest income decrease was primarily due to a decrease in interest income resulting from decreases in loans and investment securities and a decrease in the yield on earning assets, which were partially offset by a decrease in interest expense due to a reduction in the cost of funds and a reduction in interest bearing liabilities. Return on average assets was 0.71% against 0.63% for the same period last year. Return on average shareholders' equity was 7.17% against 6.34% for the same period last year. The company attributed the increase in first quarter earnings to a decrease in the provision for loan losses, which was partially offset by a decrease in net interest income and an increase in non-interest expense. Net earnings were $1.8 million or $0.31 basic and diluted net earnings per share for the three months ended March 31, 2013, before adjustment for preferred stock dividends and accretion, as compared to $1.7 million or $0.30 basic and diluted net earnings per share, before adjustment for preferred stock dividends and accretion, for the same period one year ago. Earnings before securities gains and income taxes were $2.0 million for the three months ended March 31, 2013 compared to $1.7 million for the same period one year ago.

Peoples Bancorp of North Carolina Inc., Annual General Meeting, May 02, 2013.

The Board of Directors of Peoples Bancorp of North Carolina Inc. declared a cash dividend for the first quarter of 2013 in the amount of $0.03 per share at their most recent meeting. This is an increase of $0.01 per share from the regular quarterly dividend paid in December 2012 of $0.02 per share. The cash dividend will be paid on March 15, 2013 to shareholders of record March 4, 2013.