Peoples Bancorp
OF NORTH CAROLINA, INC
OF NORTH CAROLINA, INC
Southeast 2008
Super-Community Bank Conference
February 12, 2008
NASDAQ: PEBK
www.peoplesbanknc.com
Peoples Bancorp has made forward-looking statements in the
accompanying presentation materials that are subject to risks and
uncertainties. These statements are based on the beliefs and
assumptions of the management of Peoples Bancorp, and on the
information available to management at the time the presentation
materials were prepared. These forward-looking statements involve
certain risks and uncertainties, including a variety of factors that may
cause Peoples Bancorp’s actual results to differ materially from the
anticipated results or other expectations expressed in such forward-
looking statements. Readers are cautioned not to place undue reliance
on these forward-looking statements and are advised to carefully review
the risk factors described in other documents that Peoples Bancorp files
from time to time with the Securities and Exchange Commission,
including the Quarterly Reports on Form 10-Q, the Annual Report on
Form 10-K, and other required filings.
accompanying presentation materials that are subject to risks and
uncertainties. These statements are based on the beliefs and
assumptions of the management of Peoples Bancorp, and on the
information available to management at the time the presentation
materials were prepared. These forward-looking statements involve
certain risks and uncertainties, including a variety of factors that may
cause Peoples Bancorp’s actual results to differ materially from the
anticipated results or other expectations expressed in such forward-
looking statements. Readers are cautioned not to place undue reliance
on these forward-looking statements and are advised to carefully review
the risk factors described in other documents that Peoples Bancorp files
from time to time with the Securities and Exchange Commission,
including the Quarterly Reports on Form 10-Q, the Annual Report on
Form 10-K, and other required filings.
Forward-looking Statements
NASDAQ: PEBK
www.peoplesbanknc.com
About Peoples Bank
n 96 year operating history
n Total Assets of $906 million at December 31, 2007
n HQ in Newton, NC (40 miles north of Charlotte)
n 21 offices -- 20 within a 50 mile radius of Charlotte
n Banco de la Gente = Latino Banking Division
n Initiated in 2004
n Opened 4th Banco office in Raleigh in January
2008
2008
NASDAQ: PEBK
www.peoplesbanknc.com
Peoples Bancorp of NC, Inc.
n Formed in 1999 as a one bank HC for Peoples Bank
n Bank Subsidiaries
n Real Estate Advisory Services, Inc.
n Peoples Investment Services, Inc.
NASDAQ: PEBK
www.peoplesbanknc.com
Branch Network:
21 Offices in 7 counties
21 Offices in 7 counties
NASDAQ: PEBK
www.peoplesbanknc.com
Strategic Focus
n Grow Core Deposits
n Growth in Existing Markets
n Expand Banco de la Gente
n Identify expansion opportunities using Store-front or
Traditional Branches
Traditional Branches
n Hire Market Leaders to expand in high growth
markets (LPO’s)
markets (LPO’s)
NASDAQ: PEBK
www.peoplesbanknc.com
Primary Market Area: Catawba and Lincoln Counties | ||||
’07 Rank | Institution (ST) | ’07 # Branches | ‘07 Deposits in Market ($000) | ‘07 Market Share |
1 | BB&T Corp. (NC) | 13 | 759,341 | 23.1% |
2 | Peoples Bancorp of NC Inc. | 15 | 604,205 | 18.4% |
3 | Wachovia Corp. (NC) | 6 | 426,606 | 13.0% |
4 | Bank of Granite Corp. (NC) | 7 | 368,912 | 11.2% |
5 | First Citizens BancShares Inc. (NC) | 8 | 199,494 | 5.5% |
6 | Fifth Third Bancorp (OH) | 5 | 196,423 | 6.1% |
7 | First FSB of Lincolnton (NC) | 3 | 192,764 | 5.8% |
8 | Bank of America Corp. (NC) | 6 | 189,315 | 6.0% |
9 | FNB United Corp. (NC) | 4 | 179,914 | 0.8% |
10 | Carolina Trust Bank (NC) | 5 | 94,010 | 0.7% |
Total For Institutions In Market | 79 | 3,289,069 | ||
Source: SNL Financial
PEBK Deposit Market Share
NASDAQ: PEBK
www.peoplesbanknc.com
PEBK Dep. in | Dep. Market | Proj. Pop. | Med. HH Income | Proj. HH | ||||
No. of | Market | Share | 2007-2012 | 2007 | Income Δ% | |||
County | Rank | Branches | ($000) | (%) | (%) | ($) | (%) | |
Catawba | 2 | 11 | 456,068 | 18.99 | 5.54 | 49,596 | 13.56 | |
Lincoln | 3 | 3 | 148,137 | 16.70 | 9.63 | 49,819 | 11.84 | |
Alexander | 5 | 1 | 44,841 | 13.04 | 5.33 | 45,999 | 11.58 | |
Mecklenburg | 20 | 3 | 12,752 | 0.01 | 15.27 | 65,741 | 19.52 | |
Union | 10 | 1 | 1,186 | 0.08 | 31.78 | 64,184 | 19.01 | |
Iredell | 19 | 1 | 0 | 0.00 | 14.47 | 52,663 | 16.39 | |
Wake | 29 | 1 | 0 | 0.00 | 20.19 | 72,665 | 19.11 | |
NC Totals | 21 | 662,984 | ||||||
Source: SNL Financial | ||||||||
Expanding into Growth Markets
NASDAQ: PEBK
www.peoplesbanknc.com
Banco de la Gente
n Identified an Untapped Market
n 10% of our market (as of 2004)
n 57% of Latinos did not have a bank account
n Latinos need basic transactions and help building credit
n 4 Offices: Charlotte (2), Monroe and Raleigh
n Source of Non-Interest Income and Mortgage loans
NASDAQ: PEBK
www.peoplesbanknc.com
* CAGR = Compound annual growth rate 2002-2007
Consistent Balance Sheet Growth
NASDAQ: PEBK
www.peoplesbanknc.com
5-Year EPS CAGR* = 29.9%
*CAGR - compound annual growth rate 2002 - 2007
Improved Earnings Growth
NASDAQ: PEBK
www.peoplesbanknc.com
Improved Asset Quality
NASDAQ: PEBK
www.peoplesbanknc.com
1%
CRE is 61%
Owner-occupied
Owner-occupied
Construction =
• 33% Residential
• 13% Commercial
• 54% Land Development
1-4 Res. RE
Construction
CRE
Consumer
HELOC
MultiFam/Land
C&I
Loan Portfolio Composition
at December 31, 2007
at December 31, 2007
NASDAQ: PEBK
www.peoplesbanknc.com
Lower cost = Transaction accounts + MM + savings
CAGR = Compound annual growth rate 2002-2007
millions
5 year CAGR’s:
Deposit Analysis
NASDAQ: PEBK
www.peoplesbanknc.com
$’s in millions
Total Revenue
NASDAQ: PEBK
www.peoplesbanknc.com
Name | Title | Years at Peoples | Years in Banking | Age |
Tony W. Wolfe | President and CEO | 18 | 39 | 61 |
Lance A. Sellers | EVP, Chief Credit Officer | 10 | 24 | 45 |
A. Joseph Lampron | EVP, Chief Financial Officer | 6 | 20 | 53 |
William D. Cable | EVP, Chief Operations Officer | 13 | 18 | 39 |
Joseph F. Beaman, Jr. | EVP, Chief Administrative Officer | 31 | 37 | 58 |
Management Profile
NASDAQ: PEBK
www.peoplesbanknc.com
Company Strengths
n Local bankers: well established in the local markets
n Local decision making authority
n Active and motivated Board
n Effective sales culture
n Commitment to technology and up-to-date delivery
channels
channels
n Active in our communities - local governments along
with civic and charitable organizations
with civic and charitable organizations
NASDAQ: PEBK
www.peoplesbanknc.com
Investment Highlights
n Established Reputation
n Growth initiatives both in and outside of current
markets
markets
n History of strong profitability
n History of stock dividends and increasing cash
dividends; attractive yield
dividends; attractive yield