Peoples Bancorp of North Carolina Inc. reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2012. For the quarter, the company reported total interest income of $9.392 million against $10.989 million a year ago. Net interest income was $7.743 million against $8.569 million a year ago. Net interest income after provision for loan losses was $7.232 million against $5.633 million a year ago. Earnings before income taxes was $1.400 million against $2.485 million a year ago. Net earnings available to common shareholders were $1.056 million or $0.19 per basic and diluted share against $1.429 million or $0.26 per basic and diluted share against a year ago. Return on average assets was 0.48% against 0.65% a year ago. Return on average shareholders equity was 4.90% against 6.83% a year ago. Net earnings were $1.2 million or $0.22 basic and diluted net earnings per share for the three months ended December 31, 2012, before adjustment for preferred stock dividends and accretion, as compared to $1.8 million or $0.32 basic and diluted net earnings per share, before adjustment for preferred stock dividends and accretion, for the same period one year ago. The decrease net interest income 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. Net interest income after the provision for loan losses increased to $7.2 million during the fourth quarter of 2012, compared to $5.6 million for the same period one year ago.

For the year, the company reported total interest income of $39.245 million against $45.259 million a year ago. Net interest income was $31.549 million against $34.313 million a year ago. Net interest income after provision for loan losses was $26.625 million against $21.628 million a year ago. Earnings before income taxes were $7.38 million against $6.622 million a year ago. Net earnings available to common shareholders were $4.783 million or $0.86 per basic and diluted share against $3.766 million or $0.68 per basic and diluted share against a year ago. Return on average assets was 0.56% against 0.48% a year ago. Return on average shareholders equity was 5.58% against 5.03% a year ago. Book value was $15.18 as on December 31, 2012 compared to $14.06 as on December 31, 2011. The increase in year-to-date earnings is primarily attributable to a decrease in the provision for loan losses, which was partially offset by aggregate decreases in net interest income and non-interest income and aggregate increases in non-interest expense.