Peoples Bancorp announces $3M stock buyback program

NEWTON, N.C. - Peoples Bancorp of North Carolina, Inc. (NASDAQ:PEBK), holding company for Peoples Bank, has announced a new stock repurchase program, with plans to buy back up to $3 million of its common stock. The initiative is part of the company’s strategy to utilize its strong capital position to enhance shareholder value. The company, currently valued at approximately $142 million in market capitalization, has demonstrated a strong commitment to shareholder returns, having maintained dividend payments for 41 consecutive years, according to InvestingPro data.

The repurchase program will be conducted periodically, in compliance with securities laws and other legal requirements, through open market purchases or privately negotiated transactions. Decisions regarding the timing and volume of repurchases will be made by the company’s management, taking into account market conditions and other relevant factors. Management retains the flexibility to suspend the buyback program at any time.

As of December 31, 2024, Peoples Bancorp reported assets totaling $1.65 billion and shareholders’ equity of $130.6 million. The company’s robust financial standing was a key factor in the board’s decision to authorize the repurchase program. InvestingPro analysis indicates the company maintains a healthy financial profile with a low debt-to-equity ratio of 0.12 and has been profitable over the last twelve months with a return on equity of 13%.

President and CEO William D. Cable, Sr. expressed confidence in the strength of the company’s balance sheet and capital position, stating that the stock repurchase program is an appropriate measure to use capital effectively and to improve shareholder returns. The company’s stock, which currently trades at a P/E ratio of 8.7 and offers a dividend yield of 3.6%, has seen its price decline by about 13% year-to-date. InvestingPro subscribers have access to over 30 additional financial metrics and insights about PEBK’s valuation and growth prospects.

Peoples Bank operates across North Carolina, with 16 banking offices serving multiple counties and additional loan production offices in the region. The bank’s focus on local communities and regional growth is reflected in its strategic decisions and financial management practices.

The company’s forward-looking statements, including the announcement of the stock repurchase program, are subject to various risks and uncertainties. Factors such as market competition, interest rate changes, and regional economic conditions could influence actual results and cause them to differ from expectations. The company cautions that readers should not rely solely on these forward-looking statements due to the potential for significant variances in actual outcomes.

This news is based on a press release statement from Peoples Bancorp of North Carolina, Inc.

In other recent news, Peoples Bancorp of North Carolina, Inc. announced a regular cash dividend for the first quarter of 2025. Shareholders of record as of March 3, 2025, will receive a dividend of $0.20 per share, payable on March 14, 2025. This announcement aligns with the company’s historical practice of providing returns to its shareholders. Peoples Bancorp encourages participation in its Dividend Reinvestment and Stock Purchase Plan, with details available through Broadridge Corporate Issuer Solutions, Inc. The company operates 16 banking offices across North Carolina, along with several loan production offices. The forward-looking statements from Peoples Bancorp suggest management’s expectations are based on current information, although they acknowledge potential risks and uncertainties. These statements are detailed in their annual report and other filings. This dividend declaration is part of the company’s ongoing commitment to shareholder value.

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