16. Peoples Bancorp of North Carolina, Inc. (Parent Company Only) Condensed Financial Statements (Tables)

12 Months Ended

Dec. 31, 2018

Condensed Financial Information Disclosure [Abstract]

Balance Sheets

Balance Sheets

December 31, 2018 and 2017

(Dollars in thousands)

Assets	2018		2017
Cash	$	689		428
Interest-bearing time deposit		1,000		1,000
Investment in subsidiaries		141,181		133,781
Investment in PEBK Capital Trust II		619		619
Investment securities available for sale		250		250
Other assets		533		546
Total assets	$	144,272		136,624
Liabilities and Shareholders' Equity
Junior subordinated debentures	$	20,619		20,619
Liabilities		36		30
Shareholders' equity		123,617		115,975
Total liabilities and shareholders' equity	$	144,272		136,624

Statements of Earnings

Statements of Earnings

For the Years Ended December 31, 2018, 2017 and 2016

(Dollars in thousands)

Revenues:	2018		2017		2016
Interest and dividend income	$	4,544		1,839		4,569
Gain on sale of securities		—		—		405
Total revenues		4,544		1,839		4,974
Expenses:
Interest		790		590		485
Other operating expenses		678		725		513
Total expenses		1,468		1,315		998
Income before income tax benefit and equity in
undistributed earnings of subsidiaries		3,076		524		3,976
Income tax benefit		299		434		178
Income before equity in undistributed
earnings of subsidiaries		3,375		958		4,154
Equity in undistributed earnings of subsidiaries		10,007		9,310		5,023
Net earnings	$	13,382		10,268		9,177

Statements of Cash Flows

Statements of Cash Flows

For the Years Ended December 31, 20178, 2017 and 2016

(Dollars in thousands)

	2018			2017			2016
Cash flows from operating activities:
Net earnings	$	13,382			10,268			9,177
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Equity in undistributed earnings of subsidiaries		(10,007	)		(9,310	)		(5,023	)
Gain on sale of investment securities		—			—			(405	)
Change in:
Other assets		13			(272	)		61
Other liabilities		6			5			5
Net cash provided by operating activities		3,394			691			3,815
Cash flows from investing activities:
Proceeds from calls and maturities of investment securities
available for sale		—			500			669
In kind transfer from parent to Bank		—			—			10
Net cash provided by investing activities		—			500			679
Cash flows from financing activities:
Cash dividends paid on common stock		(3,133	)		(2,629	)		(2,106	)
Cash in lieu stock dividend		—			(6	)		—
Stock repurchase		—			—			(1,984	)
Proceeds from exercise of restricted stock units		—			915			—
Net cash used by financing activities		(3,133	)		(1,720	)		(4,090	)
Net change in cash		261			(529	)		404
Cash at beginning of year		428			957			553
Cash at end of year	$	689			428			957
Noncash investing and financing activities:
Change in unrealized gain on investment securities
available for sale, net	$	(2,607	)		(1	)		(2,523	)