Peoples Bancorp Announces Special Cash Dividend

Rhea-AI Summary

Peoples Bancorp of North Carolina, Inc. (PEBK) has declared a special cash dividend of $0.16 per share, to be paid on February 16, 2024, to shareholders of record on February 5, 2024. Shareholders are encouraged to enroll in the Company’s Dividend Reinvestment and Stock Purchase Plan. The bank operates 17 offices in North Carolina and its common stock is publicly traded on Nasdaq under the symbol 'PEBK.'

Financial Analyst

Peoples Bancorp of North Carolina, Inc.'s announcement of a special cash dividend of $0.16 per share is a strategic financial decision that can have several implications for the company and its shareholders. Special dividends are often distributed when a company has excess cash that it does not immediately need for operations or investment. This can signal that the company is generating healthy cash flows and has a shareholder-friendly capital allocation policy.

From a shareholder's perspective, the special dividend provides an immediate return on investment. However, it's important to consider the tax implications of such dividends, as they are typically taxable income for the recipients. For the company, paying out cash might reduce its cash reserves, which could impact its ability to respond to unexpected opportunities or challenges. Nevertheless, if the management decides that the excess cash would not yield an adequate return if reinvested into the business, returning it to shareholders is a sound decision.

Investors might also interpret the declaration of a special dividend as a sign that the company does not have significant growth opportunities to invest in, which could have mixed implications for the stock price. While the immediate influx of cash is positive, concerns about long-term growth prospects could potentially temper investor enthusiasm.

Market Research Analyst

The payment of a special dividend by Peoples Bancorp of North Carolina, Inc. suggests that the regional banking sector may be experiencing stable to strong financial health, particularly in the North Carolina market where Peoples Bank operates. This action could influence investor perception of the regional banking industry's profitability and stability.

It is also indicative of the company's confidence in its ongoing operations and financial stability. The decision to encourage shareholders to enroll in the Dividend Reinvestment and Stock Purchase Plan (DRIP) suggests an effort to maintain investor engagement and potentially stabilize the stock's trading volume. By reinvesting dividends, shareholders can increase their investment without additional transaction costs, which can be beneficial for both the shareholder and the company in terms of fostering long-term investment and potentially reducing share price volatility.

Analysts would also keep an eye on the company's future earnings reports to assess the impact of the dividend payout on its financials, especially its cash reserve levels and the sustainability of such payouts. The announcement could set a precedent for the company and expectations among investors for future distributions, which could influence the stock's attractiveness to income-focused investors.

NEWTON, N.C., Jan. 22, 2024 (GLOBE NEWSWIRE) -- The Board of Directors of Peoples Bancorp of North Carolina, Inc. (Nasdaq: PEBK) is pleased to announce the declaration of a special cash dividend in the amount of $0.16 per share. The special cash dividend will be paid on February 16, 2024 to shareholders of record on February 5, 2024.

Shareholders are encouraged to enroll in the Company’s Dividend Reinvestment and Stock Purchase Plan. For details, contact Krissy Price at (828) 464-5620 or (800) 948-7195 or you may email any questions to our transfer agent, Broadridge Corporate Issuer Solutions, Inc. at shareholder@broadridge.com. 

Peoples Bank, the wholly-owned subsidiary of Peoples Bancorp of North Carolina, Inc. operates 17 banking offices entirely in North Carolina, with offices in Catawba, Alexander, Lincoln, Mecklenburg, Iredell, and Wake Counties. The Bank also operates loan production offices in Lincoln, Mecklenburg, Rowan, and Forsyth Counties. The Company’s common stock is publicly traded and is quoted on the Nasdaq Global Market under the symbol “PEBK.”

Statements made in this press release, other than those concerning historical information, should be considered forward-looking statements pursuant to the safe harbor provisions of the Securities Exchange Act of 1934 and the Private Securities Litigation Act of 1995. These forward-looking statements are based on information currently available to management and are subject to various risks and uncertainties, including but not limited to those described in Peoples Bancorp of North Carolina, Inc.’s annual report on Form 10-K for the year ended December 31, 2022, under “General Description of Business” and otherwise in the Company’s reports and filings.

Contact:
Lance A. Sellers
President and Chief Executive Officer

Jeffrey N. Hooper
Executive Vice President and Chief Financial Officer

828-464-5620, Fax 828-465-6780

 

When will the special cash dividend be paid by Peoples Bancorp of North Carolina, Inc. (PEBK)?

The special cash dividend will be paid on February 16, 2024.

What is the amount of the special cash dividend declared by Peoples Bancorp of North Carolina, Inc. (PEBK)?

The special cash dividend is $0.16 per share.

Where does Peoples Bancorp of North Carolina, Inc. (PEBK) operate its banking offices?

The bank operates 17 offices entirely in North Carolina, with offices in Catawba, Alexander, Lincoln, Mecklenburg, Iredell, and Wake Counties.

Where is the common stock of Peoples Bancorp of North Carolina, Inc. (PEBK) publicly traded?

The common stock is publicly traded and is quoted on the Nasdaq Global Market under the symbol 'PEBK'.