Peoples Bancorp Newton, NC

Peoples Bancorp of Newton, NC was founded in 1912.  The bank accepted $22MM in government bailout funds, which it has failed to repay.  The Texas ratio is high at 41%.

The bank has assets of $1B with equity of $97MM.

However, $22MM of the $97MM is tax payer funded bailout funds which is debt not equity.  The actual equity is $75MM.

The company has $26MM in loans that are past due 30-90 days, with $65MM on non accrual.

That is $91MM in problem loans supported by $75MM in equity.  That is not a good ratio.

This bank is probably technically insolvent, why are they not on the problem bank list? Maybe North Carolina already reached it’s quota.

The company had net income of $47K in FY10  and $1.6MM in FY09, how long is it going to take to pay back the $22MM, how does eternity sound.

Luckily, the executive compensation was not compromised.

Tony Wolfe  made $595K

John Beaman      made $168K

Joseph Lampron  made $168K.

The company has a market capitalization of $36MM  or 37% of book.


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