NEWTON, N.C., Nov. 23 /PRNewswire-FirstCall/ -- The Board of Directors of Peoples Bancorp of North Carolina, Inc. (Nasdaq: PEBK) declared a cash dividend for the fourth quarter of 2009 in the amount of $.02 per share. The cash dividend will be paid on December 15, 2009 to shareholders of record December 3, 2009. This is a reduction of $.05 per share from the cash dividend paid in September 2009. The Board's decision to reduce the dividend comes as a result of the decrease in operating earnings in the third quarter of 2009 and the potential impact that the current economic conditions may have on future earnings. The Board believes that this reduction in the quarterly dividend is in the best interests of the Company and its shareholders, allowing the Company to preserve capital in this period of difficult economic times. While the Company continues to be profitable, the level of earnings from operations has been diminished because of the credit issues associated with this recession. Future dividend payments will be based upon the performance of the Company and will be determined each quarter by the Board of Directors.
Shareholders are encouraged to enroll in the Company's Dividend Reinvestment and Stock Purchase Plan. For details, you may contact the Investor Relations Department at (828) 464-5620 or (800) 948-7195.
Peoples Bank operates 23 offices entirely in North Carolina, with offices in Catawba, Alexander, Lincoln, Mecklenburg, Union, Iredell and Wake 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, 2008, under "General Description of Business" and otherwise in the Company's reports and filings.
SOURCE Peoples Bancorp of North Carolina, Inc.
