PEBK

NEWTON, NC / ACCESS Newswire / July 20, 2026 / Peoples Bancorp of North Carolina, Inc. (NASDAQ:PEBK) (the "Company"), the parent company of Peoples Bank (the "Bank"), reported second quarter 2026 results with highlights as follows: Second quarter 2026 highlights: Net earnings were $5.2 million or $0.98 per share and $0.96 per diluted share for the three months ended June 30, 2026, as compared to $5.2 million or $0.97 per share and $0.95 per diluted share for the same period one year ago. Net interest margin was 3.80% for the three months ended June 30, 2026, compared to 3.57% for the three months ended June 30, 2025. Year-to-date highlights: Net earnings were $9.6 million or $1.81 per share and $1.76 per diluted share for the six months ended June 30, 2026, compared to $9.5 million or $1.79 per share and $1.74 per diluted share for the same period one year ago. Cash dividends were $0.59 per share for the six months ended June 30, 2026, compared to $0.56 per share for the prior year period. Total loans were $1.28 billion at June 30, 2026, compared to $1.20 billion at December 31, 2025. Non-performing assets were $5.2 million or 0.29% of total assets at June 30, 2026, compared to $4.2 million or 0.25% of total assets at December 31, 2025. Total deposits were $1.57 billion at June 30, 2026, compared to $1.51 billion at December 31, 2025. Core deposits, a non-GAAP measure, were $1.44 billion or 91.63% of total deposits at June 30, 2026, compared to $1.35 billion or 89.44% of total deposits at December 31, 2025. Net interest margin was 3.74% for the six months ended June 30, 2026, compared to 3.54% for the six months ended June 30, 2025. Net earnings were $5.2 million or $0.98 per share and $0.96 per diluted share for the three months ended June 30, 2026, compared to $5.2 million or $0.97 per share and $0.95 per diluted share for the prior year period. William D. Cable, Sr., President and Chief Executive Officer, noted second quarter net earnings reflect an increase in net interest income, which was partially offset by an increase in the provision for credit losses, a decrease in non-interest income and an increase in non-interest expense, compared to the prior year period, as discussed below. Net interest income was $16.0 million for the three months ended June 30, 2026, compared to $14.6 million for the three months ended June 30, 2025. The increase in net interest income is due to a $806,000 increase in interest income and a $565,000 decrease in interest expense. The increase in interest income is primarily due to a $1.5 million increase in interest income and fees on loans, which was partially offset by a $511,000 decrease in interest income on balances due from banks and a $231,000 decrease in interest income on investment securities. The increase in interest income and fees on loans is primarily due to an increase in total loans. The decrease in interest income on balances due from banks is due to a decrease in average balances outstanding and rate decreases implemented by the Federal Reserve. The decrease in interest income on investment securities is due to a reduction in balances outstanding and decreases in yields on variable rate securities. The decrease in interest expense is primarily due to a decrease in rates paid on interest-bearing liabilities resulting from rate decreases implemented by the Federal Reserve and a $18.8 million decrease in time deposits from March 31, 2026 to June 30, 2026. Net interest income after the provision for credit losses was $15.7 million for the three months ended June 30, 2026, compared to $14.8 million for the three months ended June 30, 2025. The provision for credit losses for the three months ended June 30, 2026 was $293,000, compared to a recovery of $213,000 for the three months ended June 30, 2025. The increase in the provision for credit losses reflects continued growth in total loans, which increased $36.3 million during the three months ended June 30, 2026, compared to an increase of $5.9 million during the three months ended June 30, 2025. Additionally, the increase in the provision for credit losses includes a $29,000 increase in net charge-offs during the three months ended June 30, 2026, compared to the three months ended June 30, 2025. Non-interest income was $7.1 million for the three months ended June 30, 2026, compared to $7.7 million for the three months ended June 30, 2025. The decrease in non-interest income is primarily attributable to a $929,000 decrease in appraisal management fee income due to a decrease in appraisal volume, which was partially offset by a $108,000 increase in mortgage banking income due to an increase in secondary mortgage market activity and a $254,000 increase in miscellaneous non-interest income primarily due to an increase in deferred compensation income associated with an increase in valuations for the assets in the deferred compensation plan and an increase in income on Small Business Investment Company (SBIC) investments. Non-interest expense was $16.1 million for the three months ended June 30, 2026, compared to $15.8 million for the three months ended June 30, 2025. The increase in non-interest expense is primarily attributable to a $482,000 increase in occupancy expense primarily due to an increase in furniture and equipment maintenance/service contract expenses, a $241,000 increase in debit card expense and a $288,000 increase in miscellaneous non-interest expense primarily due to an increase in deferred compensation expense associated with an increase in valuations for the assets in the deferred compensation plan. The increases in non-interest expense were partially offset by a $718,000 decrease in appraisal management fee expense due to a decrease in appraisal volume. Net earnings were $9.6 million or $1.81 per share and $1.76 per diluted share for the six months ended June 30, 2026, compared to $9.5 million or $1.79 per share and $1.74 per diluted share for the same period one year ago. The increase in year-to-date net earnings is primarily attributable to an increase in net interest income, which was partially offset by an increase in the provision for credit losses, a decrease in non-interest income and an increase in non-interest expense, compared to the prior year period, as discussed below. Net interest income was $31.1 million for the six months ended June 30, 2026, compared to $28.5 million for the six months ended June 30, 2025. The increase in net interest income is due to a $1.7 million increase in interest income and a $818,000 decrease in interest expense. The increase in interest income is primarily due to a $3.0 million increase in interest income and fees on loans, which was partially offset by a $620,000 decrease in interest income on balances due from banks and a $673,000 decrease in interest income on investment securities. The increase in interest income and fees on loans is primarily due to an increase in total loans. The decrease in interest income on balances due from banks is due to a decrease in average balances outstanding and rate decreases implemented by the Federal Reserve. The decrease in interest income on investment securities is due to a reduction in balances outstanding and decreases in yields on variable rate securities. The decrease in interest expense is primarily due to a decrease in rates paid on interest-bearing liabilities resulting from rate decreases implemented by the Federal Reserve and a $46.6 million decrease in time deposits from December 31, 2025 to June 30, 2026. Net interest income after the provision for credit losses was $30.2 million for the six months ended June 30, 2026, compared to $28.5 million for the six months ended June 30, 2025. The provision for credit losses for the six months ended June 30, 2026 was $853,000, compared to $55,000 for the six months ended June 30, 2025. The increase in the provision for credit losses reflects continued growth in total loans, which increased $75.2 million during the six months ended June 30, 2026, compared to an increase of $19.6 million during the six months ended June 30, 2025. Additionally, the increase in the provision for credit losses includes a $66,000 increase in net charge-offs during the six months ended June 30, 2026, compared to the six months ended June 30, 2025. Non-interest income was $13.6 million for the six months ended June 30, 2026, compared to $14.2 million for the six months ended June 30, 2025. The decrease in non-interest income is primarily attributable to a $1.4 million decrease in appraisal management fee income due to a decrease in appraisal volume, which was partially offset by a $216,000 increase in mortgage banking income due to an increase in secondary mortgage market activity and a $492,000 increase in miscellaneous non-interest income primarily due to an increase in deferred compensation income associated with an increase in valuations for the assets in the deferred compensation plan and an increase in income on Small Business Investment Company (SBIC) investments. Non-interest expense was $31.5 million for the six months ended June 30, 2026, compared to $30.4 million for the six months ended June 30, 2025. The increase in non-interest expense is primarily attributable to a $417,000 increase in salaries and employee benefits expense primarily due to increases in salary and restricted stock expenses, a $761,000 increase in occupancy expense primarily due to an increase in furniture and equipment maintenance/service contract expenses, a $179,000 increase in professional fees primarily due to an increase in consulting expense, a $431,000 increase in debit card expense and a $293,000 increase in miscellaneous non-interest expense primarily due to an increase in deferred compensation expense associated with an increase in valuations for the assets in the deferred compensation plan. The increases in non-interest expense were partially offset by a $1.0 million decrease in appraisal management fee expense due to a decrease in appraisal volume. Income tax expense was $1.5 million for the three months ended June 30, 2026 and 2025. The effective tax rate was 22.23% for the three months ended June 30, 2026, compared to 22.56% for the three months ended June 30, 2025. Income tax expense was $2.7 million for the six months ended June 30, 2026, compared to $2.8 million for the six months ended June 30, 2025. The effective tax rate was 22.18% for the six months ended June 30, 2026, compared to 22.69% for the six months ended June 30, 2025. The decrease in the effective tax rate is primarily due to the North Carolina corporate income tax rate decreasing from 2.25% to 2.00% effective January 1, 2026 and the revaluation of the deferred tax asset due to further upcoming reductions in the North Carolina corporate income tax rate. Total assets were $1.76 billion as of June 30, 2026, compared to $1.70 billion as of December 31, 2025. Available for sale securities were $364.5 million as of June 30, 2026, compared to $377.4 million as of December 31, 2025. Total loans were $1.28 billion as of June 30, 2026, compared to $1.20 billion at December 31, 2025. Non-performing assets were $5.2 million or 0.29% of total assets at June 30, 2026, compared to $4.2 million or 0.25% of total assets at December 31, 2025. Non-performing assets comprise $4.0 million in residential mortgage loans, $1.1 million in commercial mortgage loans and $122,000 in other loans at June 30, 2026, compared to $3.6 million in residential mortgage loans and $533,000 in commercial mortgage loans at December 31, 2025. The allowance for credit losses on loans was $10.6 million or 0.83% of total loans at June 30, 2026, compared to $10.1 million or 0.84% of total loans at December 31, 2025. The allowance for credit losses on loans increased $504,000 primarily due to a $75.2 million increase in total loans from December 31, 2025 to June 30, 2026. The allowance for credit losses on unfunded commitments was $1.6 million at June 30, 2026, compared to $1.4 million at December 31, 2025. The increase in the allowance for credit losses on unfunded commitments was due to a $11.7 million increase in unfunded loan commitments from December 31, 2025 to June 30, 2026. The allowance for credit losses on unfunded commitments is included in other liabilities on the Company's consolidated balance sheets. Management believes the current level of the allowance for credit losses is adequate; however, there is no guarantee that additional adjustments to the allowance will not be required because of changes in economic conditions, regulatory requirements or other factors. Deposits were $1.57 billion as of June 30, 2026, compared to $1.51 billion as of December 31, 2025. Core deposits, a non-GAAP measure, which include noninterest-bearing demand deposits, NOW, MMDA, savings and non-brokered certificates of deposit of denominations of less than $250,000, were $1.44 billion at June 30, 2026, compared to $1.35 billion at December 31, 2025. Management believes it is useful to calculate and present core deposits because of the positive impact this low cost funding source provides to the Bank's overall cost of funds and profitability. Certificates of deposit in amounts of $250,000 or more totaled $131.2 million at June 30, 2026, compared to $160.4 million December 31, 2025. Junior subordinated debentures were $15.5 million at June 30, 2026 and December 31, 2025. Shareholders' equity was $161.3 million, or 9.14% of total assets, at June 30, 2026, compared to $157.1 million, or 9.23% of total assets, at December 31, 2025. Peoples Bank operates 15 banking offices in North Carolina, with offices in Catawba, Alexander, Lincoln, Mecklenburg and Iredell 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 listed on the Nasdaq Global Market under the symbol "PEBK." Statements made in this earnings 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 involve risks and uncertainties and are based on the beliefs and assumptions of management and on the information available to management at the time that this release was prepared. These statements can be identified by the use of words like "expect," "anticipate," "estimate," and "believe," variations of these words and other similar expressions. Readers should not place undue reliance on forward-looking statements as a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause actual results to differ include, but are not limited to, (1) competition in the markets served by the Bank, (2) changes in the interest rate environment, (3) general national, regional or local economic conditions may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and the possible impairment of collectibility of loans, (4) legislative or regulatory changes, including changes in accounting standards, (5) significant changes in the federal and state legal and regulatory environment and tax laws, (6) the impact of changes in monetary and fiscal policies, laws, rules and regulations and (7) other risks and factors identified in the Company's other filings with the Securities and Exchange Commission, including but not limited to those described in the Company's Annual Report on Form 10-K for the year ended December 31, 2025. Contact: William D. Cable, Sr.President and Chief Executive OfficerJeffrey N. HooperExecutive Vice President and Chief Financial Officer828-464-5620 CONSOLIDATED BALANCE SHEETSJune 30, 2026, December 31, 2025 and June 30, 2025(Dollars in thousands) CONSOLIDATED STATEMENTS OF INCOME For the three and six months ended June 30, 2026 and 2025(Dollars in thousands, except per share amounts) FINANCIAL HIGHLIGHTSFor the three and six months ended June 30, 2026 and 2025, and the year ended December 31, 2025(Dollars in thousands) At June 30, 2026, including non-accrual loans, there were no relationships exceeding $1.0 million Watch and Substandard risk grades. At June 30, 2025, including non-accrual loans, there was one relationship exceeding $1.0 million in the Watch risk grade, which totaled $1.4 million; there were no relationships exceeding $1.0 million in the Substandard risk grade. At December 31, 2025, including non-accrual loans, there were no relationships exceeding $1.0 million Watch and Substandard risk grades. (1) This amount reflects the tax benefit that the Company receives related to its tax-exempt loans and securities, which carry interest rates lower than similar taxable investments due to their tax-exempt status. This amount has been computed using an effective tax rate of 22.58% and is reduced by the related nondeductible portion of interest expense. (2) For the six months ended June 30, 2026 and 2025, and the year ended December 31, 2025. SOURCE: Peoples Bancorp of North Carolina, Inc. View the original press release on ACCESS Newswire

Shares of Peoples Bancorp of North Carolina, Inc. PEBK have lost 6.2% since the company reported its earnings for the quarter ended March 31, 2026, underperforming the S&P 500 Index, which gained 0.1% over the same period. Over the past month, however, the stock gained 2.7%, lagging the broader market’s 9.3% rise. Peoples Bancorp reported net earnings of $4.4 million for the first quarter of 2026, a 1.2% increase from $4.3 million in the year-ago period. Earnings per share rose by a penny to $0.80 from $0.79 a year earlier. While total revenue is not explicitly reported, net interest income — a key revenue component — increased 8.3% to $15.1 million from $13.9 million. Total interest income climbed 4.5% to $20.9 million from $19.9 million. Non-interest income remained flat at $6.5 million year over year. Growth in net interest income was partly offset by higher provisions for credit losses and increased operating expenses. PEBK’s primary earnings driver, net interest income, benefited from both higher interest income and reduced interest expense. Interest income growth was largely fueled by increased loan balances, with total loans rising to $1.24 billion as of March 31, 2026, from $1.20 billion at the end of 2025. Net interest margin (NIM) improved to 3.68% from 3.51% in the prior-year quarter, reflecting more favorable funding costs and asset yields. This margin expansion underscores Peoples Bancorp’s ability to manage interest rate dynamics effectively. Peoples Bancorp of North Carolina, Inc. price-consensus-eps-surprise-chart | Peoples Bancorp of North Carolina, Inc. Quote Despite stronger net interest income, profitability was tempered by higher costs. Non-interest expense increased 5.4% to $15.4 million from $14.6 million a year earlier, driven by higher salaries and employee benefits, occupancy costs and other operating expenses. At the same time, the provision for credit losses surged to $560,000 from $268,000, reflecting loan growth and a more cautious stance on credit quality. Peoples Bancorp continued to expand its balance sheet, with total assets reaching $1.73 billion as of March 31, 2026, from $1.70 billion at the end of 2025. Deposits rose to $1.54 billion as of March 31, 2026, from $1.51 billion at the end of 2025, supported by growth in core deposits, which increased to $1.40 billion and represented 90.70% of total deposits. Loan growth remained a central theme, contributing to both higher interest income and increased credit provisioning. Asset quality metrics showed some mixed trends. Non-performing assets increased to $4.8 million, or 0.28% of total assets, as of March 31, 2026, from $4.2 million, or 0.25%, at the end of the previous quarter. However, the allowance for credit losses remained stable at 0.84% of total loans, suggesting management believes reserves are adequate despite rising non-performing assets. Management attributed the improvement in earnings primarily to higher net interest income, driven by loan growth and lower funding costs. However, this benefit was partially offset by elevated credit loss provisions and higher operating expenses. Declines in certain fee-based income streams, such as appraisal management fees, also weighed on non-interest income, though these were offset by gains in mortgage banking and miscellaneous income categories. Profitability ratios reflected slight pressure despite earnings growth. Return on average assets declined year over year to 1.04% from 1.07%, while return on average equity fell to 11.45% from 13.52% in the prior-year period. These declines indicate that while earnings improved modestly, they did not keep pace with growth in Peoples Bancorp’s asset and equity base. PEBK did not report any significant acquisitions, divestitures or restructuring activities during the quarter. Operations remained focused on organic growth, particularly in lending and deposit gathering within its North Carolina markets. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Peoples Bancorp of North Carolina, Inc. (PEBK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

NEWTON, NC / ACCESS Newswire / April 20, 2026 / Peoples Bancorp of North Carolina, Inc. (NASDAQ:PEBK) (the "Company"), the parent company of Peoples Bank (the "Bank"), reported first quarter 2026 results with highlights as follows: First quarter 2026 highlights: Net earnings were $4.4 million or $0.83 per share and $0.80 per diluted share for the three months ended March 31, 2026, as compared to $4.3 million or $0.82 per share and $0.79 per diluted share for the same period one year ago. Cash dividends were $0.38 per share for the three months ended March 31, 2026, compared to $0.36 per share for the prior year period. Total loans were $1.24 billion at March 31, 2026, compared to $1.20 billion at December 31, 2025. Non-performing assets were $4.8 million or 0.28% of total assets at March 31, 2026, compared to $4.2 million or 0.25% of total assets at December 31, 2025. Total deposits were $1.54 billion at March 31, 2026, compared to $1.51 billion at December 31, 2025. Core deposits, a non-GAAP measure, were $1.40 billion or 90.70% of total deposits at March 31, 2026, compared to $1.35 billion or 89.44% of total deposits at December 31, 2025. Net interest margin was 3.68% for the three months ended March 31, 2026, compared to 3.51% for the three months ended March 31, 2025. Net earnings were $4.4 million or $0.83 per share and $0.80 per diluted share for the three months ended March 31, 2026, compared to $4.3 million or $0.82 per share and $0.79 per diluted share for the prior year period. William D. Cable, Sr., President and Chief Executive Officer, attributed the increase in first quarter net earnings to an increase in net interest income, which was partially offset by an increase in the provision for credit losses and an increase in non-interest expense, compared to the prior year period, as discussed below. Net interest income was $15.1 million for the three months ended March 31, 2026, compared to $13.9 million for the three months ended March 31, 2025. The increase in net interest income is due to a $906,000 increase in interest income and a $253,000 decrease in interest expense. The increase in interest income is primarily due to a $1.5 million increase in interest income and fees on loans, which was partially offset by a $109,000 decrease in interest income on balances due from banks and a $442,000 decrease in interest income on investment securities. The increase in interest income and fees on loans is primarily due to an increase in total loans. The decrease in interest income on balances due from banks is due to a decrease in average balances outstanding and rate decreases implemented by the Federal Reserve. The decrease in interest income on investment securities is due to a reduction in balances outstanding and decreases in yields on variable rate securities. The decrease in interest expense is primarily due to a decrease in rates paid on interest-bearing liabilities resulting from rate decreases implemented by the Federal Reserve. Net interest income after the provision for credit losses was $14.5 million for the three months ended March 31, 2026, compared to $13.7 million for the three months ended March 31, 2025. The provision for credit losses for the three months ended March 31, 2026 was $560,000, compared to $268,000 for the three months ended March 31, 2025. The increase in the provision for credit losses is primarily attributable to a $38.9 million increase in total loans from December 31, 2025 to March 31, 2026, compared to a $13.7 million increase in total loans from December 31, 2024 to March 31, 2025. Non-interest income was $6.5 million for the three months ended March 31, 2026 and 2025. A $422,000 decrease in appraisal management fee income due to a decrease in appraisal volume was partially offset by a $108,000 increase in mortgage banking income due to an increase in secondary mortgage market activity, a $238,000 increase in miscellaneous non-interest income primarily due to an increase in income on Small Business Investment Company (SBIC) investments and a $32,000 increase in insurance and brokerage commissions. Non-interest expense was $15.4 million for the three months ended March 31, 2026, compared to $14.6 million for the three months ended March 31, 2025. The increase in non-interest expense is primarily attributable to a $458,000 increase in salaries and employee benefits expense primarily due to increases in health insurance and restricted stock expenses, a $279,000 increase in occupancy expense primarily due to an increase in furniture and equipment maintenance/service contract expenses, and a $379,000 increase in other non-interest expense primarily due to increases in consulting and debit card expenses. The increases in non-interest expense were partially offset by a $324,000 decrease in appraisal management fee expense due to a decrease in appraisal volume. Income tax expense was $1.3 million for the three months ended March 31, 2026 and 2025. The effective tax rate was 22.13% for the three months ended March 31, 2026, compared to 22.85% for the three months ended March 31, 2025. The decrease in the effective tax rate is primarily due to the North Carolina corporate income tax rate decreasing from 2.25% to 2.00% effective January 1, 2026 and the revaluation of the deferred tax asset due to further upcoming reductions in the North Carolina corporate income tax rate. Total assets were $1.73 billion as of March 31, 2026, compared to $1.70 billion as of December 31, 2025. Available for sale securities were $370.1 million as of March 31, 2026, compared to $377.4 million as of December 31, 2025. Total loans were $1.24 billion as of March 31, 2026, compared to $1.20 billion at December 31, 2025. Non-performing assets were $4.8 million or 0.28% of total assets at March 31, 2026, compared to $4.2 million or 0.25% of total assets at December 31, 2025. Non-performing assets comprise $3.6 million in residential mortgage loans and $1.2 million in commercial mortgage loans at March 31, 2026, compared to $3.6 million in residential mortgage loans and $533,000 in commercial mortgage loans at December 31, 2025. The allowance for credit losses on loans was $10.5 million or 0.84% of total loans at March 31, 2026, compared to $10.1 million or 0.84% of total loans at December 31, 2025. The allowance for credit losses on loans increased $332,000 primarily due to a $38.9 million increase in total loans from December 31, 2025 to March 31, 2026. The allowance for credit losses on unfunded commitments was $1.6 million at March 31, 2026, compared to $1.4 million at December 31, 2025. The increase in the allowance for credit losses on unfunded commitments was due to a $5.7 million increase in unfunded loan commitments from December 31, 2025 to March 31, 2026. The allowance for credit losses on unfunded commitments is included in other liabilities on the Company's consolidated balance sheets. Management believes the current level of the allowance for credit losses is adequate; however, there is no guarantee that additional adjustments to the allowance will not be required because of changes in economic conditions, regulatory requirements or other factors. Deposits were $1.54 billion as of March 31, 2026, compared to $1.51 billion as of December 31, 2025. Core deposits, a non-GAAP measure, which include noninterest-bearing demand deposits, NOW, MMDA, savings and non-brokered certificates of deposit of denominations of less than $250,000, were $1.40 billion at March 31, 2026, compared to $1.35 billion at December 31, 2025. Management believes it is useful to calculate and present core deposits because of the positive impact this low cost funding source provides to the Bank's overall cost of funds and profitability. Certificates of deposit in amounts of $250,000 or more totaled $143.7 million at March 31, 2026, compared to $160.4 million December 31, 2025. Junior subordinated debentures were $15.5 million at March 31, 2026 and December 31, 2025. Shareholders' equity was $158.1 million, or 9.12% of total assets, at March 31, 2026, compared to $157.1 million, or 9.23% of total assets, at December 31, 2025. Peoples Bank operates 15 banking offices in North Carolina, with offices in Catawba, Alexander, Lincoln, Mecklenburg and Iredell 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 listed on the Nasdaq Global Market under the symbol "PEBK." Statements made in this earnings 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 involve risks and uncertainties and are based on the beliefs and assumptions of management and on the information available to management at the time that this release was prepared. These statements can be identified by the use of words like "expect," "anticipate," "estimate," and "believe," variations of these words and other similar expressions. Readers should not place undue reliance on forward-looking statements as a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause actual results to differ include, but are not limited to, (1) competition in the markets served by the Bank, (2) changes in the interest rate environment, (3) general national, regional or local economic conditions may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and the possible impairment of collectibility of loans, (4) legislative or regulatory changes, including changes in accounting standards, (5) significant changes in the federal and state legal and regulatory environment and tax laws, (6) the impact of changes in monetary and fiscal policies, laws, rules and regulations and (7) other risks and factors identified in the Company's other filings with the Securities and Exchange Commission, including but not limited to those described in the Company's Annual Report on Form 10-K for the year ended December 31, 2025. CONSOLIDATED BALANCE SHEETS March 31, 2026 and 2025 (Dollars in thousands) CONSOLIDATED STATEMENTS OF INCOME For the three months ended March 31, 2026 and 2025 (Dollars in thousands, except per share amounts) FINANCIAL HIGHLIGHTS For the three months ended March 31, 2026 and 2025, and the year ended December 31, 2025 (Dollars in thousands) At March 31, 2026, including non-accrual loans, there were no relationships exceeding $1.0 million Watch and Substandard risk grades. At March 31, 2025, including non-accrual loans, there was one relationship exceeding $1.0 million in the Watch risk grade, which totaled $1.5 million; there were no relationships exceeding $1.0 million in the Substandard risk grade. (1) This amount reflects the tax benefit that the Company receives related to its tax-exempt loans and securities, which carry interest rates lower than similar taxable investments due to their tax-exempt status. This amount has been computed using an effective tax rate of 22.58% and is reduced by the related nondeductible portion of interest expense. (2) For the three months ended March 31, 2026 and 2025, and the year ended December 31, 2025. (END) CONTACT: William D. Cable, Sr. President and Chief Executive Officer Jeffrey N. Hooper Executive Vice President and Chief Financial Officer 828-464-5620 SOURCE: Peoples Bancorp of North Carolina, Inc. View the original press release on ACCESS Newswire

It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story even if these companies are loss-making. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up. If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Peoples Bancorp of North Carolina (NASDAQ:PEBK). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Peoples Bancorp of North Carolina with the means to add long-term value to shareholders. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. The market is a voting machine in the short term, but a weighing machine in the long term, so you'd expect share price to follow earnings per share (EPS) outcomes eventually. That makes EPS growth an attractive quality for any company. Peoples Bancorp of North Carolina managed to grow EPS by 8.3% per year, over three years. That's a good rate of growth, if it can be sustained. One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. Our analysis has highlighted that Peoples Bancorp of North Carolina's revenue from operations did not account for all of their revenue in the previous 12 months, so our analysis of its margins might not accurately reflect the underlying business. While we note Peoples Bancorp of North Carolina achieved similar EBIT margins to last year, revenue grew by a solid 8.5% to US$89m. That's a real positive. In the chart below, you can see how the company has grown earnings and revenue, over time. To see the actual numbers, click on the chart. View our latest analysis for Peoples Bancorp of North Carolina Since Peoples Bancorp of North Carolina is no giant, with a market capitalisation of US$199m, you should definitely check its cash and debt before getting too excited about its prospects. It's pleasing to see company leaders with putting their money on the line, so to speak, because it increases alignment of incentives between the people running the business, and its true owners. So it is good to see that Peoples Bancorp of North Carolina insiders have a significant amount of capital invested in the stock. To be specific, they have US$31m worth of shares. That shows significant buy-in, and may indicate conviction in the business strategy. As a percentage, this totals to 16% of the shares on issue for the business, an appreciable amount considering the market cap. While it's always good to see some strong conviction in the company from insiders through heavy investment, it's also important for shareholders to ask if management compensation policies are reasonable. Well, based on the CEO pay, you'd argue that they are indeed. The median total compensation for CEOs of companies similar in size to Peoples Bancorp of North Carolina, with market caps between US$100m and US$400m, is around US$1.5m. The CEO of Peoples Bancorp of North Carolina only received US$595k in total compensation for the year ending December 2024. First impressions seem to indicate a compensation policy that is favourable to shareholders. CEO remuneration levels are not the most important metric for investors, but when the pay is modest, that does support enhanced alignment between the CEO and the ordinary shareholders. It can also be a sign of a culture of integrity, in a broader sense. As previously touched on, Peoples Bancorp of North Carolina is a growing business, which is encouraging. The growth of EPS may be the eye-catching headline for Peoples Bancorp of North Carolina, but there's more to bring joy for shareholders. With a meaningful level of insider ownership, and reasonable CEO pay, a reasonable mind might conclude that this is one stock worth watching. We don't want to rain on the parade too much, but we did also find 1 warning sign for Peoples Bancorp of North Carolina that you need to be mindful of. While opting for stocks without growing earnings and absent insider buying can yield results, for investors valuing these key metrics, here is a carefully selected list of companies in the US with promising growth potential and insider confidence. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Shares of Peoples Bancorp of North Carolina, Inc. PEBK have lost 2.3%, against a 0.9% gain in the S&P 500 Index over the same period. Performance over the past month shows a similar trend, with PEBK shares down 2% while the S&P 500 advanced 1.4%. Peoples Bancorp reported net earnings of $6.6 million for the fourth quarter of 2025, compared with $3.6 million in the year-ago quarter, reflecting an increase of 86.4%. The year-over-year improvement in fourth-quarter net earnings was driven by higher net interest income and increased non-interest income, partially offset by a higher provision for credit losses. Fourth-quarter 2025 basic earnings per share (EPS) were $1.25, up 86.6% from $0.67 in the comparable prior-year period, while diluted EPS increased 86.2% to $1.21 from $0.65. For full-year 2025, net earnings rose 21.3% to $19.8 million from $16.4 million in 2024. The improvement in full-year net earnings was driven by higher net interest income and increased non-interest income, partially offset by a higher provision for credit losses and increased non-interest expenses. For the full year, basic EPS rose 21.4% to $3.74 from $3.08 in 2024, and diluted EPS increased 21.5% to $3.62 from $2.98. The growth in per-share results tracked the improvement in net earnings during the period. Revenue is not reported as a single consolidated figure, but net interest income, a core measure for banks, increased 11.2% year over year in the fourth quarter to $15.4 million from $13.8 million, while full-year net interest income grew 9.1% to $59 million from $54.1 million. Non-interest income also contributed to results, rising 36.4% to $9.6 million in the quarter from $7.1 million a year earlier, driven largely by a one-time gain related to a property transaction. Several balance sheet and profitability metrics showed improvement compared with the prior year. Net interest margin (NIM) for the fourth quarter expanded to 3.62% from 3.39% in the year-ago period, while the full-year margin improved to 3.57% from 3.36%. Return on average assets increased to 1.52% in the quarter from 0.85% a year earlier, and return on average shareholders’ equity rose to 17.25% from 10.77%. Total assets grew to $1.70 billion as of Dec. 31, 2025, from $1.65 billion a year earlier, while total loans increased to $1.20 billion from $1.14 billion during the same time. Deposits rose to $1.51 billion from $1.48 billion, reflecting modest balance sheet growth. Asset quality metrics remained relatively stable to improved. Non-performing assets declined to $4.2 million, or 0.25% of total assets, as of Dec. 31, 2025, from $4.8 million, or 0.29%, at the end of 2024. The allowance for credit losses on loans stood at 0.84% of total loans as of Dec. 31, 2025, lower than 0.88% a year earlier, even as loan balances expanded. Peoples Bancorp of North Carolina, Inc. price-consensus-eps-surprise-chart | Peoples Bancorp of North Carolina, Inc. Quote Management attributed the stronger fourth-quarter 2025 performance primarily to higher net interest income and increased non-interest income, combined with lower non-interest expenses compared with the prior-year quarter. According to President and Chief Executive Officer William D. Cable, Sr., these positive factors were partially offset by a higher provision for credit losses. The commentary emphasized the benefits of loan growth, improved funding costs following Federal Reserve rate reductions and disciplined expense management during the period. A notable factor influencing the quarter’s results was a $3 million net gain related to the North Carolina Department of Transportation’s eminent domain acquisition of the bank’s former Mooresville branch property. This gain significantly boosted non-interest income in the fourth quarter and full year. Excluding this item, non-interest income growth would have been more modest. On the expense side, non-interest expense declined 3.7% year over year in the quarter, mainly due to lower salaries, employee benefits and legal expenses, though higher occupancy-related costs partially offset these savings. The provision for credit losses swung to an expense of $353,000 in the quarter from a recovery of $205,000 in the prior year, reflecting changes in reserve levels and loan growth. PEBK did not include formal financial guidance or specific forward-looking quantitative targets. Management instead provided standard cautionary language regarding forward-looking statements, noting that future results could be affected by factors such as economic conditions, interest rate changes, competition and regulatory developments. During the quarter, Peoples Bancorp did not report any acquisitions, divestitures or major business restructuring initiatives. The most significant non-recurring development was the resolution of the eminent domain transaction involving the former Mooresville branch, which resulted in the recognized gain and the reclassification of previously recorded legal expenses. Other operations, including the bank’s footprint of 15 banking offices across North Carolina and its loan production offices, remained unchanged during the period. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Peoples Bancorp of North Carolina, Inc. (PEBK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

NEWTON, NC / ACCESS Newswire / January 26, 2026 / Peoples Bancorp of North Carolina, Inc. (NASDAQ:PEBK) (the "Company"), the parent company of Peoples Bank (the "Bank"), reported fourth quarter and full year 2025 results with highlights as follows: Fourth quarter 2025 highlights: Net earnings were $6.6 million or $1.25 per share and $1.21 per diluted share for the three months ended December 31, 2025, as compared to $3.6 million or $0.67 per share and $0.65 per diluted share for the same period one year ago. During the three months ended December 31, 2025, the Bank recognized a $3.0 million net gain on the North Carolina Department of Transportation ("NCDOT") eminent domain acquisition of the Bank's former Mooresville branch office, situated on NC Highway 150 in Mooresville, NC for the widening of NC Highway 150. Net interest margin was 3.62% for the three months ended December 31, 2025, compared to 3.39% for the three months ended December 31, 2024. Full year 2025 highlights: Net earnings were $19.8 million or $3.74 per share and $3.62 per diluted share for the year ended December 31, 2025, as compared to $16.4 million or $3.08 per share and $2.98 diluted share for the prior year. Cash dividends were $0.96 per share for the year ended December 31, 2025, compared to $0.92 per share for the prior year. Total loans were $1.20 billion at December 31, 2025, compared to $1.14 billion at December 31, 2024. Non-performing assets were $4.2 million or 0.25% of total assets at December 31, 2025, compared to $4.8 million or 0.29% of total assets at December 31, 2024. Total deposits were $1.51 billion at December 31, 2025, compared to $1.48 billion at December 31, 2024. Core deposits, a non-GAAP measure, were $1.35 billion or 89.44% of total deposits at December 31, 2025, compared to $1.34 billion or 90.17% of total deposits at December 31, 2024. Shareholders' equity was $157.1 million, or 9.23% of total assets, at December 31, 2025, compared to $130.6 million, or 7.90% of total assets, at December 31, 2024. Net interest margin was 3.57% for the year ended December 31, 2025, compared to 3.36% for the year ended December 31, 2024. Net earnings were $6.6 million or $1.25 per share and $1.21 per diluted share for the three months ended December 31, 2025, as compared to $3.6 million or $0.67 per share and $0.65 per diluted share for the prior year period. William D. Cable, Sr., President and Chief Executive Officer, attributed the increase in fourth quarter net earnings to increases in net interest income and non-interest income and a decrease in non-interest expense, which were partially offset by an increase in the provision for credit losses, compared to the prior year period, as discussed below. Net interest income was $15.4 million for the three months ended December 31, 2025, compared to $13.8 million for the three months ended December 31, 2024. The increase in net interest income is due to a $1.1 million increase in interest income and a $410,000 decrease in interest expense. The increase in interest income is primarily due to a $1.3 million increase in interest income and fees on loans and a $219,000 increase in interest income on balances due from banks, which was partially offset by a $382,000 decrease in interest income on investment securities. The increase in interest income and fees on loans is primarily due to an increase in total loans. The increase in interest income on balances due from banks is primarily due to an increase in average balances outstanding. The decrease in interest income on investment securities is due to a reduction in balances outstanding and decreases in yields on variable rate securities. The decrease in interest expense is primarily due to a decrease in rates paid on interest-bearing liabilities resulting from rate decreases implemented by the Federal Reserve. Net interest income after the provision for credit losses was $15.0 million for the three months ended December 31, 2025, compared to $14.0 million for the three months ended December 31, 2024. The provision for credit losses for the three months ended December 31, 2025 was an expense of $353,000, compared to a recovery of $205,000 for the three months ended December 31, 2024. The increase in the provision for credit losses is primarily attributable to a $609,000 decrease in the reserve for losses associated with Hurricane Helene during the fourth quarter of 2024, which resulted in a recovery in the fourth quarter of 2024, compared to an expense in the fourth quarter of 2025. Non-interest income was $9.6 million for the three months ended December 31, 2025, compared to $7.1 million for the three months ended December 31, 2024. The increase in non-interest income is primarily attributable to a $3.0 million net gain on the NCDOT eminent domain acquisition of the Bank's former Mooresville branch office during the three months ended December 31, 2025, which was partially offset by a $386,000 decrease in miscellaneous non-interest income primarily due to bank owned life insurance (BOLI) death benefit proceeds of $313,000 received during the three months ended December 31, 2024, compared to no BOLI death benefit proceeds during the three months ended December 31, 2025. Non-interest expense was $15.9 million for the three months ended December 31, 2025, compared to $16.5 million for the three months ended December 31, 2024. The decrease in non-interest expense is primarily attributable to a $605,000 decrease in salaries and employee benefits expense primarily due to a decrease in salary and supplemental executive retirement plan expenses and a $620,000 decrease in other non-interest expense primarily due to a decrease in legal expenses. The Bank recorded $553,000 in legal expenses associated with the NCDOT litigation during the three months ended September 30, 2025. These legal expenses were subsequently reclassified to offset the $3.6 million gain on the involuntarily disposal of this property upon receiving the formal written order from the court during the three months ended December 31, 2025, which resulted in the $3.0 million net gain noted above. The decreases in non-interest expense were partially offset by a $560,000 increase in occupancy expense primarily due to an increase in furniture and equipment maintenance/services expenses. Net earnings were $19.8 million or $3.74 per share and $3.62 per diluted share for the year ended December 31, 2025, as compared to $16.4 million or $3.08 per share and $2.98 per diluted share for the prior year. The increase in net earnings is primarily attributable to increases in net interest income and non-interest income, which were partially offset by an increase in the provision for credit losses and an increase in non-interest expense, compared to the prior year, as discussed below. Net interest income was $59.0 million for the year ended December 31, 2025, compared to $54.1 million for the year ended December 31, 2024. The increase in net interest income is due to a $2.9 million increase in interest income and a $2.1 million decrease in interest expense. The increase in interest income is primarily due to a $4.3 million increase in interest income and fees on loans and a $44,000 increase in interest income on balances due from banks, which was partially offset by a $1.5 million decrease in interest income on investment securities. The increase in interest income and fees on loans is primarily due to an increase in total loans. The increase in interest income on balances due from banks is primarily due to an increase in average balances outstanding. The decrease in interest income on investment securities is due to a reduction in balances outstanding and decreases in yields on variable rate securities. The decrease in interest expense is primarily due to a decrease in rates paid on interest-bearing liabilities resulting from rate decreases implemented by the Federal Reserve. Net interest income after the provision for credit losses was $58.1 million for the year ended December 31, 2025, compared to $54.4 million for the year ended December 31, 2024. The provision for credit losses for the year ended December 31, 2025 was an expense of $938,000, compared to a recovery of $285,000 for the year ended December 31, 2024. The increase in the provision for credit losses is primarily attributable to a $66.0 million increase in total loans and a $18.0 million increase in unfunded loan commitments from December 31, 2024 to December 31, 2025, which were partially offset by a $925,000 decrease in net charge-offs during the year ended December 31, 2025, compared to the year ended December 31, 2024. Non-interest income was $31.0 million for the year ended December 31, 2025, compared to $27.7 million for the year ended December 31, 2024. The increase in non-interest income is primarily attributable to a $3.0 million net gain during the year ended December 31, 2025 on the NCDOT eminent domain acquisition of the Bank's former Mooresville branch office and a $2.0 million increase in appraisal management fee income due to an increase in appraisal volume. The increases in non-interest income were partially offset by a $1.6 million decrease in miscellaneous non-interest income primarily due to a decrease in income on small business investment company (SBIC) investments and a decrease in deferred compensation income. Non-interest expense was $63.2 million for the year ended December 31, 2025, compared to $61.2 million for the year ended December 31, 2024. The increase in non-interest expense is primarily attributable to a $1.6 million increase in appraisal management fee expense due to an increase in appraisal volume and a $262,000 increase in occupancy expense primarily due to an increase in furniture and equipment maintenance/services expenses. Income tax expense was $2.1 million for the three months ended December 31, 2025, compared to $1.0 million for the three months ended December 31, 2024. The effective tax rate was 24.31% for the three months ended December 31, 2025, compared to 22.44% for the three months ended December 31, 2024. The increase in the effective tax rate is primarily due to a $109,000 deferred tax asset write-off during the three months ended December 31, 2025. Income tax expense was $6.0 million for the year ended December 31, 2025, compared to $4.6 million for the year ended December 31, 2024. The effective tax rate was 23.29% for the year ended December 31, 2025, compared to 21.86% for the year ended December 31, 2024. The increase in the effective tax rate is primarily due to a $322,000 interest receivable booked during the year ended December 31, 2024 on a deposit for taxes paid prior to a settlement with the North Carolina Department of Revenue to withdraw the disallowance of certain tax credits previously purchased by the Bank. Total assets were $1.70 billion as of December 31, 2025, compared to $1.65 billion as of December 31, 2024. Available for sale securities were $377.4 million as of December 31, 2025, compared to $388.0 million as of December 31, 2024. Total loans were $1.20 billion as of December 31, 2025, compared to $1.14 billion at December 31, 2024. Non-performing assets were $4.2 million or 0.25% of total assets at December 31, 2025, compared to $4.8 million or 0.29% of total assets at December 31, 2024. Non-performing assets comprise $3.6 million in residential mortgage loans and $533,000 in commercial mortgage loans at December 31, 2025, compared to $3.7 million in residential mortgage loans, $463,000 in commercial mortgage loans, $257,000 in other loans, and $369,000 in other real estate owned at December 31, 2024. The allowance for credit losses on loans was $10.1 million or 0.84% of total loans at December 31, 2025, compared to $10.0 million or 0.88% of total loans at December 31, 2024. The allowance for credit losses on loans increased $131,000 primarily due to a $66.0 million increase in total loans from December 31, 2024 to December 31, 2025, which was partially offset by a $925,000 decrease in net charge-offs during the year ended December 31, 2025, compared to the year ended December 31, 2024. The allowance for credit losses on unfunded commitments was $1.4 million at December 31, 2025, compared to $1.1 million at December 31, 2024. The increase in the allowance for credit losses on unfunded commitments was due to a $18.0 million increase in unfunded loan commitments from December 31, 2024 to December 31, 2025. The allowance for credit losses on unfunded commitments is included in other liabilities on the Company's consolidated balance sheets. Management believes the current level of the allowance for credit losses is adequate; however, there is no guarantee that additional adjustments to the allowance will not be required because of changes in economic conditions, regulatory requirements or other factors. Deposits were $1.51 billion as of December 31, 2025, compared to $1.48 billion as of December 31, 2024. Core deposits, a non-GAAP measure, which include noninterest-bearing demand deposits, NOW, MMDA, savings and non-brokered certificates of deposit of denominations of $250,000 or less, were $1.35 billion at December 31, 2025, compared to $1.34 billion at December 31, 2024. Management believes it is useful to calculate and present core deposits because of the positive impact this low cost funding source provides to the Bank's overall cost of funds and profitability. Certificates of deposit in amounts of more than $250,000 totaled $159.4 million at December 31, 2025, compared to $145.9 million December 31, 2024. Junior subordinated debentures were $15.5 million at December 31, 2025 and December 31, 2024. Shareholders' equity was $157.1 million, or 9.23% of total assets, at December 31, 2025, compared to $130.6 million, or 7.90% of total assets, at December 31, 2024. The increase in shareholders' equity is primarily due an increase in net income and a decrease in the unrealized loss on investment securities available for sale due to rate changes between December 31, 2024 and December 31, 2025. Peoples Bank operates 15 banking offices in North Carolina, with offices in Catawba, Alexander, Lincoln, Mecklenburg and Iredell 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 listed on the Nasdaq Global Market under the symbol "PEBK." Statements made in this earnings 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 involve risks and uncertainties and are based on the beliefs and assumptions of management and on the information available to management at the time that this release was prepared. These statements can be identified by the use of words like "expect," "anticipate," "estimate," and "believe," variations of these words and other similar expressions. Readers should not place undue reliance on forward-looking statements as a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause actual results to differ include, but are not limited to, (1) competition in the markets served by the Bank, (2) changes in the interest rate environment, (3) general national, regional or local economic conditions may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and the possible impairment of collectibility of loans, (4) legislative or regulatory changes, including changes in accounting standards, (5) significant changes in the federal and state legal and regulatory environment and tax laws, (6) the impact of changes in monetary and fiscal policies, laws, rules and regulations and (7) other risks and factors identified in the Company's other filings with the Securities and Exchange Commission, including but not limited to those described in the Company's Annual Report on Form 10-K for the year ended December 31, 2024. Contact: William D. Cable, Sr. President and Chief Executive Officer Jeffrey N. Hooper Executive Vice President and Chief Financial Officer 828-464-5620 CONSOLIDATED BALANCE SHEETS December 31, 2025 and 2024 (Dollars in thousands) CONSOLIDATED STATEMENTS OF INCOME For the three months and years ended December 31, 2025 and 2024 (Dollars in thousands, except per share amounts) FINANCIAL HIGHLIGHTS For the three months and years ended December 31, 2025 and 2024 (Dollars in thousands) (1) This amount reflects the tax benefit that the Company receives related to its tax-exempt loans and securities, which carry interest rates lower than similar taxable investments due to their tax-exempt status. This amount has been computed using an effective tax rate of 22.78% and is reduced by the related nondeductible portion of interest expense. (2) For the years ended December 31, 2025 and 2024. SOURCE: Peoples Bancorp of North Carolina, Inc. View the original press release on ACCESS Newswire

Shares of Peoples Bancorp of North Carolina, Inc. PEBK have gained 9.9% since the company reported its earnings for the quarter ended Sept. 30, 2025. This compares with the S&P 500 Index’s 1% gain during the same period. Over the past month, the stock gained 3.2% compared with the S&P 500’s 2.1% rise. Peoples Bancorp reported net earnings of $3.7 million, or $0.70 per share ($0.67 diluted), for the third quarter of 2025, down 6.7% from $3.9 million, or $0.74 per share ($0.72 diluted) in the prior-year quarter. The decline in earnings was attributed mainly to higher provisions for credit losses and rising non-interest expenses, partly offset by higher net interest and non-interest income. Net interest income rose 11.6% to $15.1 million from $13.5 million a year earlier, supported by a wider net interest margin (NIM) of 3.58% compared with 3.35%. Non-interest income held steady at $7.1 million, with 17.2% growth in appraisal management fees offset by lower miscellaneous income (down 21.1%). Non-interest expenses climbed 12.7% to $16.9 million from $15 million a year earlier, driven by higher legal, debit card and salary costs. The provision for credit losses rose 78.5% to $530,000 from $297,000, reflecting increased reserves on construction loans. For the nine months ended Sept. 30, 2025, Peoples Bancorp generated net earnings of $13.2 million, or $2.49 per share ($2.41 diluted), up 3.1% from $12.8 million, or $2.41 per share ($2.33 diluted) in the same period of 2024. Year-to-date net interest income climbed 8.4% to $43.7 million from $40.3 million, aided by lower funding costs following rate reductions by the Federal Reserve. The NIM improved to 3.55% from 3.34%. Total loans increased to $1.18 billion as of Sept. 30, 2025, from $1.14 billion at year-end 2024, while total deposits rose to $1.55 billion from $1.48 billion during the same period. Core deposits were $1.39 billion or 89.65% of total deposits as of Sept. 30, 2025, compared with $1.34 billion or 90.17% of total deposits as of Dec. 31, 2024. The provision for credit losses rose to $585,000 against a $80,000 recovery a year ago, reflecting an expanding loan portfolio. Non-interest income increased 3.4% to $21.3 million from $20.7 million, while non-interest expense rose 5.9% to $47.3 million from $44.7 million, reflecting higher wage and legal costs. Asset quality metrics were steady, with non-performing assets totaling $5.1 million (0.29% of total assets) as of Sept. 30, 2025, unchanged in ratio from 2024-end. The allowance for credit losses on loans was $10.2 million (0.86% of total loans), slightly higher than $9.9 million (0.88%) at the end of 2024. Shareholders’ equity rose to $149.5 million as of Sept. 30, 2025, from $130.6 million as of Dec. 31, 2024, driven by a reduction in unrealized losses on securities. The bank’s book value per share improved to $28.15 in third-quarter 2025 from $25.72 a year earlier. Peoples Bancorp of North Carolina, Inc. price-consensus-eps-surprise-chart | Peoples Bancorp of North Carolina, Inc. Quote President and CEO William D. Cable, Sr. attributed the decline in quarterly earnings to higher provisions for credit losses and increased non-interest expenses, though he noted that core banking operations remained strong. The rise in net interest income reflected both loan growth and improved asset yields, aided by lower funding costs following Federal Reserve rate cuts. Non-interest expenses increased mainly due to higher legal, debit card and salary costs, partly offset by lower occupancy expense tied to a prior-year branch closure. Cable emphasized that asset quality and capital ratios remained solid. PEBK did not issue formal financial guidance in its third-quarter 2025 release. Management reiterated confidence in Peoples Bank’s core performance, noting stable asset quality, solid capitalization and continued focus on prudent loan and deposit growth. A significant legal development during the quarter involved a September 2025 bench ruling favoring the bank in its dispute with the North Carolina Department of Transportation (“NCDOT”) over the 2023 eminent-domain acquisition of its Mooresville branch property. The court ordered the NCDOT to pay $5.1 million, including the $1.5 million previously received, resulting in an expected $3.6 million gain once the formal order is issued. The bank recorded $553,000 in legal expenses related to this case as of quarter-end. Peoples Bancorp continues to operate 15 branches across several North Carolina counties and maintains loan production offices in key regional markets. With solid capital ratios and steady asset quality, management expressed confidence in sustaining measured growth while navigating current economic conditions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Peoples Bancorp of North Carolina, Inc. (PEBK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

NEWTON, NC / ACCESS Newswire / October 20, 2025 / Peoples Bancorp of North Carolina, Inc. (NASDAQ:PEBK) (the "Company"), the parent company of Peoples Bank (the "Bank"), reported third quarter 2025 results with highlights as follows: Third quarter 2025 highlights: Net earnings were $3.7 million or $0.70 per share and $0.67 per diluted share for the three months ended September 30, 2025, as compared to $4.0 million or $0.74 per share and $0.72 per diluted share for the same period one year ago. Net interest margin was 3.58% for the three months ended September 30, 2025, compared to 3.35% for the three months ended September 30, 2024. Year to date highlights: Net earnings were $13.2 million or $2.49 per share and $2.41 per diluted share for the nine months ended September 30, 2025, as compared to $12.8 million or $2.41 per share and $2.33 per diluted share for the same period one year ago. Cash dividends were $0.76 per share during the nine months ended September 30, 2025, compared to $0.73 per share for the prior year period. Total loans were $1.18 billion at September 30, 2025, compared to $1.14 billion at December 31, 2024. Non-performing assets were $5.1 million or 0.29% of total assets at September 30, 2025, compared to $4.8 million or 0.29% of total assets at December 31, 2024. Total deposits were $1.55 billion at September 30, 2025, compared to $1.48 billion at December 31, 2024. Core deposits, a non-GAAP measure, were $1.39 billion or 89.65% of total deposits at September 30, 2025, compared to $1.34 billion or 90.17% of total deposits at December 31, 2024. Net interest margin was 3.55% for the nine months ended September 30, 2025, compared to 3.34% for the nine months ended September 30, 2024. Net earnings were $3.7 million or $0.70 per share and $0.67 per diluted share for the three months ended September 30, 2025, as compared to $4.0 million or $0.74 per share and $0.72 per diluted share for the prior year period. William D. Cable, Sr., President and Chief Executive Officer, attributed the decrease in third quarter net earnings to increases in the provision for credit losses and non-interest expense, which were partially offset by increases in net interest income and non-interest income, compared to the prior year period, as discussed below. Net interest income was $15.1 million for the three months ended September 30, 2025, compared to $13.5 million for the three months ended September 30, 2024. The increase in net interest income is due to a $938,000 increase in interest income and a $632,000 decrease in interest expense. The increase in interest income is primarily due to a $1.1 million increase in interest income and fees on loans and a $401,000 increase in interest income on balances due from banks, which was partially offset by a $539,000 decrease in interest income on investment securities. The increase in interest income and fees on loans is primarily due to an increase in total loans. The increase in interest income on balances due from banks is primarily due to an increase in balances outstanding. The decrease in interest income on investment securities is due to a reduction in balances outstanding and decreases in yields on variable rate securities. The decrease in interest expense is primarily due to a decrease in rates paid on interest-bearing liabilities resulting from rate decreases implemented by the Federal Reserve. Net interest income after the provision for credit losses was $14.6 million for the three months ended September 30, 2025, compared to $13.3 million for the three months ended September 30, 2024. The provision for credit losses for the three months ended September 30, 2025 was $530,000, compared to $297,000 for the three months ended September 30, 2024. The increase in the provision for credit losses is primarily attributable to an increase in reserves on construction loans during the three months ended September 30, 2025, as compared to a reduction in reserves on construction loans during the three months ended September 30, 2024. Non-interest income was $7.1 million for the three months ended September 30, 2025 and 2024. A $528,000 increase in appraisal management fee income due to an increase in appraisal volume was partially offset by a $411,000 decrease in miscellaneous non-interest income primarily due to a decrease in income on small business investment company (SBIC) investments and a $90,000 decrease in service charges and fees on deposits. Non-interest expense was $16.9 million for the three months ended September 30, 2025, compared to $15.0 million for the three months ended September 30, 2024. The increase in non-interest expense is primarily attributable to a $1.2 million increase in other non-interest expense primarily due to increases in legal fees and debit card expense, a $492,000 increase in salaries and employee benefits expense primarily due to an increase in salary and insurance expense and a $422,000 increase in appraisal management fee expense due to an increase in appraisal volume, which were partially offset by a $168,000 decrease in occupancy expense primarily due to the $362,000 write-off of leasehold improvements for the Bank's former branch in Cary, North Carolina during the three months ended September 30, 2024. Net earnings were $13.2 million or $2.49 per share and $2.41 per diluted share for the nine months ended September 30, 2025, as compared to $12.8 million or $2.41 per share and $2.33 per diluted share for the prior year period. The increase in year to date net earnings is primarily attributable to increases in net interest income and non-interest income, which were partially offset by increases in the provision for credit losses and non-interest expense, compared to the prior year period, as discussed below. Net interest income was $43.7 million for the nine months ended September 30, 2025, compared to $40.3 million for the nine months ended September 30, 2024. The increase in net interest income is due to a $1.7 million increase in interest income and a $1.6 million decrease in interest expense. The increase in interest income is primarily due to a $3.0 million increase in interest income and fees on loans, which was partially offset by a $175,000 decrease in interest income on balances due from banks and a $1.1 million decrease in interest income on investment securities. The increase in interest income and fees on loans is primarily due to an increase in total loans. The decrease in interest income on balances due from banks is due to a reduction in balances outstanding and rate decreases implemented by the Federal Reserve. The decrease in interest income on investment securities is due to a reduction in balances outstanding and decreases in yields on variable rate securities. The decrease in interest expense is primarily due to a decrease in rates paid on interest-bearing liabilities resulting from rate decreases implemented by the Federal Reserve. Net interest income after the provision for credit losses was $43.1 million for the nine months ended September 30, 2025, compared to $40.3 million for the nine months ended September 30, 2024. The provision for credit losses for the nine months ended September 30, 2025 was an expense of $585,000, compared to a recovery of $80,000 for the nine months ended September 30, 2024. The increase in the provision for credit losses is primarily attributable to a $59.3 million increase in total loans from September 30, 2024 to September 30, 2025. Non-interest income was $21.3 million for the nine months ended September 30, 2025, compared to $20.7 million for the nine months ended September 30, 2024. The increase in non-interest income is primarily attributable to a $1.9 million increase in appraisal management fee income due to an increase in appraisal volume, which was partially offset by a $1.2 million decrease in miscellaneous non-interest income primarily due to a decrease in income on small business investment company (SBIC) investments. Non-interest expense was $47.3 million for the nine months ended September 30, 2025, compared to $44.7 million for the nine months ended September 30, 2024. The increase in non-interest expense is primarily attributable to a $1.6 million increase in appraisal management fee expense due to an increase in appraisal volume, a $641,000 increase in salaries and employee benefits expense primarily due to an increase in salary expense and a $761,000 increase in other non-interest expense primarily due to increases in legal fees and debit card expense, which were partially offset by a $298,000 decrease in occupancy expense primarily due to the $362,000 write-off of leasehold improvements for the Bank's former branch in Cary, North Carolina during the three months ended September 30, 2024. Income tax expense was $1.1 million for the three months ended September 30, 2025, compared to $1.4 million for the three months ended September 30, 2024. The effective tax rate was 22.95% for the three months ended September 30, 2025, compared to 25.76% for the three months ended September 30, 2024. The decrease in the effective tax rate for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 is primarily due to the revaluation of the deferred tax asset during the three months ended September 30, 2024 due to upcoming reductions in the North Carolina corporate income tax rate. Income tax expense was $3.9 million for the nine months ended September 30, 2025, compared to $3.5 million for the nine months ended September 30, 2024. The effective tax rate was 22.77% for the nine months ended September 30, 2025, compared to 21.71% for the nine months ended September 30, 2024. The increase in the effective tax rate is primarily due to a $322,000 interest receivable booked during the nine months ended September 30, 2024 on a deposit for taxes paid prior to a settlement with the North Carolina Department of Revenue ("NCDOR") to withdraw the disallowance of certain tax credits previously purchased by the Bank. Total assets were $1.74 billion as of September 30, 2025, compared to $1.65 billion as of December 31, 2024. Available for sale securities were $376.9 million as of September 30, 2025, compared to $388.0 million as of December 31, 2024. Total loans were $1.18 billion as of September 30, 2025, compared to $1.14 billion at December 31, 2024. Non-performing assets were $5.1 million or 0.29% of total assets at September 30, 2025, compared to $4.8 million or 0.29% of total assets at December 31, 2024. Non-performing assets comprise $4.1 million in residential mortgage loans and $1.0 million in commercial mortgage loans at September 30, 2025, compared to $3.7 million in residential mortgage loans, $463,000 in commercial mortgage loans, $257,000 in other loans, and $369,000 in other real estate owned at December 31, 2024. The allowance for credit losses on loans was $10.2 million or 0.86% of total loans at September 30, 2025, compared to $10.0 million or 0.88% of total loans at December 31, 2024. The allowance for credit losses on loans increased $211,000 primarily due to a $45.0 million increase in total loans from December 31, 2024 to September 30, 2025. The allowance for credit losses on unfunded commitments was $1.2 million at September 30, 2025, compared to $1.1 million at December 31, 2024. The increase in the allowance for credit losses on unfunded commitments was due to a $7.8 million increase in unfunded loan commitments from December 31, 2024 to September 30, 2025. The allowance for credit losses on unfunded commitments is included in other liabilities on the Company's consolidated balance sheets. Management believes the current level of the allowance for credit losses is adequate; however, there is no guarantee that additional adjustments to the allowance will not be required because of changes in economic conditions, regulatory requirements or other factors. Deposits were $1.55 billion as of September 30, 2025, compared to $1.48 billion as of December 31, 2024. Core deposits, a non-GAAP measure, which include noninterest-bearing demand deposits, NOW, MMDA, savings and non-brokered certificates of deposit of denominations of $250,000 or less, were $1.39 billion at September 30, 2025, compared to $1.34 billion at December 31, 2024. Management believes it is useful to calculate and present core deposits because of the positive impact this low cost funding source provides to the Bank's overall cost of funds and profitability. Certificates of deposit in amounts of more than $250,000 totaled $160.7 million at September 30, 2025, compared to $145.9 million December 31, 2024. Junior subordinated debentures were $15.5 million at September 30, 2025 and December 31, 2024. Shareholders' equity was $149.5 million, or 8.60% of total assets, at September 30, 2025, compared to $130.6 million, or 7.90% of total assets, at December 31, 2024. The increase in shareholders' equity is primarily due to a decrease in the unrealized loss on investment securities available for sale due to rate changes between December 31, 2024 and September 30, 2025. In 2023, the North Carolina Department of Transportation ("NCDOT") acquired the Bank's Mooresville branch property on NC Highway 150 in Mooresville, NC through an eminent domain acquisition for the widening of NC Highway 150. During the second quarter of 2023, the Bank received a $1.5 million payment for this property, which was booked as an offset to the net book value of the assets. The Bank recognized a $191,000 gain on this transaction during the second quarter of 2023. Following this action, the Bank spent considerable time and effort to increase monetary considerations for this property to more closely align with reasonable and fair property values. A September 2025 bench ruling in the Bank's favor stated that the NCDOT pay the Bank total of $5.1 million for this property, including the $1.5 million payment the Bank received in 2023. The formal written order for this ruling had not been received by the Bank as of September 30, 2025. The Bank recorded $553,000 in legal expenses associated with this settlement and a corresponding other payable for these fees as of September 30, 2025. The Bank expects to realize an additional $3.6 million gain on the involuntarily disposal of this property after receiving the formal written order for the September 2025 bench ruling. Peoples Bank operates 15 banking offices in North Carolina, with offices in Catawba, Alexander, Lincoln, Mecklenburg and Iredell 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 listed on the Nasdaq Global Market under the symbol "PEBK." Statements made in this earnings 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 involve risks and uncertainties and are based on the beliefs and assumptions of management and on the information available to management at the time that this release was prepared. These statements can be identified by the use of words like "expect," "anticipate," "estimate," and "believe," variations of these words and other similar expressions. Readers should not place undue reliance on forward-looking statements as a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause actual results to differ include, but are not limited to, (1) competition in the markets served by the Bank, (2) changes in the interest rate environment, (3) general national, regional or local economic conditions may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and the possible impairment of collectibility of loans, (4) legislative or regulatory changes, including changes in accounting standards, (5) significant changes in the federal and state legal and regulatory environment and tax laws, (6) the impact of changes in monetary and fiscal policies, laws, rules and regulations and (7) other risks and factors identified in the Company's other filings with the Securities and Exchange Commission, including but not limited to those described in the Company's Annual Report on Form 10-K for the year ended December 31, 2024. Contact: William D. Cable, Sr. President and Chief Executive Officer Jeffrey N. Hooper Executive Vice President and Chief Financial Officer SOURCE: Peoples Bancorp of North Carolina, Inc. View the original press release on ACCESS Newswire

NEWTON, NC / ACCESS Newswire / July 21, 2025 / Peoples Bancorp of North Carolina, Inc. (NASDAQ:PEBK) (the "Company"), the parent company of Peoples Bank (the "Bank"), reported second quarter 2025 results with highlights as follows: Second quarter 2025 highlights: Net earnings were $5.2 million or $0.97 per share and $0.95 per diluted share for the three months ended June 30, 2025, as compared to $4.9 million or $0.93 per share and $0.89 per diluted share for the same period one year ago. Net interest margin was 3.57% for the three months ended June 30, 2025, compared to 3.35% for the three months ended June 30, 2024. Year to date highlights: Net earnings were $9.5 million or $1.79 per share and $1.74 per diluted share for the six months ended June 30, 2025, as compared to $8.8 million or $1.67 per share and $1.61 per diluted share for the same period one year ago. Cash dividends were $0.56 per share during the six months ended June 30, 2025, compared to $0.54 per share for the prior year period. Total loans were $1.16 billion at June 30, 2025, compared to $1.14 billion at December 31, 2024. Non-performing assets were $4.8 million or 0.28% of total assets at June 30, 2025, compared to $4.8 million or 0.29% of total assets at December 31, 2024. Total deposits were $1.51 billion at June 30, 2025, compared to $1.48 billion at December 31, 2024. Core deposits, a non-GAAP measure, were $1.36 billion or 90.05% of total deposits at June 30, 2025, compared to $1.34 billion or 90.17% of total deposits at December 31, 2024. Net interest margin was 3.54% for the six months ended June 30, 2025, compared to 3.34% for the six months ended June 30, 2024. Net earnings were $5.2 million or $0.97 per share and $0.95 per diluted share for the three months ended June 30, 2025, as compared to $4.9 million or $0.93 per share and $0.89 per diluted share for the prior year period. William D. Cable, Sr., President and Chief Executive Officer, attributed the increase in second quarter net earnings to increases in net interest income and non-interest income, which were partially offset by an increase in the provision for credit losses and an increase in non-interest expense, compared to the prior year period, as discussed below. Net interest income was $14.6 million for the three months ended June 30, 2025, compared to $13.4 million for the three months ended June 30, 2024. The increase in net interest income is due to a $650,000 increase in interest income and a $531,000 decrease in interest expense. The increase in interest income is primarily due to a $1.1 million increase in interest income and fees on loans, which was partially offset by a $19,000 decrease in interest income on balances due from banks and a $408,000 decrease in interest income on investment securities. The increase in interest income and fees on loans is primarily due to an increase in total loans. The decrease in interest income on balances due from banks is primarily due to rate decreases implemented by the Federal Reserve from September 2024 through December 2024. The decrease in interest income on investment securities is primarily due to a reduction in balances outstanding. The decrease in interest expense is primarily due to a decrease in rates paid on interest-bearing liabilities. Net interest income after the provision for credit losses was $14.8 million for the three months ended June 30, 2025, compared to $13.9 million for the three months ended June 30, 2024. The provision for credit losses for the three months ended June 30, 2025 was a recovery of $213,000, compared to a recovery of $468,000 for the three months ended June 30, 2024. The decrease in the recovery for credit losses is primarily attributable to a smaller reduction in reserves on construction loans during the three months ended June 30, 2025, as compared to the reduction in reserves on construction loans during the three months ended June 30, 2024. The reduction in reserves on construction loans during the three months ended June 30, 2024 was primarily due to a decrease in construction loan balances outstanding and unfunded construction loan balances during the second quarter of 2024. Non-interest income was $7.7 million for the three months ended June 30, 2025, compared to $7.5 million for the three months ended June 30, 2024. The increase in non-interest income is primarily attributable to a $792,000 increase in appraisal management fee income due to an increase in appraisal volume, which was partially offset by a $628,000 decrease in miscellaneous non-interest income primarily due to a decrease in income on small business investment company (SBIC) investments. Non-interest expense was $15.8 million for the three months ended June 30, 2025, compared to $15.1 million for the three months ended June 30, 2024. The increase in non-interest expense is primarily attributable to a $633,000 increase in appraisal management fee expense due to an increase in appraisal volume and a $341,000 increase in salaries and employee benefits expense primarily due to an increase in salary and insurance expense, which were partially offset by a $218,000 decrease in other non-interest expense primarily due to a decrease in debit card expense, and a $47,000 decrease in occupancy expense primarily due to a decrease in equipment maintenance expense. Net earnings were $9.5 million or $1.79 per share and $1.74 per diluted share for the six months ended June 30, 2025, as compared to $8.8 million or $1.67 per share and $1.61 per diluted share for the prior year period. The increase in year to date net earnings is primarily attributable to increases in net interest income and non-interest income, which were partially offset by an increase in the provision for credit losses and an increase in non-interest expense, compared to the prior year period, as discussed below. Net interest income was $28.5 million for the six months ended June 30, 2025, compared to $26.7 million for the six months ended June 30, 2024. The increase in net interest income is due to a $810,000 increase in interest income and a $1.0 million decrease in interest expense. The increase in interest income is primarily due to a $2.0 million increase in interest income and fees on loans, which was partially offset by a $576,000 decrease in interest income on balances due from banks and a $569,000 decrease in interest income on investment securities. The increase in interest income and fees on loans is primarily due to an increase in total loans. The decrease in interest income on balances due from banks is due to a reduction in balances outstanding and rate decreases implemented by the Federal Reserve from September 2024 through December 2024. The decrease in interest income on investment securities is primarily due to a reduction in balances outstanding. The decrease in interest expense is primarily due to a decrease in rates paid on interest-bearing liabilities. Net interest income after the provision for credit losses was $28.5 million for the six months ended June 30, 2025, compared to $27.1 million for the six months ended June 30, 2024. The provision for credit losses for the six months ended June 30, 2025 was an expense of $55,000, compared to a recovery of $377,000 for the six months ended June 30, 2024. The increase in the provision for credit losses is primarily attributable to a reduction in reserves on construction loans during the six months ended June 30, 2024, which was primarily due to a decrease in construction loan balances outstanding, combined with an increase in provision expense for unfunded construction loans during the six months ended June 30, 2025 resulting from an increase in unfunded commitments on construction loans. Non-interest income was $14.2 million for the six months ended June 30, 2025, compared to $13.6 million for the six months ended June 30, 2024. The increase in non-interest income is primarily attributable to a $1.4 million increase in appraisal management fee income due to an increase in appraisal volume, which was partially offset by a $802,000 decrease in miscellaneous non-interest income primarily due to a decrease in income on small business investment company (SBIC) investments. Non-interest expense was $30.4 million for the six months ended June 30, 2025, compared to $29.6 million for the six months ended June 30, 2024. The increase in non-interest expense is primarily attributable to a $1.1 million increase in appraisal management fee expense due to an increase in appraisal volume and a $149,000 increase in salaries and employee benefits expense primarily due to an increase in salary expense, which were partially offset by a $401,000 decrease in other non-interest expense primarily due to a decrease in debit card expense, and a $130,000 decrease in occupancy expense primarily due to a decrease in equipment maintenance expense. Income tax expense was $1.5 million for the three months ended June 30, 2025, compared to $1.4 million for the three months ended June 30, 2024. The effective tax rate was 22.56% for the three months ended June 30, 2025, compared to 22.09% for the three months ended June 30, 2024. Income tax expense was $2.8 million for the six months ended June 30, 2025, compared to $2.2 million for the six months ended June 30, 2024. The effective tax rate was 22.69% for the six months ended June 30, 2025, compared to 19.74% for the six months ended June 30, 2024. The increase in the effective tax rate is primarily due to a $322,000 interest receivable booked during the six months ended June 30, 2024 on a deposit for taxes paid prior to a settlement with the North Carolina Department of Revenue ("NCDOR") to withdraw the disallowance of certain tax credits previously purchased by the Bank. Total assets were $1.69 billion as of June 30, 2025, compared to $1.65 billion as of December 31, 2024. Available for sale securities were $371.6 million as of June 30, 2025, compared to $388.0 million as of December 31, 2024. Total loans were $1.16 billion as of June 30, 2025, compared to $1.14 billion at December 31, 2024. Non-performing assets were $4.8 million or 0.28% of total assets at June 30, 2025, compared to $4.8 million or 0.29% of total assets at December 31, 2024. Non-performing assets include $4.2 million in residential mortgage loans, $442,000 in commercial mortgage loans and $216,000 in other loans at June 30, 2025, compared to $3.7 million in residential mortgage loans, $463,000 in commercial mortgage loans, $257,000 in other loans, and $369,000 in other real estate owned at December 31, 2024. The allowance for credit losses on loans was $9.8 million or 0.85% of total loans at June 30, 2025, compared to $10.0 million or 0.88% of total loans at December 31, 2024. The allowance for credit losses on loans decreased $203,000 primarily due to a $90,000 decrease in the allowance on construction loans from December 31, 2024 to June 30, 2025 and the removal of the $60,000 Hurricane Helene reserve included in the allowance for credit losses at December 31, 2024. The allowance for credit losses on unfunded commitments was $1.3 million at June 30, 2025, compared to $1.1 million at December 31, 2024. The increase in the allowance for credit losses on unfunded commitments was primarily due to a $161,000 increase in the allowance for unfunded construction loans resulting from a $2.8 million increase in unfunded commitments on construction loans during the six months ended June 30, 2025. The allowance for credit losses on unfunded commitments is included in other liabilities on the Company's consolidated balance sheets. Management believes the current level of the allowance for credit losses is adequate; however, there is no guarantee that additional adjustments to the allowance will not be required because of changes in economic conditions, regulatory requirements or other factors. Deposits were $1.51 billion as of June 30, 2025, compared to $1.48 billion as of December 31, 2024. Core deposits, a non-GAAP measure, which include noninterest-bearing demand deposits, NOW, MMDA, savings and non-brokered certificates of deposit of denominations of $250,000 or less, were $1.36 billion at June 30, 2025, compared to $1.34 billion at December 31, 2024. Management believes it is useful to calculate and present core deposits because of the positive impact this low cost funding source provides to the Bank's overall cost of funds and profitability. Certificates of deposit in amounts of more than $250,000 totaled $150.6 million at June 30, 2025, compared to $145.9 million December 31, 2024. Junior subordinated debentures were $15.5 million at June 30, 2025 and December 31, 2024. Shareholders' equity was $144.0 million, or 8.50% of total assets, at June 30, 2025, compared to $130.6 million, or 7.90% of total assets, at December 31, 2024. Peoples Bank operates 16 banking offices 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 listed on the Nasdaq Global Market under the symbol "PEBK." Statements made in this earnings 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 involve risks and uncertainties and are based on the beliefs and assumptions of management and on the information available to management at the time that this release was prepared. These statements can be identified by the use of words like "expect," "anticipate," "estimate," and "believe," variations of these words and other similar expressions. Readers should not place undue reliance on forward-looking statements as a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause actual results to differ include, but are not limited to, (1) competition in the markets served by the Bank, (2) changes in the interest rate environment, (3) general national, regional or local economic conditions may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and the possible impairment of collectibility of loans, (4) legislative or regulatory changes, including changes in accounting standards, (5) significant changes in the federal and state legal and regulatory environment and tax laws, (6) the impact of changes in monetary and fiscal policies, laws, rules and regulations and (7) other risks and factors identified in the Company's other filings with the Securities and Exchange Commission, including but not limited to those described in the Company's Annual Report on Form 10-K for the year ended December 31, 2024. CONSOLIDATED BALANCE SHEETS June 30, 2025, December 31, 2024 and June 30, 2024 (Dollars in thousands) CONSOLIDATED STATEMENTS OF INCOME For the three and six months ended June 30, 2025 and 2024 (Dollars in thousands, except per share amounts) FINANCIAL HIGHLIGHTS For the three and six months ended June 30, 2025 and 2024, and the year ended December 31, 2024 (Dollars in thousands) At June 30, 2025, including non-accrual loans, there was one relationship exceeding $1.0 million in the Watch risk grade, which totaled $1.4 million; there were no relationships exceeding $1.0 million in the Substandard risk grade. At December 31, 2024, including non-accrual loans, there was one relationship exceeding $1.0 million in the Watch risk grade, which totaled $1.5 million; there were no relationships exceeding $1.0 million in the Substandard risk grade. (1) This amount reflects the tax benefit that the Company receives related to its tax-exempt loans and securities, which carry interest rates lower than similar taxable investments due to their tax-exempt status. This amount has been computed using an effective tax rate of 22.78% and is reduced by the related nondeductible portion of interest expense. (2) For the six months ended June 30, 2025 and 2024 and the year ended December 31, 2024. Contact: William D. Cable, Sr. President and Chief Executive Officer Jeffrey N. Hooper Executive Vice President and Chief Financial Officer 828-464-5620 SOURCE: Peoples Bancorp of North Carolina, Inc. View the original press release on ACCESS Newswire

NEWTON, NC / ACCESS Newswire / April 21, 2025 / Peoples Bancorp of North Carolina, Inc. (NASDAQ:PEBK) (the "Company"), the parent company of Peoples Bank (the "Bank"), reported first quarter 2025 results with highlights as follows: First quarter 2025 highlights: Net earnings were $4.3 million or $0.82 per share and $0.79 per diluted share for the three months ended March 31, 2025, as compared to $3.9 million or $0.74 per share and $0.72 per diluted share for the same period one year ago. Cash dividends were $0.36 per share for the three months ended March 31, 2025, compared to $0.35 per share for the prior year period. Total loans were $1.15 billion at March 31, 2025, compared to $1.14 billion at December 31, 2024. Non-performing assets were $5.1 million or 0.30% of total assets at March 31, 2025, compared to $4.8 million or 0.29% of total assets at December 31, 2024. Total deposits were $1.52 billion at March 31, 2025, compared to $1.48 billion at December 31, 2024. Core deposits, a non-GAAP measure, were $1.37 billion or 90.22% of total deposits at March 31, 2025, compared to $1.34 billion or 90.17% of total deposits at December 31, 2024. Net interest margin was 3.51% for the three months ended March 31, 2025, compared to 3.33% for the three months ended March 31, 2024. Net earnings were $4.3 million or $0.82 per share and $0.79 per diluted share for the three months ended March 31, 2025, as compared to $3.9 million or $0.74 per share and $0.72 per diluted share for the prior year period. William D. Cable, Sr., President and Chief Executive Officer, attributed the increase in first quarter net earnings to increases in net interest income and non-interest income, which were partially offset by an increase in the provision for credit losses and an increase in non-interest expense, compared to the prior year period, as discussed below. Net interest income was $13.9 million for the three months ended March 31, 2025, compared to $13.3 million for the three months ended March 31, 2024. The increase in net interest income is due to a $160,000 increase in interest income and a $480,000 decrease in interest expense. The increase in interest income is primarily due to a $878,000 increase in interest income and fees on loans, which was partially offset by a $557,000 decrease in interest income on balances due from banks and a $161,000 decrease in interest income on investment securities. The increase in interest income and fees on loans is primarily due to an increase in total loans. The decrease in interest income on balances due from banks is due to a reduction in balances outstanding. The decrease in interest income on investment securities is primarily due to a reduction in balances outstanding. The decrease in interest expense is primarily due to a decrease in rates paid on interest-bearing liabilities. Net interest income after the provision for credit losses was $13.7 million for the three months ended March 31, 2025, compared to $13.2 million for the three months ended March 31, 2024. The provision for credit losses for the three months ended March 31, 2025 was $268,000, compared to $91,000 for the three months ended March 31, 2024. The increase in the provision for credit losses is primarily attributable to an increase in unfunded commitments on construction loans and an increase in total loans outstanding. These increases were partially offset by the removal of the $60,000 Hurricane Helene reserve included in the allowance for credit losses at December 31, 2024. The Bank had not incurred any losses associated with Hurricane Helene as of March 31, 2025. Minimal losses are expected as a result of Hurricane Helene. Non-interest income was $6.5 million for the three months ended March 31, 2025, compared to $6.0 million for the three months ended March 31, 2024. The increase in non-interest income is primarily attributable to a $628,000 increase in appraisal management fee income due to an increase in appraisal volume, which was partially offset by a $174,000 decrease in miscellaneous non-interest income primarily due to a decrease in income on mutual funds held in the deferred compensation trust due to a decrease in valuations for the assets in the deferred compensation plan. Non-interest expense was $14.6 million for the three months ended March 31, 2025, compared to $14.5 million for the three months ended March 31, 2024. The increase in non-interest expense is primarily attributable to a $515,000 increase in appraisal management fee expense due to an increase in appraisal volume, which was partially offset by a $192,000 decrease in salaries and employee benefits expense primarily due to a decrease in insurance expense, a $183,000 decrease in other non-interest expense primarily due to a decrease in debit card fraud expense, and a $83,000 decrease in occupancy expense primarily due to a decrease in depreciation expense. Income tax expense was $1.3 million for the three months ended March 31, 2025, compared to $787,000 for the three months ended March 31, 2024. The effective tax rate was 22.85% for the three months ended March 31, 2025, compared to 16.62% for the three months ended March 31, 2024. The increase in the effective tax rate is primarily due to a $322,000 interest receivable booked during the three months ended March 31, 2024 on a deposit for taxes paid prior to a settlement with the North Carolina Department of Revenue ("NCDOR") to withdraw the disallowance of certain tax credits previously purchased by the Bank. Total assets were $1.69 billion as of March 31, 2025, compared to $1.65 billion as of December 31, 2024. Available for sale securities were $374.4 million as of March 31, 2025, compared to $388.0 million as of December 31, 2024. Total loans were $1.15 billion as of March 31, 2025, compared to $1.14 billion at December 31, 2024. Non-performing assets were $5.1 million or 0.30% of total assets at March 31, 2025, compared to $4.8 million or 0.29% of total assets at December 31, 2024. Non-performing assets include $4.2 million in residential mortgage loans, $451,000 in commercial mortgage loans, $298,000 in other loans, and $125,000 in other real estate owned at March 31, 2025, compared to $3.7 million in residential mortgage loans, $463,000 in commercial mortgage loans, $257,000 in other loans, and $369,000 in other real estate owned at December 31, 2024. The allowance for credit losses on loans was $10.0 million or 0.87% of total loans at March 31, 2025, compared to $10.0 million or 0.88% of total loans at December 31, 2024. The allowance for credit losses on loans increased $52,000 primarily due to a $4.3 million increase in the outstanding balance of construction loans from December 31, 2024 to March 31, 2025. The allowance for credit losses on unfunded commitments was $1.3 million at March 31, 2025, compared to $1.1 million at December 31, 2024. The increase in the allowance for credit losses on unfunded commitments was primarily due to a $275,000 increase in the allowance for construction loans resulting from a $11.5 million increase in unfunded commitments on construction loans during the three months ended March 31, 2025. The allowance for credit losses on unfunded commitments is included in other liabilities on the Company's consolidated balance sheets. Management believes the current level of the allowance for credit losses is adequate; however, there is no guarantee that additional adjustments to the allowance will not be required because of changes in economic conditions, regulatory requirements or other factors. Deposits were $1.52 billion as of March 31, 2025, compared to $1.48 billion as of December 31, 2024. Core deposits, a non-GAAP measure, which include noninterest-bearing demand deposits, NOW, MMDA, savings and non-brokered certificates of deposit of denominations of $250,000 or less, were $1.37 billion at March 31, 2025, compared to $1.34 billion at December 31, 2024. Management believes it is useful to calculate and present core deposits because of the positive impact this low cost funding source provides to the Bank's overall cost of funds and profitability. Certificates of deposit in amounts of more than $250,000 totaled $148.4 million at March 31, 2025, compared to $145.9 million December 31, 2024. Junior subordinated debentures were $15.5 million at March 31, 2025 and December 31, 2024. Shareholders' equity was $138.5 million, or 8.18% of total assets, at March 31, 2025, compared to $130.6 million, or 7.90% of total assets, at December 31, 2024. Peoples Bank operates 16 banking offices 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 listed on the Nasdaq Global Market under the symbol "PEBK." Statements made in this earnings 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 involve risks and uncertainties and are based on the beliefs and assumptions of management and on the information available to management at the time that this release was prepared. These statements can be identified by the use of words like "expect," "anticipate," "estimate," and "believe," variations of these words and other similar expressions. Readers should not place undue reliance on forward-looking statements as a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause actual results to differ include, but are not limited to, (1) competition in the markets served by the Bank, (2) changes in the interest rate environment, (3) general national, regional or local economic conditions may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and the possible impairment of collectibility of loans, (4) legislative or regulatory changes, including changes in accounting standards, (5) significant changes in the federal and state legal and regulatory environment and tax laws, (6) the impact of changes in monetary and fiscal policies, laws, rules and regulations and (7) other risks and factors identified in the Company's other filings with the Securities and Exchange Commission, including but not limited to those described in the Company's Annual Report on Form 10-K for the year ended December 31, 2024. Contact: William D. Cable, Sr. President and Chief Executive Officer Jeffrey N. Hooper Executive Vice President and Chief Financial Officer 828-464-5620 CONSOLIDATED BALANCE SHEETS March 31, 2025, December 31, 2024 and March 31, 2024 (Dollars in thousands) CONSOLIDATED STATEMENTS OF INCOME For the three months ended March 31, 2025 and 2024 (Dollars in thousands, except per share amounts) FINANCIAL HIGHLIGHTS For the three months ended March 31, 2025 and 2024, and the year ended December 31, 2024 (Dollars in thousands) At March 31, 2025, including non-accrual loans, there was one relationship exceeding $1.0 million in the Watch risk grade, which totaled $1.5 million; there were no relationships exceeding $1.0 million in the Substandard risk grade. At December 31, 2024, including non-accrual loans, there was one relationship exceeding $1.0 million in the Watch risk grade, which totaled $1.5 million; there were no relationships exceeding $1.0 million in the Substandard risk grade. (1) This amount reflects the tax benefit that the Company receives related to its tax-exempt loans and securities, which carry interest rates lower than similar taxable investments due to their tax-exempt status. This amount has been computed using an effective tax rate of 22.78% and is reduced by the related nondeductible portion of interest expense. (2) For the three months ended March 31, 2025 and 2024, and the year ended December 31, 2024. SOURCE: Peoples Bancorp of North Carolina, Inc. View the original press release on ACCESS Newswire