Peoples Bancorp (NASDAQ:PEBK) reported first quarter 2026 results on April 20, 2026. Net earnings were $4.4 million, or $0.83 per share (diluted $0.80), and the company paid a $0.38 cash dividend per share. Total loans rose to $1.24 billion and total deposits to $1.54 billion. Net interest income increased to $15.1 million and net interest margin was 3.68%. Non-performing assets were $4.8 million (0.28% of assets). The allowance for credit losses on loans was $10.5 million (0.84% of loans). Shareholders' equity totaled $158.1 million.
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Positive
Shareholders' equity +14.1% year-over-year to $158.1 million
Book value per share +13.9% year-over-year to $29.78
Average shareholders' equity increased +19.5% versus prior year to $155.8 million
Negative
Provision for credit losses +109% year-over-year to $560,000
Non-performing assets +14.3% quarter-over-quarter to $4.8 million
Time deposits $250k+ decreased 10.4% quarter-over-quarter to $143.7 million
News Market Reaction – PEBK
-0.57%
-0.57%Session close to close
In the Apr 20 session, PEBK declined 0.57%, reflecting a mild negative market reaction.
This announcement details Q1 2026 results with net earnings of $4.4M, higher EPS, a stronger net int...
Analysis
This announcement details Q1 2026 results with net earnings of $4.4M, higher EPS, a stronger net interest margin of 3.68%, and loan growth to $1.24B. Asset quality remains solid, with non‑performing assets at 0.28% of total assets and allowances at 0.84% of loans. Compared with prior earnings releases, the story continues to emphasize steady balance‑sheet expansion. Key factors to watch include future credit loss provisions, expense growth, and how rate changes affect loan yields and funding costs.
Key Figures
Net earnings:$4.398MBasic EPS:$0.83Diluted EPS:$0.80+5 more
8 metrics
Net earnings$4.398MQ1 2026 net earnings vs $4.345M in Q1 2025
Basic EPS$0.83Q1 2026 basic net earnings per share vs $0.82 prior year
Diluted EPS$0.80Q1 2026 diluted EPS vs $0.79 prior year
Cash dividend$0.38 per shareQ1 2026 cash dividend vs $0.36 prior-year quarter
Total loans$1.243BTotal loans at March 31, 2026 vs $1.204B at Dec 31, 2025
Net interest margin3.68%Tax-equivalent NIM Q1 2026 vs 3.51% in Q1 2025
Non-performing assets0.28% of assetsNPA ratio at March 31, 2026 vs 0.25% at Dec 31, 2025
Return on equity11.45%Q1 2026 ROE vs 13.52% in Q1 2025
Q4 and 2024 earnings growth with higher loans, deposits and core deposits.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Pattern Detected
Earnings releases have generally produced modest moves, with a mix of positive and negative single‑day reactions despite mostly constructive fundamentals.
Recent Company History
Over the last year, PEBK’s earnings reports have highlighted steady loan and deposit growth, improving net interest margin, and solid asset quality. Q2 and Q3 2025 updates showed rising loans and core deposits with non‑performing assets around 0.28% of assets. Full‑year 2025 results featured higher net earnings and equity of $157.1M. Today’s Q1 2026 release, with higher EPS, NIM at 3.68%, and continued loan growth to $1.24B, fits this trend of incremental financial strengthening.
Key Terms
net interest margin, provision for credit losses, non-performing assets, allowance for credit losses, +4 more
8 terms
net interest marginfinancial
"Net interest margin was 3.68% for the three months ended March 31, 2026..."
Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.
provision for credit lossesfinancial
"The provision for credit losses for the three months ended March 31, 2026 was $560,000..."
Provision for credit losses is an amount set aside by a financial institution to cover potential future losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution manage risks and stay financially healthy. For investors, it signals how cautious a lender is about potential loan defaults and can impact the company's profitability and financial stability.
non-performing assetsfinancial
"Non-performing assets were $4.8 million or 0.28% of total assets at March 31, 2026..."
Loans or other credit exposures that are not producing expected income because borrowers have stopped making scheduled payments for a significant period (commonly around 90 days). Think of it like a business lending money that has gone quiet — the cash flow stops while the lender still carries the debt on its books. High levels of non-performing assets matter to investors because they reduce a lender’s earnings, tie up capital that could be used for growth, and signal higher risk of future losses.
allowance for credit lossesfinancial
"The allowance for credit losses on loans was $10.5 million or 0.84% of total loans..."
Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.
junior subordinated debenturesfinancial
"Junior subordinated debentures were $15.5 million at March 31, 2026..."
A junior subordinated debenture is a long-term loan a company issues to investors that sits low in the repayment order: holders get paid after most other creditors but usually before shareholders. Because it offers higher interest to compensate for greater risk, it can boost income for investors but also carries bigger chances of loss if the issuer faces financial trouble. Think of it as standing near the back of a line for repayment — you get a bigger reward but a smaller guarantee.
mortgage banking incomefinancial
"A $108,000 increase in mortgage banking income due to an increase in secondary..."
Mortgage banking income is the money a lender or bank earns from activities tied to home loans, including fees for creating loans, fees for managing or servicing them, and gains or losses when loans are packaged and sold. Think of it like a baker who earns from baking, packaging, and selling bread: changes in interest rates or the housing market can quickly raise or lower these earnings, so investors watch it to judge a lender’s profitability and sensitivity to market swings.
other real estate ownedfinancial
"Other real estate owned | | - | | 125 | | -"
Assets a lender or financial firm holds after taking back real property through foreclosure or repossession because a borrower defaulted. Think of it like a store keeping returned items it didn’t sell — these properties are not earning interest, can be costly to maintain, and may be sold at a loss or profit, so they directly affect a lender’s balance sheet, cash flow and perceived credit risk for investors.
Form 10-Kregulatory
"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..."
A Form 10-K is a comprehensive report that publicly traded companies are required to file annually with regulators. It provides a detailed overview of a company's financial health, operations, and risks, similar to a detailed health report. Investors use this information to assess the company's performance and make informed decisions about buying or selling its stock.
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)
March 31, 2026
December 31, 2025
March 31, 2025
(Unaudited)
(Audited)
(Unaudited)
ASSETS:
Cash and due from banks
$
31,870
$
27,721
$
32,372
Interest-bearing deposits
29,386
30,384
70,148
Cash and cash equivalents
61,256
58,105
102,520
Investment securities available for sale
370,139
377,363
374,350
Other investments
2,604
2,595
2,674
Total securities
372,743
379,958
377,024
Mortgage loans held for sale
1,662
1,136
544
Loans
1,243,250
1,204,388
1,152,080
Less: Allowance for credit losses on loans
(10,458
)
(10,126
)
(10,047
)
Net loans
1,232,792
1,194,262
1,142,033
Premises and equipment, net
14,133
14,162
15,074
Cash surrender value of life insurance
17,967
17,837
17,796
Accrued interest receivable and other assets
33,925
36,688
37,994
Total assets
$
1,734,478
$
1,702,148
$
1,692,985
LIABILITIES AND SHAREHOLDERS' EQUITY:
Deposits:
Noninterest-bearing demand
$
407,979
$
394,563
$
412,761
Interest-bearing demand, MMDA & savings
806,589
760,883
756,241
Time, $250,000 and over
143,219
160,389
148,352
Other time
182,770
193,390
200,215
Total deposits
1,540,557
1,509,225
1,517,569
Junior subordinated debentures
15,464
15,464
15,464
Accrued interest payable and other liabilities
20,340
20,341
21,444
Total liabilities
1,576,361
1,545,030
1,554,477
Shareholders' equity:
Preferred stock, no par value; authorized
5,000,000 shares; no shares issued and outstanding
-
-
-
Common stock, no par value; authorized
20,000,000 shares; issued and outstanding
5,461,490 shares at 3/31/26, 5,459,441 shares
at 12/31/25, 5,459,441 shares at 3/31/25
48,782
48,708
48,708
Common stock held by deferred compensation trust,
at cost; 151,721 shares at 3/31/26, 150,288 shares
at 12/31/25, 161,680 shares at 3/31/25
(1,564
)
(1,510
)
(1,842
)
Deferred compensation
1,564
1,510
1,842
Retained earnings
137,968
135,645
123,439
Accumulated other comprehensive loss
(28,633
)
(27,235
)
(33,639
)
Total shareholders' equity
158,117
157,118
138,508
Total liabilities and shareholders' equity
$
1,734,478
$
1,702,148
$
1,692,985
CONSOLIDATED STATEMENTS OF INCOME For the three months ended March 31, 2026 and 2025 (Dollars in thousands, except per share amounts)
Three months ended
March 31,
2026
2025
(Unaudited)
(Unaudited)
INTEREST INCOME:
Interest and fees on loans
$
17,473
$
16,016
Interest on due from banks
241
350
Interest on investment securities:
U.S. Government sponsored enterprises
1,921
2,261
State and political subdivisions
694
694
Other
547
649
Total interest income
20,876
19,970
INTEREST EXPENSE:
Interest-bearing demand, MMDA & savings deposits
2,887
2,652
Time deposits
2,669
3,133
Junior subordinated debentures
217
241
Total interest expense
5,773
6,026
NET INTEREST INCOME
15,103
13,944
PROVISION FOR CREDIT LOSSES
560
268
NET INTEREST INCOME AFTER
PROVISION FOR CREDIT LOSSES
14,543
13,676
NON-INTEREST INCOME:
Service charges
1,401
1,412
Other service charges and fees
178
186
Gain/(loss) on sale of securities
-
(4
)
Mortgage banking income
135
27
Insurance and brokerage commissions
269
237
Appraisal management fee income
2,620
3,042
Miscellaneous
1,867
1,629
Total non-interest income
6,470
6,529
NON-INTEREST EXPENSES:
Salaries and employee benefits
7,246
6,788
Occupancy
2,307
2,028
Appraisal management fee expense
2,095
2,419
Other
3,717
3,338
Total non-interest expense
15,365
14,573
EARNINGS BEFORE INCOME TAXES
5,648
5,632
INCOME TAXES
1,250
1,287
NET EARNINGS
$
4,398
$
4,345
PER SHARE AMOUNTS
Basic net earnings
$
0.83
$
0.82
Diluted net earnings
$
0.80
$
0.79
Cash dividends
$
0.38
$
0.36
Book value
$
29.78
$
26.14
FINANCIAL HIGHLIGHTS For the three months ended March 31, 2026 and 2025, and the year ended December 31, 2025 (Dollars in thousands)
Three months ended
Year ended
March 31,
December 31,
2026
2025
2025
(Unaudited)
(Unaudited)
(Audited)
SELECTED AVERAGE BALANCES:
Available for sale securities
$
410,359
$
433,212
$
418,469
Loans
1,222,522
1,142,331
1,165,212
Earning assets
1,663,131
1,611,620
1,653,293
Assets
1,712,284
1,651,336
1,695,711
Deposits
1,527,738
1,490,822
1,525,479
Shareholders' equity
155,796
130,353
148,795
SELECTED KEY DATA:
Net interest margin (tax equivalent) (1)
3.68
%
3.51
%
3.57
%
Return on average assets
1.04
%
1.07
%
1.17
%
Return on average shareholders' equity
11.45
%
13.52
%
13.33
%
Average shareholders' equity to total average assets
9.10
%
7.89
%
8.77
%
March 31, 2026
March 31, 2025
December 31, 2025
(Unaudited)
(Unaudited)
(Audited)
ALLOWANCE FOR CREDIT LOSSES:
Allowance for credit losses on loans
$
10,458
$
10,047
$
10,126
Allowance for credit losses on unfunded commitments
1,563
1,286
1,403
Provision for credit losses (2)
560
268
938
Charge-offs (2)
(163
)
(112
)
(852
)
Recoveries (2)
95
81
347
ASSET QUALITY:
Non-accrual loans
$
4,846
$
4,983
$
4,176
90 days past due and still accruing
-
-
-
Other real estate owned
-
125
-
Total non-performing assets
$
4,846
$
5,108
$
4,176
Non-performing assets to total assets
0.28
%
0.30
%
0.25
%
Allowance for credit losses on loans to non-performing assets
215.81
%
196.69
%
242.48
%
Allowance for credit losses on loans to total loans
0.84
%
0.87
%
0.84
%
LOAN RISK GRADE ANALYSIS:
Percentage of loans by risk grade
Risk Grade 1 (excellent quality)
0.24
%
0.24
%
0.24
%
Risk Grade 2 (high quality)
19.66
%
19.97
%
19.42
%
Risk Grade 3 (good quality)
73.25
%
71.45
%
72.92
%
Risk Grade 4 (management attention)
6.16
%
7.35
%
6.71
%
Risk Grade 5 (watch)
0.25
%
0.42
%
0.30
%
Risk Grade 6 (substandard)
0.44
%
0.57
%
0.41
%
Risk Grade 7 (doubtful)
0.00
%
0.00
%
0.00
%
Risk Grade 8 (loss)
0.00
%
0.00
%
0.00
%
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
What were Peoples Bancorp (PEBK) net earnings for Q1 2026?
Peoples Bancorp reported net earnings of $4.4 million for Q1 2026. According to the company, that equals $0.83 per share basic and $0.80 diluted, compared to $4.3 million in Q1 2025.
How did Peoples Bancorp (PEBK) loan balances change at March 31, 2026?
Total loans increased to $1.24 billion at March 31, 2026. According to the company, loans rose from $1.20 billion at December 31, 2025, driven by higher interest income and loan originations.
What is Peoples Bancorp's (PEBK) net interest margin for Q1 2026?
Net interest margin was 3.68% for the three months ended March 31, 2026. According to the company, margin improved versus prior year due to higher net interest income and lower interest expense.
Did Peoples Bancorp (PEBK) change its dividend in Q1 2026?
Peoples Bancorp paid a $0.38 per share cash dividend for Q1 2026. According to the company, this compares with $0.36 per share in the prior-year period.
What credit trends did Peoples Bancorp (PEBK) report in Q1 2026?
The company reported non-performing assets of $4.8 million (0.28% of assets) and an allowance for credit losses on loans of $10.5 million. According to the company, provision for credit losses increased due to loan growth.
How did deposits and funding mix change at Peoples Bancorp (PEBK) in Q1 2026?
Total deposits were $1.54 billion at March 31, 2026, with core deposits of $1.40 billion. According to the company, large time deposits ($250k+) declined to $143.7 million, shifting the funding mix.
