Peoples Bancorp (NASDAQ:PEBK) reported fourth quarter and full year 2025 results on January 26, 2026. Q4 net earnings were $6.6 million, $1.25 per share ($1.21 diluted), versus $3.6 million a year prior. Full-year net earnings were $19.8 million, $3.74 per share ($3.62 diluted), up from $16.4 million in 2024. Total loans were $1.20 billion and total deposits $1.51 billion at December 31, 2025. Non-performing assets were $4.2 million (0.25% of assets). Shareholders' equity rose to $157.1 million (9.23% of assets). The quarter included a $3.0 million net gain from an NCDOT eminent domain acquisition.
Loading...
Loading translation...
Positive
Net earnings +20.7% year-over-year to $19.8M in 2025
Q4 net earnings doubled to $6.6M versus $3.6M prior year
Shareholders' equity +20.3% to $157.1M at 12/31/2025
Non-interest income +11.9% to $31.0M for 2025
Negative
Provision for credit losses expense of $938,000 in 2025 versus $285,000 recovery in 2024
Unfunded loan commitments increased by $18.0M from 12/31/2024 to 12/31/2025
News Market Reaction
-1.13%
1 alert
-1.13%News Effect
On the day this news was published, PEBK declined 1.13%, reflecting a mild negative market reaction.
Q4 2025 net earnings:$6.6 millionQ4 2025 EPS:$1.25 per shareFY 2025 net earnings:$19.8 million+5 more
8 metrics
Q4 2025 net earnings$6.6 millionThree months ended December 31, 2025
Q4 2025 EPS$1.25 per shareBasic EPS, three months ended December 31, 2025
FY 2025 net earnings$19.8 millionYear ended December 31, 2025
FY 2025 EPS$3.74 per shareBasic EPS, year ended December 31, 2025
Net interest margin3.62%Three months ended December 31, 2025
Total loans$1.20 billionAs of December 31, 2025
Non-performing assets ratio0.25% of total assetsAs of December 31, 2025
Shareholders’ equity ratio9.23% of total assetsAs of December 31, 2025
Market Reality Check
Price:$37.15Vol:Volume 8,248 is at 0.85x ...
normal vol
$37.15Last Close
VolumeVolume 8,248 is at 0.85x the 20-day average of 9,726, indicating subdued pre-news trading.normal
TechnicalPrice $36.30 is trading above the 200-day MA at $30.63, reflecting a pre-news longer-term uptrend.
Peers on Argus
Several regional bank peers (e.g., BVFL, CZWI, HNVR, MRBK, UBFO) showed modest d...
Several regional bank peers (e.g., BVFL, CZWI, HNVR, MRBK, UBFO) showed modest declines alongside PEBK’s -1.6% pre-news move, but no concentrated momentum signal appeared.
Common CatalystAt least one peer (CZWI) also reported earnings and dividend news, suggesting a broader regional bank earnings newsflow rather than a synchronized price move.
Q3 2024 results with higher loans, deposits, and steady asset quality.
Pattern Detected
Recent earnings releases have generally been received positively, with 4 of 5 prior earnings events showing aligned positive or mildly positive price moves and only one notable divergence.
Recent Company History
Over the past year, Peoples Bancorp has delivered a series of earnings reports with steadily improving metrics. Q1–Q3 2025 results showed rising net earnings (from $4.3M in Q1 to $5.2M in Q2 and $3.7M in Q3), expanding net interest margins up to 3.58%, and loan growth to over $1.18B. The prior full-year 2024 report highlighted net earnings of $16.4M and deposits of $1.48B. The current Q4 and full-year 2025 release continues this trajectory with higher net income and margins plus an eminent domain gain.
Historical Comparison
earnings
+2.3%
Average Historical Move
Historical Analysis
In the past five earnings releases, PEBK’s average 1-day move was about 2.31%, with mostly positive reactions to improving margins and loan growth.
Typical Pattern
Earnings from late 2024 through 2025 showed rising net income, expanding net interest margins from roughly the mid-3% range, and steady growth in loans and deposits, building into the stronger Q4 and full-year 2025 results.
Market Pulse Summary
This announcement highlights materially stronger Q4 and full-year 2025 performance, with net earning...
Analysis
This announcement highlights materially stronger Q4 and full-year 2025 performance, with net earnings of $6.6M for the quarter and $19.8M for the year, plus improved net interest margins around 3.6%. Loan balances reached $1.20B, deposits were $1.51B, and non-performing assets fell to 0.25% of total assets. A $3.0M gain from an eminent domain property boosted non-interest income. Investors may watch future margin trends, credit loss provisions, and loan growth as key metrics in upcoming quarters.
Key Terms
net interest margin, provision for credit losses, non-interest income, non-interest expense, +4 more
8 terms
net interest marginfinancial
"Net interest margin was 3.62% for the three months ended December 31, 2025"
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 December 31, 2025 was an expense of $353,000"
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-interest incomefinancial
"Non-interest income was $9.6 million for the three months ended December 31, 2025"
Non-interest income is the money a bank or financial company earns from activities other than charging interest on loans, such as service fees, account charges, trading gains, and income from managing client investments. For investors, it matters because it diversifies a firm’s revenue stream—like a store that sells both products and offers repair services—making profits less tied to lending rates and helping stability when interest-driven income falls.
non-interest expensefinancial
"Non-interest expense was $15.9 million for the three months ended December 31, 2025"
Costs a company incurs that are not related to paying or earning interest, such as wages, rent, utilities, marketing, professional fees and equipment depreciation. Investors watch these expenses because they directly reduce operating profit and reveal how efficiently a business runs—like comparing household bills aside from mortgage interest to see where you can cut costs and improve savings.
non-performing assetsfinancial
"Non-performing assets were $4.2 million or 0.25% of total assets at December 31, 2025"
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.
core depositsfinancial
"Core deposits, a non-GAAP measure, were $1.35 billion or 89.44% of total deposits"
Core deposits are the stable, everyday customer balances a bank keeps—like checking and savings accounts and regular business deposits—that are unlikely to be withdrawn suddenly. Think of them as a household’s paycheck direct-deposits: predictable, low-cost funding the bank can rely on. For investors, a larger share of core deposits means steadier cash available, lower borrowing needs and interest expenses, and therefore more predictable earnings and lower risk.
allowance for credit lossesfinancial
"The allowance for credit losses on loans was $10.1 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 December 31, 2025"
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.
AI-generated analysis. Not financial advice.
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)
December 31, 2025
December 31, 2024
(Unaudited)
(Audited)
ASSETS:
Cash and due from banks
$
27,721
$
30,919
Interest-bearing deposits
30,384
28,347
Cash and cash equivalents
58,105
59,266
Investment securities available for sale
377,363
388,003
Other investments
2,595
2,728
Total securities
379,958
390,731
Mortgage loans held for sale
1,136
1,367
Loans
1,204,388
1,138,404
Less: Allowance for credit losses on loans
(10,126
)
(9,995
)
Net loans
1,194,262
1,128,409
Premises and equipment, net
14,162
14,847
Cash surrender value of life insurance
17,837
17,675
Accrued interest receivable and other assets
36,688
39,667
Total assets
$
1,702,148
$
1,651,962
LIABILITIES AND SHAREHOLDERS' EQUITY:
Deposits:
Noninterest-bearing demand
$
394,563
$
402,254
Interest-bearing demand, MMDA & savings
760,883
741,363
Time, over $250,000
159,389
145,939
Other time
194,390
195,175
Total deposits
1,509,225
1,484,731
Securities sold under agreements to repurchase
-
-
Junior subordinated debentures
15,464
15,464
Accrued interest payable and other liabilities
20,341
21,204
Total liabilities
1,545,030
1,521,399
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
5,459,441 shares at 12/31/25,
5,457,646 shares at 12/31/24
48,708
48,658
Common stock held by deferred compensation trust,
at cost; 150,288 shares at 12/31/25, 158,580 shares
at 12/31/24
(1,510
)
(1,757
)
Deferred compensation
1,510
1,757
Retained earnings
135,645
121,062
Accumulated other comprehensive loss
(27,235
)
(39,157
)
Total shareholders' equity
157,118
130,563
Total liabilities and shareholders' equity
$
1,702,148
$
1,651,962
CONSOLIDATED STATEMENTS OF INCOME For the three months and years ended December 31, 2025 and 2024 (Dollars in thousands, except per share amounts)
Three months ended
Years ended
December 31,
December 31,
2025
2024
2025
2024
(Unaudited)
(Unaudited)
(Unaudited)
(Audited)
INTEREST INCOME:
Interest and fees on loans
$
17,413
$
16,113
$
67,251
$
62,920
Interest on due from banks
775
556
2,840
2,796
Interest on investment securities:
U.S. Government sponsored enterprises
2,073
2,334
8,411
9,979
State and political subdivisions
690
694
2,772
2,779
Other
572
689
2,344
2,259
Total interest income
21,523
20,386
83,618
80,733
INTEREST EXPENSE:
Interest-bearing demand, MMDA & savings deposits
2,864
2,847
11,113
10,237
Time deposits
3,070
3,396
12,529
14,316
Junior subordinated debentures
232
266
959
1,116
Other
-
67
-
985
Total interest expense
6,166
6,576
24,601
26,654
NET INTEREST INCOME
15,357
13,810
59,017
54,079
PROVISION FOR CREDIT LOSSES
353
(205
)
938
(285
)
NET INTEREST INCOME AFTER
PROVISION FOR CREDIT LOSSES
15,004
14,015
58,079
54,364
NON-INTEREST INCOME:
Service charges
1,391
1,452
5,579
5,653
Other service charges and fees
170
158
696
685
Gain/(loss) on sale of securities
(74
)
-
(78
)
5
Gain on sale of premises and equipment
3,009
-
3,009
-
Mortgage banking income
110
94
327
357
Insurance and brokerage commissions
281
272
1,026
989
Appraisal management fee income
3,068
3,023
13,684
11,691
Miscellaneous
1,676
2,062
6,737
8,335
Total non-interest income
9,631
7,061
30,980
27,715
NON-INTEREST EXPENSES:
Salaries and employee benefits
7,195
7,800
28,245
28,209
Occupancy
2,584
2,024
8,948
8,686
Appraisal management fee expense
2,450
2,400
10,883
9,263
Other
3,643
4,263
15,133
14,992
Total non-interest expense
15,872
16,487
63,209
61,150
EARNINGS BEFORE INCOME TAXES
8,763
4,589
25,850
20,929
INCOME TAXES
2,130
1,030
6,020
4,576
NET EARNINGS
$
6,633
$
3,559
$
19,830
$
16,353
PER SHARE AMOUNTS
Basic net earnings
$
1.25
$
0.67
$
3.74
$
3.08
Diluted net earnings
$
1.21
$
0.65
$
3.62
$
2.98
Cash dividends
$
0.20
$
0.19
$
0.96
$
0.92
Book value
$
29.59
$
24.64
$
29.59
$
24.64
FINANCIAL HIGHLIGHTS For the three months and years ended December 31, 2025 and 2024 (Dollars in thousands)
Three months ended
Years ended
December 31,
December 31,
2025
2024
2025
2024
(Unaudited)
(Unaudited)
(Unaudited)
(Audited)
SELECTED AVERAGE BALANCES:
Available for sale securities
$
413,454
$
439,338
$
418,469
$
442,097
Loans
1,191,020
1,131,787
1,165,212
1,113,488
Earning assets
1,684,913
1,620,669
1,653,293
1,611,816
Assets
1,731,451
1,662,314
1,695,711
1,653,356
Deposits
1,550,863
1,493,385
1,525,479
1,465,965
Shareholders' equity
152,593
131,522
148,795
129,866
SELECTED KEY DATA:
Net interest margin (tax equivalent) (1)
3.62
%
3.39
%
3.57
%
3.36
%
Return on average assets
1.52
%
0.85
%
1.17
%
0.99
%
Return on average shareholders' equity
17.25
%
10.77
%
13.33
%
12.59
%
Average shareholders' equity to total average assets
8.81
%
7.91
%
8.77
%
7.85
%
December 31, 2025
December 31, 2024
(Unaudited)
(Audited)
ALLOWANCE FOR CREDIT LOSSES:
Allowance for credit losses on loans
$
10,126
$
9,995
Allowance for credit losses on unfunded commitments
1,403
1,101
Provision for (recovery of) credit losses (2)
938
(285
)
Charge-offs (2)
(852
)
(1,981
)
Recoveries (2)
347
551
ASSET QUALITY:
Non-accrual loans
$
4,176
$
4,440
90 days past due and still accruing
-
-
Other real estate owned
-
369
Total non-performing assets
$
4,176
$
4,809
Non-performing assets to total assets
0.25
%
0.29
%
Allowance for credit losses on loans to non-performing assets
242.48
%
207.84
%
Allowance for credit losses on loans to total loans
0.84
%
0.88
%
LOAN RISK GRADE ANALYSIS:
Percentage of loans by risk grade
Risk Grade 1 (excellent quality)
0.24
%
0.33
%
Risk Grade 2 (high quality)
19.42
%
19.87
%
Risk Grade 3 (good quality)
72.92
%
72.24
%
Risk Grade 4 (management attention)
6.71
%
6.45
%
Risk Grade 5 (watch)
0.30
%
0.57
%
Risk Grade 6 (substandard)
0.41
%
0.54
%
Risk Grade 7 (doubtful)
0.00
%
0.00
%
Risk Grade 8 (loss)
0.00
%
0.00
%
At December 31, 2025, including non-accrual loans, there were no relationships exceeding $1.0 million Watch and Substandard risk grades. 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 years ended December 31, 2025 and 2024.
