Peoples Bancorp Announces Second Quarter 2026 Results

Peoples Bancorp of North Carolina (NASDAQ:PEBK) reported second quarter 2026 net earnings of $5.2 million, or $0.98 per share and $0.96 per diluted share, essentially unchanged from the prior-year quarter.

Rhea-AI Summary

Peoples Bancorp of North Carolina (NASDAQ:PEBK) reported second quarter 2026 net earnings of $5.2 million, or $0.98 per share and $0.96 per diluted share, essentially unchanged from the prior-year quarter. Net interest margin for Q2 2026 increased to 3.80% from 3.57% a year earlier.

For the six months ended June 30, 2026, net earnings were $9.6 million, or $1.81 per share and $1.76 per diluted share, slightly above the prior-year period. Year-to-date cash dividends were $0.59 per share, up from $0.56. Total loans reached $1.28 billion and deposits $1.57 billion at June 30, 2026, versus $1.20 billion and $1.51 billion at December 31, 2025. Non-performing assets rose to $5.2 million, or 0.29% of total assets, while the allowance for credit losses on loans increased to $10.6 million, or 0.83% of total loans.

Positive

• Net interest income Q2 2026 $16.0 million vs $14.6 million in Q2 2025
• Net interest income YTD 2026 $31.1 million vs $28.5 million prior-year period
• Net interest margin Q2 2026 3.80% vs 3.57% in Q2 2025
• Total loans $1.28 billion at June 30, 2026 vs $1.20 billion at December 31, 2025
• Total deposits $1.57 billion at June 30, 2026 vs $1.51 billion at December 31, 2025
• Cash dividends YTD 2026 $0.59 per share vs $0.56 per share prior-year
• Core deposits $1.44 billion, 91.63% of total deposits at June 30, 2026

Negative

• Provision for credit losses Q2 2026 $293,000 vs $213,000 recovery in Q2 2025
• Provision for credit losses YTD 2026 $853,000 vs $55,000 prior-year period
• Non-interest income Q2 2026 $7.1 million vs $7.7 million in Q2 2025
• Non-interest income YTD 2026 $13.6 million vs $14.2 million prior-year period
• Non-interest expense YTD 2026 $31.5 million vs $30.4 million prior-year period
• Non-performing assets ratio 0.29% of total assets vs 0.25% at December 31, 2025

News Explained

The new balance-sheet disclosure places $161.3 million of equity alongside $60,877 thousand of cash and equivalents at June 30, 2026.

Peoples Bancorp reported its second-quarter 2026 results on July 20, 2026, with the balance sheet marked unaudited at June 30, 2026; the immediate structural effect is an updated reported capital and liquidity snapshot for the company.

At June 30, 2026, shareholders’ equity was $161.3 million, or 9.14% of total assets, while cash and equivalents were $60,877 thousand.

The allowance for credit losses line item remains a specific uncertainty: management says its current level is adequate but warns that additional adjustments may be required because of economic conditions, regulatory requirements or other factors.

Argus Jul 20 session

+0.47% close to close Open Argus

Details

News Market Reaction – PEBK

On Jul 20, the day this news came out, PEBK closed 0.47% above the previous close.

Data tracked by StockTitan Argus for the Jul 20 session.

Key Figures

Net earnings: $5.2 million Diluted EPS: $0.96 Net interest margin: 3.80% +5 more

Net earnings

$5.2 million

Q2 2026, compared with $5.2 million in Q2 2025

Diluted EPS

$0.96

Q2 2026, compared with $0.95 in Q2 2025

Net interest margin

3.80%

Q2 2026, compared with 3.57% in Q2 2025

Year-to-date net earnings

$9.6 million

Six months ended June 30, 2026, compared with $9.5 million in 2025

Cash dividends

$0.59 per share

Six months ended June 30, 2026, compared with $0.56 in the prior-year period

Total loans

$1.28 billion

At June 30, 2026, compared with $1.20 billion at December 31, 2025

Non-performing assets

$5.2 million, 0.29% of total assets

At June 30, 2026, compared with $4.2 million and 0.25% at December 31, 2025

Provision for credit losses

$293,000

Q2 2026, compared with a $213,000 recovery in Q2 2025

Previous Earnings Reports

5 past events · Latest: Apr 20

Same Type 5 events

1. Apr 20

   First quarter earnings

   24h Move

   -0.6%

   Higher earnings, net interest income, loans, deposits, and margin were reported.

2. Jan 26

   Fourth quarter earnings

   24h Move

   -1.1%

   Quarterly and annual earnings increased, including a $3.0 million eminent-domain gain.

3. Oct 20

   Third quarter earnings

   24h Move

   +5.9%

   Quarterly earnings declined despite improved margin, loan growth, and an eminent-domain award.

4. Jul 21

   Second quarter earnings

   24h Move

   +3.3%

   Earnings, margin, loans, deposits, and core deposits improved year over year.

5. Apr 21

   First quarter earnings

   24h Move

   +0.2%

   Earnings, net interest income, loans, deposits, margin, and dividend increased.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

net interest margin, non-performing assets, core deposits, non-GAAP, +1 more

5 terms

net interest margin financial

"Net interest margin was 3.80% for the three months ended June 30, 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.

non-performing assets financial

"Non-performing assets were $5.2 million or 0.29% of total assets"

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 deposits financial

"Core deposits, a non-GAAP measure, were $1.44 billion"

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.

non-GAAP financial

"Core deposits, a non-GAAP measure, were $1.44 billion"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

allowance for credit losses financial

"The allowance for credit losses on loans was $10.6 million"

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.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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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 Officer
Jeffrey N. Hooper
Executive Vice President and Chief Financial Officer
828-464-5620

CONSOLIDATED BALANCE SHEETS
June 30, 2026, December 31, 2025 and June 30, 2025
(Dollars in thousands)

		June 30, 2026				December 31, 2025				June 30, 2025
		(Unaudited)				(Audited)				(Unaudited)
ASSETS:
Cash and due from banks		$	33,442			$	27,721			$	33,017
Interest-bearing deposits			27,435				30,384				68,983
Cash and cash equivalents			60,877				58,105				102,000
Investment securities available for sale			364,482				377,363				371,614
Other investments			2,577				2,595				2,648
Total securities			367,059				379,958				374,262
Mortgage loans held for sale			1,742				1,136				1,541
Loans			1,279,539				1,204,388				1,157,975
Less: Allowance for credit losses on loans			(10,630	)			(10,126	)			(9,792	)
Net loans			1,268,909				1,194,262				1,148,183
Premises and equipment, net			14,052				14,162				14,644
Cash surrender value of life insurance			18,099				17,837				17,587
Right of use lease asset			3,140				3,477				3,713
Accrued interest receivable and other assets			31,121				33,211				31,915
Total assets		$	1,764,999			$	1,702,148			$	1,693,845
LIABILITIES AND SHAREHOLDERS' EQUITY:
Deposits:
Noninterest-bearing demand		$	409,330			$	394,563			$	406,556
Interest-bearing demand, MMDA & savings			850,744				760,883				754,125
Time, $250,000 and over			131,201				160,389				150,580
Other time			176,017				193,390				202,558
Total deposits			1,567,292				1,509,225				1,513,819
Junior subordinated debentures			15,464				15,464				15,464
Lease liability			3,282				3,615				3,844
Accrued interest payable and other liabilities			17,622				16,726				16,713
Total liabilities			1,603,660				1,545,030				1,549,840
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 6/30/26, 5,459,441 shares
at 12/31/25, 5,459,441 shares at 6/30/25			48,782				48,708				48,708
Common stock held by deferred compensation trust,
at cost; 140,163 shares at 6/30/26, 150,288 shares
at 12/31/25, 150,463 shares at 6/30/25			(1,081	)			(1,510	)			(1,527	)
Deferred compensation			1,081				1,510				1,527
Retained earnings			142,055				135,645				127,506
Accumulated other comprehensive loss			(29,498	)			(27,235	)			(32,209	)
Total shareholders' equity			161,339				157,118				144,005
Total liabilities and shareholders' equity		$	1,764,999			$	1,702,148			$	1,693,845

CONSOLIDATED STATEMENTS OF INCOME
For the three and six months ended June 30, 2026 and 2025
(Dollars in thousands, except per share amounts)

		Three months ended								Six months ended
		June 30,								June 30,
		2026				2025				2026				2025
		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
INTEREST INCOME:
Interest and fees on loans		$	18,196			$	16,648			$	35,669			$	32,664
Interest on due from banks			195				706				436				1,056
Interest on investment securities:
U.S. Government sponsored enterprises			1,948				2,087				3,869				4,348
State and political subdivisions			693				694				1,387				1,388
Other			494				585				1,041				1,234
Total interest income			21,526				20,720				42,402				40,690
INTEREST EXPENSE:
Interest-bearing demand, MMDA & savings deposits			3,058				2,729				5,945				5,381
Time deposits			2,283				3,152				4,952				6,285
Junior subordinated debentures			217				242				434				483
Total interest expense			5,558				6,123				11,331				12,149
NET INTEREST INCOME			15,968				14,597				31,071				28,541
PROVISION FOR CREDIT LOSSES			293				(213	)			853				55
NET INTEREST INCOME AFTER
PROVISION FOR CREDIT LOSSES			15,675				14,810				30,218				28,486
NON-INTEREST INCOME:
Service charges			1,383				1,372				2,784				2,784
Other service charges and fees			172				156				350				342
Gain/(loss) on sale of securities			-				-				-				(4	)
Mortgage banking income			149				41				284				68
Insurance and brokerage commissions			248				258				517				495
Appraisal management fee income			3,044				3,973				5,664				7,015
Miscellaneous			2,147				1,893				4,014				3,522
Total non-interest income			7,143				7,693				13,613				14,222
NON-INTEREST EXPENSES:
Salaries and employee benefits			7,127				7,168				14,373				13,956
Occupancy			2,540				2,058				4,847				4,086
Professional fees			565				559				1,245				1,066
Advertising			231				245				490				498
Debit card expense			468				227				894				463
FDIC insurance			197				193				391				382
Appraisal management fee expense			2,438				3,156				4,533				5,575
Miscellaneous			2,522				2,234				4,680				4,387
Total non-interest expense			16,088				15,840				31,453				30,413
EARNINGS BEFORE INCOME TAXES			6,730				6,663				12,378				12,295
INCOME TAXES			1,496				1,503				2,746				2,790
NET EARNINGS		$	5,234			$	5,160			$	9,632			$	9,505
PER SHARE AMOUNTS
Basic net earnings		$	0.98			$	0.97			$	1.81			$	1.79
Diluted net earnings		$	0.96			$	0.95			$	1.76			$	1.74
Cash dividends		$	0.21			$	0.20			$	0.59			$	0.56
Book value		$	30.32			$	27.12			$	30.32			$	27.12

FINANCIAL HIGHLIGHTS
For the three and six months ended June 30, 2026 and 2025, and the year ended December 31, 2025
(Dollars in thousands)

		Three months ended								Six months ended								Year ended
		June 30,								June 30,								December 31,
		2026				2025				2026				2025				2025
		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Audited)
SELECTED AVERAGE BALANCES:
Available for sale securities		$	408,135			$	415,919			$	409,241			$	424,518			$	418,469
Loans			1,252,389				1,156,140				1,237,538				1,149,274				1,165,212
Earning assets			1,685,090				1,639,475				1,674,171				1,625,624				1,653,293
Assets			1,729,520				1,680,854				1,720,950				1,666,177				1,695,711
Deposits			1,543,197				1,513,519				1,535,510				1,502,234				1,525,479
Shareholders' equity			156,837				137,223				159,001				136,373				148,795
SELECTED KEY DATA:
Net interest margin (tax equivalent) (1)			3.80	%			3.57	%			3.74	%			3.54	%			3.57	%
Return on average assets			1.21	%			1.23	%			1.13	%			1.15	%			1.17	%
Return on average shareholders' equity			13.38	%			15.08	%			12.22	%			14.06	%			13.33	%
Average shareholders' equity to total average assets			9.07	%			8.16	%			9.24	%			8.18	%			8.77	%

		June 30, 2026				June 30, 2025				December 31, 2025
		(Unaudited)				(Unaudited)				(Audited)
ALLOWANCE FOR CREDIT LOSSES:
Allowance for credit losses on loans		$	10,630			$	9,792			$	10,126
Allowance for credit losses on unfunded commitments			1,585				1,258				1,403
Provision for credit losses (2)			293				55				938
Charge-offs (2)			(347	)			(284	)			(852	)
Recoveries (2)			180				183				347
ASSET QUALITY:
Non-accrual loans		$	5,200			$	4,822			$	4,176
90 days past due and still accruing			-				-				-
Other real estate owned			-				-				-
Total non-performing assets		$	5,200			$	4,822			$	4,176
Non-performing assets to total assets			0.29	%			0.28	%			0.25	%
Allowance for credit losses on loans to non-performing assets			204.42	%			203.07	%			242.48	%
Allowance for credit losses on loans to total loans			0.83	%			0.85	%			0.84	%
LOAN RISK GRADE ANALYSIS:
Percentage of loans by risk grade
Risk Grade 1 (excellent quality)			0.15	%			0.29	%			0.24	%
Risk Grade 2 (high quality)			20.45	%			20.23	%			19.42	%
Risk Grade 3 (good quality)			73.13	%			71.53	%			72.92	%
Risk Grade 4 (management attention)			5.59	%			6.97	%			6.71	%
Risk Grade 5 (watch)			0.22	%			0.46	%			0.30	%
Risk Grade 6 (substandard)			0.46	%			0.52	%			0.41	%
Risk Grade 7 (doubtful)			0.00	%			0.00	%			0.00	%
Risk Grade 8 (loss)			0.00	%			0.00	%			0.00	%

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

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Peoples Bancorp (NASDAQ:PEBK) Q2 2026 earnings and EPS?

Peoples Bancorp reported Q2 2026 net earnings of $5.2 million, or $0.98 per share and $0.96 per diluted share. According to the company, this compares to $5.2 million, or $0.97 per share and $0.95 per diluted share, in Q2 2025.

How did net interest margin change for Peoples Bancorp (PEBK) in Q2 2026?

Net interest margin for Peoples Bancorp rose to 3.80% in Q2 2026 from 3.57% in Q2 2025. According to the company, higher interest income on loans and lower interest expense on interest-bearing liabilities contributed to the net interest income and margin improvement.

How did Peoples Bancorp (PEBK) loans and deposits change by June 30, 2026?

As of June 30, 2026, total loans were $1.28 billion and deposits were $1.57 billion. According to Peoples Bancorp, loans rose from $1.20 billion and deposits from $1.51 billion at December 31, 2025, reflecting growth in both lending and funding bases.

What happened to non-performing assets and credit loss provisions for PEBK in 1H 2026?

Non-performing assets increased to $5.2 million, or 0.29% of total assets, at June 30, 2026. According to the company, provision for credit losses rose to $293,000 in Q2 and $853,000 year-to-date, reflecting loan growth and higher net charge-offs versus 2025 levels.

How much in dividends did Peoples Bancorp (PEBK) pay in the first half of 2026?

Peoples Bancorp paid $0.59 per share in cash dividends during the six months ended June 30, 2026. According to the company, this was an increase from $0.56 per share in the prior-year period, indicating modest growth in shareholder cash returns year over year.

What are Peoples Bancorp (PEBK) core deposits and deposit mix as of June 30, 2026?

Core deposits were $1.44 billion, representing 91.63% of total deposits at June 30, 2026. According to Peoples Bancorp, these include noninterest-bearing demand, NOW, MMDA, savings and smaller non-brokered certificates, providing a low-cost funding base; large certificates totaled $131.2 million.

How did Peoples Bancorp (PEBK) net interest income perform in the first half of 2026?

Net interest income reached $31.1 million for the six months ended June 30, 2026, up from $28.5 million a year earlier. According to the company, higher interest income on loans and reduced interest expense from lower rates and decreased time deposits drove this improvement.