Peoples Bancorp Announces Third Quarter 2026 Results

Nine-month cash dividends increased to $0.80 per share from $0.76 in the prior-year period.

Rhea-AI Summary

Peoples Bancorp of North Carolina (PEBK) reported third-quarter 2026 net earnings of $5.7 million, up from the same quarter last year. Diluted earnings per share rose to $1.05 from $0.67, while net earnings a year earlier were $3.7 million. Net interest income increased to $16.7 million from $15.1 million, and net interest margin widened to 3.85% from 3.58%.

Nine-month net earnings reached $15.4 million, versus $13.2 million a year earlier. Quarterly non-interest income fell to $6.7 million from $7.1 million, while non-interest expense declined to $15.8 million from $16.9 million. At September 30, loans were $1.30 billion and deposits were $1.57 billion, versus $1.20 billion and $1.51 billion at December 31, 2025. Non-performing assets rose to $4.3 million from $4.2 million, with their share of assets unchanged at 0.25%. The equity-to-assets ratio fell to 8.95% from 9.23%.

17 points · 0 major

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Positive

• Moderate pointThird-quarter net earnings rose to $5.7 million from $3.7 million; diluted EPS increased to $1.05 from $0.67.
• Moderate pointThird-quarter net interest income increased to $16.7 million from $15.1 million a year earlier.
• Moderate pointThird-quarter net interest margin widened to 3.85% from 3.58% a year earlier.
• Moderate pointThird-quarter non-interest expense declined to $15.8 million from $16.9 million a year earlier.
• Moderate pointTotal loans increased to $1.30 billion at September 30, 2026, from $1.20 billion at December 31, 2025.
• Moderate pointTotal deposits increased to $1.57 billion at September 30, 2026, from $1.51 billion at December 31, 2025.

11 minor points

• Minor pointNine-month net earnings rose to $15.4 million from $13.2 million; diluted EPS increased to $2.81 from $2.41.
• Minor pointNine-month net interest income increased to $47.8 million from $43.7 million a year earlier.
• Minor pointNine-month net interest margin widened to 3.78% from 3.55% a year earlier.
• Minor pointThird-quarter credit-loss provision decreased to $250,000 from $530,000 a year earlier.
• Minor pointThird-quarter net charge-offs decreased $99,000 from the same quarter in 2025.
• Minor pointNine-month non-interest expense declined to $47.2 million from $47.3 million a year earlier.
• Minor pointThird-quarter effective tax rate declined to 22.25% from 22.95%; nine-month rate fell to 22.21% from 22.77%.
• Minor pointNon-GAAP core deposits rose to $1.44 billion, or 91.90% of deposits, from $1.35 billion, or 89.44%, at year-end.
• Minor pointTotal assets increased to $1.76 billion at September 30, 2026, from $1.70 billion at December 31, 2025.
• Minor pointShareholders' equity increased to $157.7 million at September 30, 2026, from $157.1 million at December 31, 2025.
• Minor pointNine-month cash dividends increased to $0.80 per share from $0.76 in the prior-year period.

Negative

• Moderate pointThird-quarter non-interest income declined to $6.7 million from $7.1 million a year earlier.
• Moderate pointNine-month credit-loss provision increased to $1.1 million from $585,000 a year earlier, reflecting loan growth.
• Minor pointNine-month non-interest income declined to $20.3 million from $21.3 million a year earlier.
• Minor pointNon-performing assets rose to $4.3 million from $4.2 million at year-end; the asset ratio remained 0.25%.
• Minor pointLoan-loss allowance coverage declined to 0.82% of loans from 0.84% at December 31, 2025.

4 minor points

• Minor pointUnfunded-commitment credit-loss allowance increased to $1.7 million from $1.4 million at December 31, 2025.
• Minor pointEquity-to-assets ratio fell to 8.95% from 9.23% at year-end, primarily reflecting increased unrealized securities losses.
• Minor pointThird-quarter income tax expense increased to $1.6 million from $1.1 million a year earlier.
• Minor pointNine-month income tax expense increased to $4.4 million from $3.9 million a year earlier.

News Explained

The reported core-deposit share rose, while credit-loss provisioning fell for the quarter but increased year to date.

Peoples Bancorp reported third-quarter 2026 results, and it defines core deposits as noninterest-bearing demand deposits, NOW, money-market deposit accounts, savings, and non-brokered certificates of deposit below $250,000, and reported $1.44 billion in core deposits, 91.90% of deposits, at September 30, 2026, versus $1.35 billion and 89.44% at December 31, 2025.

The reported core-deposit share increased between those dates. The quarterly provision for credit losses was $250,000, versus $530,000 in the year-earlier quarter; the company attributed the decrease to lower pooled commercial-construction and non-owner-occupied commercial-real-estate loan balances and lower net charge-offs. For the first nine months, however, provision rose to $1.1 million from $585,000, which the company attributed to total-loan growth.

Key Figures

Third-quarter net earnings: $5.7 million vs. $3.7 million Third-quarter diluted EPS: $1.05 vs. $0.67 Net interest margin: 3.85% vs. 3.58% +5 more

Third-quarter net earnings

$5.7 million vs. $3.7 million

Three months ended September 30, 2026 vs. same period in 2025

Third-quarter diluted EPS

$1.05 vs. $0.67

Three months ended September 30, 2026 vs. same period in 2025

Net interest margin

3.85% vs. 3.58%

Three months ended September 30, 2026 vs. same period in 2025

Year-to-date net earnings

$15.4 million vs. $13.2 million

Nine months ended September 30, 2026 vs. same period in 2025

Year-to-date diluted EPS

$2.81 vs. $2.41

Nine months ended September 30, 2026 vs. same period in 2025

Year-to-date net interest margin

3.78% vs. 3.55%

Nine months ended September 30, 2026 vs. same period in 2025

Third-quarter net interest income

$16.7 million vs. $15.1 million

Three months ended September 30, 2026 vs. same period in 2025

Third-quarter provision for credit losses

$250,000 vs. $530,000

Three months ended September 30, 2026 vs. same period in 2025

Previous Earnings Reports

1 past event · Latest: Oct 20

Same Type 1 event

1. Oct 20

   Q3 earnings

   24h Move

   +5.9%

   Prior-year Q3 earnings were $3.7 million, while net interest margin improved to 3.58%.

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

Key Terms

non-gaap, net interest margin, non-performing assets, net charge-offs

4 terms

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

net interest margin financial

"Net interest margin was 3.85% for the three months ended September 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 $4.3 million or 0.25% 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.

net charge-offs financial

"the decrease in the provision for credit losses includes a $99,000 decrease in net charge-offs"

Net charge-offs are the amount of loans or credit a lender removes from its books as uncollectible after subtracting any money later recovered from previously written-off accounts. Think of it like a store writing off unpaid tabs but getting back a few dollars later — the net figure shows the real loss. Investors watch this to judge a lender’s loan quality, future profits and how much capital may be needed to cover bad debts.

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NEWTON, NC / ACCESS Newswire / October 19, 2026 / Peoples Bancorp of North Carolina, Inc. (NASDAQ:PEBK) (the "Company"), the parent company of Peoples Bank (the "Bank"), reported third quarter 2026 results with highlights as follows:

Third quarter 2026 highlights:

• Net earnings were $5.7 million or $1.08 per share and $1.05 per diluted share for the three months ended September 30, 2026, as compared to $3.7 million or $0.70 per share and $0.67 per diluted share for the same period one year ago.
• Net interest margin was 3.85% for the three months ended September 30, 2026, compared to 3.58% for the three months ended September 30, 2025.

Year-to-date highlights:

• Net earnings were $15.4 million or $2.89 per share and $2.81 per diluted share for the nine months ended September 30, 2026, compared to $13.2 million or $2.49 per share and $2.41 per diluted share for the same period one year ago.
• Cash dividends were $0.80 per share for the nine months ended September 30, 2026, compared to $0.76 per share for the prior year period.
• Total loans were $1.30 billion at September 30, 2026, compared to $1.20 billion at December 31, 2025.
• Non-performing assets were $4.3 million or 0.25% of total assets at September 30, 2026, compared to $4.2 million or 0.25% of total assets at December 31, 2025.
• Total deposits were $1.57 billion at September 30, 2026, compared to $1.51 billion at December 31, 2025.
• Core deposits, a non-GAAP measure, were $1.44 billion or 91.90% of total deposits at September 30, 2026, compared to $1.35 billion or 89.44% of total deposits at December 31, 2025.
• Net interest margin was 3.78% for the nine months ended September 30, 2026, compared to 3.55% for the nine months ended September 30, 2025.

Net earnings were $5.7 million or $1.08 per share and $1.05 per diluted share for the three months ended September 30, 2026, as compared to $3.7 million or $0.70 per share and $0.67 per diluted share for the same period one year ago. William D. Cable, Sr., President and Chief Executive Officer, noted third quarter net earnings reflect an increase in net interest income, a decrease in the provision for credit losses and a decrease in non-interest expense which were partially offset by a decrease in non-interest income, compared to the prior year period, as discussed below.

Net interest income was $16.7 million for the three months ended September 30, 2026, compared to $15.1 million for the three months ended September 30, 2025. The increase in net interest income is due to a $938,000 increase in interest income and a $634,000 decrease in interest expense. The increase in interest income is primarily due to a $1.9 million increase in interest income and fees on loans, which was partially offset by a $653,000 decrease in interest income on balances due from banks and a $269,000 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 from September 2025 through December 2025. 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 from September 2025 through December 2025 and a $12.2 million decrease in time deposits from June 30, 2026 to September 30, 2026. Net interest income after the provision for credit losses was $16.4 million for the three months ended September 30, 2026, compared to $14.6 million for the three months ended September 30, 2025. The provision for credit losses for the three months ended September 30, 2026 was $250,000, compared to $530,000 for the three months ended September 30, 2025. The decrease in the provision for credit losses reflects decreases of $6.8 million in pooled commercial construction loan balances and $14.7 million in pooled non-owner-occupied commercial real estate loan balances during the three months ended September 30, 2026, compared to the three months ended September 30, 2025. Additionally, the decrease in the provision for credit losses includes a $99,000 decrease in net charge-offs during the three months ended September 30, 2026, compared to the three months ended September 30, 2025.

Non-interest income was $6.7 million for the three months ended September 30, 2026, compared to $7.1 million for the three months ended September 30, 2025. The decrease in non-interest income is primarily attributable to a $718,000 decrease in appraisal management fee income due to a decrease in appraisal volume, which was partially offset by a $193,000 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.

Non-interest expense was $15.8 million for the three months ended September 30, 2026, compared to $16.9 million for the three months ended September 30, 2025. The decrease in non-interest expense is primarily attributable to a $791,000 decrease in professional fees primarily due to a decrease in legal fees, a $311,000 decrease in debit card expense and a $545,000 decrease in appraisal management fee expense due to a decrease in appraisal volume. These decreases in non-interest expense were partially offset by a $164,000 increase in occupancy expense primarily due to an increase in furniture and equipment maintenance/service contract expenses and a $261,000 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 and increases in various other expenses.

Net earnings were $15.4 million or $2.89 per share and $2.81 per diluted share for the nine months ended September 30, 2026, compared to $13.2 million or $2.49 per share and $2.41 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 and a decrease in non-interest expense, which were partially offset by an increase in the provision for credit losses and a decrease in non-interest income, compared to the prior year period, as discussed below.

Net interest income was $47.8 million for the nine months ended September 30, 2026, compared to $43.7 million for the nine months ended September 30, 2025. The increase in net interest income is due to a $2.7 million increase in interest income and a $1.5 million decrease in interest expense. The increase in interest income is primarily due to a $4.9 million increase in interest income and fees on loans, which was partially offset by a $1.3 million decrease in interest income on balances due from banks and a $942,000 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 from September 2025 through December 2025. 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 from September 2025 through December 2025 and a $58.7 million decrease in time deposits from December 31, 2025 to September 30, 2026. Net interest income after the provision for credit losses was $46.7 million for the nine months ended September 30, 2026, compared to $43.1 million for the nine months ended September 30, 2025. The provision for credit losses for the nine months ended September 30, 2026 was $1.1 million, compared to $585,000 for the nine months ended September 30, 2025. The increase in the provision for credit losses reflects continued growth in total loans, which increased $98.6 million during the nine months ended September 30, 2026, compared to an increase of $45.0 million during the nine months ended September 30, 2025.

Non-interest income was $20.3 million for the nine months ended September 30, 2026, compared to $21.3 million for the nine months ended September 30, 2025. The decrease in non-interest income is primarily attributable to a $2.1 million decrease in appraisal management fee income due to a decrease in appraisal volume, which was partially offset by a $181,000 increase in mortgage banking income due to an increase in secondary mortgage market activity and a $685,000 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 $47.2 million for the nine months ended September 30, 2026, compared to $47.3 million for the nine months ended September 30, 2025. The decrease in non-interest expense is primarily attributable to a $1.6 million decrease in appraisal management fee expense due to a decrease in appraisal volume and a $612,000 decrease in professional fees primarily due to a decrease in legal fees. These decreases in non-interest expense were partially offset by a $422,000 increase in salaries and employee benefits expense primarily due to increases in salary and restricted stock expenses, a $925,000 increase in occupancy expense primarily due to an increase in furniture and equipment maintenance/service contract expenses, a $120,000 increase in debit card expense and a $554,000 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.

Income tax expense was $1.6 million for the three months ended September 30, 2026, compared to $1.1 million for the three months ended September 30, 2025. The effective tax rate was 22.25% for the three months ended September 30, 2026, compared to 22.95% for the three months ended September 30, 2025. Income tax expense was $4.4 million for the nine months ended September 30, 2026, compared to $3.9 million for the nine months ended September 30, 2025. The effective tax rate was 22.21% for the nine months ended September 30, 2026, compared to 22.77% for the nine months ended September 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 September 30, 2026, compared to $1.70 billion as of December 31, 2025. Available for sale securities were $341.6 million as of September 30, 2026, compared to $377.4 million as of December 31, 2025. Total loans were $1.30 billion as of September 30, 2026, compared to $1.20 billion at December 31, 2025.

Non-performing assets were $4.3 million or 0.25% of total assets at September 30, 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, $668,000 in commercial mortgage loans and $114,000 in other loans at September 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 $10.7 million or 0.82% of total loans at September 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 $572,000 from December 31, 2025 to September 30, 2026 primarily due to a $98.6 million increase in total loans over the same period. The allowance for credit losses on unfunded commitments was $1.7 million at September 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 $21.3 million increase in unfunded loan commitments from December 31, 2025 to September 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 September 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 September 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 $126.9 million at September 30, 2026, compared to $160.4 million at December 31, 2025.

Junior subordinated debentures were $15.5 million at September 30, 2026 and December 31, 2025. Shareholders' equity was $157.7 million, or 8.95% of total assets, at September 30, 2026, compared to $157.1 million, or 9.23% of total assets, at December 31, 2025. The decrease in the equity-to-assets ratio is primarily due to an increase in the unrealized loss on investment securities available for sale due to rate changes between December 31, 2025 and September 30, 2026.

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
September 30, 2026, December 31, 2025 and September 30, 2025
(Dollars in thousands)

		September 30, 2026				December 31, 2025				September 30, 2025
		(Unaudited)				(Audited)				(Unaudited)
ASSETS:
Cash and due from banks		$	26,194			$	27,721			$	28,714
Interest-bearing deposits			30,956				30,384				88,302
Cash and cash equivalents			57,150				58,105				117,016
Investment securities available for sale			341,558				377,363				376,868
Other investments			2,551				2,595				2,621
Total securities			344,109				379,958				379,489
Mortgage loans held for sale			733				1,136				1,390
Loans			1,302,938				1,204,388				1,183,442
Less: Allowance for credit losses on loans			(10,698	)			(10,126	)			(10,206	)
Net loans			1,292,240				1,194,262				1,173,236
Premises and equipment, net			13,955				14,162				14,417
Cash surrender value of life insurance			18,233				17,837				17,710
Right of use lease asset			2,976				3,477				3,663
Accrued interest receivable and other assets			32,794				33,211				31,415
Total assets		$	1,762,190			$	1,702,148			$	1,738,336
LIABILITIES AND SHAREHOLDERS' EQUITY:
Deposits:
Noninterest-bearing demand		$	401,807			$	394,563			$	410,802
Interest-bearing demand, MMDA & savings			870,953				760,883				779,939
Time, $250,000 and over			126,943				160,389				160,704
Other time			168,112				193,390				201,445
Total deposits			1,567,815				1,509,225				1,552,890
Junior subordinated debentures			15,464				15,464				15,464
Lease liability			3,122				3,615				3,796
Accrued interest payable and other liabilities			18,133				16,726				16,719
Total liabilities			1,604,534				1,545,030				1,588,869
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 9/30/26, 5,459,441 shares
at 12/31/25, 5,459,441 shares at 9/30/25			48,782				48,708				48,708
Common stock held by deferred compensation trust,
at cost; 140,655 shares at 9/30/26, 150,288 shares
at 12/31/25, 150,423 shares at 9/30/25			(1,101	)			(1,510	)			(1,523	)
Deferred compensation			1,101				1,510				1,523
Retained earnings			146,635				135,645				130,105
Accumulated other comprehensive loss			(37,761	)			(27,235	)			(29,346	)
Total shareholders' equity			157,656				157,118				149,467
Total liabilities and shareholders' equity		$	1,762,190			$	1,702,148			$	1,738,336

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

		Three months ended								Nine months ended
		September 30,								September 30,
		2026				2025				2026				2025
		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
INTEREST INCOME:
Interest and fees on loans		$	19,034			$	17,174			$	54,703			$	49,838
Interest on due from banks			356				1,009				792				2,065
Interest on investment securities:
U.S. Government sponsored enterprises			1,903				1,990				5,772				6,338
State and political subdivisions			694				694				2,081				2,082
Other			356				538				1,397				1,772
Total interest income			22,343				21,405				64,745				62,095
INTEREST EXPENSE:
Interest-bearing demand, MMDA & savings deposits			3,276				2,868				9,221				8,249
Time deposits			2,155				3,174				7,107				9,459
Junior subordinated debentures			221				244				655				727
Total interest expense			5,652				6,286				16,983				18,435
NET INTEREST INCOME			16,691				15,119				47,762				43,660
PROVISION FOR CREDIT LOSSES			250				530				1,103				585
NET INTEREST INCOME AFTER
PROVISION FOR CREDIT LOSSES			16,441				14,589				46,659				43,075
NON-INTEREST INCOME:
Service charges			1,481				1,404				4,265				4,188
Other service charges and fees			178				184				528				526
Gain/(loss) on sale of securities			-				-				-				(4	)
Mortgage banking income			114				149				398				217
Insurance and brokerage commissions			301				250				818				745
Appraisal management fee income			2,883				3,601				8,547				10,616
Miscellaneous			1,732				1,539				5,746				5,061
Total non-interest income			6,689				7,127				20,302				21,349
NON-INTEREST EXPENSES:
Salaries and employee benefits			7,099				7,094				21,472				21,050
Occupancy			2,442				2,278				7,289				6,364
Professional fees			604				1,395				1,849				2,461
Advertising			317				266				807				764
Debit card expense			494				805				1,388				1,268
FDIC insurance			202				196				593				578
Appraisal management fee expense			2,313				2,858				6,846				8,433
Miscellaneous			2,293				2,032				6,973				6,419
Total non-interest expense			15,764				16,924				47,217				47,337
EARNINGS BEFORE INCOME TAXES			7,366				4,792				19,744				17,087
INCOME TAXES			1,639				1,100				4,385				3,890
NET EARNINGS		$	5,727			$	3,692			$	15,359			$	13,197
PER SHARE AMOUNTS
Basic net earnings		$	1.08			$	0.70			$	2.89			$	2.49
Diluted net earnings		$	1.05			$	0.67			$	2.81			$	2.41
Cash dividends		$	0.21			$	0.20			$	0.80			$	0.76
Book value		$	29.63			$	28.15			$	29.63			$	28.15

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

		Three months ended								Nine months ended								Year ended
		September 30,								September 30,								December 31,
		2026				2025				2026				2025				2025
		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Audited)
SELECTED AVERAGE BALANCES:
Available for sale securities		$	395,089			$	411,583			$	404,472			$	420,159			$	418,469
Loans			1,284,318				1,170,760				1,253,303				1,156,515				1,165,212
Earning assets			1,721,230				1,676,108				1,690,030				1,642,637				1,653,293
Assets			1,764,858				1,718,077				1,735,746				1,683,667				1,695,711
Deposits			1,575,059				1,545,829				1,548,838				1,516,925				1,525,479
Shareholders' equity			159,714				142,490				163,038				140,882				148,795
SELECTED KEY DATA:
Net interest margin (tax equivalent) (1)			3.85	%			3.58	%			3.78	%			3.55	%			3.57	%
Return on average assets			1.29	%			0.85	%			1.18	%			1.05	%			1.17	%
Return on average shareholders' equity			14.23	%			10.28	%			12.60	%			12.52	%			13.33	%
Average shareholders' equity to total average assets			9.05	%			8.29	%			9.39	%			8.37	%			8.77	%

		September 30, 2026				September 30, 2025				December 31, 2025
		(Unaudited)				(Unaudited)				(Audited)
ALLOWANCE FOR CREDIT LOSSES:
Allowance for credit losses on loans		$	10,698			$	10,206			$	10,126
Allowance for credit losses on unfunded commitments			1,668				1,176				1,403
Provision for credit losses (2)			1,103				585				938
Charge-offs (2)			(491	)			(533	)			(852	)
Recoveries (2)			225				234				347
ASSET QUALITY:
Non-accrual loans		$	4,347			$	5,113			$	4,176
90 days past due and still accruing			-				-				-
Other real estate owned			-				-				-
Total non-performing assets		$	4,347			$	5,113			$	4,176
Non-performing assets to total assets			0.25	%			0.29	%			0.25	%
Allowance for credit losses on loans to non-performing assets			246.10	%			199.61	%			242.48	%
Allowance for credit losses on loans to total loans			0.82	%			0.86	%			0.84	%
LOAN RISK GRADE ANALYSIS:
Percentage of loans by risk grade
Risk Grade 1 (excellent quality)			0.15	%			0.30	%			0.24	%
Risk Grade 2 (high quality)			20.22	%			20.24	%			19.42	%
Risk Grade 3 (good quality)			73.77	%			71.60	%			72.92	%
Risk Grade 4 (management attention)			5.25	%			6.94	%			6.71	%
Risk Grade 5 (watch)			0.23	%			0.41	%			0.30	%
Risk Grade 6 (substandard)			0.38	%			0.51	%			0.41	%
Risk Grade 7 (doubtful)			0.00	%			0.00	%			0.00	%
Risk Grade 8 (loss)			0.00	%			0.00	%			0.00	%

At September 30, 2026, including non-accrual loans, there were no relationships exceeding $1.0 million in either the Watch or Substandard risk grade. At September 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 in either the Watch or 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 nine months ended September 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's third-quarter 2026 earnings?

Peoples Bancorp earned $5.7 million, or $1.05 per diluted share, in the three months ended September 30, 2026. That compares with $3.7 million, or $0.67 per diluted share, in the same period of 2025.

Why did Peoples Bancorp's appraisal management income decline in third-quarter 2026?

Peoples Bancorp attributed the $718,000 year-over-year decrease in third-quarter appraisal management fee income to lower appraisal volume. Appraisal management fee expense also decreased by $545,000 because of lower volume.

What does Peoples Bancorp include in core deposits?

Peoples Bancorp's non-GAAP core deposits include noninterest-bearing demand deposits, NOW accounts, money market deposit accounts, savings and non-brokered certificates of deposit in denominations below $250,000. Management considers these deposits useful to track because it views them as a low-cost funding source supporting profitability.

Why did Peoples Bancorp's effective tax rate decline in 2026?

Peoples Bancorp attributed the lower effective tax rate primarily to North Carolina's corporate income tax rate falling from 2.25% to 2.00%, effective January 1, 2026, and revaluation of its deferred tax asset for further upcoming state rate reductions.