Peoples Bancorp of North Carolina Inc【PEBK】株式ニュース

Peoples Bancorp Announces First Quarter 2026 ResultsApril 20, 2026 9:00 AM
ACCESS NewswireNEWTON, NC / ACCESS Newswire / April 20, 2026 / Peoples Bancorp of North Carolina, Inc. (NASDAQ:PEBK) (the "Company"), the parent company of Peoples Bank (the "Bank"), reported first quarter 2026 results with highlights as follows:First quarter 2026 highlights:Net earnings were $4.4 million or $0.83 per share and $0.80 per diluted share for the three months ended March 31, 2026, as compared to $4.3 million or $0.82 per share and $0.79 per diluted share for the same period one year ago.Cash dividends were $0.38 per share for the three months ended March 31, 2026, compared to $0.36 per share for the prior year period.Total loans were $1.24 billion at March 31, 2026, compared to $1.20 billion at December 31, 2025.Non-performing assets were $4.8 million or 0.28% of total assets at March 31, 2026, compared to $4.2 million or 0.25% of total assets at December 31, 2025.Total deposits were $1.54 billion at March 31, 2026, compared to $1.51 billion at December 31, 2025.Core deposits, a non-GAAP measure, were $1.40 billion or 90.70% of total deposits at March 31, 2026, compared to $1.35 billion or 89.44% of total deposits at December 31, 2025.Net interest margin was 3.68% for the three months ended March 31, 2026, compared to 3.51% for the three months ended March 31, 2025.Net earnings were $4.4 million or $0.83 per share and $0.80 per diluted share for the three months ended March 31, 2026, compared to $4.3 million or $0.82 per share and $0.79 per diluted share for the prior year period. William D. Cable, Sr., President and Chief Executive Officer, attributed the increase in first quarter net earnings to an increase in net interest income, which was partially offset by an increase in the provision for credit losses and an increase in non-interest expense, compared to the prior year period, as discussed below.Net interest income was $15.1 million for the three months ended March 31, 2026, compared to $13.9 million for the three months ended March 31, 2025. The increase in net interest income is due to a $906,000 increase in interest income and a $253,000 decrease in interest expense. The increase in interest income is primarily due to a $1.5 million increase in interest income and fees on loans, which was partially offset by a $109,000 decrease in interest income on balances due from banks and a $442,000 decrease in interest income on investment securities. The increase in interest income and fees on loans is primarily due to an increase in total loans. The decrease in interest income on balances due from banks is due to a decrease in average balances outstanding and rate decreases implemented by the Federal Reserve. The decrease in interest income on investment securities is due to a reduction in balances outstanding and decreases in yields on variable rate securities. The decrease in interest expense is primarily due to a decrease in rates paid on interest-bearing liabilities resulting from rate decreases implemented by the Federal Reserve. Net interest income after the provision for credit losses was $14.5 million for the three months ended March 31, 2026, compared to $13.7 million for the three months ended March 31, 2025. The provision for credit losses for the three months ended March 31, 2026 was $560,000, compared to $268,000 for the three months ended March 31, 2025. The increase in the provision for credit losses is primarily attributable to a $38.9 million increase in total loans from December 31, 2025 to March 31, 2026, compared to a $13.7 million increase in total loans from December 31, 2024 to March 31, 2025.Non-interest income was $6.5 million for the three months ended March 31, 2026 and 2025. A $422,000 decrease in appraisal management fee income due to a decrease in appraisal volume was partially offset by a $108,000 increase in mortgage banking income due to an increase in secondary mortgage market activity, a $238,000 increase in miscellaneous non-interest income primarily due to an increase in income on Small Business Investment Company (SBIC) investments and a $32,000 increase in insurance and brokerage commissions.Non-interest expense was $15.4 million for the three months ended March 31, 2026, compared to $14.6 million for the three months ended March 31, 2025. The increase in non-interest expense is primarily attributable to a $458,000 increase in salaries and employee benefits expense primarily due to increases in health insurance and restricted stock expenses, a $279,000 increase in occupancy expense primarily due to an increase in furniture and equipment maintenance/service contract expenses, and a $379,000 increase in other non-interest expense primarily due to increases in consulting and debit card expenses. The increases in non-interest expense were partially offset by a $324,000 decrease in appraisal management fee expense due to a decrease in appraisal volume.Income tax expense was $1.3 million for the three months ended March 31, 2026 and 2025. The effective tax rate was 22.13% for the three months ended March 31, 2026, compared to 22.85% for the three months ended March 31, 2025. The decrease in the effective tax rate is primarily due to the North Carolina corporate income tax rate decreasing from 2.25% to 2.00% effective January 1, 2026 and the revaluation of the deferred tax asset due to further upcoming reductions in the North Carolina corporate income tax rate.Total assets were $1.73 billion as of March 31, 2026, compared to $1.70 billion as of December 31, 2025. Available for sale securities were $370.1 million as of March 31, 2026, compared to $377.4 million as of December 31, 2025. Total loans were $1.24 billion as of March 31, 2026, compared to $1.20 billion at December 31, 2025.Non-performing assets were $4.8 million or 0.28% of total assets at March 31, 2026, compared to $4.2 million or 0.25% of total assets at December 31, 2025. Non-performing assets comprise $3.6 million in residential mortgage loans and $1.2 million in commercial mortgage loans at March 31, 2026, compared to $3.6 million in residential mortgage loans and $533,000 in commercial mortgage loans at December 31, 2025.The allowance for credit losses on loans was $10.5 million or 0.84% of total loans at March 31, 2026, compared to $10.1 million or 0.84% of total loans at December 31, 2025. The allowance for credit losses on loans increased $332,000 primarily due to a $38.9 million increase in total loans from December 31, 2025 to March 31, 2026. The allowance for credit losses on unfunded commitments was $1.6 million at March 31, 2026, compared to $1.4 million at December 31, 2025. The increase in the allowance for credit losses on unfunded commitments was due to a $5.7 million increase in unfunded loan commitments from December 31, 2025 to March 31, 2026. The allowance for credit losses on unfunded commitments is included in other liabilities on the Company's consolidated balance sheets. Management believes the current level of the allowance for credit losses is adequate; however, there is no guarantee that additional adjustments to the allowance will not be required because of changes in economic conditions, regulatory requirements or other factors.Deposits were $1.54 billion as of March 31, 2026, compared to $1.51 billion as of December 31, 2025. Core deposits, a non-GAAP measure, which include noninterest-bearing demand deposits, NOW, MMDA, savings and non-brokered certificates of deposit of denominations of less than $250,000, were $1.40 billion at March 31, 2026, compared to $1.35 billion at December 31, 2025. Management believes it is useful to calculate and present core deposits because of the positive impact this low cost funding source provides to the Bank's overall cost of funds and profitability. Certificates of deposit in amounts of $250,000 or more totaled $143.7 million at March 31, 2026, compared to $160.4 million December 31, 2025.Junior subordinated debentures were $15.5 million at March 31, 2026 and December 31, 2025. Shareholders' equity was $158.1 million, or 9.12% of total assets, at March 31, 2026, compared to $157.1 million, or 9.23% of total assets, at December 31, 2025.Peoples Bank operates 15 banking offices in North Carolina, with offices in Catawba, Alexander, Lincoln, Mecklenburg and Iredell Counties. The Bank also operates loan production offices in Lincoln, Mecklenburg, Rowan and Forsyth Counties. The Company's common stock is publicly traded and is listed on the Nasdaq Global Market under the symbol "PEBK."Statements made in this earnings release, other than those concerning historical information, should be considered forward-looking statements pursuant to the safe harbor provisions of the Securities Exchange Act of 1934 and the Private Securities Litigation Act of 1995. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of management and on the information available to management at the time that this release was prepared. These statements can be identified by the use of words like "expect," "anticipate," "estimate," and "believe," variations of these words and other similar expressions. Readers should not place undue reliance on forward-looking statements as a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause actual results to differ include, but are not limited to, (1) competition in the markets served by the Bank, (2) changes in the interest rate environment, (3) general national, regional or local economic conditions may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and the possible impairment of collectibility of loans, (4) legislative or regulatory changes, including changes in accounting standards, (5) significant changes in the federal and state legal and regulatory environment and tax laws, (6) the impact of changes in monetary and fiscal policies, laws, rules and regulations and (7) other risks and factors identified in the Company's other filings with the Securities and Exchange Commission, including but not limited to those described in the Company's Annual Report on Form 10-K for the year ended December 31, 2025.CONSOLIDATED BALANCE SHEETS
March 31, 2026 and 2025
(Dollars in thousands) March 31, 2026 December 31, 2025 March 31, 2025 (Unaudited) (Audited) (Unaudited) ASSETS: Cash and due from banks $31,870 $27,721 $32,372 Interest-bearing deposits 29,386 30,384 70,148 Cash and cash equivalents 61,256 58,105 102,520 Investment securities available for sale 370,139 377,363 374,350 Other investments 2,604 2,595 2,674 Total securities 372,743 379,958 377,024 Mortgage loans held for sale 1,662 1,136 544 Loans 1,243,250 1,204,388 1,152,080 Less: Allowance for credit losses on loans (10,458) (10,126) (10,047)Net loans 1,232,792 1,194,262 1,142,033 Premises and equipment, net 14,133 14,162 15,074 Cash surrender value of life insurance 17,967 17,837 17,796 Accrued interest receivable and other assets 33,925 36,688 37,994 Total assets $1,734,478 $1,702,148 $1,692,985 LIABILITIES AND SHAREHOLDERS' EQUITY: Deposits: Noninterest-bearing demand $407,979 $394,563 $412,761 Interest-bearing demand, MMDA & savings 806,589 760,883 756,241 Time, $250,000 and over 143,219 160,389 148,352 Other time 182,770 193,390 200,215 Total deposits 1,540,557 1,509,225 1,517,569 Junior subordinated debentures 15,464 15,464 15,464 Accrued interest payable and other liabilities 20,340 20,341 21,444 Total liabilities 1,576,361 1,545,030 1,554,477 Shareholders' equity: Preferred stock, no par value; authorized 5,000,000 shares; no shares issued and outstanding - - - Common stock, no par value; authorized 20,000,000 shares; issued and outstanding 5,461,490 shares at 3/31/26, 5,459,441 shares at 12/31/25, 5,459,441 shares at 3/31/25 48,782 48,708 48,708 Common stock held by deferred compensation trust, at cost; 151,721 shares at 3/31/26, 150,288 shares at 12/31/25, 161,680 shares at 3/31/25 (1,564) (1,510) (1,842)Deferred compensation 1,564 1,510 1,842 Retained earnings 137,968 135,645 123,439 Accumulated other comprehensive loss (28,633) (27,235) (33,639)Total shareholders' equity 158,117 157,118 138,508 Total liabilities and shareholders' equity $1,734,478 $1,702,148 $1,692,985 CONSOLIDATED STATEMENTS OF INCOME
For the three months ended March 31, 2026 and 2025
(Dollars in thousands, except per share amounts) Three months ended March 31, 2026 2025 (Unaudited) (Unaudited) INTEREST INCOME: Interest and fees on loans $17,473 $16,016 Interest on due from banks 241 350 Interest on investment securities: U.S. Government sponsored enterprises 1,921 2,261 State and political subdivisions 694 694 Other 547 649 Total interest income 20,876 19,970 INTEREST EXPENSE: Interest-bearing demand, MMDA & savings deposits 2,887 2,652 Time deposits 2,669 3,133 Junior subordinated debentures 217 241 Total interest expense 5,773 6,026 NET INTEREST INCOME 15,103 13,944 PROVISION FOR CREDIT LOSSES 560 268 NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 14,543 13,676 NON-INTEREST INCOME: Service charges 1,401 1,412 Other service charges and fees 178 186 Gain/(loss) on sale of securities - (4)Mortgage banking income 135 27 Insurance and brokerage commissions 269 237 Appraisal management fee income 2,620 3,042 Miscellaneous 1,867 1,629 Total non-interest income 6,470 6,529 NON-INTEREST EXPENSES: Salaries and employee benefits 7,246 6,788 Occupancy 2,307 2,028 Appraisal management fee expense 2,095 2,419 Other 3,717 3,338 Total non-interest expense 15,365 14,573 EARNINGS BEFORE INCOME TAXES 5,648 5,632 INCOME TAXES 1,250 1,287 NET EARNINGS $4,398 $4,345 PER SHARE AMOUNTS Basic net earnings $0.83 $0.82 Diluted net earnings $0.80 $0.79 Cash dividends $0.38 $0.36 Book value $29.78 $26.14 FINANCIAL HIGHLIGHTS
For the three months ended March 31, 2026 and 2025, and the year ended December 31, 2025
(Dollars in thousands) Three months ended Year ended March 31, December 31, 2026 2025 2025 (Unaudited) (Unaudited) (Audited) SELECTED AVERAGE BALANCES: Available for sale securities $410,359 $433,212 $418,469 Loans 1,222,522 1,142,331 1,165,212 Earning assets 1,663,131 1,611,620 1,653,293 Assets 1,712,284 1,651,336 1,695,711 Deposits 1,527,738 1,490,822 1,525,479 Shareholders' equity 155,796 130,353 148,795 SELECTED KEY DATA: Net interest margin (tax equivalent) (1) 3.68% 3.51% 3.57%Return on average assets 1.04% 1.07% 1.17%Return on average shareholders' equity 11.45% 13.52% 13.33%Average shareholders' equity to total average assets 9.10% 7.89% 8.77% March 31, 2026 March 31, 2025 December 31, 2025 (Unaudited) (Unaudited) (Audited) ALLOWANCE FOR CREDIT LOSSES: Allowance for credit losses on loans $10,458 $10,047 $10,126 Allowance for credit losses on unfunded commitments 1,563 1,286 1,403 Provision for credit losses (2) 560 268 938 Charge-offs (2) (163) (112) (852)Recoveries (2) 95 81 347 ASSET QUALITY: Non-accrual loans $4,846 $4,983 $4,176 90 days past due and still accruing - - - Other real estate owned - 125 - Total non-performing assets $4,846 $5,108 $4,176 Non-performing assets to total assets 0.28% 0.30% 0.25%Allowance for credit losses on loans to non-performing assets 215.81% 196.69% 242.48%Allowance for credit losses on loans to total loans 0.84% 0.87% 0.84% LOAN RISK GRADE ANALYSIS: Percentage of loans by risk grade Risk Grade 1 (excellent quality) 0.24% 0.24% 0.24%Risk Grade 2 (high quality) 19.66% 19.97% 19.42%Risk Grade 3 (good quality) 73.25% 71.45% 72.92%Risk Grade 4 (management attention) 6.16% 7.35% 6.71%Risk Grade 5 (watch) 0.25% 0.42% 0.30%Risk Grade 6 (substandard) 0.44% 0.57% 0.41%Risk Grade 7 (doubtful) 0.00% 0.00% 0.00%Risk Grade 8 (loss) 0.00% 0.00% 0.00%At March 31, 2026, including non-accrual loans, there were no relationships exceeding $1.0 million Watch and Substandard risk grades. At March 31, 2025, including non-accrual loans, there was one relationship exceeding $1.0 million in the Watch risk grade, which totaled $1.5 million; there were no relationships exceeding $1.0 million in the Substandard risk grade.(1) This amount reflects the tax benefit that the Company receives related to its tax-exempt loans and securities, which carry interest rates lower than similar taxable investments due to their tax-exempt status. This amount has been computed using an effective tax rate of 22.58% and is reduced by the related nondeductible portion of interest expense.(2) For the three months ended March 31, 2026 and 2025, and the year ended December 31, 2025.(END)CONTACT:William D. Cable, Sr.
President and Chief Executive OfficerJeffrey N. Hooper
Executive Vice President and Chief Financial Officer
828-464-5620SOURCE: Peoples Bancorp of North Carolina, Inc.View the original press release on ACCESS NewswireOriginal: Peoples Bancorp Announces First Quarter 2026 Results

Peoples Bancorp Announces Fourth Quarter and Full Year 2025 ResultsJanuary 26, 2026 2:00 PM
ACCESS NewswireNEWTON, 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
828-464-5620CONSOLIDATED 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.SOURCE: Peoples Bancorp of North Carolina, Inc.View the original press release on ACCESS NewswireOriginal: Peoples Bancorp Announces Fourth Quarter and Full Year 2025 Results