Peoples Bancorp of North Carolina profit rises to $5.7 million
Key Facts
Peoples Bancorp of North Carolina's net income rose to $5.7 million in the third quarter of 2026, driven by higher interest income and lower expenses and provision for credit losses, according to the company's earnings release. The company, which trades under the ticker PEBK and is the parent of Peoples Bank, announced its results on 19 October 2026, reporting improved profitability despite a decline in noninterest income. Net income in the third quarter of 2025 was about $3.7 million, the year-earlier comparison for the current quarterly earnings. Diluted earnings per share rose to $1.05 in the third quarter of the current year. Diluted earnings per share were $0.67 in the same quarter a year earlier, according to the earnings release filed with the U.S. Securities and Exchange Commission. For the year-to-date period, the company's net income totaled $15.4 million from the start of 2026 through the end of September.
In its interest-related business, net interest margin widened to 3.85% in the third quarter of 2026, according to the company's release. The margin was 3.58% in the corresponding quarter of 2025, marking a year-over-year improvement in this part of its banking operations. Net interest income rose to $16.7 million in the third quarter of the current year compared with the same quarter a year earlier. The company's interest expense declined over the same period as net income from this activity increased. The company attributed the decline in interest expense primarily to "lower rates paid" on interest-bearing liabilities, according to its explanation in the earnings release.
By contrast, noninterest income fell to $6.7 million in the third quarter of 2026 compared with the same period a year earlier, according to the company's release. The weakness included real estate appraisal management fee income, which declined by $718,000 year over year during the quarter. The company attributed the decline in this fee income to lower real estate appraisal volumes, the factor it identified to explain the drop in revenue from this activity. On the cost side, noninterest expenses fell to $15.8 million in the third quarter of the current year compared with the same quarter a year earlier. The company said lower professional fees, card costs and appraisal costs helped reduce these expenses, alongside the improvement in funding costs.
On credit, the provision for credit losses fell to $250,000 in the third quarter of 2026 compared with the corresponding quarter a year earlier, according to the release. For the period from January through the end of September, the cumulative provision totaled $1.1 million, up year over year despite the decline in the latest quarter. The cumulative provision in the corresponding period of 2025 was about $585,000, according to the figures reported by the company. The company attributed the increase in the provision for credit losses since the start of the current year to continued loan growth. As a measure of asset quality, the ratio of nonperforming assets to total assets held steady at 0.25% on 30 September 2026 compared with its level at the end of the previous year.
On the balance sheet, the company's total loans rose to $1.30 billion as of 30 September 2026 compared with the end of the previous year, according to the earnings release. Total deposits also increased over the period from the end of the previous year through the end of September, reaching $1.57 billion. Core deposits accounted for 91.90% of total deposits on that date, according to the company's non-GAAP measure. The company's cumulative cash dividends totaled $0.80 per share for the period from January through the end of September 2026. These results are those of the parent company of Peoples Bank in North Carolina, while Peoples Bancorp Inc., a financial services company based in Marietta, Ohio, trades under the ticker PEBO.