Peoples Bancorp Reports Third-Quarter 2026 Net Earnings of $5.7 Million
Peoples Bancorp of North Carolina reported higher quarterly and nine-month net earnings for 2026, alongside changes in lending, deposits, credit-loss provisions and non-interest income.
Peoples Bancorp of North Carolina, Inc. (NASDAQ:PEBK), the parent company of Peoples Bank, reported third-quarter 2026 results on October 19, 2026. Net earnings for the three months ended September 30, 2026 were $5.7 million, compared with $3.7 million for the same period one year ago.
Quarterly earnings were $1.08 per share and $1.05 per diluted share, compared with $0.70 per share and $0.67 per diluted share in the prior-year period. Net interest margin was 3.85% for the quarter, compared with 3.58% for the three months ended September 30, 2025.
For the nine months ended September 30, 2026, net earnings were $15.4 million, compared with $13.2 million for the same period one year ago. Earnings were $2.89 per share and $2.81 per diluted share, compared with $2.49 per share and $2.41 per diluted share. Cash dividends were $0.80 per share for the nine months, compared with $0.76 per share for the prior year period. Nine-month net interest margin was 3.78%, compared with 3.55%.
William D. Cable, Sr., President and Chief Executive Officer, said the quarterly result reflected higher net interest income, a lower provision for credit losses and lower non-interest expense. These factors were partly offset by lower non-interest income.
Net interest income was $16.7 million for the quarter, compared with $15.1 million in the prior-year period. The company attributed the change to a $938,000 increase in interest income and a $634,000 decrease in interest expense. Interest income and fees on loans increased by $1.9 million, primarily because of higher total loans. This was partly 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 provision for credit losses was $250,000, compared with $530,000 for the same period in 2025. The company associated the decrease with reductions of $6.8 million in pooled commercial construction loan balances and $14.7 million in pooled non-owner-occupied commercial real estate loan balances, along with a $99,000 decrease in net charge-offs.
Quarterly non-interest income was $6.7 million, down from $7.1 million. The company said appraisal management fee income fell by $718,000 because of lower appraisal volume, partly offset by a $193,000 increase in miscellaneous non-interest income.
Non-interest expense was $15.8 million, compared with $16.9 million. Lower professional fees, debit card expense and appraisal management fee expense contributed to the decrease. Higher occupancy expense and miscellaneous non-interest expense partly offset those reductions.
Total loans stood at $1.30 billion at September 30, 2026, compared with $1.20 billion at December 31, 2025. Total deposits were $1.57 billion, compared with $1.51 billion at the end of 2025. Core deposits, a non-GAAP measure, were $1.44 billion, or 91.90% of total deposits, compared with $1.35 billion, or 89.44% of total deposits.
Non-performing assets were $4.3 million, or 0.25% of total assets, at September 30, 2026. The comparable figures at December 31, 2025 were $4.2 million and 0.25% of total assets. The allowance for credit losses on loans was $10.7 million, or 0.82% of total loans, compared with $10.1 million, or 0.84% of total loans.
Management said it believed the current allowance for credit losses was adequate. It also stated that additional adjustments could be required because of changes in economic conditions, regulatory requirements or other factors.
Net interest income for the nine months ended September 30, 2026 was $47.8 million, compared with $43.7 million for the same period in 2025. The provision for credit losses was $1.1 million, compared with $585,000. The company attributed the higher provision to continued growth in total loans, which increased $98.6 million during the nine months.
Nine-month non-interest income was $20.3 million, compared with $21.3 million. Appraisal management fee income decreased by $2.1 million because of lower appraisal volume. Non-interest expense was $47.2 million, compared with $47.3 million, with lower appraisal management fee expense and professional fees partly offset by higher salaries and employee benefits, occupancy expense, debit card expense and miscellaneous non-interest expense.
Peoples Bank operates 15 banking offices in North Carolina across Catawba, Alexander, Lincoln, Mecklenburg and Iredell Counties. It also has loan production offices in Lincoln, Mecklenburg, Rowan and Forsyth Counties. Peoples Bancorp's common stock trades on the Nasdaq Global Market under the symbol "PEBK."
Peoples Bancorp of North Carolina, Inc. reported its third quarter 2026 results on October 19, 2026. The release covered the three months and nine months ended September 30, 2026, including earnings, balance-sheet measures, asset quality and operating results.
Peoples Bancorp of North Carolina, Inc. reported net earnings of $5.7 million for the three months ended September 30, 2026. This compared with $3.7 million for the same period one year ago; earnings were $1.08 per share and $1.05 per diluted share, compared with $0.70 per share and $0.67 per diluted share.
Peoples Bancorp of North Carolina, Inc. reported net earnings of $15.4 million for the nine months ended September 30, 2026. This compared with $13.2 million for the same period one year ago, while earnings were $2.89 per share and $2.81 per diluted share, compared with $2.49 per share and $2.41 per diluted share.
Peoples Bancorp of North Carolina, Inc. reported a net interest margin of 3.85% for the three months ended September 30, 2026. The comparable figure for the three months ended September 30, 2025 was 3.58%.
William D. Cable, Sr., President and Chief Executive Officer, said third-quarter net earnings reflected an increase in net interest income, a decrease in the provision for credit losses and a decrease in non-interest expense. He said these factors were partially offset by a decrease in non-interest income compared with the prior year period.
Peoples Bancorp of North Carolina, Inc. reported net interest income of $16.7 million for the three months ended September 30, 2026, compared with $15.1 million for the three months ended September 30, 2025. The company attributed the increase to a $938,000 increase in interest income and a $634,000 decrease in interest expense, with higher interest income and fees on loans primarily due to an increase in total loans.
Peoples Bancorp of North Carolina, Inc.'s provision for credit losses was $250,000 for the three months ended September 30, 2026, compared with $530,000 for the same period in 2025. The company attributed the decrease to 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, as well as a $99,000 decrease in net charge-offs.
Peoples Bancorp of North Carolina, Inc. reported non-interest income of $6.7 million for the three months ended September 30, 2026, compared with $7.1 million for the three months ended September 30, 2025. The company said the decrease was primarily attributable to a $718,000 decrease in appraisal management fee income due to lower appraisal volume, partially offset by a $193,000 increase in miscellaneous non-interest income.
Peoples Bancorp of North Carolina, Inc. reported non-interest expense of $15.8 million for the three months ended September 30, 2026, compared with $16.9 million for the same period in 2025. The company primarily attributed the decrease to lower professional fees, debit card expense and appraisal management fee expense, partly offset by higher occupancy expense and miscellaneous non-interest expense.
Peoples Bancorp of North Carolina, Inc. reported total loans of $1.30 billion and total deposits of $1.57 billion at September 30, 2026. The comparable figures at December 31, 2025 were $1.20 billion and $1.51 billion, respectively.
Peoples Bancorp of North Carolina, Inc. reported non-performing assets of $4.3 million, or 0.25% of total assets, at September 30, 2026. The allowance for credit losses on loans was $10.7 million, or 0.82% of total loans; management said it believed the allowance was adequate but stated that additional adjustments could be required because of economic conditions, regulatory requirements or other factors.
Peoples Bancorp of North Carolina, Inc. reported cash dividends of $0.80 per share for the nine months ended September 30, 2026. This compared with $0.76 per share for the prior year period.
Peoples Bancorp of North Carolina, Inc.'s common stock is publicly traded and listed on the Nasdaq Global Market under the symbol "PEBK."
Peoples Bank operates 15 banking offices in North Carolina, with offices in Catawba, Alexander, Lincoln, Mecklenburg and Iredell Counties. It also operates loan production offices in Lincoln, Mecklenburg, Rowan and Forsyth Counties.