10-Q · May 7, 2026
Peoples Bancorp of North Carolina reported a solid performance for Q1 2026 with total revenue of $21,573,000 and diluted EPS of $0.80, showing a slight increase in net earnings compared to the previous year. Management…
Earnings analysis · 10-Q
PEBK earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Peoples Bancorp delivered modest year-over-year earnings growth, with Q2 diluted EPS of $0.96 versus $0.95, driven by a $1.4 million increase in net interest income and a 23-basis-point expansion in net interest margin…
Read full summary
Peoples Bancorp delivered modest year-over-year earnings growth, with Q2 diluted EPS of $0.96 versus $0.95, driven by a $1.4 million increase in net interest income and a 23-basis-point expansion in net interest margin to 3.80%. Reported operating revenue, defined as $16.0 million of net interest income plus $7.1 million of non-interest income, was $23.1 million; this is below the supplied Q1 2026 revenue history of $27 million, though the filing does not provide a directly comparable sequential revenue presentation. Loan and deposit growth, liquidity, and capital are constructive, but higher credit provisioning, rising nonperforming assets, lower appraisal fees, and higher operating costs temper the outlook. Cash-flow and capital-expenditure figures were not included in the provided filing extract, so free cash flow is null.
Reported figures
- Earnings per share
- $0.96
What stood out
-
EPS improved year over year and sequentially
Q2 diluted EPS was $0.96, up $0.01 from $0.95 in Q2 2025 and up $0.16 from $0.80 in Q1 2026. Net earnings were $5.2 million versus $5.2 million a year earlier.
-
Net interest income and margin expanded
Net interest income increased $1.4 million to $16.0 million year over year, while net yield on earning assets expanded 23 basis points to 3.80% from 3.57%. The improvement reflected an $806,000 increase in interest income and a $565,000 reduction in interest expense.
-
Loan growth was supported by core deposits
Total loans rose $75.2 million from year-end to $1.28 billion at June 30, 2026, and deposits increased $60.0 million to $1.57 billion. Core deposits grew to $1.44 billion, or 91.63% of total deposits, from $1.35 billion, or 89.44%, at year-end.
-
Liquidity capacity remains substantial
Liquidity remained ample: the Bank had $153.3 million of remaining FHLB capacity, $603.7 million of Federal Reserve borrowing availability, and a 26.07% liquidity ratio, versus its 10% policy minimum.
-
Bank remains well capitalized
Capital ratios remained well above regulatory well-capitalized thresholds: the Bank's total risk-based capital ratio was 15.42% and Tier 1 leverage ratio was 11.50% at June 30, 2026.
What to watch
-
Provision and nonperforming assets increased
Credit costs rose materially: the Q2 provision for credit losses was $293,000 versus a $213,000 recovery a year earlier, while non-performing assets increased to $5.2 million, or 0.29% of assets, from $4.2 million, or 0.25%, at year-end.
-
Appraisal-fee weakness pressured fee income
Non-interest income declined $600,000 year over year to $7.1 million, primarily because appraisal-management fee income fell $929,000 as appraisal volume decreased. For the first six months, appraisal-management fee income was down $1.4 million.
-
Expense inflation reduced returns
Q2 non-interest expense rose to $16.1 million from $15.8 million, including a $482,000 increase in occupancy expense and a $241,000 increase in debit-card expense. Six-month ROAE declined to 12.22% from 14.06%.
-
Off-balance-sheet credit exposure increased
No new risk factors were reported in Item 1A, which was marked "Not applicable." However, unfunded loan commitments increased $11.7 million to $378.3 million and the allowance on those commitments increased to $1.6 million from $1.4 million at year-end.
Management's outlook
No quantitative revenue or EPS outlook was provided. Management said it expects continued moderate economic growth in its local market; the federal-funds target range was 3.50% to 3.75% at June 30, 2026.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.