Peoples Bancorp Reports $4.4 Million Net Income in Q1 2026, Driven by Loan Growth

Peoples Bancorp of North Carolina, Inc. reported a net income of $4.4 million for the first quarter of 2026, translating to earnings of $0.83 per share, a slight increase from $4.3 million or $0.82 per share in the same period last year. The growth in profitability is primarily attributed to a rise in net interest income, which reached $15.1 million, up from $13.9 million in the prior year. This increase was driven by a $906,000 rise in interest income, despite a $253,000 decrease in interest expenses. The annualized return on average assets was 1.04%, down from 1.07% a year earlier, while the return on average shareholders' equity decreased to 11.45% from 13.52%.

The company experienced a notable increase in total loans, which rose to $1.24 billion as of March 31, 2026, compared to $1.20 billion at the end of 2025. This growth in loans led to a higher provision for credit losses, which increased to $560,000 from $268,000 in the previous year. The allowance for credit losses on loans was $10.5 million, representing 0.84% of total loans, consistent with the previous quarter. The increase in the provision was primarily due to a $38.9 million rise in total loans, reflecting a more aggressive lending strategy.

In terms of operational metrics, total deposits increased to $1.54 billion, up from $1.51 billion at the end of 2025. Core deposits, which include noninterest-bearing demand deposits and savings accounts, accounted for $1.40 billion of total deposits. The company also reported a decrease in the average rate paid on interest-bearing liabilities, which fell to 2.06% from 2.21% year-over-year. The average yield on loans increased to 5.80%, while the yield on investment securities decreased to 3.05%.

Peoples Bancorp continues to focus on maintaining a strong capital position, with shareholders' equity at $158.1 million, or 9.12% of total assets. The company remains well-capitalized, exceeding regulatory capital requirements. Looking ahead, management anticipates continued moderate economic growth in its market area, supported by stable local economic conditions. The company is committed to expanding its presence in existing markets while exploring opportunities for growth through potential acquisitions, although it does not view acquisitions as necessary for achieving reasonable returns for shareholders.