Peoples Bancorp of North Carolina Reports $5.2 Million Net Income for Q2 2026

Peoples Bancorp of North Carolina, Inc. reported a net income of $5.2 million, or $0.98 per share, for the second quarter of 2026, reflecting a slight increase from the $5.2 million, or $0.97 per share, recorded in the same period last year. For the first half of 2026, net earnings reached $9.6 million, or $1.81 per share, compared to $9.5 million, or $1.79 per share, in the prior year. The growth in net earnings was primarily driven by an increase in net interest income, which rose to $16.0 million for the quarter, up from $14.6 million a year earlier, attributed to higher interest income from loans despite a rise in the provision for credit losses.

Total loans increased to $1.28 billion as of June 30, 2026, up from $1.20 billion at the end of 2025, with a notable growth of $75.2 million in the first half of the year. The provision for credit losses for the second quarter was $293,000, a shift from a recovery of $213,000 in the same quarter of 2025, reflecting the bank's response to the growing loan portfolio. The allowance for credit losses stood at $10.6 million, or 0.83% of total loans, compared to $10.1 million, or 0.84%, at the end of the previous year.

In terms of operational metrics, total deposits increased to $1.57 billion as of June 30, 2026, compared to $1.51 billion at the end of 2025. Core deposits, which are considered a stable funding source, rose to $1.44 billion, representing 91.63% of total deposits. The bank's non-interest income for the second quarter decreased to $7.1 million, down from $7.7 million a year earlier, primarily due to a decline in appraisal management fee income. Non-interest expenses also increased to $16.1 million, reflecting higher occupancy and employee-related costs.

Looking ahead, the bank anticipates continued moderate economic growth in its market area, supported by stable local economic conditions. Management remains focused on maintaining high levels of liquidity and managing interest rate risks while monitoring asset quality. The bank's capital ratios remain strong, with a Tier 1 capital ratio of 14.68% and a total risk-based capital ratio of 15.55% as of June 30, 2026, indicating a well-capitalized status under regulatory guidelines. The bank's strategy includes potential growth through local market expansion and maintaining a community-oriented approach to customer service.