Peoples Bancorp Reports Q3 2025 Net Income of $3.7 Million, Total Assets Reach $1.74 Billion

Peoples Bancorp of North Carolina, Inc. reported its financial results for the third quarter and the first nine months of 2025, revealing a net income of $3.7 million, or $0.70 per share, for the three months ended September 30, 2025. This marks a decrease from the $4.0 million, or $0.74 per share, reported in the same period last year. For the nine months ended September 30, 2025, net earnings increased to $13.2 million, or $2.49 per share, compared to $12.8 million, or $2.41 per share, for the same period in 2024. The year-to-date increase in net earnings was primarily driven by higher net interest income and non-interest income, despite rising provisions for credit losses and non-interest expenses.

Total assets for the company reached $1.74 billion as of September 30, 2025, up from $1.65 billion at the end of 2024. The increase in total assets was largely attributed to a rise in total loans, which amounted to $1.18 billion, compared to $1.14 billion at the end of the previous fiscal year. The allowance for credit losses on loans was $10.2 million, representing 0.86% of total loans, a slight increase from $10.0 million, or 0.88%, at the end of 2024. The provision for credit losses for the third quarter was $530,000, up from $297,000 in the same quarter of the previous year, reflecting an increase in reserves on construction loans.

In terms of operational metrics, the bank's total deposits increased to $1.55 billion as of September 30, 2025, compared to $1.48 billion at the end of 2024. Core deposits, which include noninterest-bearing demand deposits and other low-cost funding sources, totaled $1.39 billion, indicating a stable funding base. The bank's non-interest income remained consistent at $7.1 million for the third quarter, with increases in appraisal management fee income offset by declines in other service charges.

Looking ahead, the company expressed optimism regarding its growth strategy, focusing on local market expansion and maintaining a strong capital position. The bank's capital ratios remain robust, with a Tier 1 capital ratio of 14.83% and a total risk-based capital ratio of 15.70% as of September 30, 2025. Management anticipates continued moderate economic growth in its markets, supported by a stable local economic environment, while remaining vigilant to external economic factors that could impact performance.