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Get filing alertsPeoples Bancorp reports Q2 2026 net income up 7% to $3.0M as net interest margin expands
Filed July 20, 2026 · Period ending July 20, 2026 · ~1 min read
Key Changes
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Net income rose to $3.0M ($0.52/share diluted) from $2.8M ($0.49/share) in Q2 2025, a 7% increase driven by improved net interest margin.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR → -
high
Net interest margin expanded to 3.62% from 3.52% year-over-year and 3.58% sequentially, reflecting higher earnings on interest-earning assets relative to funding costs.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR → -
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Non-performing assets declined to $1.9M (0.19% of total assets) from $2.0M (0.21%) a year earlier, indicating strong credit quality.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR → -
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Book value per share increased to $18.88 from $18.13 year-over-year as shareholders' equity grew to $109.0M from $104.5M.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR → -
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Loans grew 3.5% to $754.8M and deposits rose 4.0% to $896.1M year-over-year, supporting lending capacity and funding stability.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR →
Summary
Peoples Bancorp of North Carolina reported second quarter 2026 net income of $3.0 million, or $0.52 per diluted share, up 7% from $2.8 million ($0.49 per share) in the same quarter last year. The earnings improvement was driven by a 10-basis-point expansion in net interest margin to 3.62%, reflecting the bank's ability to earn more on its loan portfolio relative to deposit costs.
The margin improved both year-over-year (from 3.52%) and sequentially (from 3.58%), a positive trend for core profitability. Asset quality remained strong, with non-performing assets declining to 0.19% of total assets from 0.21% a year earlier. The bank grew its loan portfolio 3.5% to $754.8 million while deposits increased 4.0% to $896.1 million, maintaining balanced growth in both earning assets and funding.
Book value per share rose 4% to $18.88 as the bank retained earnings and built capital. For a community bank, the combination of margin expansion, credit quality stability, and modest balance sheet growth represents solid operating momentum in the current rate environment.
Section-by-Section Diff
Event · Item 2.02 — Results of Operations and Financial Condition
Item 2.02 — Results of Operations and Financial Condition filed; see Key Changes for terms.
Added in current filing · view on EDGAR → · paraphrased
Net income for the second quarter of 2026 was $3.0 million, or $0.52 per diluted share, compared to $2.8 million, or $0.49 per diluted share, for the second quarter of 2025.
Peoples Bancorp reported second quarter 2026 net income of $3.0 million ($0.52 per diluted share), up from $2.8 million ($0.49 per diluted share) in the same quarter last year. This represents a 7% increase in earnings and a 6% increase in earnings per share year-over-year.
Event · Exhibit 99.A
Peoples Bancorp reported Q2 2026 net earnings of $5.2 million ($0.98 per share), flat year-over-year, with net interest margin expanding to 3.80%.
Added in current filing · view on EDGAR →
Net earnings were $5.2 million or $0.98 per share and $0.96 per diluted share for the three months ended June 30, 2026, as compared to $5.2 million or $0.97 per share and $0.95 per diluted share for the same period one year ago.
Second quarter 2026 net earnings were essentially flat year-over-year at $5.2 million, with basic EPS rising one cent to $0.98. The company attributed the result to higher net interest income, partially offset by increased provision for credit losses, lower non-interest income, and higher non-interest expense.
Added in current filing · view on EDGAR →
Net interest margin was 3.80% for the three months ended June 30, 2026, compared to 3.57% for the three months ended June 30, 2025.
Net interest margin expanded 23 basis points year-over-year to 3.80% in Q2 2026, driven by a $1.5 million increase in loan interest income and a $565,000 decrease in interest expense. The interest expense decline reflects Federal Reserve rate cuts and an $18.8 million reduction in time deposits during the quarter.
Added in current filing · view on EDGAR →
Total loans were $1.28 billion at June 30, 2026, compared to $1.20 billion at December 31, 2025. ... The provision for credit losses for the six months ended June 30, 2026 was $853,000, compared to $55,000 for the six months ended June 30, 2025.
Total loans grew $75.2 million year-to-date to $1.28 billion, driving an $853,000 provision for credit losses in the first half of 2026 versus $55,000 in the prior year period. The allowance for credit losses on loans stood at 0.83% of total loans at June 30, 2026, down slightly from 0.84% at year-end 2025.
Added in current filing · view on EDGAR →
Non-performing assets were $5.2 million or 0.29% of total assets at June 30, 2026, compared to $4.2 million or 0.25% of total assets at December 31, 2025.
Non-performing assets increased $1.0 million from year-end 2025 to $5.2 million, or 0.29% of total assets. The increase was driven by residential mortgage loans ($4.0 million) and commercial mortgage loans ($1.1 million). Management stated the allowance for credit losses is adequate at current levels.
Added in current filing · view on EDGAR →
Total deposits were $1.57 billion at June 30, 2026, compared to $1.51 billion at December 31, 2025. ... Core deposits, a non-GAAP measure, were $1.44 billion or 91.63% of total deposits at June 30, 2026, compared to $1.35 billion or 89.44% of total deposits at December 31, 2025.
Total deposits grew $60 million year-to-date to $1.57 billion, with core deposits (noninterest-bearing demand, NOW, MMDA, savings, and small CDs) increasing to 91.63% of total deposits from 89.44% at year-end. Certificates of deposit $250,000 or more declined $29.2 million to $131.2 million, reflecting a shift toward lower-cost funding.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 28, 2026 · How we verify