Peoples Bancorp of North Carolina (PEBK) investor relations material

Executive summary

• Net earnings for Q1 2026 were $4.4 million ($0.83 per share, $0.80 diluted), up from $4.3 million ($0.82 per share, $0.79 diluted) in Q1 2025, driven by higher net interest income, partially offset by increased provision for credit losses and non-interest expense.

• Annualized return on average assets was 1.04% (down from 1.07% YoY); annualized return on average equity was 11.45% (down from 13.52% YoY).

• Total assets reached $1.73 billion, with total loans at $1.24 billion and deposits at $1.54 billion as of March 31, 2026.

Financial highlights

• Net interest income rose to $15.1 million from $13.9 million YoY; net interest margin improved to 3.68% from 3.51%.

• Non-interest income was $6.5 million, with decreases in appraisal management fees offset by gains in mortgage banking and SBIC investments.

• Non-interest expense increased to $15.4 million, mainly due to higher salaries, occupancy, professional fees, and debit card expense.

• Provision for credit losses increased to $560,000 from $268,000 YoY, reflecting a $38.9 million increase in total loans.

• Book value per share rose to $29.78 from $26.14 year-over-year.

Outlook and guidance

• Management expects continued moderate economic growth in the local market area, with stable business conditions and ongoing investment.

• Management expects continued impact from interest rate changes, economic conditions, and regulatory developments.

• No significant changes to accounting policies or risk status of qualitative factors in the allowance for credit losses.

• Forward-looking statements caution about risks from competition, credit quality, and legislative changes.