Peoples Bancorp of North Carolina (PEBK) Q3 2025 earnings summary

Executive summary

• Net earnings for Q3 2025 were $3.7 million ($0.70 per share, $0.67 diluted), down from $4.0 million ($0.74 per share, $0.72 diluted) in Q3 2024, mainly due to higher provision for credit losses and non-interest expense, partially offset by higher net interest and non-interest income.

• Net earnings for the nine months ended September 30, 2025, were $13.2 million ($2.49 per share, $2.41 diluted), up from $12.8 million ($2.41 per share, $2.33 diluted) in the prior year period.

• Annualized return on average assets was 1.05% and return on average equity was 12.52% for the nine months ended September 30, 2025.

Financial highlights

• Net interest income for Q3 2025 was $15.1 million, up from $13.5 million in Q3 2024; for the nine months, $43.7 million, up from $40.3 million.

• Net interest margin for Q3 2025 was 3.58%, up from 3.35% in Q3 2024; year-to-date margin was 3.55% vs. 3.34% last year.

• Non-interest income for Q3 2025 was $7.1 million, flat year-over-year; for the nine months, $21.3 million, up from $20.7 million, driven by higher appraisal management fee income.

• Non-interest expense for Q3 2025 was $16.9 million, up from $15.0 million in Q3 2024; for the nine months, $47.3 million, up from $44.7 million.

• Cash dividends paid year-to-date were $0.76 per share, up from $0.73 per share.

Outlook and guidance

• Management expects continued moderate economic growth in local markets, with stable business conditions and no pronounced national or international economic headwinds.

• Management expects to realize an additional $3.6 million gain from a favorable legal ruling regarding a property acquired by eminent domain, pending formal order.

• No significant changes to risk factors or qualitative adjustments in the allowance for credit losses are anticipated.

• Forward-looking statements caution about risks from competition, interest rate changes, economic conditions, and regulatory changes.