Peoples Bancorp of North Carolina, Inc. (NASDAQ: PEBK) reported third quarter 2026 earnings of $5.7 million, or $1.08 per basic share and $1.05 per diluted share. This represents a significant increase compared to the prior year quarter, where net earnings were $3.7 million, or $0.70 per basic share and $0.67 per diluted share. For the nine months ended September 30, 2026, the company reported net earnings of $15.4 million, or $2.89 per basic share and $2.81 per diluted share, compared to $13.2 million, or $2.49 per basic share and $2.41 per diluted share for the same period in the prior year.
The company reported a net interest margin of 3.85% for the three months ended September 30, 2026, compared to 3.58% for the same period in 2025. Net interest income for the third quarter was $16.7 million, an increase of $1.6 million compared to the prior year quarter. This increase was driven by a $938,000 rise in interest income and a $634,000 decrease in interest expense. The increase in interest income was primarily attributed to higher interest income and fees on loans, which rose by $1.9 million due to an increase in total loan balances. Conversely, the decrease in interest expense was linked to lower rates paid on interest-bearing liabilities following Federal Reserve rate cuts and a $12.2 million reduction in time deposits.
Non-interest income for the third quarter was $6.7 million, a decrease of $400,000 compared to the prior year. This decline was largely due to a $718,000 drop in appraisal management fee income resulting from lower appraisal volume. Non-interest expense for the quarter was $15.8 million, a decrease of $1.1 million compared to the prior year, driven by lower professional fees and debit card expenses. The provision for credit losses for the third quarter was $250,000, a decrease of $280,000 compared to the prior year, reflecting a decrease in commercial construction and non-owner-occupied commercial real estate loan balances.
As of September 30, 2026, total assets stood at $1.76 billion, compared to $1.70 billion at December 31, 2025. Total loans increased to $1.30 billion from $1.20 billion, while total deposits were $1.57 billion, up from $1.51 billion. The company declared cash dividends of $0.80 per share for the nine months ended September 30, 2026, compared to $0.76 per share in the prior year period.
