People's Bancorp of North Carolina Posts Strong Q2 Results with Increased Net Interest Margin and Improved Book Value Per Share

People's Bancorp of North Carolina reported a net interest margin of 3.57% for Q2 2025, up from 3.35% in Q2 2024. The company's book value per share also increased to $27.12.

People's Bancorp of North Carolina, Inc. (NASDAQ: PEBK) reported robust financial results for the second quarter of 2025, with net earnings of $5.2 million, up 6.1% year-over-year. The company's net interest margin improved to 3.57%, a 22 basis point increase from the previous year's 3.35%.

The bank's net interest income reached $14.6 million, driven by a $650,000 increase in interest income and a $531,000 decrease in interest expense. The increase in interest income was primarily due to a $1.1 million rise in interest income and fees on loans, offset by a $19,000 decrease in interest income on balances due from banks and a $408,000 decrease in interest income on investment securities. The decrease in interest expense was primarily due to a decrease in rates paid on interest-bearing liabilities.

Peoples Bancorp's total loans grew to $1.16 billion, representing a 1.7% increase from the year-end 2024 figure of $1.14 billion. Deposits increased to $1.51 billion, a 2.0% growth from the year-end 2024 figure of $1.48 billion. Core deposits, which account for 90.05% of total deposits, stood at $1.36 billion.

The bank's allowance for credit losses was $9.8 million, or 0.85% of total loans, reflecting stable credit quality. Non-performing assets remained at $4.8 million, or 0.28% of total assets, slightly improved from the year-end 2024 figure of 0.29%.

Shareholder equity increased to $144.0 million, representing 8.50% of total assets, up from 7.90% at year-end 2024. This 60 basis point improvement in the capital ratio strengthens the bank's financial foundation and provides additional capacity for future growth opportunities.

The bank's performance demonstrates resilience in its core banking operations despite the challenging interest rate environment, with widening margins, controlled expenses, and stable asset quality positioning it well for continued growth.

References:
[1] https://www.stocktitan.net/news/PEBK/peoples-bancorp-announces-second-quarter-2025-ty1kwjvv3yzv.html