Peoples Bancorp of North Carolina reported first‑quarter 2026 results that showed net earnings of $4.4 million, or $0.83 per share, up from $4.3 million ($0.82 per share) a year earlier. The bank also raised its quarterly cash dividend to $0.38 per share, an increase from $0.36 per share in the same period last year. Net interest income climbed to $15.1 million, compared with $13.94 million a year ago, while the net interest margin improved to 3.68% from 3.51%. Total loans grew to $1.24 billion, up from $1.20 billion at the end of 2025.
The earnings lift was largely driven by higher loan growth and a modest expansion of the net interest margin. Net interest income grew 8.5% year‑over‑year, reflecting both larger loan balances and a slight uptick in effective rates. The margin improvement of 0.17 percentage points indicates a more favorable mix of higher‑margin loans, although the bank’s provision for credit losses and non‑interest expense increased, partially offsetting the earnings gain.
Peoples Bancorp’s balance sheet remained solid, with non‑performing assets at 0.28% of total assets and an allowance for credit losses at 0.84% of loans. Total assets stood at $1.73 billion and deposits at $1.54 billion as of March 31, 2026. The 3.3% quarter‑over‑quarter loan growth supports the bank’s outlook, and management expressed confidence in sustaining this trajectory, as reflected in the dividend increase.
When compared to the prior year, the first‑quarter 2026 results show a modest improvement over Q1 2025, but they fall short of the Q4 2025 earnings, which were boosted by a $3 million one‑time gain. The dividend hike signals management’s confidence in continued performance, even though no forward guidance was issued.
No analyst consensus estimates or market reaction data were available at the time of reporting, so the article focuses on the disclosed financial performance and its implications.
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