Peoples Bancorp of North Carolina (PEBK) investor relations material

Executive summary

• Net earnings for Q2 2025 were $5.2 million ($0.97 per share, $0.95 diluted), up from $4.9 million ($0.93 per share, $0.89 diluted) year-over-year, driven by higher net interest and non-interest income, partially offset by increased provision for credit losses and non-interest expense.

• Net earnings for the six months ended June 30, 2025, were $9.5 million ($1.79 per share, $1.74 diluted), compared to $8.8 million ($1.67 per share, $1.61 diluted) for the same period in 2024.

• Annualized return on average assets was 1.15% and return on average equity was 14.06% for the six months ended June 30, 2025.

• Book value per share rose to $27.12 at June 30, 2025, from $23.49 a year earlier.

Financial highlights

• Net interest income for Q2 2025 was $14.6 million, up from $13.4 million in Q2 2024; year-to-date net interest income was $28.5 million, up from $26.7 million year-over-year.

• Net interest margin for Q2 2025 was 3.57%, up from 3.35% in Q2 2024.

• Non-interest income for Q2 2025 was $7.7 million, up from $7.5 million in Q2 2024, mainly due to higher appraisal management fee income.

• Non-interest expense for Q2 2025 was $15.8 million, up from $15.1 million in Q2 2024, primarily due to increased appraisal management fee and salary expenses.

• Total assets as of June 30, 2025, were $1.69 billion, up from $1.65 billion at December 31, 2024.

Outlook and guidance

• Management expects continued growth in local markets and through expansion opportunities, with no immediate need for acquisitions.

• The company remains focused on maintaining high liquidity, managing interest rate exposures, and monitoring asset quality to mitigate risks from economic fluctuations.

• Management expects continued impact from interest rate changes, economic conditions, and regulatory developments, with caution regarding credit quality and loan collectibility.