Peoples Bancorp Announces Fourth Quarter and Full Year 2025 Results

Core Insights - Peoples Bancorp of North Carolina, Inc. reported significant growth in net earnings for the fourth quarter and full year 2025, driven by increases in net interest income and non-interest income, alongside a decrease in non-interest expenses [3][9]. Fourth Quarter 2025 Highlights - Net earnings for Q4 2025 were $6.6 million, or $1.25 per share, compared to $3.6 million, or $0.67 per share, in Q4 2024, marking an increase of 83.33% in net earnings year-over-year [3][5]. - Net interest income rose to $15.4 million in Q4 2025 from $13.8 million in Q4 2024, attributed to a $1.1 million increase in interest income and a $410,000 decrease in interest expense [4][6]. - Non-interest income increased to $9.6 million in Q4 2025 from $7.1 million in Q4 2024, primarily due to a $3.0 million net gain from the NCDOT eminent domain acquisition [7]. - Non-interest expenses decreased to $15.9 million in Q4 2025 from $16.5 million in Q4 2024, mainly due to reductions in salaries and employee benefits and legal expenses [8]. Full Year 2025 Highlights - For the full year 2025, net earnings were $19.8 million, or $3.74 per share, compared to $16.4 million, or $3.08 per share, in 2024, reflecting a 20.73% increase in net earnings [5][9]. - Total loans reached $1.20 billion at the end of 2025, up from $1.14 billion at the end of 2024, indicating a growth of 5.26% [5][14]. - Non-performing assets decreased to $4.2 million, or 0.25% of total assets, from $4.8 million, or 0.29% of total assets, year-over-year [15]. - Total deposits increased to $1.51 billion at the end of 2025 from $1.48 billion at the end of 2024, a growth of 1.89% [17]. - Shareholders' equity rose to $157.1 million, or 9.23% of total assets, compared to $130.6 million, or 7.90% of total assets, at the end of 2024 [18]. Financial Metrics - The net interest margin improved to 3.62% in Q4 2025 from 3.39% in Q4 2024, and for the full year, it increased to 3.57% from 3.36% [5][25]. - The provision for credit losses for Q4 2025 was an expense of $353,000, compared to a recovery of $205,000 in Q4 2024, indicating a shift in credit quality management [6][24]. - The allowance for credit losses on loans was $10.1 million, or 0.84% of total loans, at the end of 2025, slightly down from 0.88% at the end of 2024 [16][26].