Peoples Bancorp of North Carolina, Inc. (PEBK): History, Ownership, Mission, How It Works & Makes Money

When you look at community banking, does a regional player like Peoples Bancorp of North Carolina, Inc. (PEBK) truly offer a distinct investment thesis compared to the national giants?

As of late 2025, this North Carolina-focused holding company, which operates 15 banking offices, holds a solid balance sheet with total assets of over $1.74 billion and total loans of $1.18 billion, showing a stable local footprint but also a recent dip in its net profit margin to 19.6%, according to its Q3 2025 results. To be fair, its year-to-date net earnings of $13.2 million still grew over the prior year, so the question is whether its conservative, community-focused model-making money primarily through net interest income-can continue to deliver value in a slowing growth environment where its stock trades at a compelling 9.5x price-to-earnings ratio. We need to dig into the history, ownership, and mechanics of this bank to see if it's a defintely defensive value play or a slow-growth trap.

Peoples Bancorp of North Carolina, Inc. (PEBK) History

You can't understand Peoples Bancorp of North Carolina, Inc. (PEBK) without first looking at the century-old foundation it was built upon. The company's story is one of consistent, community-focused banking, which eventually led to a strategic corporate restructuring to maximize shareholder value and operational flexibility.

The core institution, Peoples Bank, has been a fixture in the Catawba Valley region since before World War I, a testament to deep local ties and conservative management. The holding company, Peoples Bancorp, was a later, pragmatic move to better navigate the complexities of modern banking regulation and capital markets.

Given Company's Founding Timeline

Year established

The operating entity, Peoples Bank, received its state charter and commenced business in 1912. The publicly-traded parent company, Peoples Bancorp of North Carolina, Inc., was formally established much later, in 1999, to serve as the one-bank holding company for Peoples Bank.

Original location

The bank's main office and the current corporate headquarters for Peoples Bancorp of North Carolina, Inc. have always been rooted in Newton, North Carolina.

Founding team members

While the specific founders of the 1912 Peoples Bank are not widely documented in public filings, the company's long-term stability and ownership structure point to a strong family lineage. The Abernethy family has been a principal shareholder for decades, with Christine S. Abernethy owning over 10% of the common stock at the time of her passing, and her sons, Robert C. Abernethy and James S. Abernethy, currently serving on the Board of Directors. This family continuity is the real founding team legacy.

Initial capital/funding

Specific initial capital figures for the 1912 bank are not disclosed in recent filings. However, the 1999 formation of the holding company allowed the institution to access public capital markets, trading on the Nasdaq Global Market under the symbol PEBK. As of November 2025, the company commands a market capitalization of approximately $167.55 million.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The most significant shift wasn't a single acquisition, but the deliberate creation of a holding company structure and the launch of non-traditional subsidiaries. This move transformed Peoples Bank from a pure-play community bank into a financial services entity with diversified revenue streams.

• The 1999 Holding Company Formation: This was the corporate pivot. It allowed the company to raise capital more defintely and manage its regulatory obligations as a bank holding company, a structure that is now the standard for nearly all publicly-traded banks.
• The Fee Income Strategy: Establishing subsidiaries like Peoples Investment Services, Inc., Real Estate Advisory Services, Inc., and Community Bank Real Estate Solutions, LLC (CBRES) was a masterstroke. These entities generate non-interest income, insulating the company's earnings from pure interest rate risk.
• Scaling Assets Past $1.6 Billion: The company's total assets reached $1.69 billion as of March 31, 2025, with total deposits at $1.52 billion and total loans at $1.15 billion. This scale, achieved while maintaining a local focus across its 15 banking offices, shows a successful balance of growth and community service.

This steady, strategic growth is what makes the company a compelling case study. You can dive deeper into who is betting on this model in Exploring Peoples Bancorp of North Carolina, Inc. (PEBK) Investor Profile: Who's Buying and Why?

The recent declaration of a Q4 2025 cash dividend of $0.20 per share on November 21, 2025, reinforces the commitment to returning value to shareholders, a direct outcome of this long-term, conservative strategy. [cite: 11, 14 (from step 1)]

Peoples Bancorp of North Carolina, Inc. (PEBK) Ownership Structure

Peoples Bancorp of North Carolina, Inc. (PEBK) is a community bank holding company with a highly concentrated ownership structure, where insider holdings represent the majority of shares outstanding. This means the company's strategic direction is heavily influenced by its executive leadership and board members, a key factor for investors to understand.

Given Company's Current Status

Peoples Bancorp of North Carolina is a publicly traded company, with its common stock quoted on the Nasdaq Global Market under the ticker symbol PEBK. As of November 2025, the company has a market capitalization of approximately $167.55 million, reflecting its status as a smaller-cap community banking institution. Operating through its subsidiary, Peoples Bank, the company manages 15 banking offices and several loan production offices across North Carolina.

This public status ensures regulatory oversight and transparency through required filings, but the high level of insider ownership means control remains tightly held. You should read Exploring Peoples Bancorp of North Carolina, Inc. (PEBK) Investor Profile: Who's Buying and Why? for a deeper dive into the investor base.

Given Company's Ownership Breakdown

The ownership of Peoples Bancorp of North Carolina is unique for a publicly-traded entity, showing a significant concentration of shares among insiders. As of the 2025 fiscal year, insiders collectively control nearly two-thirds of the company, which defintely limits the public float (the number of shares available for trading).

Here's the quick math: when insiders hold 64.52%, they can generally pass any non-supermajority resolution without needing a single institutional or retail vote. This tight control translates directly into stable, long-term decision-making, but it also means less liquidity for traders.

Given Company's Leadership

The company is steered by a seasoned executive team, with key leadership roles confirmed as of November 2025. The board and executive team are responsible for managing the bank's $1.6 billion in assets, a figure that grew significantly under previous leadership.

• William D. 'Bill' Cable, Sr.: President and Chief Executive Officer (CEO). He assumed the role in late 2024, having served the bank since 1995.
• Jeffrey N. Hooper: Executive Vice President and Chief Financial Officer (CFO). He also serves as Corporate Treasurer and Assistant Corporate Secretary.
• Robert Abernethy: Chairman of the Board of Directors.
• Carol S. Shinn: Executive Vice President and Chief Operations Officer (COO), overseeing Information Technology and Digital Banking.
• Timothy P. Turner: Executive Vice President and Chief Credit Officer, managing the bank's loan portfolio and credit risk.

The CEO's total compensation for the 2025 fiscal year was reported at approximately $595.2 thousand, which is below the average for comparable US companies. This structure, with a long-tenured CEO and a majority-insider board, emphasizes continuity and a focus on local community banking strategy.

Peoples Bancorp of North Carolina, Inc. (PEBK) Mission and Values

Peoples Bancorp of North Carolina, Inc. (PEBK) defines its purpose beyond profit by focusing on being an exceptional community bank, with its mission centered on customer service and its vision on serving all stakeholders. This cultural DNA is the bedrock supporting its $167.55 million market capitalization as of late 2025.

You're looking for the core principles that guide a bank's operations, and for Peoples Bancorp, it's a clear-cut commitment to local service and integrity, which is defintely a differentiator in a crowded financial market. This focus helps explain why the company's stock, trading at about $30.69 per share in November 2025, maintains a steady footing.

Given Company's Core Purpose

The company's core values and mission are what truly drive daily decisions, from loan approvals to community engagement, providing a clear framework for all employees. These principles are summarized below, and you can dive deeper into the specifics here: Mission Statement, Vision, & Core Values of Peoples Bancorp of North Carolina, Inc. (PEBK).

Official mission statement

Peoples Bancorp of North Carolina, Inc.'s official mission is simple and direct, prioritizing the client interaction above all else.

• To provide exceptional customer service while selling to customer needs.

The mission isn't about maximizing sales volume; it's about making sure the services provided-whether a mortgage or a checking account-actually align with what the customer needs. It's a customer-centric approach, not just a product-pushing one.

Vision statement

The vision broadens the mission's scope to include the entire ecosystem the bank operates within, positioning it as a key community partner.

• To be the bank that's exceptional at serving our communities, including employees, customers and shareholders.

This vision directly ties the bank's success to the prosperity of its North Carolina communities. It's a balanced view, acknowledging that value must be created for shareholders-who received an annualized dividend of $0.80 per share in 2025-by first serving customers and employees well.

Given Company slogan/tagline

While not a formal, single-line slogan, the company's promise and credo revolve around a powerful, active phrase that guides internal culture and external perception.

• Be Exceptional.
• We strive to be exceptional and inspire others to be exceptional too.

This idea of being 'exceptional' is the bank's operating mantra, translating into five core values that shape its culture:

• Employees: We are informed, encouraged and committed.
• Integrity: We are fair and truthful.
• Exceptional Customer Service: We strive to surpass our customers' expectations.
• Accountability: We are accountable for our own actions and bank goals.
• Progressive and Positive: We see change as an opportunity.

Here's the quick math: if you deliver on those five values, you get the exceptional service that drives the long-term value for the holding company.

Peoples Bancorp of North Carolina, Inc. (PEBK) How It Works

Peoples Bancorp of North Carolina, Inc. (PEBK) operates as a straightforward bank holding company whose primary job is to fund local lending with local deposits, generating net interest income (NII). The company makes its money by taking in deposits, which totaled $1.55 billion as of September 30, 2025, and deploying that capital into a diverse loan portfolio, which reached $1.18 billion in the same period.

Peoples Bancorp of North Carolina, Inc.'s Product/Service Portfolio

Peoples Bancorp of North Carolina, Inc.'s Operational Framework

The company's value creation model is classic community banking, built on a local footprint and a focus on net interest income (NII). For the nine months ended September 30, 2025, net interest income climbed 8.4% to $43.7 million, showing the core lending model is working.

Here's the quick math: The bank earns a spread between the interest it pays on deposits and the interest it collects on loans, which is its net interest margin (NIM). That NIM was a healthy 3.58% in the third quarter of 2025. Also, non-interest income, like appraisal management fees and brokerage services, provides a necessary revenue buffer, holding steady at $7.1 million for Q3 2025.

Operational processes are simple, but defintely effective:

• Fund loans through a stable base of core deposits, which minimizes reliance on volatile wholesale funding.
• Distribute products through a network of 15 banking offices and several loan production offices across five North Carolina counties.
• Manage credit risk carefully; non-performing assets were kept low at just 0.29% of total assets as of September 30, 2025.
• Use subsidiary operations, like Peoples Investment Services, Inc., to add fee-based revenue streams beyond traditional lending.

Peoples Bancorp of North Carolina, Inc.'s Strategic Advantages

You're looking at a regional bank that thrives on local knowledge and stability, not scale. Its competitive edge isn't a complex trading algorithm; it's its deep roots in the North Carolina communities it serves. The bank has been in business since 1912, and that longevity builds trust that larger, national banks can't easily replicate.

The company is positioned as a value play right now. The stock's Price-To-Earnings (P/E) Ratio of 9.5x sits below the US Banks industry average of 11.2x, suggesting it may be undervalued compared to its peers. Plus, a five-year average annual earnings growth of 5.8% shows a consistent track record of profitability, even if short-term growth has slowed a bit.

• Hyper-Local Focus: Operating entirely within North Carolina, allowing for nuanced credit decisions and strong customer relationships in counties like Catawba and Mecklenburg.
• Superior Asset Quality: A non-performing asset ratio of just 0.29% of total assets as of Q3 2025 demonstrates exceptional underwriting discipline.
• Fee Income Diversification: Revenue from non-banking subsidiaries (investment and appraisal services) provides a stable, non-interest income stream.
• Attractive Valuation: Trading at a P/E of 9.5x as of October 2025, which appeals to value-focused investors seeking defensive holdings.

To understand the foundation of their long-term strategy, you should review their core principles: Mission Statement, Vision, & Core Values of Peoples Bancorp of North Carolina, Inc. (PEBK).

Next step: Analyst team: model a scenario where the NIM contracts by 25 basis points to assess the impact on the year-end net earnings forecast by Friday.

Peoples Bancorp of North Carolina, Inc. (PEBK) How It Makes Money

Peoples Bancorp of North Carolina, Inc. (PEBK) primarily makes its money the way most community banks do: by borrowing short and lending long. This is the classic banking model, generating the bulk of its revenue from net interest income (NII), which is the difference between the interest it earns on its loans and investments and the interest it pays out on customer deposits. Plus, they have a surprisingly strong, diversified fee business that adds a significant buffer to their core lending profits.

Peoples Bancorp of North Carolina, Inc.'s Revenue Breakdown

As of the third quarter of 2025, the revenue mix clearly shows the dominance of the core banking function, but the non-interest income component is substantial and a key differentiator for the company.

Here's the quick math: in the third quarter of 2025, the company reported $15.1 million in Net Interest Income and $7.1 million in Non-Interest Income, totaling $22.2 million in revenue for the quarter.

Business Economics

The financial engine of Peoples Bancorp of North Carolina, Inc. is built on a high-quality, local deposit base and a strategically diversified lending portfolio, which allows them to manage their Net Interest Margin (NIM) effectively, even in a changing rate environment.

• Net Interest Margin (NIM): The NIM stood at 3.58% in Q3 2025, a solid figure that reflects their ability to earn more on assets than they pay on liabilities. This is the core profitability metric for any bank.
• Stable Funding Advantage: A key strength is the stability of their funding. Total deposits were $1.55 billion at September 30, 2025, with core deposits-the stickier, lower-cost accounts like checking and savings-making up nearly 90% of that total. This low-cost funding base is defintely a competitive edge.
• Fee Income Driver: The non-interest income stream is heavily reliant on their appraisal management services. In Q2 2025, appraisal management fee income alone accounted for over 51% of their total non-interest income, at $3.97 million. This specialized service line provides a valuable, non-lending source of revenue that diversifies risk.
• Lending Focus: The bank focuses primarily on commercial, real estate mortgage, and construction loans, with total loans reaching $1.18 billion at the end of Q3 2025. This regional focus on North Carolina's Catawba Valley area keeps their credit analysis sharp and localized.

To be fair, while the NIM has been expanding, the provision for credit losses has also increased in 2025, rising to $530,000 in Q3 2025, mostly tied to higher reserves on construction loans. This signals a realistic, though cautious, approach to loan growth.

Peoples Bancorp of North Carolina, Inc.'s Financial Performance

The company's profitability ratios through the trailing twelve months (TTM) ending September 30, 2025, reflect a healthy, well-managed community bank, showing consistency in capital and asset quality.

• Return on Equity (ROE): The TTM ROE was 11.73%. This is a strong indicator of how effectively the bank is using shareholder capital to generate profit.
• Return on Assets (ROA): The TTM ROA stood at 0.96%. For a bank, a ROA near 1.0% is often considered a benchmark for solid performance, showing efficient use of its asset base.
• Asset Quality: Non-performing assets (NPAs) remain low, at just 0.29% of total assets as of September 30, 2025. This low percentage shows excellent credit quality management in their lending book.
• Book Value: The book value per share rose to $28.15 as of September 30, 2025, a clear sign of retained earnings and capital strength.

The bottom line is that the bank's net income margin is a solid 19.60% on a TTM basis, demonstrating that they are keeping costs in check relative to their revenue. If you want to dig deeper into who is betting on this performance, you should read Exploring Peoples Bancorp of North Carolina, Inc. (PEBK) Investor Profile: Who's Buying and Why?

Peoples Bancorp of North Carolina, Inc. (PEBK) Market Position & Future Outlook

Peoples Bancorp of North Carolina, Inc. (PEBK) maintains a solid, entrenched position as a community bank focused on the high-growth Catawba Valley and surrounding North Carolina markets, supported by strong loan quality and a liquid balance sheet.

The company's total assets stood at approximately $1.7 billion as of mid-2025, and year-to-date net earnings reached $13.2 million through September 30, 2025, demonstrating consistent profitability despite a slightly slower pace of growth compared to its five-year average. You should view PEBK as a defensive, value-oriented regional play, not a high-momentum stock.

Competitive Landscape

In its core operating region, Peoples Bancorp competes fiercely on local service and relationship banking against both larger regional institutions and national giants. Here's the quick math on how the local market shakes out, focusing on the Catawba Valley area where local deposit share is the key metric:

Opportunities & Challenges

The company's future trajectory hinges on its ability to capitalize on North Carolina's population influx while managing the persistent pressure on its net interest margin (NIM) in a high-rate environment.

Industry Position

Peoples Bancorp of North Carolina, Inc. is a classic, well-capitalized community bank. It's not in the same league as the state's megabanks, but it is a dominant player in its specific regional niche, which is a defintely a different kind of strength.

Its loan portfolio remains robust, with a low amount of loans past due, reflecting a conservative, real estate-backed lending strategy. This focus on local, well-secured loans is a major competitive advantage over larger institutions that rely more on high-volume, standardized products.

• Maintain a high-quality loan book: Loan quality is excellent, with a 40% decrease in past due loans noted in a recent 2025 analysis.
• Focus on core banking: The company's primary income source is traditional lending and deposit-taking, not volatile capital markets.
• Geographic concentration: Operations are limited to 15 banking offices and loan production offices across a handful of North Carolina counties (Catawba, Alexander, Lincoln, Mecklenburg, Iredell, Rowan, and Forsyth), which allows for deep community ties but limits rapid, large-scale growth.

To understand the foundation of their strategy, you should review the Mission Statement, Vision, & Core Values of Peoples Bancorp of North Carolina, Inc. (PEBK).