Peoples Bancorp of North Carolina (NASDAQ:PEBK) concluded a record-setting fiscal year 2025, reporting fourth-quarter net income of $6.6 million—an 83% increase over the $3.6 million recorded in the same period last year.
The surge in profitability was largely driven by a non-recurring $3 million net gain related to a North Carolina Department of Transportation (NCDOT) eminent domain acquisition of a branch property.
For the full year ended December 31, 2025, the Newton-based parent of Peoples Bank reported net earnings of $19.8 million, or $3.74 per share.
This represents a 21% increase from the $16.4 million earned in 2024.
The strong bottom-line performance reflects the bank's ability to maintain healthy margins while capitalizing on unique real estate developments.
The bank’s lending and deposit activities remained stable throughout the year.
Total loans reached $1.20 billion at year-end, while total deposits stood at $1.51 billion.
Shareholders' equity also saw a healthy rise to $157.1 million, representing 9.23% of total assets, up from $130.6 million at the end of 2024.
Asset quality also remains a hallmark of the institution's conservative lending profile.
Non-performing assets were reported at just $4.2 million, or 0.25% of total assets, as of December 31.
This remains well below industry averages, signaling robust credit management despite broader economic fluctuations in the regional market.
Meanwhile, the $3 million gain from the NCDOT settlement provided a substantial capital cushion, which management utilized to strengthen the bank's equity position.
Excluding the one-time gain, the bank's core net interest income benefited from a disciplined approach to deposit pricing and the repricing of its loan portfolio in a "higher-for-longer" interest rate environment.