PEOPLES BANCORP OF NORTH CAROLINA INC

For the period ended Dec 31, 2025. Filed Mar 11, 2026.

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A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.

FY2025 · Filed Mar 11, 2026

PEBK$42.69-0.3%Stored close · as of Nov 10, 2026

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Contents

EX-13 · Charlotte, North Carolina

Charlotte, North Carolina

March 11, 2026

A-24

PEOPLES BANCORP OF NORTH CAROLINA, INC.
Consolidated Balance Sheets
December 31, 2025 and December 31, 2024
(Dollars in thousands)
	December 31,	December 31,
Assets	2025	2024
	(Audited)	(Audited)
Cash and due from banks	$27,721	30,919
Interest-bearing deposits	30,384	28,347
Cash and cash equivalents	58,105	59,266
Investment securities available for sale	377,363	388,003
Other investments	2,595	2,728
Total securities	379,958	390,731
Mortgage loans held for sale	1,136	1,367
Loans	1,204,388	1,138,404
Less allowance for credit losses	(10,126)	(9,995)
Net loans	1,194,262	1,128,409
Premises and equipment, net	14,162	14,847
Cash surrender value of life insurance	17,837	17,675
Other real estate	-	369
Right of use lease asset	3,477	4,013
Accrued interest receivable and other assets	33,211	35,285
Total assets	$1,702,148	1,651,962
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing demand	$394,563	402,254
Interest-bearing demand, MMDA & savings	760,883	741,363
Time, $250,000 and over	160,389	147,439
Other time	193,390	193,675
Total deposits	1,509,225	1,484,731
Junior subordinated debentures	15,464	15,464
Lease liability	3,615	4,136
Accrued interest payable and other liabilities	16,726	17,068
Total liabilities	1,545,030	1,521,399
Commitments and Contingencies
Shareholders' equity:
Preferred stock, no par value; authorized 5,000,000 shares; no shares issued and outstanding	-	-
Common stock, no par value; authorized 20,000,000 shares; issued and outstanding 5,459,441 shares at December 31, 2025 and 5,457,646 shares at December 31, 2024	48,708	48,658
Common stock held by deferred compensation trust, at cost; 150,288 shares at December 31, 2025 and 158,580 shares at December 31, 2024	(1,510)	(1,757)
Deferred compensation	1,510	1,757
Retained earnings	135,645	121,062
Accumulated other comprehensive loss	(27,235)	(39,157)
Total shareholders' equity	157,118	130,563
Total liabilities and shareholders' equity	$1,702,148	1,651,962
See accompanying Notes to Consolidated Financial Statements.

A-25

PEOPLES BANCORP OF NORTH CAROLINA, INC.
Consolidated Statements of Earnings
For the Years Ended December 31, 2025 and 2024
(Dollars in thousands, except per share amounts)
	2025	2024
	(Audited)	(Audited)
Interest income:
Interest and fees on loans	$67,251	62,920
Interest on due from banks	2,840	2,796
Interest on investment securities:
U.S. Government sponsored enterprises	8,411	9,979
States and political subdivisions	2,772	2,779
Other	2,344	2,259
Total interest income	83,618	80,733
Interest expense:
Now, MMDA & savings deposits	11,113	10,237
Time deposits	12,529	14,316
Junior subordinated debentures	959	1,116
Other	-	985
Total interest expense	24,601	26,654
Net interest income	59,017	54,079
Provision for (recovery of) credit losses	938	(285)
Net interest income after provision for (recovery of) credit losses	58,079	54,364
Non-interest income:
Service charges	5,579	5,653
Other service charges and fees	696	685
Gain ( loss) on sale of securities, net	(78)	5
Gain on sale of premises and equipment	3,009	-
Mortgage banking income	327	357
Insurance and brokerage commissions	1,026	989
Appraisal management fee income	13,684	11,691
Miscellaneous	6,737	8,335
Total non-interest income	30,980	27,715
Non-interest expense:
Salaries and employee benefits	28,245	28,209
Occupancy	8,948	8,686
Professional fees	2,702	2,316
Advertising	1,010	791
Debit card expense	1,690	1,391
FDIC insurance	776	764
Appraisal management fee expense	10,884	9,263
Other	8,954	9,730
Total non-interest expense	63,209	61,150
Earnings before income taxes	25,850	20,929
Income tax expense	6,020	4,576
Net earnings	$19,830	16,353
Basic net earnings per share	$3.74	3.08
Diluted net earnings per share	$3.62	2.98
Cash dividends declared per share	$0.96	0.92
See accompanying Notes to Consolidated Financial Statements.

A-26

Consolidated Statements of Comprehensive Income
For the Years Ended December 31, 2025 and 2024
(Dollars in thousands)
	2025	2024
Net earnings	$19,830	16,353
Other comprehensive income:
Unrealized holding gains on securities available for sale	15,489	275
Reclassification adjustment for (gains) losses on securities available for sale included in net earnings, net	78	(5)
Total other comprehensive income, before income taxes	15,567	270
Income tax expense related to other comprehensive income:
Unrealized holding gain on securities available for sale	3,528	63
Reclassification adjustment for (gains) losses on securities available for sale included in net earnings	18	(1)
Reduction in state tax adjustment	99	-
Total income tax expense related to other comprehensive income	3,645	62
Total other comprehensive income, net of tax	11,922	208
Total comprehensive income	$31,752	16,561
See accompanying Notes to Consolidated Financial Statements.

A-27

PEOPLES BANCORP OF NORTH CAROLINA, INC.
Consolidated Statements of Changes in Shareholders' Equity
For the Years Ended December 31, 2025 and 2024
(Dollars in thousands)
	Common Stock
Held By · Accumulated
Common · Common · Deferred · Other
Stock · Stock · Retained · Deferred · Compensation · Comprehensive
	Shares	Amount	Earnings	Compensation	Trust	Income (Loss)	Total
Balance, December 31, 2023	5,534,499	$50,625	109,756	1,910	(1,910)	(39,365)	121,016
Common stock repurchase	(78,500)	(1,998)	-	-	-	-	(1,998)
Cash dividends declared on common stock ($0.92 per share)	-	-	(5,047)	-	-	-	(5,047)
Restricted stock units exercised	1,647	51	-	-	-	-	51
Excise tax on stock repurchase	-	(20)	-	-	-	-	(20)
Equity incentive plan, net	-	-	-	(153)	153	-	-
Net earnings	-	-	16,353	-	-	-	16,353
Other comprehensive income	-	-	-	-	-	208	208
Balance, December 31, 2024	5,457,646	$48,658	121,062	1,757	(1,757)	(39,157)	130,563
Cash dividends declared on common stock ($0.96 per share)	-	-	(5,247)	-	-	-	(5,247)
Restricted stock units exercised	1,795	50	-	-	-	-	50
Equity incentive plan, net	-	-	-	(247)	247	-	-
Net earnings	-	-	19,830	-	-	-	19,830
Other comprehensive income	-	-	-	-	-	11,922	11,922
Balance, December 31, 2025	5,459,441	$48,708	135,645	1,510	(1,510)	(27,235)	157,118
See accompanying Notes to Consolidated Financial Statements.

A-28

PEOPLES BANCORP OF NORTH CAROLINA, INC.
Consolidated Statements of Cash Flows
For the Years Ended December 31, 2025 and 2024
(Dollars in thousands)
	2025	2024
Cash flows from operating activities:
Net earnings	$19,830	16,353
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation, amortization and accretion, net	2,739	2,890
Provision for (recovery of) credit losses	938	(285)
Deferred income taxes	432	1,031
Gain on sale of held for sale mortgage loans	(277)	(287)
(Gain) loss on sale of investment securities, net	78	(5)
Gain on sale of other real estate	(13)	-
Write-down of other real estate	-	31
Gain on sale of premises and equipment	(3,009)	-
Write-down of premises and equipment	71	362
Restricted stock expense	190	212
Proceeds from sales of loans held for sale	15,167	19,149
Origination of loans held for sale	(14,659)	(19,543)
Cash surrender value of life insurance	(602)	(470)
Change in:
Right of use lease asset	536	718
Other assets	1,005	80
Lease liability	(521)	(696)
Other liabilities	(532)	1,018
Net cash provided by operating activities	21,373	20,558
Cash flows from investing activities:
Purchases of investment securities available for sale	(18,199)	(29,052)
Proceeds from calls and maturities of investment securities available for sale	3,035	3,010
Proceeds from sales of investment securities available for sale	20,396	11,713
Proceeds from paydowns of investment securities available for sale	20,100	17,671
Proceeds from paydowns of other investment securities	228	201
Purchase of FHLB Stock	(11)	(10)
Net change in loans	(66,789)	(46,499)
Purchases of premises and equipment	(1,413)	(587)
Proceeds from sale of other real estate and repossessions	382	-
Proceeds from bank owned life insurance	440	929
Net cash used by investing activities	(41,831)	(42,624)
Cash flows from financing activities:
Net change in deposits	24,494	92,686
Net change in securities sold under agreement to repurchase	-	(86,715)
Proceeds from FRB borrowings	1	1
Repayments of FRB borrowings	(1)	(1)
Proceeds from Fed Funds Purchased	162	162
Repayments of Fed Funds Purchased	(162)	(162)
Restricted stock units vested	50	51
Excise tax on stock repurchased	-	(20)
Common stock repurchased	-	(1,998)
Cash dividends paid on common stock	(5,247)	(5,047)
Net cash (used) provided by financing activities	19,297	(1,043)
Net change in cash and cash equivalents	(1,161)	(23,109)
Cash and cash equivalents at beginning of period	59,266	82,375
Cash and cash equivalents at end of period	$58,105	59,266

A-29

PEOPLES BANCORP OF NORTH CAROLINA, INC.
Consolidated Statements of Cash Flows, continued
For the Years Ended December 31, 2025 and 2024
(Dollars in thousands)
	2025	2024
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest	$24,656	28,079
Income taxes, federal	4,350	3,788
Income taxes, state	513	750
Noncash investing and financing activities:
Change in unrealized loss on investment securities available for sale, net	11,922	208
Transfer of loans to other real estate	-	400
Initial recognition of lease right of use asset and lease liability	263	-
DOT settlement receivable	3,009	-
See accompanying Notes to Consolidated Financial Statements.

A-30

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