Peoples Bancorp of North Carolina, Inc. (PEBK) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Peoples Bancorp of North Carolina, Inc. (PEBK) Financial Services Profile

Peoples Bancorp of North Carolina, Inc., founded in 1912, provides commercial and consumer banking services, including loan products and investment services, primarily in North Carolina. With a market capitalization of $240M and a P/E ratio of 11.71, the company focuses on serving individuals and small to medium-sized businesses in the regional banking sector.

What Is the Investment Thesis for PEBK?

With a market capitalization of $240M and a P/E ratio of 11.71, the company trades at a reasonable multiple compared to its peers. The dividend yield of 2.37% provides an additional incentive for investors. Growth catalysts include the expansion of loan production offices and the potential for increased market share within its existing footprint. The company's focus on serving small to medium-sized businesses positions it well to capitalize on economic growth in North Carolina. Potential risks include interest rate sensitivity and competition from larger regional and national banks. However, the company's strong gross margin of 76.4% and a beta of 0.31 suggest financial stability and lower volatility.

Based on FMP financials and quantitative analysis

PEBK Key Highlights

Market capitalization of $240M indicates a solid regional banking presence.

• P/E ratio of 11.71 suggests a reasonable valuation compared to industry peers.
• Profit margin of 18.3% demonstrates efficient operations and profitability.
• Gross margin of 76.4% highlights the company's ability to manage costs effectively.
• Dividend yield of 2.37% provides an attractive income stream for investors.

Who Are PEBK's Competitors?

PEBK is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are PEBK's Key Strengths?

Strong regional presence in North Carolina.

• Diversified loan portfolio.
• Experienced management team.
• Established customer relationships.

What Are PEBK's Weaknesses?

Limited geographic diversification.

• Reliance on traditional banking services.
• Smaller scale compared to larger regional and national banks.
• Potential vulnerability to interest rate fluctuations.

What Could Drive PEBK Stock Higher?

Potential for increased loan demand driven by economic growth in North Carolina.

• Expansion of loan production offices to increase market reach.
• Continued investment in digital banking services to attract and retain customers.

What Are the Key Risks for PEBK?

Financial-distress signal — its Altman Z-Score of 0.33 sits in the distress zone (elevated bankruptcy risk).

• Insider selling — insiders were net sellers of roughly $1.2M recently.
• Interest rate fluctuations impacting net interest margin.
• Increased competition from larger regional and national banks.
• Economic downturns affecting loan quality and demand.
• Regulatory changes impacting the banking industry.

What Are the Growth Opportunities for PEBK?

• Growth opportunity 1: Expansion of Loan Production Offices: Peoples Bancorp can expand its loan production offices in high-growth areas within North Carolina, such as Charlotte and Raleigh. This strategy allows the company to increase its loan portfolio and market share without the overhead costs associated with opening new branches. The market for commercial and residential loans in these areas is substantial, with potential for double-digit growth in the coming years. Timeline: Ongoing.
• Growth opportunity 2: Enhanced Digital Banking Services: Investing in and enhancing digital banking services can attract younger customers and improve customer retention. By offering user-friendly mobile banking apps, online account management tools, and digital payment options, Peoples Bancorp can compete more effectively with larger banks and fintech companies. The market for digital banking services is rapidly expanding, with projections indicating significant growth in the next five years. Timeline: Ongoing.
• Growth opportunity 3: Strategic Acquisitions: Peoples Bancorp can pursue strategic acquisitions of smaller community banks or credit unions in adjacent markets. This strategy allows the company to expand its geographic footprint and customer base quickly. The market for community bank acquisitions is active, with numerous opportunities available. Timeline: Potential.
• Growth opportunity 4: Increased Focus on Wealth Management Services: Expanding its wealth management services can generate additional fee income and diversify revenue streams. By offering comprehensive financial planning, investment management, and retirement planning services, Peoples Bancorp can attract high-net-worth individuals and families. The market for wealth management services is growing, driven by an aging population and increasing affluence. Timeline: Ongoing.
• Growth opportunity 5: Leveraging ITIN Mortgage Loans: Peoples Bancorp's experience with Individual Taxpayer Identification Number (ITIN) mortgage loans provides a unique opportunity to serve a growing demographic. By expanding its ITIN mortgage loan program, the company can tap into a market underserved by traditional banks. This could lead to increased loan volume and enhanced community relationships. Timeline: Ongoing.

What Are PEBK's Competitive Advantages?

• Established regional presence and brand recognition in North Carolina.
• Strong relationships with local businesses and communities.
• Diversified range of banking and financial services.
• Experienced management team with deep industry knowledge.

What Does PEBK Do?

Peoples Bancorp of North Carolina, Inc. serves as the bank holding company for Peoples Bank, offering a range of commercial and consumer banking products and services tailored to individuals and small to medium-sized businesses. Founded in 1912 and headquartered in Newton, North Carolina, the company has a long-standing history in the regional banking sector. Peoples Bank provides various deposit products, including checking, savings, money market, and time deposits, as well as demand deposits and certificates of deposit. Its loan products encompass commercial real estate, commercial, construction and land development, single-family residential, residential mortgage, and individual taxpayer identification number mortgage loans, alongside agricultural loans. In addition to traditional banking services, Peoples Bancorp offers investment counseling and non-deposit investment products such as stocks, bonds, mutual funds, and tax-deferred annuities, complemented by brokerage services. The company also provides real estate appraisal and brokerage services and acts as a clearing-house for appraisal services for community banks. Furthermore, it manages and disposes of real property and other assets acquired through debt collection, and offers insurance agency services. As of December 31, 2021, Peoples Bancorp operated 17 banking offices across North Carolina, including locations in Lincolnton, Newton, and Charlotte, along with loan production offices in several cities.

What Products and Services Does PEBK Offer?

• Provides checking, savings, and money market accounts.
• Offers commercial real estate and commercial loans.
• Provides construction and land development loans.
• Offers single-family residential and residential mortgage loans.
• Provides individual taxpayer identification number (ITIN) mortgage loans.
• Offers agricultural loans.
• Provides investment counseling and brokerage services.
• Offers real estate appraisal and brokerage services.

How Does PEBK Make Money?

• Generates revenue through interest income from loans.
• Earns fees from deposit accounts and other banking services.
• Generates revenue from investment counseling and brokerage services.
• Earns fees from real estate appraisal and brokerage services.

What Industry Does PEBK Operate In?

Peoples Bancorp of North Carolina, Inc. operates within the regional banking sector, which is characterized by intense competition and evolving customer preferences. The industry is influenced by factors such as interest rate fluctuations, regulatory changes, and technological advancements. Regional banks like Peoples Bancorp compete with larger national banks, credit unions, and fintech companies. The company's focus on serving small to medium-sized businesses and its strong local presence provide a competitive advantage in this landscape. The regional banking sector is expected to grow modestly, driven by economic expansion and increased demand for financial services.

Who Are PEBK's Key Customers?

• Individuals seeking personal banking services.
• Small to medium-sized businesses requiring commercial banking solutions.
• Real estate developers and investors.
• Farmers and agricultural businesses.
• High-net-worth individuals seeking wealth management services.

Company Profile

Peoples Bancorp of North Carolina, Inc. operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Newton, US. The company is led by CEO William D. Cable. PEBK has traded publicly since 1985.

Return on equity for Peoples Bancorp of North Carolina, Inc. stands at 13.1%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.1%, showing how much profit it generates from its asset base. PEBK trades at a trailing price-to-earnings ratio of 11.71, below the Financial Services sector average of ~17.50x. Its free cash flow yield is 8.1%, a gauge of the cash the business throws off relative to its market value. A current ratio of 57.95 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 8.5%, the inverse of the P/E and a quick read on earnings relative to price.

PEBK Valuation & Market Position

With a $240M market cap, Peoples Bancorp of North Carolina, Inc. sits in the micro-cap segment of the market. Relative to its peer group, PEBK's quantitative score of 79/100 is below the peer average of 91/100.

Quarterly Financial Performance: Peoples Bancorp of North Carolina, Inc.

Revenue for Peoples Bancorp of North Carolina, Inc. came in at $26.8M during Q2 FY2026, a 2.1% contraction versus the preceding quarter. The company recorded net income of $5.2M, with diluted EPS of $0.95. Revenue has contracted over three consecutive quarters, which investors in this micro-cap Financial Services stock should monitor closely. Across the four most recent quarters, PEBK averaged $0.81 in diluted EPS.

Peoples Bancorp of North Carolina, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 0.33 places it in the distress zone, a signal of elevated financial risk.

Over the past six months, Peoples Bancorp of North Carolina, Inc. insiders filed 22 SEC Form 4 transactions — 18 sales and 4 purchases. On net that is roughly 27K shares disposed (about $1.2M), a signal worth weighing alongside the fundamentals.

PEBK Financials

PEBK Latest News

PEBK Analyst Consensus

PEBK MoonshotScore

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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