Peoples Bancorp Of North Carolina Inc (NASDAQ: PEBK)

Peoples Bancorp of North Carolina, Inc. is a bank holding company that derives its primary income from dividends paid by its wholly owned subsidiary, Peoples Bank. The company does not conduct any independent operations beyond owning Peoples Bank and the statutory trust PEBK Capital Trust II. Peoples Bank is a state chartered commercial bank serving the Catawba Valley and surrounding communities through fifteen full service banking offices and loan production offices in Charlotte, Denver, Salisbury and Winston Salem, North Carolina.

The holding company’s revenue consists mainly of the dividends it receives from Peoples Bank, while the bank generates income from interest on its diversified loan portfolio, service charges on deposit accounts, and fees from its wealth management and real estate services subsidiaries.

The company operates through the following segments.

• Peoples Investment Services, Inc.: This segment provides investment counseling and non deposit investment products such as stocks, bonds, mutual funds, tax deferred annuities, and related brokerage services through its relationship with Raymond James Financial Services.

• Real Estate Advisory Services, Inc.: This segment provides real estate appraisal and real estate brokerage services.

• Community Bank Real Estate Solutions, LLC (CBRES): This segment serves as a clearing house for appraisal services for community banks, allowing other banks to contract with CBRES to locate and engage appropriate appraisal companies, with the appraisal process conducted independently of the financing process.

• PB Real Estate Holdings, LLC: This segment acquires, manages and disposes of real property and other collateral obtained in the ordinary course of collecting debts previously contracted by the bank.

Peoples Bank holds a leading market share in its primary service area, capturing 23.54% of deposits in Catawba County and ranking first among eleven banks there, while also holding notable shares in Lincoln and Alexander Counties. The bank competes with large national money center banks, regional banks, credit unions and brokerage firms, yet maintains a competitive edge through its deep local relationships, diversified loan portfolio across multiple industries, and strong capital ratios that exceed regulatory minimums.

The bank’s core customers are individuals and small to medium sized businesses located within its market area, while its investment services and real estate subsidiaries serve individual investors, other community banks, and borrowers needing collateral management services.