Peoples Bancorp of North Carolina, Inc. (PEBK) | Investment Case

1. Company Snapshot

1.a. Company Description

Peoples Bancorp of North Carolina, Inc.operates as the bank holding company for Peoples Bank that provides various commercial and consumer banking products and services to individuals and small to medium-sized businesses.It offers checking, savings, money market, and time deposits; demand deposits; and certificates of deposit, as well as borrowed funds.

The company's loan products comprise commercial real estate, commercial, construction and land development, single-family residential, residential mortgage, and individual taxpayer identification number mortgage loans, as well as agricultural loans.It also provides investment counseling and non-deposit investment products, such as stocks, bonds, mutual funds, tax deferred annuities, and related brokerage services; and real estate appraisal and brokerage services.In addition, the company operates as a clearing-house for the provision of appraisal services for community banks; and acquires, manages, and disposes real property, other collateral, and other assets obtained in the ordinary course of collecting debts, as well as offers insurance agency services.

As of December 31, 2021, it operated 17 banking offices located in Lincolnton, Newton, Denver, Catawba, Conover, Maiden, Claremont, Hiddenite, Hickory, Charlotte, Cornelius, Mooresville, Raleigh, and Cary, North Carolina.The company also operates loan production offices in Charlotte, Denver, Salisbury, and Winston-Salem, North Carolina.Peoples Bancorp of North Carolina, Inc.

was founded in 1912 and is headquartered in Newton, North Carolina.

Show Full description

1.b. Last Insights on PEBK

The recent 3-month performance of Peoples Bancorp of North Carolina, Inc. was negatively impacted by a decline in net interest income, despite a 3.39% net interest margin in Q4 2024. The company's net earnings of $3.6 million in Q4 2024, while higher than the same period last year, were not sufficient to offset the decrease in net interest income. Additionally, the company's cash dividend payout of $0.20 per share in Q1 2025 may have reduced its liquidity and ability to invest in growth initiatives.

1.c. Company Highlights

Last Price	34
Change Percentage	2.63%
Open	33.63
Previous Close	33.13
Market Cap ( Millions)	181
Volume	12444
Year High	34.5
Year Low	23.74
M A 50	30.56
M A 200	29.08

FCF Yield	11.29%
Dividend Yield	2.82%
ROE	11.91%
Debt / Equity	0.00%
Net Debt / EBIDTA	-120.82%
Price To Book	1.21
Price Earnings Ratio	10.76
Price To FCF	8.85
Price To sales	1.9
EV / EBITDA	6.39

2. Transcript Summary

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3. NewsRoom

Analyzing Pinnacle Financial Partners (NASDAQ:PNFP) and Peoples Bancorp of North Carolina (NASDAQ:PEBK)

Nov -22

Source: defenseworld.net

Peoples Bancorp Announces Cash Dividend

Nov -21

Source: accessnewswire.com

Peoples Bancorp Stock Gains on Solid Q3 Earnings and Loan Growth

Oct -24

Source: zacks.com

Peoples Bancorp Announces Third Quarter 2025 Results

Oct -20

Source: accessnewswire.com

Zacks Initiates Coverage of Peoples Bancorp With Neutral Recommendation

Oct -17

Source: zacks.com

Peoples Bancorp Announces Cash Dividend

Aug -22

Source: accessnewswire.com

Peoples Bancorp Announces Second Quarter 2025 Results

Jul -21

Source: accessnewswire.com

Peoples Bancorp Announces Cash Dividend

May -16

Source: accessnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Banking Operations

Expected Growth: 4.5%

Growing demand for community banking services, increasing loan portfolio, and expanding branch network are expected to drive Peoples Bancorp's growth. Additionally, strategic acquisitions and investments in digital banking platforms will further boost revenue.

Community Bank Real Estate Solutions (CBRES)

Expected Growth: 4.5%

Growing demand for commercial and residential real estate projects, increasing construction activities, and government initiatives to boost infrastructure development are expected to drive the growth of Community Bank Real Estate Solutions.

Other

Expected Growth: 4.5%

The 'Other' segment's growth is driven by increasing miscellaneous income from various sources, including fees from treasury management services and debit card interchange fees, as well as a decline in miscellaneous expenses, such as reduced FDIC insurance premiums.

7. Detailed Products

Personal Banking

Peoples Bancorp of North Carolina, Inc. offers a range of personal banking services, including checking and savings accounts, credit cards, loans, and investment products.

Business Banking

The company provides business banking services, including commercial loans, cash management, and treasury management solutions, to help businesses grow and succeed.

Mortgage Lending

Peoples Bancorp of North Carolina, Inc. offers a variety of mortgage loan options, including fixed-rate and adjustable-rate mortgages, construction loans, and home equity loans.

Investment and Insurance Services

The company provides investment and insurance services, including brokerage services, retirement planning, and insurance products, to help individuals and businesses achieve their financial goals.

Wealth Management

Peoples Bancorp of North Carolina, Inc. offers wealth management services, including trust and estate services, investment management, and financial planning, to help individuals and families manage their wealth.

8. Peoples Bancorp of North Carolina, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Peoples Bancorp of North Carolina, Inc. is medium due to the presence of alternative banking services and financial institutions.

Bargaining Power Of Customers

The bargaining power of customers for Peoples Bancorp of North Carolina, Inc. is low due to the lack of concentration of customers and the availability of multiple banking options.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Peoples Bancorp of North Carolina, Inc. is medium due to the presence of multiple suppliers and the moderate level of dependence on them.

Threat Of New Entrants

The threat of new entrants for Peoples Bancorp of North Carolina, Inc. is high due to the relatively low barriers to entry and the presence of fintech companies.

Intensity Of Rivalry

The intensity of rivalry for Peoples Bancorp of North Carolina, Inc. is high due to the presence of multiple competitors and the high level of competition in the banking industry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	39.11%
Debt Cost	3.95%
Equity Weight	60.89%
Equity Cost	7.00%
WACC	5.81%
Leverage	64.22%

11. Quality Control: Peoples Bancorp of North Carolina, Inc. passed 3 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peoples Bancorp of North Carolina

A-Score: 7.0/10

Value: 8.0

Growth: 6.6

Quality: 7.2

Yield: 6.0

Momentum: 8.0

Volatility: 6.3

1-Year Total Return ->

Northrim Bank

A-Score: 6.8/10

Value: 6.7

Growth: 5.1

Quality: 7.5

Yield: 7.0

Momentum: 8.0

Volatility: 6.3

1-Year Total Return ->

Central Pacific Financial

A-Score: 6.7/10

Value: 6.6

Growth: 5.0

Quality: 7.0

Yield: 8.0

Momentum: 6.0

Volatility: 7.7

1-Year Total Return ->

Chemung Financial

A-Score: 6.4/10

Value: 5.8

Growth: 5.6

Quality: 5.5

Yield: 6.0

Momentum: 7.5

Volatility: 8.0

1-Year Total Return ->

S&T Bancorp

A-Score: 6.2/10

Value: 5.7

Growth: 5.6

Quality: 6.4

Yield: 8.0

Momentum: 3.5

Volatility: 8.0

1-Year Total Return ->

Hope Bancorp

A-Score: 5.3/10

Value: 5.8

Growth: 3.6

Quality: 5.5

Yield: 8.0

Momentum: 2.0

Volatility: 7.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-8.65%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.81%

Peoples Bancorp of North Carolina, Inc. - US7105771072

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on PEBK

1.c. Company Highlights

Strong Momentum

Average Quality

Average Growth

Medium Volatility

Less Volatile

Stable Momentum

Better Quality

Fairly Valued

Weak Momentum

Cheaper

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Banking Operations

Expected Growth: 4.5%

Community Bank Real Estate Solutions (CBRES)

Expected Growth: 4.5%

Other

Expected Growth: 4.5%

7. Detailed Products

Personal Banking

Business Banking

Mortgage Lending

Investment and Insurance Services

Wealth Management

8. Peoples Bancorp of North Carolina, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Peoples Bancorp of North Carolina, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

34.0$

Current Price

34$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA