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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 59.6GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
10.9%
Sector: 8.5%
Dividend Analysis audit
INCOME
3.10%
Trailing Yield
$3.10
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
39%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, PEOPLES BANCORP OF NORTH CAROLINA INC (PEBK) receives a "Buy" rating with a composite score of 57.5/100, ranked #27 out of 4446 stocks. Key factor scores: Quality 60/100, Value 75/100, Momentum 61/100. This is quantitative analysis only — not investment advice.
PEOPLES BANCORP OF NORTH CAROLINA INC (PEBK) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does PEOPLES BANCORP OF NORTH CAROLINA INC Do?
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. PEOPLES BANCORP OF NORTH CAROLINA INC (PEBK) is classified as a micro-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Lance A. Sellers and employs approximately 310 people, headquartered in NEWTON, North Carolina. With a market capitalization of $216M, PEBK is one of the notable companies in the Financials sector.
PEOPLES BANCORP OF NORTH CAROLINA INC (PEBK) Stock Rating — Buy (April 2026)
As of April 2026, PEOPLES BANCORP OF NORTH CAROLINA INC receives a Buy rating with a composite score of 57.5/100 and 4 out of 5 stars from the Blank Capital Research quantitative model.PEBK ranks #27 out of 4,446 stocks in our coverage universe. Within the Financials sector, PEOPLES BANCORP OF NORTH CAROLINA INC ranks #17 of 891 stocks, placing it in the top 10% of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
PEBK Stock Price and 52-Week Range
PEOPLES BANCORP OF NORTH CAROLINA INC (PEBK) currently trades at $41.77. The stock lost $0.19 (0.5%) in the most recent trading session. The 52-week high for PEBK is $40.74, which means the stock is currently trading 2.5% from its annual peak. The 52-week low is $23.74, putting the stock 75.9% above its annual trough. Recent trading volume was 40K shares, suggesting relatively thin trading activity.
Is PEBK Overvalued or Undervalued? — Valuation Analysis
PEOPLES BANCORP OF NORTH CAROLINA INC (PEBK) carries a value factor score of 75/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 12.53x, compared to the Financials sector average of 14.88x — a discount of 16%. The price-to-book ratio stands at 1.37x, versus the sector average of 1.22x. The price-to-sales ratio is 2.60x, compared to 0.90x for the average Financials stock. On an enterprise value basis, PEBK trades at 9.59x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, PEOPLES BANCORP OF NORTH CAROLINA INC appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
PEOPLES BANCORP OF NORTH CAROLINA INC Profitability — ROE, Margins, and Quality Score
PEOPLES BANCORP OF NORTH CAROLINA INC (PEBK) earns a quality factor score of 60/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 10.9%, compared to the Financials sector average of 8.5%, which is within a healthy range. Return on assets (ROA) comes in at 1.0% versus the sector average of 1.2%.
On a margin basis, PEOPLES BANCORP OF NORTH CAROLINA INC reports gross margins of 0.0%. The operating margin is 27.2% (sector: 21.8%). Net profit margin stands at 20.8%, versus 17.7% for the average Financials stock. Revenue growth is running at 6.7% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
PEBK Debt, Balance Sheet, and Financial Health
PEOPLES BANCORP OF NORTH CAROLINA INC has a debt-to-equity ratio of 983.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.10x, suggesting adequate working capital coverage. Total debt on the balance sheet is $15M. Cash and equivalents stand at $29M.
PEBK has a beta of 0.78, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for PEOPLES BANCORP OF NORTH CAROLINA INC is 78/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
PEOPLES BANCORP OF NORTH CAROLINA INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, PEOPLES BANCORP OF NORTH CAROLINA INC reported revenue of $83M and earnings per share (EPS) of $3.74. Net income for the quarter was $17M. Gross margin was 0.0%. Operating income came in at $22M.
In FY 2025, PEOPLES BANCORP OF NORTH CAROLINA INC reported revenue of $84M and earnings per share (EPS) of $3.74. Net income for the quarter was $20M. Revenue grew 3.6% year-over-year compared to FY 2024. Operating income came in at $26M.
In Q3 2025, PEOPLES BANCORP OF NORTH CAROLINA INC reported revenue of $21M and earnings per share (EPS) of $0.70. Net income for the quarter was $4M. Revenue grew 4.6% year-over-year compared to Q3 2024. Operating income came in at $5M.
In Q2 2025, PEOPLES BANCORP OF NORTH CAROLINA INC reported revenue of $21M and earnings per share (EPS) of $0.97. Net income for the quarter was $5M. Revenue grew 3.2% year-over-year compared to Q2 2024. Operating income came in at $7M.
Over the past 8 quarters, PEOPLES BANCORP OF NORTH CAROLINA INC has demonstrated a growth trajectory, with revenue expanding from $20M to $83M. Investors analyzing PEBK stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
PEBK Dividend Yield and Income Analysis
PEOPLES BANCORP OF NORTH CAROLINA INC (PEBK) currently pays a dividend yield of 3.1%. At this yield, a $10,000 investment in PEBK stock would generate approximately $$310.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning PEBK offers above-average income for its sector. With a net margin of 20.8%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
PEBK Momentum and Technical Analysis Profile
PEOPLES BANCORP OF NORTH CAROLINA INC (PEBK) has a momentum factor score of 61/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 31/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 25/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
PEBK vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing PEBK against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full PEBK vs S&P 500 (SPY) comparison to assess how PEOPLES BANCORP OF NORTH CAROLINA INC stacks up against the broader market across all factor dimensions.
PEBK Next Earnings Date
No upcoming earnings date has been announced for PEOPLES BANCORP OF NORTH CAROLINA INC (PEBK) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy PEBK? — Investment Thesis Summary
The bull case for PEOPLES BANCORP OF NORTH CAROLINA INC rests on several quantitative strengths. The quality score of 60/100 indicates above-average profitability and business fundamentals. The value score of 75/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 61/100, suggesting the trend favors buyers. Low volatility (stability score 78/100) reduces downside risk.
In summary, PEOPLES BANCORP OF NORTH CAROLINA INC (PEBK) earns a Buy rating with a composite score of 57.5/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on PEBK stock.
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Institutional Research Dossier
PEOPLES BANCORP OF NORTH CAROLINA INC (PEBK) Deep Dive Analysis
Published on March 24, 2026
Action RatingBuy
Sections
Executive Summary
Peoples Bancorp of North Carolina, Inc. (PEBK) is a regional bank holding company with a Buy rating in our proprietary BCR quant model. The company's strong profitability, stable financials, and attractive valuation support our positive outlook. However, PEBK's relatively small size and concentrated geographic footprint pose some risks that investors should consider.
Our analysis suggests that PEBK's focus on commercial and retail banking in its North Carolina markets, combined with its efficient operations and prudent risk management, create a sustainable competitive advantage. While the company faces headwinds from a slowing economy and rising interest rates, we believe it is well-positioned to weather these challenges and continue delivering solid financial performance.
Business Strategy & Overview
Peoples Bancorp of North Carolina, Inc. operates as the bank holding company for Peoples Bank, providing a range of commercial and consumer banking products and services to individuals and small-to-medium sized businesses primarily in North Carolina. The company's core business activities include deposit-taking, commercial and consumer lending, and investment advisory and brokerage services. Peoples Bank operates a network of 17 banking offices and 4 loan production offices across North Carolina, with a focus on the state's rapidly growing Piedmont region.
The company's strategic priorities center on organic growth, prudent risk management, and operational efficiency. Peoples Bank aims to deepen its relationships with existing customers and attract new clients by offering a comprehensive suite of banking and wealth management solutions. It has also invested in technology to streamline its operations and improve the customer experience. Additionally, the bank selectively pursues acquisition opportunities that can expand its geographic footprint and product capabilities.
Peoples Bancorp operates in a highly competitive regional banking landscape, vying for customers with larger national banks as well as smaller community lenders. Its success hinges on its ability to provide personalized service, competitive pricing, and innovative solutions that meet the evolving needs of its target market. The company's emphasis on commercial and small business lending, coupled with its focus on affluent retail customers, positions it well to capitalize on growth trends in its core North Carolina markets.
Overall, Peoples Bancorp's business strategy centers on leveraging its regional expertise, efficient operations, and diversified revenue streams to drive sustainable growth and profitability. The company's disciplined approach to risk management and capital allocation further supports its long-term competitive positioning.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
6.7%
Sector: 9.4%
-29% VS SCTR
Economic Moat Analysis
In our assessment, Peoples Bancorp of North Carolina, Inc. has a narrow economic moat, stemming primarily from its established regional presence, strong customer relationships, and operational efficiency. While the company does not possess the scale or brand recognition of larger national banks, its focus on commercial and retail banking within its core North Carolina markets has allowed it to develop deep expertise and build durable customer ties.
One of PEBK's key competitive advantages is its status as a trusted community bank. The company's long history, local market knowledge, and personalized service model enable it to better understand the needs of its small-to-medium sized business and affluent retail customers. This, in turn, allows Peoples Bank to offer tailored products and solutions that are difficult for larger, more impersonal institutions to replicate.
Additionally, Peoples Bancorp's efficient operations and prudent risk management contribute to its narrow moat. The company's lean cost structure and disciplined approach to underwriting and credit risk management have enabled it to maintain consistently strong profitability and weathering economic downturns. This operational efficiency, combined with the company's focus on high-margin commercial and wealth management activities, provides a degree of insulation from price competition.
However, Peoples Bancorp's moat is somewhat constrained by its relatively small size and limited geographic diversification. As a regional player, the company lacks the scale and scope economies of larger national banks, which can hamper its ability to invest in cutting-edge technology and compete for certain large corporate clients. Additionally, the company's concentration in North Carolina exposes it to economic and regulatory risks specific to that state.
Financial Health & Profitability
Peoples Bancorp of North Carolina has demonstrated a solid track record of financial performance, though certain metrics warrant close monitoring going forward. The company's revenue growth over the past three years has lagged the broader financial sector, averaging 6.7% compared to the industry average of 9.3%. This slower growth trajectory reflects the challenges of operating in a highly competitive regional banking environment.
However, Peoples Bancorp's profitability metrics have been strong, with an operating margin of 27.2% compared to the sector average of 22.0%. The company's return on equity (ROE) of 10.9% also exceeds the industry benchmark of 8.5%, indicating that it is generating healthy returns on its invested capital. Additionally, PEBK's net interest margin has remained relatively stable, mitigating the impact of the low-rate environment on its lending business.
Peoples Bancorp's balance sheet is well-capitalized, with a debt-to-equity ratio of 983.0 compared to the sector average of 115.0. This high degree of leverage is not necessarily a concern, as it is common for banks to operate with elevated debt levels. However, the company's reliance on borrowed funds could expose it to refinancing risks should interest rates continue to rise. Moreover, Peoples Bancorp's free cash flow generation has been negative in recent periods, which bears close monitoring.
Overall, Peoples Bancorp's financial health appears sound, with a focus on profitability and risk management that has enabled it to navigate challenging industry conditions. However, the company's relatively small size, geographic concentration, and elevated leverage introduce some vulnerabilities that investors should consider.
Valuation Assessment
Our valuation analysis suggests that Peoples Bancorp of North Carolina, Inc. is currently trading at an attractive valuation relative to its growth prospects and industry peers. The company's P/E ratio of 9.9x is significantly lower than the broader financial sector's average of 15.5x, and its EV/EBITDA multiple of 2.0x is also well below the industry benchmark of 3.5x.
Digging deeper, Peoples Bancorp's low valuation multiples can be attributed to its relatively slower revenue growth, which has lagged the sector average. However, the company's strong profitability, as evidenced by its above-average operating and net margins, suggests that it is generating robust returns on its invested capital. Additionally, Peoples Bancorp's stock price has demonstrated relatively low volatility, as reflected in its high Stability score of 77/100 in our proprietary BCR quant model.
Considering the company's solid financial health, efficient operations, and defensible regional market position, we believe the current valuation presents an attractive opportunity for long-term investors. While Peoples Bancorp may not be a high-growth story, its focus on steady, profitable expansion and prudent risk management makes it a compelling value play in the regional banking space.
That said, investors should monitor the company's ability to navigate the challenges posed by a slowing economy and rising interest rates, as these factors could put pressure on its lending margins and asset quality. Nevertheless, our analysis suggests that Peoples Bancorp's valuation is likely too discounted given its fundamentals and long-term growth potential.
Risk & Uncertainty
While Peoples Bancorp of North Carolina's business model and financial performance appear relatively solid, the company does face several idiosyncratic risks that could impact its long-term outlook. Chief among these is its geographic concentration, with the vast majority of its operations and customer base located in North Carolina.
This regional concentration exposes Peoples Bancorp to economic and regulatory risks specific to the state, such as changes in local real estate markets, shifts in demographic trends, and potential legislative or policy changes that could affect the banking industry. Any disruptions or downturns in North Carolina's economy could have an outsized impact on the company's financial results.
Additionally, Peoples Bancorp's relatively small size and limited scale compared to larger national banks may constrain its ability to invest in cutting-edge technology, compete for certain large commercial clients, and withstand sustained periods of market volatility or economic stress. The company's elevated debt levels and reliance on borrowed funds could also heighten its vulnerability to rising interest rates and potential refinancing challenges.
Bulls Say / Bears Say
The Bull Case
BULL VIEWPeoples Bancorp's focus on commercial and retail banking in its core North Carolina markets provides it with a defensible competitive position and the opportunity to capitalize on the state's robust economic growth.
BULL VIEWThe company's consistent profitability, strong balance sheet, and prudent risk management suggest that it is well-positioned to weather the current macroeconomic headwinds and continue delivering solid financial performance.
The Bear Case
BEAR VIEWPeoples Bancorp's geographic concentration in North Carolina makes it vulnerable to economic and regulatory risks specific to that state, potentially limiting its long-term growth and stability.
BEAR VIEWThe company's relatively small size and limited scale compared to larger national banks could constrain its ability to invest in technology, compete for large commercial clients, and withstand periods of market volatility.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score PEBK and 4,400+ other equities.
PEOPLES BANCORP OF NORTH CAROLINA INC exhibits a 95% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
1.0%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
27.2%
Sector: 21.8%
Net Margin
Bottom-line profitability
20.8%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta+25%
Income Projection audit
A $10,000 investment would generate approximately $310 annually in dividends at the current trailing rate.
