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EARNINGS RELEASE Contact : William D. Cable , Sr. President and Chief Executive Officer Jeffrey N. Hooper Executive Vice President and Chief Financial Officer 828-464-5620 For Immediate Release EXHIBIT ( 99 ) ( a ) July 20 , 2026 PEOPLES BANCORP ANNOUNCES SECOND QUARTER 2026 RESULTS Peoples Bancorp of North Carolina , Inc. ( NASDAQ : PEBK ) ( the “ Company ” ) , the parent company of Peoples Bank ( the “ Bank ” ) , reported second quarter 2026 results with highlights as follows : Second quarter 2026 highlights : Net earnings were $ 5.2 million or $ 0.98 per share and $ 0.96 per diluted share for the three months ended June 30 , 2026 , as compared to $ 5.2 million or $ 0.97 per share and $ 0.95 per diluted share for the same period one year ago . Net interest margin was 3.80 % for the three months ended June 30 , 2026 , compared to 3.57 % for the three months ended June 30 , 2025 . Year - to - date highlights : • Net earnings were $ 9.6 million or $ 1.81 per share and $ 1.76 per diluted share for the six months ended June 30 , 2026 , compared to $ 9.5 million or $ 1.79 per share and $ 1.74 per diluted share for the same period one year ago . Cash dividends were $ 0.59 per share for the six months ended June 30 , 2026 , compared to $ 0.56 per share for the prior year period . Total loans were $ 1.28 billion at June 30 , 2026 , compared to $ 1.20 billion at December 31 , 2025 . Non - performing assets were $ 5.2 million or 0.29 % of total assets at June 30 , 2026 , compared to $ 4.2 million or 0.25 % of total assets at December 31 , 2025 . Total deposits were $ 1.57 billion at June 30 , 2026 , compared to $ 1.51 billion at December 31 , 2025 . Core deposits , a non - GAAP measure , were $ 1.44 billion or 91.63 % of total deposits at June 30 , 2026 , compared to $ 1.35 billion or 89.44 % of total deposits at December 31 , 2025 . Net interest margin was 3.74 % for the six months ended June 30 , 2026 , compared to 3.54 % for the six months ended June 30 , 2025 . Net earnings were $ 5.2 million or $ 0.98 per share and $ 0.96 per diluted share for the three months ended June 30 , 2026 , compared to $ 5.2 million or $ 0.97 per share and $ 0.95 per diluted share for the prior year period . William D. Cable , Sr. , President and Chief Executive Officer , noted second quarter net earnings reflect an increase in net interest income , which was partially offset by an increase in the provision for credit losses , a decrease in non - interest income and an increase in non - interest expense , compared to the prior year period , as discussed below . Net interest income was $ 16.0 million for the three months ended June 30 , 2026 , compared to $ 14.6 million for the three months ended June 30 , 2025 . The increase in net interest income is due to a $ 806,000 increase in interest income and a $ 565,000 decrease in interest expense . The increase in interest income is primarily due to a $ 1.5 million increase in interest income and fees on loans , which was partially offset by a $ 511,000 decrease in interest income on balances due from banks and a $ 231,000 decrease in interest income on investment securities . The increase in interest income and fees on loans is primarily due to an increase in total loans . The decrease in interest income on balances due from banks is due to a decrease in average balances outstanding and rate decreases implemented by the Federal Reserve . The decrease in interest income on investment securities is due to a reduction in balances outstanding and decreases in yields on variable rate securities . The decrease in interest expense is primarily due to a decrease in rates paid on interest - bearing liabilities resulting from rate decreases implemented by the Federal Reserve and a $ 18.8 million decrease in time deposits from March 31 , 2026 to June 30 , 2026. Net interest income after the provision for credit losses was $ 15.7 million for the three months ended June 30 , 2026 , compared to $ 14.8 million for the three months ended June 30 , 2025. The provision for credit losses for the three months ended June 30 , 2026 was $ 293,000 , compared to a recovery of $ 213,000 for the three months ended June 30 , 2025. The increase in the provision for credit losses reflects continued growth in total loans , which increased $ 36.3 million during the three months ended June 30 , 2026 , compared to an increase of $ 5.9 million during the three months ended June 30 , 2025. Additionally , the increase in the provision for credit losses includes a $ 29,000 increase in net charge - offs during the three months ended June 30 , 2026 , compared to the three months ended June 30 , 2025 .