PEOPLES BANCORP OF NORTH CAROLINA INC Segments Disclosure
(16) Reportable Segments
The Company has two reportable segments as described below and in Note 1:
Banking Operations – This segment reflects the consolidated Bank, excluding CBRES. The primary source of revenue for this segment is net interest income.
CBRES – A Bank subsidiary that provides appraisal management services to community banks. The primary source of revenue for this segment is appraisal management fee income.
The Bank’s executive management team, which is comprised of the Bank’s Chief Executive Officer, Chief Financial Officer and executive vice presidents, is the chief operating decision maker for the Company. The Bank’s executive management team reviews actual net income versus budgeted net income on a quarterly basis to assess segment performance.
The following table presents financial information for the reportable segments. Financial results by operating segment, including significant expense categories provided to the chief operating decision maker, are detailed below. Certain prior period amounts have been reclassified to conform to the current presentation. The information provided under the caption “Other” represents the parent company, which is not considered to be a reportable segment, is included to reconcile the results of the operating segments to the consolidated financial statements prepared in conformity with GAAP.
(Dollars in thousands) |
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| Banking |
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| Operations |
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| CBRES |
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| Other |
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| Consolidated |
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As of and for the year ended December 31, 2025 |
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Interest income |
| $ | 83,589 |
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| - |
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| 29 |
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| 83,618 |
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Interest expense |
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| 23,642 |
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| - |
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| 959 |
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| 24,601 |
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Net interest income |
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| 59,947 |
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|
| - |
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| (930 | ) |
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| 59,017 |
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Provision for credit losses |
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| 938 |
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| - |
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| - |
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|
| 938 |
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Noninterest income |
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| 17,296 |
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| - |
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| - |
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| 17,296 |
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Appraisal management fee income |
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| - |
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| 13,684 |
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| - |
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| 13,684 |
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Salaries and employee benefits |
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| 27,056 |
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| 816 |
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| 373 |
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| 28,245 |
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Occupancy |
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| 8,931 |
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| 17 |
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| - |
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| 8,948 |
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Appraisal management fee expense |
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| - |
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| 10,884 |
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| - |
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| 10,884 |
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Noninterest expense |
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| 13,979 |
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| 849 |
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| 304 |
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| 15,132 |
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Income tax expense (benefit) |
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| 6,102 |
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|
| 255 |
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| (337 | ) |
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| 6,020 |
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Net income (loss) |
| $ | 20,237 |
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|
| 863 |
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| (1,270 | ) |
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| 19,830 |
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Total assets |
| $ | 1,696,130 |
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| 5,228 |
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|
| 790 |
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| 1,702,148 |
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As of and for the year ended December 31, 2024 |
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Interest income |
| $ | 80,699 |
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| - |
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|
| 34 |
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| 80,733 |
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Interest expense |
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| 25,538 |
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| - |
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| 1,116 |
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| 26,654 |
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Net interest income |
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| 55,161 |
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|
| - |
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| (1,082 | ) |
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| 54,079 |
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Provision for credit losses |
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| (285 | ) |
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| - |
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|
| - |
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| (285 | ) |
Noninterest income |
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| 16,024 |
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| - |
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| - |
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| 16,024 |
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Appraisal management fee income |
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| - |
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| 11,691 |
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| - |
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| 11,691 |
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Salaries and employee benefits |
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| 27,037 |
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|
| 766 |
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| 406 |
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| 28,209 |
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Occupancy |
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| 8,683 |
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| 3 |
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| - |
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| 8,686 |
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Appraisal management fee expense |
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| - |
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| 9,263 |
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| - |
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| 9,263 |
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Noninterest expense |
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| 13,908 |
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| 798 |
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| 286 |
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| 14,992 |
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Income tax expense (benefit) |
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| 4,749 |
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| 199 |
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| (372 | ) |
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| 4,576 |
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Net income (loss) |
| $ | 17,093 |
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| 662 |
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| (1,402 | ) |
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| 16,353 |
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Total assets |
| $ | 1,647,020 |
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| 4,340 |
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|
| 602 |
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| 1,651,962 |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 11, 2026 | Showing above |
| 2024 | Mar 12, 2025 | |
| 2023 | Mar 7, 2024 | |
| 2022 | Mar 17, 2023 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.