Peoples Bancorp of North Carolina, Inc. (PEBK): ANSOFF MATRIX [Dec-2025 Updated]

You're looking at the next moves for Peoples Bancorp of North Carolina, Inc., and after two decades in this game, I see four clear paths forward for smart growth. We're not just talking theory; we're mapping concrete actions based on their current footing-like pushing that $1.16 Billion commercial loan book deeper into existing counties, or using their strong $7.69 Million non-interest income from appraisal services as a launchpad for national plays. Whether the team decides to aggressively capture more local deposits, introduce specialized wealth management products, or even look at non-bank acquisitions outside North Carolina, the strategy hinges on balancing near-term penetration with calculated development and diversification. Let's break down exactly where Peoples Bancorp of North Carolina, Inc. can place its chips next to grow beyond its current $1.51 Billion deposit base.

Peoples Bancorp of North Carolina, Inc. (PEBK) - Ansoff Matrix: Market Penetration

You're looking at how Peoples Bancorp of North Carolina, Inc. can deepen its hold in its existing markets, which is the Market Penetration quadrant of the Ansoff Matrix. This is about selling more of what you already offer to the customers you already serve. Here's the quick math on the starting points from the second quarter of 2025.

Aggressively target commercial loan growth beyond the $1.16 Billion Q2 2025 balance. That balance, as of June 30, 2025, represents the current penetration level in the lending space. The annualized loan growth in Q2 2025 was strong at an 11% pace, so pushing past that $1.16 billion mark requires sustained, disciplined execution in existing commercial segments.

Increase core deposit share by offering a 3.57% NIM-supported premium rate product. The Net Interest Margin (NIM) for the three months ended June 30, 2025, was reported at a tax-equivalent 3.57%. This suggests a product priced near that level could be competitive while remaining supported by the current margin structure. The total deposit base stood at $1.51 Billion at the end of Q2 2025, with core deposits making up 90.05% of that total.

Cross-sell Treasury Management services to existing small business clients in Catawba and Lincoln counties. These counties are core to Peoples Bancorp of North Carolina, Inc.'s footprint, alongside Iredell, Alexander, and Mecklenburg counties, where the 15 current branch offices are located. Focusing on existing relationships here is about increasing wallet share, not finding new customers.

Launch a loyalty program to boost the $1.51 Billion deposit base retention. That $1.51 Billion deposit figure from June 30, 2025, is the pool you are trying to lock in. A program needs to demonstrably increase the stickiness of these funds to combat any potential deposit migration seen in the sector.

Maximize utilization of the 15 current branch offices through localized marketing efforts. These 15 physical locations are your primary touchpoints for existing customers in your established geographic area. Marketing spend should be hyper-focused on driving service adoption within a defined radius of each office.

Here are the key figures underpinning these penetration strategies:

The focus on existing clients means you should be tracking metrics related to customer depth, not just breadth. Consider the current penetration rate for Treasury Management services among your small business portfolio in those specific counties.

• Commercial Loan Balance Target: Growth beyond $1.16 Billion.
• Deposit Retention Goal: Secure the $1.51 Billion base.
• Deposit Product Rate Context: Supported by a 3.57% NIM.
• Physical Footprint for Local Marketing: 15 offices.
• Core Deposit Quality: 90.05% of total deposits.

If onboarding for new Treasury Management services takes longer than, say, 10 business days for an existing client, churn risk rises. You want to make the next step frictionless for the clients you already know.

Peoples Bancorp of North Carolina, Inc. (PEBK) - Ansoff Matrix: Market Development

You're looking at how Peoples Bancorp of North Carolina, Inc. can take its existing successful products and services into new geographic areas. This is Market Development, and the numbers show where the traction is right now.

The existing footprint includes 15 convenient offices across Catawba, Lincoln, Iredell, Alexander, and Mecklenburg counties, plus Loan Production Offices (LPOs) in Lincoln, Mecklenburg, and Rowan Counties. This established base is the launchpad for expansion into new North Carolina markets like Guilford or Wake County.

Expansion of the successful appraisal management fee service outside the current core counties is a clear path. This service is showing strong growth, which suggests scalability. For the full year ended December 31, 2023, appraisal management fee income was $11,663 thousand. By the full year ended December 31, 2024, this grew to an implied figure that contributed to total non-interest income of $27.7 million, up from $22.9 million in 2023. In the second quarter of 2025, appraisal management fee income alone reached $3.97 million, up $0.79 million year-over-year.

Targeting commercial real estate lending in the Charlotte (Mecklenburg County) metropolitan area is a natural next step, as Peoples Bank already operates a convenient office and an LPO there. Total loans stood at $1.16 billion as of Q2 2025, up from $1.09 billion at the end of 2024, showing loan growth capacity.

The potential for acquisition of a smaller, non-competing community bank in Eastern North Carolina would provide immediate branch access, bypassing organic build-out time. The total deposit base was $1.51 billion in Q2 2025, with core deposits at 90.05% of that total, indicating a stable funding base to support new market integration.

Using digital channels to offer deposit products statewide bypasses the need for immediate physical branches. Peoples Bank already offers Remote Deposit Capture, a service letting businesses scan checks electronically and post them to their accounts via a secure Internet transfer, eliminating physical transportation barriers. Total deposits grew from $1.39 billion at the end of 2023 to $1.51 billion in Q2 2025.

Here's a look at the financial scale supporting these market development efforts:

The growth in fee income demonstrates a transferable, high-margin service model ready for new markets. You should review the operational costs associated with the appraisal management fee expense, which rose by $0.72 million year-over-year in Q4 2024 due to volume.

Key operational areas that support digital and geographic expansion include:

• Digital Banking responsibilities are managed by the Executive Vice President, Chief Operations Officer.
• Total assets stood at $1.73 Billion USD as of September 2025.
• Net earnings for the full year 2024 were $16.4 million.
• The regular cash dividend for Q2 2025 was $0.20 per share.

Finance: draft 13-week cash view by Friday.

Peoples Bancorp of North Carolina, Inc. (PEBK) - Ansoff Matrix: Product Development

Product Development under the Ansoff Matrix means introducing new offerings into existing markets, which for Peoples Bancorp of North Carolina, Inc. means enhancing the services offered through its current North Carolina footprint and customer base. You're looking to deepen relationships by offering more specialized, high-value products, so let's map out the required steps with the numbers we have from the latest filings.

Specialized Wealth Management for High-Net-Worth Clients

Peoples Investment Services, Inc. currently provides investment counseling and non-deposit investment products. To target high-net-worth (HNW) clients, the strategy is to create a specialized tier of service. While the Assets Under Management (AUM) for Peoples Investment Services, Inc. isn't explicitly broken out for this segment, the overall context shows a focus on core banking, with Total Loans at $1.18 billion as of September 30, 2025. A successful HNW product launch would aim to capture a significant portion of the wealth held by successful business owners within Peoples Bancorp of North Carolina, Inc.'s existing commercial client base. The market capitalization stood at $177.65M as of a recent quote, indicating a valuation that supports investment in specialized advisory talent.

Proprietary FinTech for Small Business Lending

Streamlining small business lending through a proprietary FinTech solution addresses the competitive landscape where loan application approval rates for small banks in 2025 were reported at 54% nationally. Peoples Bancorp of North Carolina, Inc. has $1.18 billion in Total Loans as of September 30, 2025. Developing an internal digital platform would directly target the 8% rise in loan applications seen in Southern states like North Carolina, aiming to reduce the time-to-decision for commercial clients. This move supports the existing commercial banking focus advised by officers like the Chief Commercial Banking Officer.

Niche Construction Loan Product

The need for a specialized construction loan product is underscored by the need to manage credit risk proactively. The Allowance for credit losses on unfunded commitments stood at $1.2 million at September 30, 2025, up from $1.1 million at December 31, 2024. This increase in the reserve, despite a decrease in the provision expense in 2024, suggests ongoing scrutiny of this asset class. A niche product could focus on specific, lower-risk segments of construction, such as pre-approved, smaller-scale residential or essential infrastructure projects, allowing for more granular risk pricing than the general portfolio.

New Insurance Product Line Leveraging Real Estate Advisory Services, Inc.

Real Estate Advisory Services, Inc. and its subsidiary, Community Bank Real Estate Solutions, LLC (CBRES), are active in appraisal management. Appraisal Management Fee Income for Q3 2025 was $3.6 million, with associated expenses at $2.9 million for the same quarter. This activity generates a net income of $219,000 for Q3 2025 for the segment. A new insurance product line, perhaps specialized property or liability coverage tailored to real estate transactions, directly cross-sells into the workflow already established by these subsidiaries. This leverages existing fee-generating infrastructure.

Simplified Digital-Only Checking Account

Attracting younger customers requires meeting them where they are digitally. Nationally, 63% of bank account holders handled their banking via smartphone or tablet in the fourth quarter of 2024, with U.S. digital banking users expected to reach 216.8 million by 2025. Peoples Bank already supports mobile wallets and online banking. Launching a defintely simplified, digital-only checking account-perhaps distinct from the existing Student Checking Account-would capture this trend. The focus should be on frictionless onboarding and mobile-first features, as security and ease of use are key drivers for digital tool selection. The total deposits for Peoples Bancorp of North Carolina, Inc. reached $1.55 billion as of September 30, 2025, and a new digital account could help shift the mix toward lower-cost funding sources.

The Product Development quadrant requires execution that aligns with the current financial reality. For instance, the Q3 2025 Net Earnings were $3.7 million, meaning any new product investment must show a clear path to improving that bottom line. The existing structure already supports several of these moves:

• Peoples Investment Services, Inc. exists for wealth services.
• Real Estate Advisory Services, Inc. provides a base for insurance cross-selling.
• Peoples Bank offers mobile and online banking infrastructure.

You need to assign clear ownership for the FinTech build, as that's the only item not directly tied to an existing subsidiary structure. Finance: draft the capital expenditure request for the proprietary FinTech solution by December 15th.

Peoples Bancorp of North Carolina, Inc. (PEBK) - Ansoff Matrix: Diversification

You're looking at growth paths beyond simply lending more money in the familiar North Carolina markets. Diversification here means moving into new products or new geographies, which is the essence of this Ansoff quadrant for Peoples Bancorp of North Carolina, Inc. (PEBK).

The existing business provides a strong base to fund these moves. Consider the balance sheet snapshot as of June 30, 2025. The loan portfolio stood at $1.16 Billion, supported by total deposits of $1.51 Billion. This core banking strength provides the capital foundation for expansion.

Fee income, particularly from the Community Bank Real Estate Solutions, LLC (CBRES) segment, is a clear area for leveraging existing competency into new markets. In the second quarter of 2025, total non-interest income reached $7.69 Million. A significant portion of this, $3.97 Million, came specifically from appraisal management fee income in that quarter alone.

Here's a quick look at the financial context supporting the diversification thesis:

The strategic actions for diversification focus on expanding both product lines and geographic reach outside the current footprint, which includes Catawba, Lincoln, Iredell, Alexander, and Mecklenburg counties in North Carolina.

• Acquire a non-bank financial company specializing in factoring or asset-based lending outside North Carolina.
• Establish a new subsidiary focused on national mortgage servicing rights acquisition.
• Invest in a regional private equity fund, diversifying the balance sheet and fee income sources.
• Offer specialized municipal finance services to local governments outside the current service area.
• Develop a national platform for the appraisal management business, leveraging its strong $7.69 Million Q2 2025 non-interest income.

The growth in appraisal management fee income, which saw a $0.79 Million year-over-year increase in Q2 2025, shows the existing platform is ready for national scaling. This existing revenue stream, which contributed $3.97 Million in Q2 2025, can be the blueprint for other non-interest income plays.

For municipal finance, Peoples Bank & Trust currently offers services like Tax Anticipation Warrants and Municipal Leasing, which suggests internal expertise that could be productized for new government clients beyond the immediate service area.

If onboarding takes 14+ days, churn risk rises.

Finance: draft 13-week cash view by Friday.