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<SEC-DOCUMENT>0001093672-06-000025.txt : 20060426
<SEC-HEADER>0001093672-06-000025.hdr.sgml : 20060426
<ACCEPTANCE-DATETIME>20060426070717
ACCESSION NUMBER:		0001093672-06-000025
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20060421
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20060426
DATE AS OF CHANGE:		20060426

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PEOPLES BANCORP OF NORTH CAROLINA INC
		CENTRAL INDEX KEY:			0001093672
		STANDARD INDUSTRIAL CLASSIFICATION:	STATE COMMERCIAL BANKS [6022]
		IRS NUMBER:				562132396
		STATE OF INCORPORATION:			NC
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-27205
		FILM NUMBER:		06779503

	BUSINESS ADDRESS:	
		STREET 1:		518 WEST C STREET
		CITY:			NEWTON
		STATE:			NC
		ZIP:			28658-4007
		BUSINESS PHONE:		8284645620

	MAIL ADDRESS:	
		STREET 1:		PO BOX 467
		CITY:			NEWTON
		STATE:			NC
		ZIP:			28658-0467
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>mainbodyfor8kforapril212006.htm
<DESCRIPTION>8-K FOR APRIL 21, 2006 STOCK DIVIDEND
<TEXT>
<html>
  <head>
    <title>
      8-K for April 21, 2006 stock dividend
</title>
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      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td valign="top" width="8%">&#160;</td>
            <td valign="top" width="37%">
              <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>UNITED
                STATES</strong></font></div>
            </td>
            <td valign="top" width="8%">&#160;</td>
          </tr>
          <tr>
            <td valign="top" width="8%">&#160;</td>
            <td valign="top" width="37%">
              <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
                AND EXCHANGE COMMISSION</strong></font></div>
            </td>
            <td valign="top" width="8%">&#160;</td>
          </tr>
          <tr>
            <td valign="top" width="8%">&#160;</td>
            <td valign="top" width="37%">
              <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Washington,
                D.C. 20549</strong></font></div>
            </td>
            <td valign="top" width="8%">&#160;</td>
          </tr>
          <tr>
            <td valign="top" width="8%">&#160;</td>
            <td valign="top" width="37%">
              <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>______________________________</strong></font></div>
            </td>
            <td align="left" valign="top" width="8%">&#160;</td>
          </tr>

      </table>
    </div><br>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td colspan="4" valign="top" width="89%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>FORM
                8-K</strong></font></div>
            </td>
          </tr>
          <tr>
            <td colspan="4" valign="top" width="89%">&#160;</td>
          </tr>
          <tr>
            <td colspan="4" valign="top" width="89%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
                REPORT </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PURSUANT
                TO SECTION 13 OR 15(D)</strong></font></div>
            </td>
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          <tr>
            <td colspan="4" valign="top" width="89%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>OF
                THE SECURITIES EXCHANGE ACT OF 1934</strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="left" colspan="4" valign="top" width="89%">&#160;</td>
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          <tr>
            <td align="left" colspan="4" valign="top" width="89%">&#160;</td>
          </tr>
          <tr>
            <td align="left" colspan="4" valign="top" width="89%">&#160;</td>
          </tr>
          <tr>
            <td colspan="4" valign="top" width="89%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
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                21, 2006</strong></font></div>
            </td>
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            <td align="left" colspan="4" valign="top" width="89%">&#160;</td>
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          <tr>
            <td align="left" colspan="4" valign="top" width="89%">&#160;</td>
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          <tr>
            <td align="left" colspan="4" valign="top" width="89%">&#160;</td>
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            <td colspan="4" valign="top" width="89%" style="border-bottom: medium none;">
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                Bancorp of North Carolina, Inc.</u></strong></font></div>
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          <tr>
            <td colspan="4" valign="top" width="89%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
                Name of Registrant as Specified in Its Charter)</font></div>
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            <td colspan="4" valign="top" width="89%">
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            <td align="left" colspan="4" valign="top" width="89%">&#160;</td>
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            <td align="left" colspan="4" valign="top" width="89%">&#160;</td>
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          <tr>
            <td colspan="3" valign="top" width="45%" style="border-bottom: medium none;">
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                File No.)</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(IRS
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Zip
                Code)</font></div>
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            <td align="left" colspan="4" valign="top" width="89%">&#160;</td>
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          <tr>
            <td align="left" colspan="4" valign="top" width="89%">&#160;</td>
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            <td align="left" colspan="4" valign="top" width="89%">&#160;</td>
          </tr>
          <tr>
            <td colspan="4" valign="top" width="89%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>(828)
                464-5620</u></strong></font></div>
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          <tr>
            <td colspan="4" valign="top" width="89%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Registrant&#8217;s
                Telephone Number, Including Area Code)</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" colspan="4" valign="top" width="89%">&#160;</td>
          </tr>
          <tr>
            <td align="left" colspan="4" valign="top" width="89%">&#160;</td>
          </tr>
          <tr>
            <td align="left" colspan="4" valign="top" width="89%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Check
                the appropriate box below if the Form 8-K filing is intended to
                simultaneously satisfy the filing obligation of the registrant under
                any
                of the following provisions:</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" colspan="4" valign="top" width="89%">&#160;</td>
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          <tr>
            <td align="left" valign="top" width="9%">&#160;</td>
            <td align="left" valign="top" width="2%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="left" colspan="2" valign="top" width="78%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Written
                communications pursuant to Rule 425 under the Securities Act (17
                CFR
                230.425)</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" colspan="4" valign="top" width="89%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="9%">&#160;</td>
            <td align="left" valign="top" width="2%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="left" colspan="2" valign="top" width="78%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Soliciting
                material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
                240.14a-12)</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" colspan="4" valign="top" width="89%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="9%">&#160;</td>
            <td align="left" valign="top" width="2%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="left" colspan="2" valign="top" width="78%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
                communications pursuant to Rule 14d-2(b) under the Exchange Act (17
                CFR
                240.14d-2(b))</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" colspan="4" valign="top" width="89%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="9%">&#160;</td>
            <td align="left" valign="top" width="2%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="left" colspan="2" valign="top" width="78%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
                communications pursuant to Rule 13e-4(c) under the Exchange Act (17
                CFR
                240.13e-4(c))</font></div>
            </td>
          </tr>

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    <div>&#160;</div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td valign="top" width="89%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Peoples
                  Bancorp of North Carolina, Inc.</font></div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="89%">&#160;</td>
            </tr>
            <tr>
              <td valign="top" width="89%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>INDEX</u></strong></font></div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div>&#160;</div>
    <div>
      <div align="left">
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="top" width="44%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="top" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="top" width="8%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Page</u></font></div>
              </td>
              <td align="left" valign="top" width="4%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="44%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
                  8.01 - Other Matters</font></div>
              </td>
              <td align="left" valign="top" width="12%">&#160;</td>
              <td align="left" valign="top" width="8%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3</font></div>
              </td>
              <td align="left" valign="top" width="4%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="44%">&#160;</td>
              <td align="left" valign="top" width="12%">&#160;</td>
              <td align="left" valign="top" width="8%">&#160;</td>
              <td align="left" valign="top" width="4%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="44%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
                  9.01 - Financial Statements and Exhibits</font></div>
              </td>
              <td align="left" valign="top" width="12%">&#160;</td>
              <td align="left" valign="top" width="8%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3</font></div>
              </td>
              <td align="left" valign="top" width="4%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="44%">&#160;</td>
              <td align="left" valign="top" width="12%">&#160;</td>
              <td align="left" valign="top" width="8%">&#160;</td>
              <td align="left" valign="top" width="4%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="44%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Signatures</font></div>
              </td>
              <td align="left" valign="top" width="12%">&#160;</td>
              <td align="left" valign="top" width="8%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4</font></div>
              </td>
              <td align="left" valign="top" width="4%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="44%">&#160;</td>
              <td align="left" valign="top" width="12%">&#160;</td>
              <td align="left" valign="top" width="8%">&#160;</td>
              <td align="left" valign="top" width="4%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="44%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
                  (99)(a) Press release dated April 21, 2006</font></div>
              </td>
              <td align="left" valign="top" width="12%">&#160;</td>
              <td align="left" valign="top" width="8%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5</font></div>
              </td>
              <td align="left" valign="top" width="4%">&#160;</td>
            </tr>

        </table>
      </div>
    </div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div>&#160;</div>
    <div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        8.01. Other Matters</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        April
        21, 2006, the Board of Directors of Peoples Bancorp of North Carolina, Inc.
        authorized a 10% stock dividend. As a result of the stock dividend, each
        shareholder will receive one new share of stock for every ten shares of stock
        they hold as of the record date. Shareholders will receive a cash payment
        in
        lieu of any fractional shares resulting from the stock dividend. The cash
        dividend will be paid based on the number of shares held by shareholders
        as
        adjusted by the stock dividend. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
        previously reported per share amounts will be restated to reflect this stock
        dividend. Restated earnings per share for the three months ended March 31,
        2006
        will be $0.59 basic net earnings per share and $0.58 diluted net earnings
        per
        share, as compared to $0.34 basic net earnings per share and $0.33 diluted
        net
        earnings per share, for the three months ended March 31, 2005.</font></div>
      <div>&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
        The Company had 3,438,407 shares of common stock outstanding at April 21,
        2006.
        The Company's stock transfer agent is Registrar and Transfer
        Company.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
        copy of
        the press release announcing the stock dividend is attached hereto as Exhibit
        (99)(a) and is incorporated by reference herein.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br>
        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
          9.01. Financial Statements and Exhibits</strong></font></div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br>
        <div align="left">
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="3%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font></div>
                </td>
                <td align="left" valign="top" width="38%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibits</font></div>
                </td>
                <td align="left" valign="top" width="9%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="3%">&#160;</td>
                <td align="left" valign="top" width="38%">&#160;</td>
                <td align="left" valign="top" width="9%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="3%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(99)(a)</font></div>
                </td>
                <td align="left" valign="top" width="38%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Press
                    release, dated April 21, 2006</font></div>
                </td>
                <td align="left" valign="top" width="9%">&#160;</td>
              </tr>

          </table>
        </div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Disclosure
        about forward-looking statements</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
        Form
        8-K contains forward-looking statements. These statements are subject to
        certain
        risks and uncertainties that could cause actual results to differ materially
        from those anticipated in the forward-looking statements. Factors that might
        cause such a difference include, but are not limited to, changes in interest
        rate environment, management&#8217;s business strategy, national, regional, and local
        market conditions and legislative and regulatory conditions. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Readers
        should not place undue reliance on forward-looking statements, which reflect
        management&#8217;s view only as of the date hereof. The Company undertakes no
        obligation to publicly revise these forward-looking statements to reflect
        subsequent events or circumstances. Readers should also carefully review
        the
        risk factors described in other documents the Company files from time to
        time
        with the Securities and Exchange Commission.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div>
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td valign="top" width="89%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURES</strong></font></div>
                </td>
              </tr>
              <tr>
                <td align="justify" valign="top" width="89%">&#160;</td>
              </tr>
              <tr>
                <td align="justify" valign="top" width="89%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
                    to the requirements of the Securities Exchange Act of 1934, the
                    registrant
                    has duly caused this report to be signed on its behalf by the
                    undersigned
                    hereunto duly authorized</font></div>
                </td>
              </tr>

          </table>
        </div><br><br>
        <div align="left">
          <table border="0" cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td align="left" valign="top" width="22%">&#160;</td>
                <td align="left" valign="top" width="15%">&#160;</td>
                <td align="left" colspan="2" valign="top" width="35%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">PEOPLES
                    BANCORP OF NORTH CAROLINA, INC.</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="22%">&#160;</td>
                <td align="left" valign="top" width="15%">&#160;</td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="33%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="22%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date:
                    April 26, 2006</font></div>
                </td>
                <td align="left" valign="top" width="15%">&#160;</td>
                <td align="left" valign="top" width="2%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:
                    </font></div>
                </td>
                <td align="left" valign="top" width="33%" style="border-bottom: black thin solid;">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/
                    A. Joseph Lampron</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="22%">&#160;</td>
                <td align="left" valign="top" width="15%">&#160;</td>
                <td align="left" colspan="2" valign="top" width="35%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A.
                    Joseph Lampron</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="22%">&#160;</td>
                <td align="left" valign="top" width="15%">&#160;</td>
                <td align="left" colspan="2" valign="top" width="35%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Executive
                    Vice President and Chief Financial
                    Officer</font></div>
                </td>
              </tr>

          </table>
        </div>
      </div>
    </div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div>&#160;</div>
    <div><br>
      <div align="left">
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td colspan="4" valign="top" width="80%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>EXHIBIT
                  (99)(a)</strong></font></div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="8%">&#160;</td>
              <td align="right" valign="top" width="48%">&#160;</td>
              <td align="left" valign="top" width="9%">&#160;</td>
              <td align="left" valign="top" width="15%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%">&#160;</td>
              <td align="left" valign="top" width="48%">&#160;</td>
              <td align="left" valign="top" width="9%">&#160;</td>
              <td align="left" valign="top" width="15%">&#160;</td>
            </tr>
            <tr>
              <td align="left" colspan="2" valign="top" width="56%">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>&#160;NEWS
                  RELEASE</em></font></div>
              </td>
              <td align="left" valign="top" width="9%">&#160;</td>
              <td align="left" valign="top" width="15%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%">&#160;</td>
              <td align="left" valign="top" width="48%">&#160;</td>
              <td align="left" valign="top" width="9%">&#160;</td>
              <td align="left" valign="top" width="15%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%">&#160;</td>
              <td align="left" valign="top" width="48%">&#160;</td>
              <td align="left" valign="top" width="9%">&#160;</td>
              <td align="left" valign="top" width="15%">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>April
                  21, 2006</strong></font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Contact:</strong></font></div>
              </td>
              <td align="left" valign="top" width="48%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Tony
                  W. Wolfe</strong></font></div>
              </td>
              <td align="left" valign="top" width="9%">&#160;</td>
              <td align="left" valign="top" width="15%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%">&#160;</td>
              <td align="left" valign="top" width="48%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>President
                  and Chief Executive Officer</strong></font></div>
              </td>
              <td align="left" valign="top" width="9%">&#160;</td>
              <td align="left" valign="top" width="15%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%">&#160;</td>
              <td align="left" valign="top" width="48%">&#160;</td>
              <td align="left" valign="top" width="9%">&#160;</td>
              <td align="left" valign="top" width="15%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%">&#160;</td>
              <td align="left" valign="top" width="48%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>A.
                  Joseph Lampron</strong></font></div>
              </td>
              <td align="left" valign="top" width="9%">&#160;</td>
              <td align="left" valign="top" width="15%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%">&#160;</td>
              <td align="left" valign="top" width="48%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Executive
                  Vice President and Chief Financial Officer</strong></font></div>
              </td>
              <td align="left" valign="top" width="9%">&#160;</td>
              <td align="left" valign="top" width="15%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%">&#160;</td>
              <td align="left" valign="top" width="48%">&#160;</td>
              <td align="left" valign="top" width="9%">&#160;</td>
              <td align="left" valign="top" width="15%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%">&#160;</td>
              <td align="left" valign="top" width="48%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>828-464-5620,
                  Fax 828-465-6780</strong></font></div>
              </td>
              <td align="left" valign="top" width="9%">&#160;</td>
              <td align="left" valign="top" width="15%">&#160;</td>
            </tr>

        </table>
      </div>
    </div>
    <div>&#160;</div>
    <div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>For
        Immediate Release</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>PEOPLES
        BANCORP ANNOUNCES 10% STOCK DIVIDEND</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Newton,
        NC</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        The
        Board of Directors of Peoples Bancorp of North Carolina, Inc., (Nasdaq: PEBK)
        authorized a 10% stock dividend to be paid in conjunction with the Company&#8217;s
        regular cash dividend for the second quarter of 2006 at their most recent
        meeting. As a result of the stock dividend, each shareholder will receive
        one
        new share of stock for every ten shares of stock they hold as of the record
        date. Shareholders will receive a cash payment in lieu of any fractional
        shares
        resulting from the stock dividend. The cash dividend will be paid based on
        the
        number of shares held by shareholders as adjusted by the stock
        dividend.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>&#160;</div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Shareholders
        are encouraged to enroll in the Company&#8217;s Dividend Reinvestment and Stock
        Purchase Plan. For details, you may contact the Investor Relations Department
        at
        (828) 464-5620 or (800) 948-7195.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Peoples
        Bank operates entirely in North Carolina, with eleven offices throughout
        Catawba
        County, one office in Alexander County, three offices in Lincoln County and
        two
        offices in Mecklenburg County. The Bank also operates a Loan Production Office
        in Davidson, North Carolina, which is located in Mecklenburg County. The
        Company&#8217;s common stock is publicly traded over the counter and is quoted on the
        Nasdaq National Market under the symbol &#8220;PEBK.&#8221; </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman"><strong>Statements
        made in this press release, other than those concerning historical information,
        should be considered forward-looking statements pursuant to the safe harbor
        provisions of the Securities Exchange Act of 1934 and the Private Securities
        Litigation Act of 1995. These forward-looking statements are based on
        information currently available to management and are subject to various
        risks
        and uncertainties, including but not limited to those described in Peoples
        Bancorp of North Carolina, Inc.&#8217;s annual report on Form 10-K for the year ended
        December 31, 2005, under &#8220;General Description of Business&#8221; and otherwise in the
        Company&#8217;s reports and filings.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>END</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
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