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<SEC-DOCUMENT>0001093672-06-000033.txt : 20060525
<SEC-HEADER>0001093672-06-000033.hdr.sgml : 20060525
<ACCEPTANCE-DATETIME>20060525153856
ACCESSION NUMBER:		0001093672-06-000033
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20060519
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20060525
DATE AS OF CHANGE:		20060525

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:		06867120

	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>body8kmay192006.htm
<DESCRIPTION>8-K FOR MAY 19, 2006
<TEXT>
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  <head>
    <title>
      8-K for May 19, 2006
</title>
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          <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="3" 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="3" valign="top" width="89%">&#160;</td>
          </tr>
          <tr>
            <td colspan="3" 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>
          </tr>
          <tr>
            <td colspan="3" 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="3" valign="top" width="89%">&#160;</td>
          </tr>
          <tr>
            <td align="left" colspan="3" valign="top" width="89%">&#160;</td>
          </tr>
          <tr>
            <td align="left" colspan="3" valign="top" width="89%">&#160;</td>
          </tr>
          <tr>
            <td colspan="3" 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
                of Report (Date of earliest event reported):</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>May
                19, 2006</strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="left" colspan="3" valign="top" width="89%">&#160;</td>
          </tr>
          <tr>
            <td align="left" colspan="3" valign="top" width="89%">&#160;</td>
          </tr>
          <tr>
            <td align="left" colspan="3" valign="top" width="89%">&#160;</td>
          </tr>
          <tr>
            <td colspan="3" valign="top" width="89%" style="border-bottom: medium none;">
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                Bancorp of North Carolina, Inc.</u></strong></font></div>
            </td>
          </tr>
          <tr>
            <td colspan="3" 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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          </tr>
          <tr>
            <td align="left" colspan="3" valign="top" width="89%">&#160;</td>
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          <tr>
            <td align="left" colspan="3" valign="top" width="89%">&#160;</td>
          </tr>
          <tr>
            <td colspan="3" 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>North
                Carolina</u></strong></font></div>
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          <tr>
            <td colspan="3" 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">(State
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          <tr>
            <td align="left" colspan="3" valign="top" width="89%">&#160;</td>
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            <tr>
              <td colspan="3" valign="top" width="45%" 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>000-27205</u></strong></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"><strong><u>56-2132396</u></strong></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">(Commission
                  File No.)</font></div>
              </td>
              <td valign="top" width="45%">
                <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
                  Employer Identification No.)</font></div>
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            <tr>
              <td align="left" colspan="4" valign="top" width="89%">&#160;</td>
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            <tr>
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              <td align="left" colspan="4" valign="top" width="89%">&#160;</td>
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              <td colspan="3" valign="top" width="45%" style="border-bottom: medium none;">
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                  West C Street, Newton, North Carolina</u></strong></font></div>
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                  of Principal Executive Offices)</font></div>
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              <td valign="top" width="45%">
                <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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            <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%">&#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>
            </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">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>

        </table>
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    </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>
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      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <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><br>
      <div>&#160;</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 May 19, 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>&#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>
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    <div>&#160;</div>
    <div>&#160;</div>
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            <tr>
              <td align="left" valign="top" width="4%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
                  8.01. </strong></font></div>
              </td>
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                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Other
                  Matters</strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; 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 id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      April
      20, 2006, the Board of Directors of Peoples Bancorp of North Carolina, Inc.
      authorized a 10% stock dividend and on May 18, 2006, the Board declared a cash
      dividend at 11 cents per share. 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
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      19, 2006, the Board of Directors of Peoples Bancorp of North Carolina, Inc.
      announced that the stock dividend and cash dividend will be paid simultaneously
      on June 16, 2006. The record date for the stock dividend and the cash dividend
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      copy of
      the press release announcing the cash dividend and the record date and payment
      date of both the stock dividend and the cash dividend is attached hereto as
      Exhibit (99)(a) and is incorporated by reference herein.</font></div>
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            <tr>
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            <tr>
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                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)</font></div>
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                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibits</font></div>
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              <td align="left" valign="top" width="3%">&#160;</td>
              <td align="left" valign="top" width="35%">&#160;</td>
              <td align="left" valign="top" width="7%">&#160;</td>
            </tr>
            <tr>
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                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(99)(a)</font></div>
              </td>
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                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Press
                  release, dated May 19, 2006</font></div>
              </td>
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            </tr>

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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; 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"><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>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
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      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>
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    <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>
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            <tr>
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                  registrant
                  has duly caused this report to be signed on its behalf by the undersigned
                  hereunto duly authorized</font></div>
              </td>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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      <div align="left">
        <table border="0" cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="top" width="22%">&#160;</td>
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              <td align="left" colspan="2" valign="top" width="40%">
                <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="11%">&#160;</td>
              <td align="left" valign="top" width="3%">&#160;</td>
              <td align="left" valign="top" width="37%">&#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:
                  May 25, 2006</font></div>
              </td>
              <td align="left" valign="top" width="11%">&#160;</td>
              <td align="left" valign="top" width="3%">
                <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="37%" 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="11%">&#160;</td>
              <td align="left" colspan="2" valign="top" width="40%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A.
                  Joseph Lampron</font></div>
              </td>
            </tr>
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              <td align="left" valign="top" width="11%">&#160;</td>
              <td align="left" colspan="2" valign="top" width="40%">
                <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>

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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.(A)
<SEQUENCE>2
<FILENAME>ex99_a.htm
<DESCRIPTION>EXHIBIT (99)(A)
<TEXT>
<html>
  <head>
    <title>
      Exhibit (99)(a)
</title>
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      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><br>
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              <tr>
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                  <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"><strong>EXHIBIT
                    (99)(a)</strong></font></div>
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              </tr>
              <tr>
                <td valign="top" width="11%">&#160;</td>
                <td align="right" valign="top" width="46%">&#160;</td>
                <td align="left" valign="top" width="8%">&#160;</td>
                <td align="left" valign="top" width="15%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="11%">&#160;</td>
                <td align="left" valign="top" width="46%">&#160;</td>
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                <td align="left" valign="top" width="15%">&#160;</td>
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                <td align="left" valign="top" width="8%">&#160;</td>
                <td align="left" valign="top" width="15%">&#160;</td>
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                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>May
                    19, 2006</strong></font></div>
                </td>
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                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Contact:</strong></font></div>
                </td>
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                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Tony
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                <td align="left" valign="top" width="15%">&#160;</td>
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                <td align="left" valign="top" width="15%">&#160;</td>
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                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>A.
                    Joseph Lampron</strong></font></div>
                </td>
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                <td align="left" valign="top" width="15%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="11%">&#160;</td>
                <td align="left" valign="top" width="46%">
                  <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>
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                <td align="left" valign="top" width="15%">&#160;</td>
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                <td align="left" valign="top" width="46%">&#160;</td>
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                <td align="left" valign="top" width="15%">&#160;</td>
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                <td align="left" valign="top" width="46%">
                  <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="8%">&#160;</td>
                <td align="left" valign="top" width="15%">&#160;</td>
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        <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">&#160;</div>
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      <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 CASH DIVIDEND IN CONJUNCTION WITH PREVIOUSLY AUTHORIZED
        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: 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"><strong>Newton,
        NC</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;
        The Board of Directors of Peoples Bancorp of North Carolina, Inc., Newton,
        NC
        (Nasdaq: PEBK) declared the Company&#8217;s regular cash dividend for the second
        quarter of 2006 at their most recent meeting in conjunction with a previously
        authorized 10% stock dividend. The cash dividend was declared at 11 cents
        per
        share. 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.
        The
        stock dividend and cash dividend will be paid simultaneously on June 16,
        2006.
        The record date for the stock dividend and cash dividend is June 5, 2006.
        </font></div>
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        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: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Peoples
        Bank, the wholly owned subsidiary of Peoples Bancorp of North Carolina, Inc.
        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="DISPLAY: block; MARGIN-LEFT: 45pt; 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: 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>
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