-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 DzkAWKzQjWCTZTWbmqjUCFa3mC9JF1qHFhrkl+3ghKo360kuTQp5Cdl1W7Q7d3hz
 /SQCO/jqJ7fGlrMrb2NImw==

<SEC-DOCUMENT>0001093672-07-000052.txt : 20070523
<SEC-HEADER>0001093672-07-000052.hdr.sgml : 20070523
<ACCEPTANCE-DATETIME>20070523094619
ACCESSION NUMBER:		0001093672-07-000052
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20070518
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20070523
DATE AS OF CHANGE:		20070523

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:		07872651

	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>form8-kformay182007.htm
<DESCRIPTION>8-K FOR MAY 18, 2007
<TEXT>
<html>
  <head>
    <title>
      8-K for May 18, 2007
</title>
<!-- Licensed to: peoples bank-->
<!-- Document Created using EDGARizer HTML 3.0.4.0 -->
<!-- Copyright 2006 EDGARfilings, Ltd., an IEC company.-->
<!-- All rights reserved EDGARfilings.com -->
</head>
  <body bgcolor="#ffffff"><br>
    <div>
      <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>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="37%">&#160;</td>
            <td align="left" valign="top" width="8%">&#160;</td>
          </tr>

      </table>
    </div>
    <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
                18, 2007</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;">
              <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>Peoples
                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>
            </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;">
              <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>
            </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">(State
                or Other Jurisdiction of Incorporation)</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" colspan="3" valign="top" width="89%">&#160;</td>
          </tr>

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

            <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="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>
              </td>
              <td 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>56-2132396</u></strong></font></div>
              </td>
            </tr>
            <tr>
              <td colspan="3" 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">(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>
              </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%">&#160;</td>
            </tr>
            <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>518
                  West C Street, Newton, North Carolina</u></strong></font></div>
              </td>
              <td 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>28658</u></strong></font></div>
              </td>
            </tr>
            <tr>
              <td colspan="3" 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">(Address
                  of Principal Executive Offices)</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">(Zip
                  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%">&#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>
              </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">(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: #ffffff thin solid;">&#160;<font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o</font></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: #ffffff thin solid;">&#160;<font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o</font></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: #ffffff thin solid;">&#160;<font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o</font></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: #ffffff thin solid;">&#160;<font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o</font></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>
      </div>
    </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">
        </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 align="left" colspan="4" valign="top" width="68%">
                <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">Peoples
                  Bancorp of North Carolina, Inc.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" colspan="4" valign="top" width="68%">&#160;</td>
            </tr>
            <tr>
              <td align="left" colspan="4" valign="top" width="68%">
                <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>INDEX</strong></font></div>
              </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%">&#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%" 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 18, 2007</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>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</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>
      <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><br>
      <div align="left">
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="top" width="3%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
                  8.01. </strong></font></div>
              </td>
              <td align="left" colspan="2" valign="top" width="41%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Other
                  Matters</strong></font></div>
              </td>
            </tr>

        </table>
      </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">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
        On April 19, 2007, the Board of Directors of Peoples Bancorp of North Carolina,
        Inc. authorized a 3-for-2 stock split and on May 17, 2007, the Board declared
        a
        cash dividend at $0.09 per share. As a result of the stock split, the share
        holdings of each&#160;shareholder will be adjusted so that each shareholder will
        become the owner of&#160;three&#160;shares of common stock for every two shares
        of common stock they hold as of the record date. Shareholders will receive
        a
        cash payment in lieu of any fractional shares resulting from the stock split.
        The cash dividend authorized on May 17, 2007, will be paid based on the number
        of shares held by shareholders as adjusted by the stock split. </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">On
        May
        18, 2007, the Board of Directors of Peoples Bancorp of North Carolina, Inc.
        announced that the stock split and cash dividend will be delivered and paid
        simultaneously on June 15, 2007. The record date for the stock split and
        the
        cash dividend is June 4, 2007. </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 cash dividend and the record date and payment
        date of both the stock split and the cash dividend is attached hereto as
        Exhibit
        (99)(a) and is incorporated by reference herein.</font></div>
    </div>
    <div>&#160;</div>
    <div>
      <div align="left">
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="top" width="3%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
                  9.01. </strong></font></div>
              </td>
              <td align="left" colspan="2" valign="top" width="41%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Financial
                  Statements and
                  Exhibits</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="2%">&#160;</td>
              <td align="left" valign="top" width="2%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)</font></div>
              </td>
              <td align="left" valign="top" width="40%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibits</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="top" width="40%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="top" width="2%">
                <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="40%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Press
                  release, dated May 18, 2007</font></div>
              </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="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 may contain 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>&#160;</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: 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">&#160;</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: 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">&#160;</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: 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">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#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">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>
    </div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div><br>
      <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>
    </div>
    <div>&#160;</div>
    <div><br>
      <div align="left">
        <table border="0" cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="top" width="24%">&#160;</td>
              <td align="left" valign="top" width="12%">&#160;</td>
              <td align="left" colspan="2" valign="top" width="36%">
                <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="24%">&#160;</td>
              <td align="left" valign="top" width="12%">&#160;</td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="top" width="34%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="24%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date:
                  May 23, 2007</font></div>
              </td>
              <td align="left" valign="top" width="12%">&#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="34%" 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="24%">&#160;</td>
              <td align="left" valign="top" width="12%">&#160;</td>
              <td align="left" colspan="2" valign="top" width="36%">
                <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="24%">&#160;</td>
              <td align="left" valign="top" width="12%">&#160;</td>
              <td align="left" colspan="2" valign="top" width="36%">
                <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>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</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>
      <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>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
  </body>
</html>





</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.(A)
<SEQUENCE>2
<FILENAME>ex99_a.htm
<DESCRIPTION>EXHIBIT (99)(A)
<TEXT>
<html>
  <head>
    <title>
      Exhibit (99)(a)
</title>
<!-- Licensed to: peoples bank-->
<!-- Document Created using EDGARizer HTML 3.0.4.0 -->
<!-- Copyright 2006 EDGARfilings, Ltd., an IEC company.-->
<!-- All rights reserved EDGARfilings.com -->
</head>
  <body bgcolor="#ffffff"><br>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="right" colspan="4" valign="top" width="83%">
              <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>
            </td>
          </tr>
          <tr>
            <td valign="top" width="14%">&#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="14%">&#160;</td>
            <td align="left" 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="14%">
              <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>NEWS
                RELEASE</em></font></div>
            </td>
            <td align="left" 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="14%">&#160;</td>
            <td align="left" 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="14%">&#160;</td>
            <td align="left" valign="top" width="46%">&#160;</td>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="15%">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>May
                18, 2007</strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="14%">
              <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="46%">
              <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="8%">&#160;</td>
            <td align="left" valign="top" width="15%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="14%">&#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>President
                and Chief Executive Officer</strong></font></div>
            </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="14%">&#160;</td>
            <td align="left" 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="14%">&#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>A.
                Joseph Lampron</strong></font></div>
            </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="14%">&#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>
            </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="14%">&#160;</td>
            <td align="left" 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="14%">&#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>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>
          </tr>

      </table>
    </div>
    <div>&#160;</div>
    <div>
      <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="center"><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><u>PEOPLES
        BANCORP ANNOUNCES CASH DIVIDEND IN CONJUNCTION WITH PREVIOUSLY AUTHORIZED
        3-FOR-2 STOCK SPLIT</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 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">
        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 2007 at their most recent meeting in conjunction with a previously
        authorized 3-for-2 stock split. The cash dividend was declared at $0.09 per
        share. As a result of the stock split, each shareholder will receive three
        shares of stock in exchange for every two 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 split. The cash dividend will be paid based
        on
        the number of shares held by shareholders as adjusted by the stock split.
        The
        stock split and cash dividend will be paid simultaneously on June 15, 2007.
        The
        record date for the stock split and cash dividend is June 4, 2007. </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: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><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: 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">Peoples
        Bank operates entirely in North Carolina, with eleven offices throughout
        Catawba
        County, one office in Alexander County, three offices in Lincoln County,
        three
        offices in Mecklenburg County, and one office in Union County. The Bank recently
        opened a new office in Cornelius, North Carolina. The Company&#8217;s common stock is
        publicly traded over the counter and is quoted on the Nasdaq Global Market
        under
        the symbol &#8220;PEBK.&#8221; </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; 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="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, 2006, 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">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 216pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
        END</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>&#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">&#160;</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">5</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">&#160;</div>
        </div>
      </div>
    </div>
    <div>&#160;</div>
  </body>
</html>








</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
