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<SEC-DOCUMENT>0001093672-08-000047.txt : 20081211
<SEC-HEADER>0001093672-08-000047.hdr.sgml : 20081211
<ACCEPTANCE-DATETIME>20081211084322
ACCESSION NUMBER:		0001093672-08-000047
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20081209
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20081211
DATE AS OF CHANGE:		20081211

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:		081242403

	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>form8kfordec92008.htm
<DESCRIPTION>8-K FOR DEC 9, 2008
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              <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
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December 9, 2008, Peoples Bancorp of North Carolina, Inc. issued a press release
announcing that it has received preliminary approval to participate in the U.S.
Treasury Department&#8217;s Capital Purchase Program</font></div>
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reference herein.</font></div>
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2008</font></div>
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8-K contains forward-looking statements.&#160;&#160;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.&#160;&#160;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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should not place undue reliance on forward-looking statements, which reflect
management&#8217;s view only as of the date hereof.&#160;&#160;The Company undertakes
no obligation to publicly revise these forward-looking statements to reflect
subsequent events or circumstances.&#160;&#160;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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      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br>&#160;</div>
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      <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
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      has duly caused this report to be signed on its behalf by the undersigned
      hereunto duly authorized.</font></div>
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    <div>&#160;</div>
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            <tr>
              <td valign="top" width="22%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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              <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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Officer</font></div>
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    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
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<TYPE>EX-99.A
<SEQUENCE>2
<FILENAME>exhibit99_a.htm
<DESCRIPTION>EXHIBIT (99)(A)
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    <title>exhibit99_a.htm</title>
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      (99)(a)</font></div>
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      RELEASE</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">December
      9, 2008</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Contact:</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Tony
      W. Wolfe</font></div>
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      and Chief Executive Officer</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">A.
      Joseph Lampron</font></div>
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      Vice President and Chief Financial Officer</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">828-464-5620,
      Fax 828-465-6780</font></div>
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    <div>&#160;</div>
    <div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">For Immediate
Release</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">PEOPLES BANCORP RECEIVES A
$25.1 MILLION COMMITMENT FROM</font></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">THE U.S. TREASURY&#8217;S CAPITAL
PURCHASE PROGRAM</font></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>Peoples Bancorp of North Carolina, Inc.
(the &#8220;Company&#8221;)&#160;&#160;(NASDAQ: PEBK), the parent company of Peoples Bank
(the &#8220;Bank") today announced that it has received preliminary approval to
participate in the U.S. Treasury Department&#8217;s Capital Purchase
Program.&#160;&#160;As a participant, the Company may issue up to $25.1 million
in senior preferred stock, with related warrants to purchase up to $3.8 million
in common stock, to the U.S. Treasury.&#160;&#160;The anticipated sale of the
preferred stock and warrants is expected to close within 30 days and is
contingent upon the completion of standard closing documents and subsequent
registration with the Securities and Exchange Commission.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;The
preliminary approval is an important recognition of the strength and financial
health of Peoples Bancorp of North Carolina,&#8221; stated Tony W. Wolfe, President
and Chief Executive Officer.&#160;&#160;&#8220;This capital, which is being provided
at favorable market terms, will enhance our capacity to support our market areas
through expanded lending activities and economic development.&#8221;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
September 30, 2008, the Company and the Bank were &#8220;well-capitalized&#8221; under all
regulatory guidelines.&#160;&#160;At that date, the Company&#8217;s Tier 1 Leverage
Capital Ratio was 9.92% and its Total Risk Based Capital Ratio was 12.10%. Based
on the September 30, 2008 financial statements, the addition of the maximum
available new capital through the Treasury program will increase the Company&#8217;s
Tier 1 Leverage Capital Ratio to approximately 12.64% and Total Risk Based
Capital Ratio to approximately 15.10%.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
preferred stock will pay a 5% dividend for the first five years, after which the
rate will increase to 9% if the preferred shares are not redeemed by the
Company.&#160;&#160;The preferred shares do not carry voting
rights.&#160;&#160;Terms and conditions of the transaction and the preferred
stock will conform to those provided by the U.S. Treasury.&#160;&#160;A summary
of the Capital Purchase Program can be found on the Treasury&#8217;s web site at <font style="DISPLAY: inline; TEXT-DECORATION: underline">www.ustreas.gov/initiatives/eesa</font>.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; 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 11 offices throughout Catawba
County, one office in Alexander County, three offices in Lincoln County, three
offices in Mecklenburg County, one office in Union County, one office in Iredell
County and one office in Wake County.&#160;&#160;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: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">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.&#160;&#160;These forward-looking statements involve
risks and uncertainties and are based on the beliefs and assumptions of
management and on the information available to management at the time that this
release was prepared.&#160;&#160;These statements can be identified by the use
of words like &#8220;expect,&#8221; &#8220;anticipate,&#8221; &#8220;estimate,&#8221; and &#8220;believe,&#8221; variations of
these words and other similar expressions.&#160;&#160;Readers should not place
undue reliance on forward-looking statements as a number of important factors
could cause actual results to differ materially from those in the
forward-looking statements.&#160;&#160;Factors that could cause actual results
to differ materially include, but are not limited to, (1) competition in the
markets served by Peoples Bank, (2) changes in the interest rate environment,
(3) general national, regional or local economic conditions may be less
favorable than expected, resulting in, among other things, a deterioration in
credit quality and the possible impairment of collectibility of loans, (4)
legislative or regulatory changes, including changes in accounting standards,
(5) significant changes in the federal and state legal and regulatory
environment and tax laws, (6) the impact of changes in monetary and fiscal
policies, laws, rules and regulations and (7) other risks and factors identified
in the Company&#8217;s other filings with the Securities and Exchange
Commission,&#160;&#160;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, 2007.</font></div>
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