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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0001140361-10-004692.txt : 20100208
<SEC-HEADER>0001140361-10-004692.hdr.sgml : 20100208
<ACCEPTANCE-DATETIME>20100208164316
ACCESSION NUMBER:		0001140361-10-004692
CONFORMED SUBMISSION TYPE:	5
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20091231
FILED AS OF DATE:		20100208
DATE AS OF CHANGE:		20100208

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			PRICE BILLY L JR DR
		CENTRAL INDEX KEY:			0001284378

	FILING VALUES:
		FORM TYPE:		5
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-27205
		FILM NUMBER:		10581352

ISSUER:		

	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

	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>5
<SEQUENCE>1
<FILENAME>doc1.xml
<DESCRIPTION>FORM 5
<TEXT>
<XML>
<?xml version="1.0"?>
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    <periodOfReport>2009-12-31</periodOfReport>

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    <issuer>
        <issuerCik>0001093672</issuerCik>
        <issuerName>PEOPLES BANCORP OF NORTH CAROLINA INC</issuerName>
        <issuerTradingSymbol>PEBK</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
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            <rptOwnerCik>0001284378</rptOwnerCik>
            <rptOwnerName>PRICE BILLY L JR DR</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>518 WEST C STREET</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>NEWTON</rptOwnerCity>
            <rptOwnerState>NC</rptOwnerState>
            <rptOwnerZipCode>28658</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
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            <otherText></otherText>
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    </reportingOwner>

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            <transactionDate>
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            <transactionDate>
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            <transactionCoding>
                <transactionFormType>5</transactionFormType>
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            <transactionTimeliness>
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            <transactionAmounts>
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                <transactionPricePerShare>
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                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
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            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
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                <directOrIndirectOwnership>
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        </nonDerivativeTransaction>
        <nonDerivativeTransaction>
            <securityTitle>
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            <transactionDate>
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            <transactionCoding>
                <transactionFormType>5</transactionFormType>
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            <securityTitle>
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                    <value>47.00</value>
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                    <footnoteId id="F1"/>
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                    <footnoteId id="F2"/>
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        </nonDerivativeHolding>
    </nonDerivativeTable>

    <derivativeTable></derivativeTable>

    <footnotes>
        <footnote id="F1">47 shares received for service award</footnote>
        <footnote id="F2">555 shares owned as joint tenants with wife</footnote>
    </footnotes>

    <remarks></remarks>

    <ownerSignature>
        <signatureName>Dr. Billy L. Price, Jr.</signatureName>
        <signatureDate>2010-02-08</signatureDate>
    </ownerSignature>
</ownershipDocument>
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