Item 8.01. Other Events

On September 8, 2009, the Board of Directors of Peoples Bancorp of North Carolina, Inc. adopted the Peoples Bancorp of North Carolina, Inc. Excessive and Luxury Expenditure Policy, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits

The following exhibit is being provided solely for the purposes of providing disclosure pursuant to Item 8.01 - Other Events.

(99.1) Peoples Bancorp of North Carolina, Inc. Excessive and Luxury Expenditure Policy.

Disclosure about forward-looking statements

This Form 8-K contains forward-looking statements. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that might cause such a difference include, but are not limited to, changes in interest rate environment, management's business strategy, national, regional, and local market conditions and legislative and regulatory conditions.

Readers should not place undue reliance on forward-looking statements, which reflect management'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.

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