The parent company of Peoples Bank reported a slight decline in second-quarter earnings due to an increase in loan loss reserves, according to a filing Monday with the Securities and Exchange Commission.

Peoples Bancorp of North Carolina posted second quarter earnings of $2.8 million, or 51 cents per share, down from second quarter earnings of $3 million, or 53 cents per share, in the same quarter in 2016.

Chief Executive Officer Lance A. Sellers attributed the decrease in second quarter net earnings to an increase in the provision for loan losses, a decrease in non-interest income and an increase in non-interest expense.

However, non-performing assets declined to $4.7 million, or 0.4 percent of total assets, at June 30, compared to $6.2 million, or 0.6 percent of total assets, at the end of the second quarter in 2016.

Deposits were $892.5 million at June 30 compared to $841.4 million at June 30, 2016.

Peoples Bank operates 19 banking offices in North Carolina, with offices in Catawba, Alexander, Lincoln, Mecklenburg, Iredell and Wake counties.

Peoples Bank also operates loan production offices in Lincoln and Durham counties.

Its shares fell $1.24, or 3.8 percent, to $31.03 in Monday trading.