Exhibit (21)

             SUBSIDIARIES OF PEOPLES BANCORP OF NORTH CAROLINA, INC.

     Peoples Bank, a commercial bank organized under the laws of North Carolina,
is a subsidiary of Peoples Bancorp of North Carolina, Inc.

     In  December  2001,  the  Peoples  Bancorp of North Carolina, Inc. formed a
wholly  owned  Delaware  statutory  trust,  PEBK Capital Trust I ("PEBK Trust"),
which  issued  $14  million  of guaranteed preferred beneficial interests in the
Company's  junior  subordinated  deferrable  interest debentures that qualify as
Tier  I  capital  under  Federal  Reserve  Board  guidelines.  All of the common
securities of PEBK Trust are owned by the Company.