New Peoples Bankshares Inc 8-K, filed Apr 29, 2022
New Peoples Bankshares Inc (NWPP)
About this 8-K
New Peoples Bankshares Inc filed this 8-K on April 29, 2022, reporting on events of April 25, 2022.
Items reported
- Item 2.02: Financial results
- Item 5.02: Director or officer change, or executive pay
- Item 8.01: Other events
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Item 2.02. Results of Operations and Financial Condition
On April 28, 2022, New Peoples Bankshares, Inc. (the “Company”) issued a press release announcing its earnings for the quarter ending March 31, 2022. A copy of the press release is attached as Exhibit 99.1.
Item 5.02. Departure of Directors or Certain Officers: Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On April 25, 2022, the board of directors was informed that director Eugene Hearl would retire effective with the Annual Meeting of Shareholders scheduled for May 17, 2022. Mr. Hearl’s retirement does not relate to any disagreement on matters relating to the Company’s operations, policies or practices.
Item 8.01. Other Events
On April 28, 2022 the Company issued a press release announcing that its Board of Directors authorized the repurchase of up to 500,000 shares through March 31, 2023. A copy of the press release is attached as Exhibit 99.2 to this report and is incorporated by reference to this Item 8.01.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. Description
99.1 Press release dated April 28, 2022 announcing earnings for the first quarter and year-to-date 2022
99.2 Press release dated April 28, 2022 announcing authorization of share repurchase program
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| NEW PEOPLES BANKSHARES, INC. | ||||
| Date: | April 29, 2022 | By: | /s/ Christopher G. Speaks | |
| Christopher G. Speaks | ||||
| Executive Vice President and Chief Financial Officer | ||||
Exhibit 99.1
NEWS RELEASE
| FOR IMMEDIATE RELEASE: | FOR MORE INFORMATION, CONTACT: | |
| April 28, 2022 | C. Todd Asbury | |
| (276) 873-7000 |
NEW PEOPLES BANKSHARES ANNOUNCES RECORD FIRST QUARTER 2022 RESULTS
Honaker, Virginia -- New Peoples Bankshares (the “Company”) (OTCBB: NWPP) and its wholly-owned subsidiary, New Peoples Bank (the “Bank”), today announced first quarter net income of $1.92 million, or $0.08 per share, for the quarter ended March 31, 2022 as compared to $1.58 million or $0.07 per share, for the quarter ended March 31, 2021, which is a year-over-year improvement of $336,000, or21.2%. The primary drivers for the increase were increases in net interest income of $208,000, a reduction in the provision for loan losses of $86,000, and an increase in total noninterest income of $240,000.
C. Todd Asbury, President and CEO of the Company, stated, “The first quarter of 2022 proved to be quite significant as we paid the first cash dividend to our shareholders on March 31st and reported record quarterly earnings; our fifth consecutive quarter of increased net income. Our efforts to expand services to our customers and manage costs continue to drive performance as we generated returns on average assets and equity of 0.97% and 12.35%, respectively. These results are the culmination of a lot of hard work over the past several years. I am pleased with our progress to become a high performing financial institution. We are delivering on what we have promised our investors and customers and plan to continue to do so going forward.”
Net interest income increased $208,000 resulting from a $270,000 decrease in interest expense, which more than offset a $62,000 decrease in interest income. Despite growth in earning assets, particularly in the investment and loan portfolios, interest income shrunk year-over-year, due to a decrease in fees generated from Payroll Protection Program loans. The reduction in interest expense was driven, principally, by the continued low market interest rates throughout 2021 and into 2022, as our cost of funds fell 16 basis points year-over-year to 0.30% for the first quarter of 2022. This net rate reduction resulted in decreased interest expense of $174,000. In addition, declines in the volume of interest-bearing time deposits and Federal Home Loan Bank advances resulted in a volume-related decrease in interest expense of $96,000. In March 2022, the Federal Open Market Committee raised the target federal funds rate 25 basis points (bps), in what is largely considered to be the first of a series of rate increases during 2022.
The year-over-year reduction in the provision for loan losses of $86,000 to $100,000 for the quarter ended March 31, 2022 is due to the continued improvement in the loan portfolio, exhibited by reductions in past due and nonperforming loans, combined with improving economic trends during the first quarter, including continued improving employment statistics. Annualized net charge-offs to average loans remain at low levels and were 0.05% for the quarter ended March 31, 2022. Nonaccrual loans to total loans and nonperforming assets to total assets declined to 0.44% to 0.42%, respectively at March 31, 2022
Total non-interest income increased $240,000 during the first quarter of 2022 compared to the first quarter of 2021 due to increases in service charges and fees and card processing fees of $175,000 and $52,000, respectively. The service charges and fees increase relates to increased volume in overdraft charges related to customer activity beginning to return to pre-pandemic levels as businesses reopened and as customers spend savings from stimulus payments accumulated during the pandemic. Card processing fee revenue is also volume related for reasons similar to those impacting service charge income. In addition, year-over-year, fees generated through financial and merchant services increased $12,000 and $11,000, respectively, due to increased volume from both new and existing customers using these services. We continue efforts to increase noninterest income revenue through product enhancements and customer development.
Total non-interest expense increased $90,000, as salaries and benefits expense increased $196,000 due to the impact of increasing our minimum base hourly wage, targeted salary adjustments to retain and attract employees, combined with normal annual wage adjustments and added costs for performance incentive plans initiated during the third quarter of 2021. Occupancy expense decreased $170,000 due largely to the reduction in the number of buildings through sales or transfers to other real estate owned. Additionally, net depreciation costs for furniture, equipment and computer equipment decreased $89,000 as assets reached the end of their estimated economic useful lives, along with the decommissioning of a number of interactive teller machines during the fourth quarter of 2021. Other operating expenses increased $64,000 year-over-year, primarily due to costs related to the holding and disposal of other real estate owned, which increased $33,000 to $130,000. ATM network expenses increased $25,000 to $367,000, due to increased activity combined with general cost increases. Miscellaneous losses increased $69,000 to $50,000 in 2022, as compared to net recoveries of $19,000 in 2021. These increased expenses were offset by decreases in data processing and telecommunications costs, and FDIC insurance which decreased $19,000 and $21,000, respectively. Data processing and telecommunication costs decreased due to the reduction in the number of branch sites and renegotiated contracts, while FDIC insurance decreased due to the improved risk factors considered in the premium assessment. Efforts continue to decrease non-interest expenses of the Company and improve efficiency.
Total assets increased $18.9 million, or 2.4%, to $813.5 million at March 31, 2022 from $794.6 million at December 31, 2021, funded largely by increased deposits as the low interest rate environment continues to provide liquidity. Total loans increased $1.4 million, or 0.23%, to $595.1 million at March 31, 2022 from $593.7 million at December 31, 2021. Loan growth has resulted from increases in commercial construction, multi-family and home equity loans, which increased $5.6 million, $1.7 million and $1.0 million, respectively. These increases offset a decrease in commercial loans of $7.2 million, which resulted largely from repayments and forgiveness of Paycheck Protection Program loans of $3.6 million during the first three months of 2022. Our loan production operation in Boone, North Carolina, continues to generate positive results. Total deposits increased $23.5 million, or 3.3%, to $731.0 million at March 31, 2022 from $707.5 million at December 31, 2021, driven by liquidity resulting from the continuing low interest rate environment and seasonal growth from income tax refunds.
At March 31, 2022, shareholders’ equity totaled $58.9 million, a decrease of $4.7 million, or 7.4%, from December 31, 2021. The primary cause for the net decrease was the change in the net unrealized loss on investment securities available for sale, which increased $5.4 million, or 668.8%, during the first quarter of 2022, due to the impact of the change in interest rates. Excluding the impact of the unrealized loss, equity increased $725,000, due to net income of $1.9 million less the cash dividend payment of $1.2 million.
During March of 2022, our market area began to see a significant easing from the impact of the COVID-19 pandemic. As a result, employees have returned to the office and customers are afforded full service at our branch locations. Asbury stated, “Throughout the pandemic our primary goal has been to assure the safety of our customers and employees. I am grateful to our customers for their patience and understanding and proud of the poise and commitment exhibited by our employees during this pandemic. We look forward to resuming business as usual as we strive to become the preeminent community financial institution in Appalachia.”
On April 20, 2022, the United States District Court for the Western District of Virginia issued summary judgment, in favor of the Bank, dismissing all remining claims made in a lawsuit filed by a former employee in January 2021, alleging wrongful termination based on gender, religion and age.
Highlights
Earnings for the quarter ended March 31, 2022:
| · | Net interest margin was 3.53% for the quarter, a decrease of 6 basis points compared to 3.59% for the quarter ended March 31, 2021; |
| · | Net interest income improved to $6.6 million for the quarter, an improvement of $208,000, or 3.2%, compared to the first quarter of 2021; |
| · | Provision for loans losses was $100,000 for the quarter, a reduction of $86,000 compared to the first quarter of 2021; |
| · | Noninterest income increased $240,000, or 11.3%, to $2.4 million for the first quarter of 2022 compared to the first quarter of 2021; |
| · | Salaries and employee benefits expense increased $196,000, or 6.4%, to $3.3 million for the first quarter of 2022 compared to the same quarter in 2021; |
| · | Occupancy and equipment expenses decreased $170,000, or 14.5%, to $1.0 million for the first quarter of 2022 compared to the same quarter in 2021; |
| · | Expenses associated with other real estate owned were up $33,000, or 34.6%, to $130,000 for the first quarter of 2022 compared to the same quarter in 2021; and |
| · | Data processing and telecommunications expenses were down $19,000, or 3.3%, to $554,000 for the first quarter of 2022 compared to the first quarter of 2021. |
Balance Sheet:
| · | Total loans increased $1.4 million during the quarter, to $595.1 million at March 31, 2022; |
| · | Securities available for sale decreased $538,000 during the quarter, to $106.8 million at March 31, 2022; |
| · | Time deposits decreased $5.8 million during the quarter, to $193.3 million at March 31, 2022; |
| · | Total deposits increased $23.5 million during the quarter, to $731.0 million at March 31, 2022; |
| · | Borrowings remained unchanged during the quarter; |
| · | Total capital at March 31, 2021 was $58.9 million; |
| · | Book value per share was $2.46 ($2.72 after excluding the accumulated other comprehensive loss resulting from the tax effected unrealized loss on securities available-for-sale), at March 31, 2022; and |
| · | The Bank remains ‘well capitalized’ as defined by regulatory guidance. |
Asset Quality:
| · | Nonperforming assets, which include nonaccrual loans and other real estate owned, totaled $3.4 million at March 31, 2022, a decline of $867,000, or 20.2%, during the quarter; |
| · | Nonperforming assets as a percentage of total assets were 0.42% at quarter end; |
| · | Loans past due 30 days or more, or in nonaccrual status, totaled $4.4 million, or 0.73% of total loans outstanding, at quarter-end; |
| · | Annualized net charge offs as a percentage of average loans for the first quarter of 2022 were 0.05%, down from 0.06% for the first quarter of 2021; and |
| · | The allowance for loan losses as a percentage of total loans was 1.14% at March 31, 2022, compared to 1.23% at March 31, 2021. |
About New Peoples Bankshares, Inc.
New Peoples Bankshares, Inc. is a one-bank financial holding company headquartered in Honaker, Virginia. Its wholly-owned subsidiary provides banking products and services through its 20 locations throughout southwest Virginia, eastern Tennessee, western North Carolina and southern West Virginia. The Company’s common stock is traded over the counter under the trading symbol “NWPP”. Additional investor information can be found on the Company’s website at https://newpeoples.bank/Bankshares-About-Us.
This news release contains statements concerning the Company’s expectations, plans, objectives, future financial performance and other statements that are not historical facts. These statements may constitute “forward-looking statements” as defined by federal securities laws. These statements may address issues that involve estimates and assumptions made by management, risks and uncertainties, and actual results could differ materially from historical results or those anticipated by such statements. Important factors that may cause actual results to differ from projections include:
(i) the success or failure of efforts to implement the Company’s business plan; (ii) any required increase in the Company’ regulatory capital ratios; (iii) satisfying other regulatory requirements that may arise from examinations, changes in the law and other similar factors; (iv) deterioration of asset quality; (v) changes in the level of the Company’s nonperforming assets and charge-offs; (vi) fluctuations of real estate values in the Company’s markets; (vii) the Company’s ability to attract and retain talent; (viii) demographical changes in the Company’s markets which negatively impact the local economy; (ix) the uncertain outcome of enacted legislation to stabilize the United States financial system; (x) the successful management of interest rate risk; (xi) the successful management of liquidity; (xii) changes in general economic and business conditions in the Company’s market area and the United States in general; (xiii) credit risks inherent in making loans such as changes in a borrower’s ability to repay and the Company’s management of such risks; (xiv) competition with other banks and financial institutions, and companies outside of the banking industry, including online lenders and those companies that have substantially greater access to capital and other resources; (xv) demand, development and acceptance of new products and services the Company has offered or may offer; (xvi) the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System, inflation, interest rate, market and monetary fluctuations; (xvii) the occurrence of significant natural disasters, including severe weather conditions, floods, health related issues (including the novel coronavirus (COVID-19) outbreak and the associated efforts to limit the spread of the disease), and other catastrophic events; (xviii) technology utilized by the Company; (xix) the Company’s ability to successfully manage cyber security; (xx) the Company’s reliance on third-party vendors and correspondent banks; (xxi) changes in generally accepted accounting principles; (xxii) changes in governmental regulations, tax rates and similar matters; and (xxiii) other risks which may be described in future filings the Company makes with the Securities and Exchange Commission. The Company expressly disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
NEW PEOPLES BANKSHARES, INC.
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2022 AND DECEMBER 31, 2021
(IN THOUSANDS EXCEPT SHARE DATA)
(UNAUDITED)
| ASSETS | March 31, 2022 | December 31, 2021 | ||||||
| Cash and due from banks | $ | 17,040 | $ | 14,952 | ||||
| Interest-bearing deposits with banks | 61,806 | 45,766 | ||||||
| Federal funds sold | 18 | 228 | ||||||
| Total Cash and Cash Equivalents | 78,864 | 60,946 | ||||||
| Investment securities available-for-sale | 106,820 | 107,358 | ||||||
| Loans held for sale | 100 | — | ||||||
| Loans receivable | 595,132 | 593,744 | ||||||
| Allowance for loan losses | (6,759 | ) | (6,735 | ) | ||||
| Net Loans | 588,373 | 587,009 | ||||||
| Bank premises and equipment, net | 20,293 | 20,735 | ||||||
| Other real estate owned | 795 | 1,361 | ||||||
| Accrued interest receivable | 2,087 | 2,112 | ||||||
| Deferred taxes, net | 2,610 | 1,673 | ||||||
| Bank owned life insurance | 4,690 | 4,685 | ||||||
| Right-of-use assets – operating leases | 3,981 | 4,062 | ||||||
| Other assets | 4,923 | 4,706 | ||||||
| Total Assets | $ | 813,536 | $ | 794,647 | ||||
| LIABILITIES | ||||||||
| Deposits | ||||||||
| Noninterest bearing | $ | 269,251 | $ | 251,257 | ||||
| Interest-bearing | 461,717 | 456,256 | ||||||
| Total Deposits | 730,968 | 707,513 | ||||||
| Borrowed funds | 16,496 | 16,496 | ||||||
| Lease liabilities – operating leases | 3,981 | 4,062 | ||||||
| Accrued interest payable | 254 | 272 | ||||||
| Accrued expenses and other liabilities | 2,925 | 2,673 | ||||||
| Total Liabilities | 754,624 | 731,016 | ||||||
| STOCKHOLDERS’ EQUITY | ||||||||
| Common stock - $2.00 par value; 50,000,000 shares authorized; | ||||||||
| 23,922,086 shares issued and outstanding at | ||||||||
| March 31, 2022 and December 31, 2021 | 47,844 | 47,844 | ||||||
| Additional paid-in capital | 14,570 | 14,570 | ||||||
| Retained earnings | 2,756 | 2,031 | ||||||
| Accumulated other comprehensive loss | (6,258 | ) | (814 | ) | ||||
| Total Stockholders’ Equity | 58,912 | 63,631 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 813,536 | $ | 794,647 | ||||
NEW PEOPLES BANKSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2022 AND 2021
(IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA)
(UNAUDITED
| INTEREST AND DIVIDEND INCOME | 2022 | 2021 | ||||||
| Loans including fees | $ | 6,674 | $ | 6,921 | ||||
| Federal funds sold | — | — | ||||||
| Interest-earning deposits with banks | 21 | 19 | ||||||
| Investments | 435 | 247 | ||||||
| Dividends on equity securities (restricted) | 27 | 32 | ||||||
| Total Interest and Dividend Income | 7,157 | 7,219 | ||||||
| INTEREST EXPENSE | ||||||||
| Deposits | 430 | 683 | ||||||
| Borrowed funds | 106 | 123 | ||||||
| Total Interest Expense | 536 | 806 | ||||||
| NET INTEREST INCOME | 6,621 | 6,413 | ||||||
| PROVISION FOR LOAN LOSSES | 100 | 186 | ||||||
| NET INTEREST INCOME AFTER | ||||||||
| PROVISION FOR LOAN LOSSES | 6,521 | 6,227 | ||||||
| NONINTEREST INCOME | ||||||||
| Service charges and fees | 1,007 | 832 | ||||||
| Card processing and interchange | 916 | 864 | ||||||
| Insurance and investment fees | 241 | 226 | ||||||
| Other noninterest income | 205 | 207 | ||||||
| Total Noninterest Income | 2,369 | 2,129 | ||||||
| NONINTEREST EXPENSES | ||||||||
| Salaries and employee benefits | 3,275 | 3,079 | ||||||
| Occupancy and equipment expense | 1,006 | 1,176 | ||||||
| Data processing and telecommunications | 554 | 573 | ||||||
| Other operating expenses | 1,604 | 1,521 | ||||||
| Total Noninterest Expenses | 6,439 | 6,349 | ||||||
| INCOME BEFORE INCOME TAXES | 2,451 | 2,007 | ||||||
| INCOME TAX EXPENSE | 530 | 422 | ||||||
| NET INCOME | $ | 1,921 | $ | 1,585 | ||||
| Income Per Share | ||||||||
| Basic and diluted | $ | 0.08 | $ | 0.07 | ||||
| Weighted Average Shares of Common Stock | ||||||||
| Basic and diluted | 23,922,086 | 23,922,086 | ||||||
NEW PEOPLES BANKSHARES, INC.
KEY PERFORMANCE AND CAPITAL RATIOS
(UNAUDITED)
| For the three-months ended, | ||||||||||||||||||||
| March 31, 2022 | December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | ||||||||||||||||
| Key Performance Ratios | ||||||||||||||||||||
| Earning asset yield | 3.82 | % | 3.83 | % | 4.26 | % | 3.89 | % | 4.04 | % | ||||||||||
| Cost of interest bearing liabilities | 0.46 | % | 0.48 | % | 0.52 | % | 0.58 | % | 0.69 | % | ||||||||||
| Cost of funds | 0.30 | % | 0.31 | % | 0.34 | % | 0.38 | % | 0.46 | % | ||||||||||
| Net interest margin | 3.53 | % | 3.53 | % | 3.93 | % | 3.52 | % | 3.59 | % | ||||||||||
| Return on average stockholder’s equity | 12.35 | % | 12.14 | % | 11.75 | % | 11.15 | % | 10.96 | % | ||||||||||
| Return on average assets | 0.97 | % | 0.95 | % | 0.91 | % | 0.82 | % | 0.83 | % | ||||||||||
| Efficiency ratio* | 71.59 | % | 72.84 | % | 77.62 | % | 74.45 | % | 74.30 | % | ||||||||||
| Loan to deposit ratio | 81.42 | % | 83.92 | % | 80.46 | % | 83.21 | % | 82.45 | % | ||||||||||
| Asset Quality | ||||||||||||||||||||
| Allowance for loan loss to total loans | 1.14 | % | 1.13 | % | 1.16 | % | 1.13 | % | 1.23 | % | ||||||||||
| Net charge offs (recoveries) to average loans, annualized | 0.05 | % | (0.05 | %) | 0.03 | % | 0.53 | % | 0.06 | % | ||||||||||
| Nonaccrual loans to total loans | 0.44 | % | 0.50 | % | 0.54 | % | 0.66 | % | 0.90 | % | ||||||||||
| Nonperforming assets to total assets | 0.42 | % | 0.54 | % | 0.68 | % | 0.77 | % | 1.07 | % | ||||||||||
| Capital Ratios (Bank Only) | ||||||||||||||||||||
| Tier 1 leverage | 9.95 | % | 9.86 | % | 9.53 | % | 9.19 | % | 9.41 | % | ||||||||||
| Tier 1 risk-based capital | 14.66 | % | 14.98 | % | 15.11 | % | 14.82 | % | 14.91 | % | ||||||||||
| Total risk-based capital | 15.90 | % | 16.23 | % | 16.37 | % | 16.08 | % | 16.16 | % | ||||||||||
| Total common equity tier 1 capital | 14.66 | % | 14.98 | % | 15.11 | % | 14.82 | % | 14.91 | % | ||||||||||
*The efficiency ratio is computed as a percentage of non-interest expense divided by the sum of net interest income and non-interest income. This is a non-GAAP financial measure that management believes provides investors with important information regarding operational efficiency. Management believes such financial information is meaningful to the reader in understanding operating performance, but cautions that such information should not be viewed as a substitute for GAAP. Comparison of our efficiency ratio with those of other companies may not be possible because other companies may calculate it differently.
Exhibit 99.2
NEWS RELEASE
| FOR IMMEDIATE RELEASE: | FOR MORE INFORMATION, CONTACT: | |
| February 28, 2022 | C. Todd Asbury | |
| (276) 873-7000 |
NEW PEOPLES BANKSHARES, INC. ANNOUNCES SHARE REPURCHASE AUTHORIZATION
Honaker, Virginia – The board of directors of New Peoples Bankshares, Inc. (the “Company”) (OTCBB: NWPP) the financial holding company of its wholly-owned subsidiary, New Peoples Bank, Inc. (the “Bank”), today announced the authorization to repurchase up to 500,000 shares of the Company’s outstanding common stock through March 31, 2023. Repurchases may be made through open market purchases or in privately negotiated transactions.
The actual means and timing of any purchases, number of shares and prices or range of prices will be determined by the Company in its discretion and will depend on a number of factors, including the market price of the Company’s common stock, general market and economic conditions, and applicable legal and regulatory requirements. There is no assurance that the Company will purchase any shares under this program.
About New Peoples Bankshares, Inc.
New Peoples Bankshares, Inc. is a one-bank financial holding company headquartered in Honaker, Virginia. Its wholly-owned subsidiary provides banking products and services through its 19 branch locations throughout southwest Virginia, eastern Tennessee, southern West Virginia, and a loan production office in western North Carolina. The Company’s common stock is traded over the counter under the trading symbol “NWPP”. Additional investor information can be found on the Company’s website at https://newpeoples.bank/Bankshares-About-Us.
This news release contains statements concerning the Company’s expectations, plans, objectives, future financial performance and other statements that are not historical facts. These statements may constitute “forward-looking statements” as defined by federal securities laws. These statements may address issues that involve estimates and assumptions made by management, risks and uncertainties, and actual results could differ materially from historical results or those anticipated by such statements. Important factors that may cause actual results to differ from projections include: (i) the success or failure of efforts to implement the Company’s business plan; (ii) any required increase in the Company’ regulatory capital ratios; (iii) satisfying other regulatory requirements that may arise from examinations, changes in the law and other similar factors; (iv) deterioration of asset quality; (v) changes in the level of the Company’s nonperforming assets and charge-offs; (vi) fluctuations of real estate values in the Company’s markets; (vii) the Company’s ability to attract and retain talent; (viii) demographical changes in the Company’s markets which negatively impact the local economy; (ix) the uncertain outcome of enacted legislation to stabilize the United States financial system; (x) the successful management of interest rate risk; (xi) the successful management of liquidity; (xii) changes in general economic and business conditions in the Company’s market area and the United States in general; (xiii) credit risks inherent in making loans such as changes in a borrower’s ability to repay and the Company’s management of such risks; (xiv) competition with other banks and financial institutions, and companies outside of the banking industry, including online lenders and those companies that have substantially greater access to capital and other resources; (xv) demand, development and acceptance of new products and services the Company has offered or may offer; (xvi) the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System, inflation, interest rate, market and monetary fluctuations; (xvii) the occurrence of significant natural disasters, including severe weather conditions, floods, health related issues (including the novel coronavirus (COVID-19) outbreak and the associated efforts to limit the spread of the disease), and other catastrophic events; (xviii) technology utilized by the Company; (xix) the Company’s ability to successfully manage cyber security; (xx) the Company’s reliance on third-party vendors and correspondent banks; (xxi) changes in generally accepted accounting principles; (xxii) changes in governmental regulations, tax rates and similar matters; (xxiii) regulatory, economic and other factors affecting the Company’s ability to pay dividends; and (xxiii) other risks which may be described in future filings the Company makes with the Securities and Exchange Commission. The Company expressly disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.