8-K

UNITED STATES

SECURITIES AND

EXCHANGE COMMISSION

Washington, D.C.

20549

FORM 8-K

CURRENT REPORT

Pursuant to Section

13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 25, 2022

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Securities registered pursuant to Section 12(b) of the Act:

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company [ ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Item2.02.    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.

Item5.02.    Departure of Directors or Certain Officers: Election of Directors; Appointment of Certain Officers; CompensatoryArrangements 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.

Item8.01.   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.

Item9.01.    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.

Exhibit99.1

NEWSRELEASE

| FOR<br> IMMEDIATE RELEASE: | FOR MORE INFORMATION,<br> CONTACT: || --- | --- || April 28, 2022 | C. Todd Asbury || | (276) 873-7000 |

NEWPEOPLES BANKSHARES ANNOUNCES RECORD FIRST QUARTER 2022 RESULTSHonaker,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, 2022as 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 loanlosses 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 thefirst cash dividend to our shareholders on March 31^st^ and reported record quarterly earnings; our fifth consecutive quarterof increased net income. Our efforts to expand services to our customers and manage costs continue to drive performance as we generatedreturns on average assets and equity of 0.97% and 12.35%, respectively. These results are the culmination of a lot of hard work overthe past several years. I am pleased with our progress to become a high performing financial institution. We are delivering on what wehave promised our investors and customers and plan to continue to do so going forward.”Netinterest income increased $208,000 resulting from a $270,000 decrease in interest expense, which more than offset a $62,000 decreasein 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 to0.30% for the first quarter of 2022. This net rate reduction resulted in decreased interest expense of $174,000. In addition, declinesin the volume of interest-bearing time deposits and Federal Home Loan Bank advances resulted in a volume-related decrease in interestexpense of $96,000. In March 2022, the Federal Open Market Committee raised the target federal funds rate 25 basis points (bps), in whatis largely considered to be the first of a series of rate increases during 2022.Theyear-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 continuedimprovement in the loan portfolio, exhibited by reductions in past due and nonperforming loans, combined with improving economic trendsduring the first quarter, including continued improving employment statistics. Annualized net charge-offs to average loans remain atlow levels and were 0.05% for the quarter ended March 31, 2022. Nonaccrual loans to total loans and nonperforming assets to total assetsdeclined to 0.44% to 0.42%, respectively at March 31, 2022Totalnon-interest income increased $240,000 during the first quarter of 2022 compared to the first quarter of 2021 due to increases in servicecharges and fees and card processing fees of $175,000 and $52,000, respectively. The service charges and fees increase relates to increasedvolume in overdraft charges related to customer activity beginning to return to pre-pandemic levels as businesses reopened and as customersspend savings from stimulus payments accumulated during the pandemic. Card processing fee revenue is also volume related for reasonssimilar to those impacting service charge income. In addition, year-over-year, fees generated through financial and merchant servicesincreased $12,000 and $11,000, respectively, due to increased volume from both new and existing customers using these services. We continueefforts to increase noninterest income revenue through product enhancements and customer development. Totalnon-interest expense increased $90,000, as salaries and benefits expense increased $196,000 due to the impact of increasing our minimumbase hourly wage, targeted salary adjustments to retain and attract employees, combined with normal annual wage adjustments and addedcosts for performance incentive plans initiated during the third quarter of 2021. Occupancy expense decreased $170,000 due largely tothe reduction in the number of buildings through sales or transfers to other real estate owned. Additionally, net depreciation costsfor 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 expensesincreased $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 expenseswere 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-interestexpenses of the Company and improve efficiency.Totalassets increased $18.9 million, or 2.4%, to $813.5 million at March 31, 2022 from $794.6 million at December 31, 2021, funded largelyby 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 offseta decrease in commercial loans of $7.2 million, which resulted largely from repayments and forgiveness of Paycheck Protection Programloans of $3.6 million during the first three months of 2022. Our loan production operation in Boone, North Carolina, continues to generatepositive results. Total deposits increased $23.5 million, or 3.3%, to $731.0 million at March 31, 2022 from $707.5 million at December31, 2021, driven by liquidity resulting from the continuing low interest rate environment and seasonal growth from income tax refunds.AtMarch 31, 2022, shareholders’ equity totaled $58.9 million, a decrease of $4.7 million, or 7.4%, from December 31, 2021. The primarycause for the net decrease was the change in the net unrealized loss on investment securities available for sale, which increased $5.4million, or 668.8%, during the first quarter of 2022, due to the impact of the change in interest rates. Excluding the impact of theunrealized loss, equity increased $725,000, due to net income of $1.9 million less the cash dividend payment of $1.2 million.DuringMarch of 2022, our market area began to see a significant easing from the impact of the COVID-19 pandemic. As a result, employees havereturned to the office and customers are afforded full service at our branch locations. Asbury stated, “Throughout the pandemicour primary goal has been to assure the safety of our customers and employees. I am grateful to our customers for their patience andunderstanding and proud of the poise and commitment exhibited by our employees during this pandemic. We look forward to resuming businessas usual as we strive to become the preeminent community financial institution in Appalachia.”OnApril 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.HighlightsEarningsfor the quarter ended March 31, 2022:| · | Net<br> interest margin was 3.53% for the quarter, a decrease of 6 basis points compared to 3.59%<br> for the quarter ended March 31, 2021; || --- | --- || · | Net<br> interest income improved to $6.6 million for the quarter, an improvement of $208,000, or<br> 3.2%, compared to the first quarter of 2021; || --- | --- || · | Provision<br> for loans losses was $100,000 for the quarter, a reduction of $86,000 compared to the first<br> quarter of 2021; || --- | --- || · | Noninterest<br> income increased $240,000, or 11.3%, to $2.4 million for the first quarter of 2022 compared<br> to the first quarter of 2021; || --- | --- || · | Salaries<br> and employee benefits expense increased $196,000, or 6.4%, to $3.3 million for the first<br> quarter of 2022 compared to the same quarter in 2021; || --- | --- | | · | Occupancy<br> and equipment expenses decreased $170,000, or 14.5%, to $1.0 million for the first quarter<br> of 2022 compared to the same quarter in 2021; || --- | --- || · | Expenses<br> associated with other real estate owned were up $33,000, or 34.6%, to $130,000 for the first<br> quarter of 2022 compared to the same quarter in 2021; and || --- | --- || · | Data<br> processing and telecommunications expenses were down $19,000, or 3.3%, to $554,000 for the<br> first quarter of 2022 compared to the first quarter of 2021. || --- | --- |BalanceSheet:| · | Total<br> loans increased $1.4 million during the quarter, to $595.1 million at March 31, 2022; || --- | --- || · | Securities<br> available for sale decreased $538,000 during the quarter, to $106.8 million at March 31,<br> 2022; || --- | --- || · | Time<br> deposits decreased $5.8 million during the quarter, to $193.3 million at March 31, 2022; || --- | --- || · | Total<br> deposits increased $23.5 million during the quarter, to $731.0 million at March 31, 2022; || --- | --- || · | Borrowings<br> remained unchanged during the quarter; || --- | --- || · | Total<br> capital at March 31, 2021 was $58.9 million; || --- | --- || · | Book<br> value per share was $2.46 ($2.72 after excluding the accumulated other comprehensive loss<br> resulting from the tax effected unrealized loss on securities available-for-sale), at March<br> 31, 2022; and || --- | --- || · | The<br> Bank remains ‘well capitalized’ as defined by regulatory guidance. || --- | --- |AssetQuality:| · | Nonperforming<br> assets, which include nonaccrual loans and other real estate owned, totaled $3.4 million<br> at March 31, 2022, a decline of $867,000, or 20.2%, during the quarter; || --- | --- || · | Nonperforming<br> assets as a percentage of total assets were 0.42% at quarter end; || --- | --- || · | Loans<br> past due 30 days or more, or in nonaccrual status, totaled $4.4 million, or 0.73% of total<br> loans outstanding, at quarter-end; || --- | --- || · | Annualized<br> net charge offs as a percentage of average loans for the first quarter of 2022 were 0.05%,<br> down from 0.06% for the first quarter of 2021; and || --- | --- || · | The<br> allowance for loan losses as a percentage of total loans was 1.14% at March 31, 2022, compared<br> to 1.23% at March 31, 2021. || --- | --- |AboutNew Peoples Bankshares, Inc.NewPeoples Bankshares, Inc. is a one-bank financial holding company headquartered in Honaker, Virginia. Its wholly-owned subsidiary providesbanking products and services through its 20 locations throughout southwest Virginia, eastern Tennessee, western North Carolina and southernWest Virginia. The Company’s common stock is traded over the counter under the trading symbol “NWPP”. Additional investorinformation can be found on the Company’s website at https://newpeoples.bank/Bankshares-About-Us.*Thisnews release contains statements concerning the Company’s expectations, plans, objectives, future financial performance and otherstatements that are not historical facts. These statements may constitute “forward-looking statements” as defined by federalsecurities 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 maycause 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’ regulatorycapital ratios; (iii) satisfying other regulatory requirements that may arise from examinations, changes in the law and other similarfactors; (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 enactedlegislation to stabilize the United States financial system; (x) the successful management of interest rate risk; (xi) the successfulmanagement of liquidity; (xii) changes in general economic and business conditions in the Company’s market area and the UnitedStates in general; (xiii) credit risks inherent in making loans such as changes in a borrower’s ability to repay and the Company’smanagement 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, developmentand acceptance of new products and services the Company has offered or may offer; (xvi) the effects of, and changes in, trade, monetaryand fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System, inflation, interestrate, 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 ofthe disease), and other catastrophic events; (xviii) technology utilized by the Company; (xix) the Company’s ability to successfullymanage cyber security; (xx) the Company’s reliance on third-party vendors and correspondent banks; (xxi) changes in generally acceptedaccounting principles; (xxii) changes in governmental regulations, tax rates and similar matters; and (xxiii) other risks which may bedescribed in future filings the Company makes with the Securities and Exchange Commission. The Company expressly disclaims any obligationto update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as requiredby law.* NEWPEOPLES BANKSHARES, INC.CONSOLIDATEDBALANCE SHEETSMARCH31, 2022 AND DECEMBER 31, 2021(INTHOUSANDS EXCEPT SHARE DATA)(UNAUDITED)| ASSETS | | | December<br> 31, 2021 | | || --- | --- | --- | --- | --- | --- || Cash<br> and due from banks | 17,040 | | $ | 14,952 | || Interest-bearing<br> deposits with banks | 61,806 | | | 45,766 | || Federal<br> funds sold | 18 | | | 228 | || Total<br> Cash and Cash Equivalents | 78,864 | | | 60,946 | || Investment<br> securities available-for-sale | 106,820 | | | 107,358 | || Loans<br> held for sale | 100 | | | — | || Loans<br> receivable | 595,132 | | | 593,744 | || Allowance<br> for loan losses | (6,759 | ) | | (6,735 | ) || Net<br> Loans | 588,373 | | | 587,009 | || Bank<br> premises and equipment, net | 20,293 | | | 20,735 | || Other<br> real estate owned | 795 | | | 1,361 | || Accrued<br> interest receivable | 2,087 | | | 2,112 | || Deferred<br> taxes, net | 2,610 | | | 1,673 | || Bank<br> owned life insurance | 4,690 | | | 4,685 | || Right-of-use<br> assets – operating leases | 3,981 | | | 4,062 | || Other<br> assets | 4,923 | | | 4,706 | || Total<br> Assets | 813,536 | | $ | 794,647 | || LIABILITIES | | | | | || Deposits | | | | | || Noninterest<br> bearing | 269,251 | | $ | 251,257 | || Interest-bearing | 461,717 | | | 456,256 | || Total<br> Deposits | 730,968 | | | 707,513 | || Borrowed<br> funds | 16,496 | | | 16,496 | || Lease<br> liabilities – operating leases | 3,981 | | | 4,062 | || Accrued<br> interest payable | 254 | | | 272 | || Accrued<br> expenses and other liabilities | 2,925 | | | 2,673 | || Total<br> Liabilities | 754,624 | | | 731,016 | || STOCKHOLDERS’<br> EQUITY | | | | | || Common<br> stock - 2.00 par value; 50,000,000 shares authorized; | | | | | || 23,922,086<br> shares issued and outstanding at | | | | | || March<br> 31, 2022 and December 31, 2021 | 47,844 | | | 47,844 | || Additional<br> paid-in capital | 14,570 | | | 14,570 | || Retained<br> earnings | 2,756 | | | 2,031 | || Accumulated<br> other comprehensive loss | (6,258 | ) | | (814 | ) || Total<br> Stockholders’ Equity | 58,912 | | | 63,631 | || Total<br> Liabilities and Stockholders’ Equity | 813,536 | | $ | 794,647 | |All values are in US Dollars. NEWPEOPLES BANKSHARES, INC.CONSOLIDATEDSTATEMENTS OF INCOMEFORTHE THREE MONTHS ENDED MARCH 31, 2022 AND 2021(INTHOUSANDS EXCEPT SHARE AND PER SHARE DATA)(UNAUDITED| INTEREST<br> AND DIVIDEND INCOME | 2022 | | 2021 | || --- | --- | --- | --- | --- || Loans<br> including fees | $ | 6,674 | $ | 6,921 || Federal<br> funds sold | | — | | — || Interest-earning<br> deposits with banks | | 21 | | 19 || Investments | | 435 | | 247 || Dividends<br> on equity securities (restricted) | | 27 | | 32 || Total<br> Interest and Dividend Income | | 7,157 | | 7,219 || INTEREST<br> EXPENSE | | | | || Deposits | | 430 | | 683 || Borrowed<br> funds | | 106 | | 123 || Total<br> Interest Expense | | 536 | | 806 || NET<br> INTEREST INCOME | | 6,621 | | 6,413 || PROVISION<br> FOR LOAN LOSSES | | 100 | | 186 || NET<br> INTEREST INCOME AFTER | | | | || PROVISION<br> FOR LOAN LOSSES | | 6,521 | | 6,227 || NONINTEREST<br> INCOME | | | | || Service<br> charges and fees | | 1,007 | | 832 || Card<br> processing and interchange | | 916 | | 864 || Insurance<br> and investment fees | | 241 | | 226 || Other<br> noninterest income | | 205 | | 207 || Total<br> Noninterest Income | | 2,369 | | 2,129 || NONINTEREST<br> EXPENSES | | | | || Salaries<br> and employee benefits | | 3,275 | | 3,079 || Occupancy<br> and equipment expense | | 1,006 | | 1,176 || Data<br> processing and telecommunications | | 554 | | 573 || Other<br> operating expenses | | 1,604 | | 1,521 || Total<br> Noninterest Expenses | | 6,439 | | 6,349 || INCOME<br> BEFORE INCOME TAXES | | 2,451 | | 2,007 || INCOME<br> TAX EXPENSE | | 530 | | 422 || NET<br> INCOME | $ | 1,921 | $ | 1,585 || Income<br> Per Share | | | | || Basic<br> and diluted | $ | 0.08 | $ | 0.07 || Weighted<br> Average Shares of Common Stock | | | | || Basic<br> and diluted | | 23,922,086 | | 23,922,086 | NEW PEOPLES BANKSHARES, INC.KEYPERFORMANCE AND CAPITAL RATIOS(UNAUDITED)| | For<br> the three-months ended, | | | | | | | | | | | | | | || --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- || | March<br> 31, 2022 | | | December<br> 31, 2021 | | | September<br> 30, 2021 | | | June<br> 30, 2021 | | | March<br> 31, 2021 | | || Key<br> Performance Ratios | | | | | | | | | | | | | | | || Earning<br> asset yield | | 3.82 | % | | 3.83 | % | | 4.26 | % | | 3.89 | % | | 4.04 | % || Cost<br> of interest bearing liabilities | | 0.46 | % | | 0.48 | % | | 0.52 | % | | 0.58 | % | | 0.69 | % || Cost<br> of funds | | 0.30 | % | | 0.31 | % | | 0.34 | % | | 0.38 | % | | 0.46 | % || Net<br> interest margin | | 3.53 | % | | 3.53 | % | | 3.93 | % | | 3.52 | % | | 3.59 | % || Return<br> on average stockholder’s equity | | 12.35 | % | | 12.14 | % | | 11.75 | % | | 11.15 | % | | 10.96 | % || Return<br> on average assets | | 0.97 | % | | 0.95 | % | | 0.91 | % | | 0.82 | % | | 0.83 | % || Efficiency<br> ratio* | | 71.59 | % | | 72.84 | % | | 77.62 | % | | 74.45 | % | | 74.30 | % || Loan<br> to deposit ratio | | 81.42 | % | | 83.92 | % | | 80.46 | % | | 83.21 | % | | 82.45 | % || Asset<br> Quality | | | | | | | | | | | | | | | || Allowance<br> for loan loss to total loans | | 1.14 | % | | 1.13 | % | | 1.16 | % | | 1.13 | % | | 1.23 | % || Net<br> charge offs (recoveries) to average loans, annualized | | 0.05 | % | | (0.05 | %) | | 0.03 | % | | 0.53 | % | | 0.06 | % || Nonaccrual<br> loans to total loans | | 0.44 | % | | 0.50 | % | | 0.54 | % | | 0.66 | % | | 0.90 | % || Nonperforming<br> assets to total assets | | 0.42 | % | | 0.54 | % | | 0.68 | % | | 0.77 | % | | 1.07 | % || Capital<br> Ratios (Bank Only) | | | | | | | | | | | | | | | || Tier<br> 1 leverage | | 9.95 | % | | 9.86 | % | | 9.53 | % | | 9.19 | % | | 9.41 | % || Tier<br> 1 risk-based capital | | 14.66 | % | | 14.98 | % | | 15.11 | % | | 14.82 | % | | 14.91 | % || Total<br> risk-based capital | | 15.90 | % | | 16.23 | % | | 16.37 | % | | 16.08 | % | | 16.16 | % || Total<br> common equity tier 1 capital | | 14.66 | % | | 14.98 | % | | 15.11 | % | | 14.82 | % | | 14.91 | % |*Theefficiency 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 thatsuch information should not be viewed as a substitute for GAAP. Comparison of our efficiency ratio with those of other companies maynot be possible because other companies may calculate it differently. Exhibit99.2NEWSRELEASE| FOR<br> IMMEDIATE RELEASE: | FOR MORE INFORMATION,<br> CONTACT: || --- | --- || February 28, 2022 | C. Todd Asbury || | (276) 873-7000 |NEWPEOPLES BANKSHARES, INC. ANNOUNCES SHARE REPURCHASE AUTHORIZATIONHonaker,Virginia – The board of directors of New Peoples Bankshares, Inc. (the “Company”) (OTCBB: NWPP) the financialholding company of its wholly-owned subsidiary, New Peoples Bank, Inc. (the “Bank”), today announced the authorization torepurchase up to 500,000 shares of the Company’s outstanding common stock through March 31, 2023. Repurchases may be made throughopen market purchases or in privately negotiated transactions.Theactual means and timing of any purchases, number of shares and prices or range of prices will be determined by the Company in its discretionand 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.AboutNew Peoples Bankshares, Inc.NewPeoples Bankshares, Inc. is a one-bank financial holding company headquartered in Honaker, Virginia. Its wholly-owned subsidiary providesbanking 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 tradingsymbol “NWPP”. Additional investor information can be found on the Company’s website at https://newpeoples.bank/Bankshares-About-Us.Thisnews release contains statements concerning the Company’s expectations, plans, objectives, future financial performance and otherstatements that are not historical facts. These statements may constitute “forward-looking statements” as defined by federalsecurities 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 maycause actual results to differ from projections include: (i) the success or failure of efforts to implement the Company’s businessplan; (ii) any required increase in the Company’ regulatory capital ratios; (iii) satisfying other regulatory requirements thatmay arise from examinations, changes in the law and other similar factors; (iv) deterioration of asset quality; (v) changes in the levelof 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 negativelyimpact the local economy; (ix) the uncertain outcome of enacted legislation to stabilize the United States financial system; (x) thesuccessful management of interest rate risk; (xi) the successful management of liquidity; (xii) changes in general economic and businessconditions in the Company’s market area and the United States in general; (xiii) credit risks inherent in making loans such aschanges in a borrower’s ability to repay and the Company’s management of such risks; (xiv) competition with other banks andfinancial institutions, and companies outside of the banking industry, including online lenders and those companies that have substantiallygreater access to capital and other resources; (xv) demand, development and acceptance of new products and services the Company has offeredor may offer; (xvi) the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies ofthe Board of Governors of the Federal Reserve System, inflation, interest rate, market and monetary fluctuations; (xvii) the occurrenceof 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) technologyutilized by the Company; (xix) the Company’s ability to successfully manage cyber security; (xx) the Company’s reliance onthird-party vendors and correspondent banks; (xxi) changes in generally accepted accounting principles; (xxii) changes in governmentalregulations, tax rates and similar matters; (xxiii) regulatory, economic and other factors affecting the Company’s ability to paydividends; 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.**