8-K
NEW PEOPLES BANKSHARES INC (NWPP)
UNITEDSTATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of theSecurities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): October 20, 2020
New Peoples Bankshares, Inc.
(Exact name of registrant as specified in its charter)
| Virginia | 000-33411 | 31-1804543 |
|---|---|---|
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
| 67 Commerce Drive, Honaker, VA | 24260 | |
| --- | --- | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (276) 873-7000
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:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| None |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
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. [ ]
Item 2.02. Results of Operations and FinancialCondition
On October 20, 2020, New Peoples Bankshares, Inc. (the “Company”) issued a press release announcing its earnings for the quarter and year to date ending September 30, 2020. A copy of the press release is attached as Exhibit 99.1.
Item 9.01. Financial Statements andExhibits.
(d) Exhibits
Exhibit No. Description
99.1 Press release dated October 20, 2020
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: October 20, 2020 | By: | /s/ John J. Boczar |
| John J. Boczar | ||
| Executive Vice President and<br><br> <br>Chief Financial Officer |
Exhibit99.1
NEWSRELEASE
| FOR IMMEDIATE RELEASE: | FOR MORE INFORMATION, CONTACT: | |
|---|---|---|
| October 20, 2020 | C. Todd Asbury | |
| (276)<br>873-7000 |
NEW PEOPLESBANKSHARES ANNOUNCES THIRD QUARTER 2020 RESULTS
Honaker,Virginia -- New Peoples Bankshares (the “Company”) (OTCBB: NWPP) and its wholly-owned subsidiary New Peoples Bank (the “Bank”) today announced third quarter net income of $1.42 million, or $0.06 per share, for the quarter ended September 30, 2020 as compared to $876,000, or $0.04 per share, for the quarter ended September 30, 2019, which is a year-over-year quarterly improvement of $548,000, or 62.6% increase. This is primarily due to a concerted focus to improve earnings through restructuring the organization, renegotiating major contracts, enhancing processes, adding noninterest income revenue and growing earning assets.
C. Todd Asbury, President and CEO of the Company, stated, “We have been working diligently over the past two years to improve efficiency and increase earnings. The third quarter of 2020 reflects the culmination of the many positive improvements that we have made. We remain committed to continue making further enhancements in the future.”
For the nine months ended September 30, 2020, the Company reported net income of $1.5 million, or $0.06 per share. This compares to net income of $1.6 million, or $0.07 per share, for the similar period ended September 30, 2019, which is a decrease of $128,000, or 7.9%. However, when excluding pre-tax non-recurring expenses related to the earnings improvement project and restructuring costs in 2020, which were $342,000 and $553,000, respectively, plus the gain on sale of the Lebanon branch of $810,000 in 2019, net income would have been approximately $2.2 million, or $0.09 per share, for the nine months ended September 30, 2020 and $987,000, or $0.04 per share, for the same period in 2019, a 123% improvement.
The restructuring announced in May, 2020, has driven $720,000 of reductions in salaries and benefits expense so far this year through September 30, 2020 compared to the same nine months last year, which is net of approximately $358,000 in pre-tax severance costs.
Renegotiated contracts related to the ATM and card transaction processing, and data and telephone circuits have resulted in an increase of $196,000 in interchange fee income and a decrease in card processing expenses of $276 thousand, and a reduction of $128,000 in phone and data circuit expense, respectively, for the first nine months of 2020 compared to the same period in 2019.
As part of the project to improve earnings, fee schedule changes were implemented in August, 2020, and this contributed to more than $100,000 of increases in service charges and other fee income this quarter, as described in more detail, below. In addition, efforts to increase noninterest income revenues from financial services and secondary market mortgage origination fee income are underway.
Total assets increased $42.8 million, or 6.1%, to $749.1 million at September 30, 2020 from $706.4 million at December 31, 2019. Total loans increased $22.6 million, or 4.0%, to $585.1 million at September 30, 2020 from $562.5 million at December 31, 2019. Total deposits have also increased $40.2 million, or 6.5%, to $661.7 million at September 30, 2020 from $621.5 million at December 31, 2019.
Asbury commented, “The year 2020 has been a challenging year regarding COVID-19 and its impact on the economy and dramatic decreases in interest rates. We have worked very hard to help our customers and region by participating in the Paycheck Protection Program in which we funded a total of $43.5 million. As a result, both loans and deposits increased during the year. We have also helped our borrowers by assisting them with loan payment deferrals of which the vast majority has returned to a regular payment schedule at September 30, 2020. Asset quality remains good, but we have made $2.0 million in additional provisions to the allowance for loan losses during 2020 due to the current economic conditions.” Asbury further commented, “The safety of the bank, our customers, our employees and our region is a top priority during these times.”
Regarding challenges related to COVID-19, we supplemented our existing procedures for the adoption of temporary workplace safety standards outlined by the Virginia Department of Labor and Industry. Since the first quarter of the year, we have restricted access to our lobbies. However, on October 5, 2020, the lobbies for seven branch offices were re-opened, as we seek to phase in a return to full service banking, dependent on the intensity of the level of infections in each market. Meanwhile, other offices continue to provide customer services principally via drive-thru facilities and Interactive Teller Machines (ITMs).
As part of the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), the Small Business Administration (SBA) was authorized to guarantee Paycheck Protection Program (PPP) loans used for payroll and other permitted purposes. SBA has provided a 100% guarantee and paid originators a processing fee ranging from 1% to 5%, based on the loan amount. We funded a total of $43.5 million of these loans for our customers through August, 2020, when the funding period closed, and received $1.6 million in fees from the SBA, which is being recognized as income over the terms of loans. It is anticipated the majority of these loans will be forgiven by the SBA.
Since PPP loans are funded principally by deposits to customer checking accounts, this explains a large portion of the increase in deposit balances since December 31, 2019. Stimulus funds received by customers into their checking accounts in April, 2020, combined with supplemental unemployment benefits through July, 2020, accounted for much of the rest of the growth in deposit balances. The drawback of these additional funds is that overdraft fee income was reduced.
In response to the economic impact brought on by the COVID-19 pandemic, banking and financial regulators provided guidance to financial institutions regarding borrower requests for forbearance. Through September 30, 2020, we have provided forbearance on approximately 798 loans totaling $118.7 million. These accommodations have been provided in the form of payment deferrals or conversion to interest only for a period of time. Most of these loans have reached the end of their forbearance period and the vast majority of these borrowers are resuming their payments. At September 30, 2020, the outstanding balance of these loans totaled $117.4 million.
As we prepare for potential asset quality challenges, the allowance for loan losses has increased to $7.0 million at September 30, 2020, an increase of $1.6 million since December 31, 2019. This affects the provision for loan loss expense, which was $2.0 million for the first nine months of 2020 compared to $1.3 million for the first nine months of 2019. For the third quarter of 2020, the provision to the allowance totaled $450 thousand, compared to $1.0 million provided during the same period in 2019.
As a result of the moratorium on foreclosures and an overall decrease in the level of foreclosed assets from the past, we have experienced a reduction of $270,000 in expenses related to other real estate owned during the first nine months of 2020 compared to the same period in 2019.
Although loan balances have increased by $22.6 million and interest bearing deposits held at other banks has increased by $25.7 million, the interest rate reductions made by the Federal Reserve’s Open Market Committee in March, 2020 has caused a reduction in our interest income of $610,000 for the first nine months of 2020 compared to the same period in 2019. However, as we have reduced interest rates paid on our deposit balances, interest expense is down $569,000 for the same period comparison, nearly mitigating the decline in interest income.
Earnings Highlights
| o | For<br> the quarter ended September 30, 2020: |
|---|---|
| · | Net<br> interest margin was 3.64% for the quarter, an improvement of 11 basis points compared<br> to 3.54% for the quarter ended June 30, 2020; |
| --- | --- |
| · | Net<br> interest income improved to $6.4 million for the quarter, an improvement of $261,000<br> compared to the prior quarter; |
| --- | --- |
| · | Provision<br> for loans losses was $450,000 for the quarter, a reduction of $100,000 compared to the<br> prior quarter; |
| --- | --- |
| · | Noninterest<br> income increased to $2.1 million for the quarter, an increase of $498,000, or 30.5%,<br> compared to the prior quarter, mainly due to an increase in service charges and fees<br> of $346,000 and an increase in insurance and investment fees of $98,000; |
| --- | --- |
| · | Salaries<br> and employee benefits expense decreased to $3.0 million for the quarter, a reduction<br> of $838,000, or 21.9%, compared to the prior quarter; |
| --- | --- |
| · | Expenses<br> associated with other real estate owned were $59,000 for the quarter, a reduction of<br> $74,000, or 55.5%, compared to the prior quarter; and |
| --- | --- |
| · | Data<br> processing expenses were $519,000 for the quarter, a reduction of $49,000, or 8.6%, compared<br> to the prior quarter. |
| --- | --- |
| o | Year-to-date<br> September 30, 2020: |
| --- | --- |
| · | The<br> net interest margin was 3.64%, a reduction of 19 basis points compared to 3.84% for the<br> first nine months of 2019; |
| --- | --- |
| · | Net<br> interest income was essentially unchanged at $18.7 million when compared to the first<br> nine months of 2019, as described above; |
| --- | --- |
| · | Provision<br> for loans losses was $2.0 million, an increase of $710,000 compared to the first nine<br> months of 2019; |
| --- | --- |
| · | Noninterest<br> income was $5.9 million, a decrease of $674,000 compared to the first nine months of<br> 2019, primarily due to the non-recurring gain of $810,000 in the prior year on the sale<br> and leaseback of the Lebanon office, offset by a $204,000 increase in card processing<br> and interchange income, which resulted from renegotiated contracts; |
| --- | --- |
| · | Salaries<br> and employee benefits expense was $10.3 million, a reduction of $720,000 compared to<br> the same period of 2019, which was due mainly to the restructuring announced in May; |
| --- | --- |
| · | ATM<br> network expense was $1.1 million, a reduction of $276,000 compared to the same period<br> in 2019, resulting from a renewed and renegotiated contract; |
| --- | --- |
| · | Loan<br> related expenses were $275,000, a reduction of $209,000, or 43.2%, compared to the same<br> period in 2019; |
| --- | --- |
| · | Expenses<br> associated with other real estate owned were $255,000, a reduction of $270,000, or 51.5%,<br> as compared to the nine-month period ended September 30, 2019; and |
| --- | --- |
| · | Total<br> noninterest expenses were $20.7 million, a reduction of $1.3 million, or 5.8%, as compared<br> to the same period in 2019, due to reasons described in the prior four bulleted items. |
| --- | --- |
Balance Sheet:
| · | Total<br> loans decreased $2.4 million during the quarter, to $585.1 million at September 30, 2020.<br> Year to date, loans have increased $22.6 million, or 4.0%; |
|---|---|
| · | Securities<br> available for sale decreased $1.4 million during the quarter, to $46.7 million at September<br> 30, 2020. Year to date, securities available for sale decreased $6.5 million, or 12.2%; |
| --- | --- |
| · | Time<br> deposits decreased $9.9 million during the quarter, to $249.7 million at September 30,<br> 2020. Year to date, time deposits decreased $10.9 million, or 18.8%; |
| --- | --- |
| · | Total<br> deposits decreased $6.7 million during the quarter, to $661.7 million at September 30,<br> 2020. However, year to date, deposits increased $40.2 million, or 6.5%; |
| --- | --- |
| · | Borrowings<br> remained unchanged for the quarter and year-to-date; |
| --- | --- |
| · | Total<br> capital at September 30, 2020 was $56.9 million; |
| --- | --- |
| · | Book<br> value per share was $2.38 as of September 30, 2020; and |
| --- | --- |
| · | The<br> Bank remains ‘well capitalized’ as defined by regulatory guidance. |
| --- | --- |
Asset Quality:
| · | Nonperforming<br> assets, which include nonaccrual loans and other real estate owned, totaled $8.6 million<br> at September 30,2020, a decline of $1.6 million, or 15.8%, during the quarter, and a<br> decline of $31,000, or 0.4% during the first nine months of 2020; |
|---|---|
| · | Nonperforming<br> assets as a percentage of total assets was 1.15% at quarter end; |
| --- | --- |
| · | Loans<br> past due 30 days or more, or nonaccrual totaled $10.1 million, or 1.7% of total loans<br> outstanding; |
| --- | --- |
| · | Annualized<br> net charge offs as a percentage of average loans for the quarter were 0.03%, up from<br> 0.21% for the prior quarter and 0.76% for the third quarter of 2019; and |
| --- | --- |
| · | The<br> allowance for loan losses as a percentage to total loans was 1.19% at September 30, 2020,<br> as compared to 0.95% at December 31, 2019. |
| --- | --- |
About NewPeoples 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, 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 www.npbankshares.com.
This newsrelease 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 definedby federal securities laws. These statements may address issues that involve estimates and assumptions made by management, risksand 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) thesuccess 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 lawand other similar factors; (iv) deterioration of asset quality; (v) changes in the level of the Company’s nonperformingassets and charge-offs; (vi) fluctuations of real estate values in the Company’s markets; (vii) the Company’s abilityto 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 managementof interest rate risk; (xi) the successful management of liquidity; (xii) changes in general economic and business conditionsin the Company’s market area and the United States in general; (xiii) credit risks inherent in making loans such as changesin 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 havesubstantially greater access to capital and other resources; (xv) demand, development and acceptance of new products and servicesthe Company has offered or may offer; (xvi) the effects of, and changes in, trade, monetary and fiscal policies and laws, includinginterest rate policies of the Board of Governors of the Federal Reserve System, inflation, interest rate, market and monetaryfluctuations; (xvii) the occurrence of significant natural disasters, including severe weather conditions, floods, health relatedissues (including the recent 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 managecyber 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 whichmay be described in future filings the Company makes with the Securities and Exchange Commission. The Company expressly disclaimsany 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 PEOPLESBANKSHARES, INC.
CONSOLIDATEDBALANCE SHEETS
SEPTEMBER30, 2020 AND DECEMBER 31, 2019
(IN THOUSANDS EXCEPT SHARE DATA)
(UNAUDITED)
| ASSETS | December 31, 2019 | ||||
|---|---|---|---|---|---|
| Cash and due from banks | 16,002 | $ | 13,998 | ||
| Interest-bearing deposits with banks | 61,636 | 35,897 | |||
| Federal funds sold | 270 | 252 | |||
| Total Cash and Cash Equivalents | 77,908 | 50,147 | |||
| Investment securities available-for-sale | 44,109 | 50,649 | |||
| Loans held for sale | 337 | 2 | |||
| Loans receivable | 585,122 | 562,544 | |||
| Allowance for loan losses | (6,987 | ) | (5,368 | ) | |
| Net Loans | 578,135 | 557,176 | |||
| Bank premises and equipment, net | 22,580 | 22,242 | |||
| Other real estate owned | 3,237 | 3,393 | |||
| Accrued interest receivable | 2,781 | 2,115 | |||
| Deferred taxes, net | 3,974 | 4,576 | |||
| Right-of-use assets – operating leases | 5,537 | 5,835 | |||
| Other assets | 10,527 | 10,238 | |||
| Total Assets | 749,125 | $ | 706,373 | ||
| LIABILITIES | |||||
| Deposits | |||||
| Noninterest bearing | 215,371 | 170,782 | |||
| Interest-bearing | 446,301 | 450,695 | |||
| Total Deposits | 661,672 | 621,477 | |||
| Borrowed funds | 21,496 | 21,496 | |||
| Lease liabilities – operating leases | 5,537 | 5,835 | |||
| Accrued interest payable | 491 | 694 | |||
| Accrued expenses and other liabilities | 3,010 | 2,269 | |||
| Total Liabilities | 692,206 | 651,771 | |||
| STOCKHOLDERS’ EQUITY | |||||
| Common stock - 2.00 par value; 50,000,000 shares authorized; | |||||
| 23,922,086 shares issued and outstanding at | |||||
| September 30, 2020 and December 31, 2019 | 47,844 | 47,844 | |||
| Additional paid-in capital | 14,570 | 14,570 | |||
| Retained deficit | (6,370 | ) | (7,869 | ) | |
| Accumulated other comprehensive income | 875 | 57 | |||
| Total Stockholders’ Equity | 56,919 | 54,602 | |||
| Total Liabilities and Stockholders’ Equity | 749,125 | $ | 706,373 |
All values are in US Dollars.
NEWPEOPLES BANKSHARES, INC.
CONSOLIDATEDSTATEMENTS OF INCOME
FORTHE THREE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019
(IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA)
(UNAUDITED)
| INTEREST AND DIVIDEND INCOME | 2020 | 2019 | ||
|---|---|---|---|---|
| Loans including fees | $ | 7,271 | $ | 7,290 |
| Federal funds sold | — | 1 | ||
| Interest-earning deposits with banks | 16 | 170 | ||
| Investments | 245 | 334 | ||
| Dividends on equity securities (restricted) | 34 | 38 | ||
| Total Interest and Dividend Income | 7,566 | 7,833 | ||
| INTEREST EXPENSE | ||||
| Deposits | 1,024 | 1,275 | ||
| Borrowed funds | 128 | 211 | ||
| Total Interest Expense | 1,152 | 1,486 | ||
| NET INTEREST INCOME | 6,414 | 6,347 | ||
| PROVISION FOR LOAN LOSSES | 450 | 1,020 | ||
| NET INTEREST INCOME AFTER | ||||
| PROVISION FOR LOAN LOSSES | 5,964 | 5,327 | ||
| NONINTEREST INCOME | ||||
| Service charges and fees | 859 | 947 | ||
| Card processing and interchange | 892 | 800 | ||
| Insurance and investment fees | 206 | 158 | ||
| Net gain on sales of available-for-sale securities | — | — | ||
| Other noninterest income | 159 | 950 | ||
| Total Noninterest Income | 2,116 | 2,855 | ||
| NONINTEREST EXPENSES | ||||
| Salaries and employee benefits | 2,981 | 3,544 | ||
| Occupancy and equipment expense | 1,132 | 1,128 | ||
| Data processing and telecommunications | 604 | 615 | ||
| Other operating expenses | 1,565 | 1,792 | ||
| Total Noninterest Expenses | 6,282 | 7,079 | ||
| INCOME BEFORE INCOME TAXES | 1,798 | 1,103 | ||
| INCOME TAX EXPENSE | 374 | 227 | ||
| NET INCOME | $ | 1,424 | $ | 876 |
| Income Per Share | ||||
| Basic and diluted | $ | 0.06 | $ | 0.04 |
| Weighted Average Shares of Common Stock | ||||
| Basic and diluted | 23,922,086 | 23,922,086 |
NEW PEOPLEBANKSHARES, INC.
CONSOLIDATEDSTATEMENTS OF INCOME
FOR THENINE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019
(IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA)
(UNAUDITED)
| INTEREST AND DIVIDEND INCOME | 2020 | 2019 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Loans including fees | $ | 21,483 | $ | 21,361 | |||||||||||
| Federal funds sold | 1 | 5 | |||||||||||||
| Interest-earning deposits with banks | 191 | 643 | |||||||||||||
| Investments | 814 | 1,066 | |||||||||||||
| Dividends on equity securities<br> (restricted) | 108 | 118 | |||||||||||||
| Total Interest and Dividend<br> Income | 22,597 | 23,193 | |||||||||||||
| INTEREST EXPENSE | |||||||||||||||
| Deposits | 3,417 | 3,795 | |||||||||||||
| Borrowed funds | 484 | 675 | |||||||||||||
| Total Interest Expense | 3,901 | 4,470 | |||||||||||||
| NET INTEREST INCOME | 18,696 | 18,723 | |||||||||||||
| PROVISION<br> FOR LOAN LOSSES | 2,000 | 1,290 | |||||||||||||
| NET INTEREST INCOME AFTER | |||||||||||||||
| PROVISION<br> FOR LOAN LOSSES | 16,696 | 17,433 | |||||||||||||
| NONINTEREST INCOME | |||||||||||||||
| Service charges and fees | 2,238 | 2,597 | |||||||||||||
| Card processing and interchange | 2,480 | 2,276 | |||||||||||||
| Insurance and investment fees | 447 | 481 | |||||||||||||
| Net gain on sales of available-for-sale securities | 4 | — | |||||||||||||
| Other noninterest income | 744 | 1,247 | |||||||||||||
| Total Noninterest Income | 5,913 | 6,601 | |||||||||||||
| NONINTEREST EXPENSES | |||||||||||||||
| Salaries and employee benefits | 10,300 | 11,020 | |||||||||||||
| Occupancy and equipment expense | 3,395 | 3,407 | |||||||||||||
| Data processing and telecommunications | 1,881 | 1,913 | |||||||||||||
| Other operating expenses | 5,149 | 5,650 | |||||||||||||
| Total Noninterest Expenses | 20,725 | 21,990 | |||||||||||||
| INCOME BEFORE INCOME TAXES | 1,884 | 2,044 | |||||||||||||
| INCOME<br> TAX EXPENSE | 385 | 417 | |||||||||||||
| NET<br> INCOME | $ | 1,499 | $ | 1,627 | |||||||||||
| Income Per Share | |||||||||||||||
| Basic and diluted | $ | 0.06 | $ | 0.07 | |||||||||||
| Average Weighted Shares of Common Stock | |||||||||||||||
| Basic and diluted | 23,922,086 | 23,922,086 | |||||||||||||
| NEW PEOPLES BANKSHARES, INC. | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| KEY PERFORMANCE AND CAPITAL RATIOS | |||||||||||||||
| (UNAUDITED) | |||||||||||||||
| For<br> the three-months ended, | |||||||||||||||
| September<br> 30, 2020 | June<br> 30, 2020 | March<br> 31, 2020 | December<br> 31, 2019 | September<br> 30, 2019 | |||||||||||
| Key Performance Ratios | |||||||||||||||
| Earning Asset<br> Yield | 4.31 | % | 4.28 | % | 4.63 | % | 4.70 | % | 4.81 | % | |||||
| Cost of interest bearing<br> liabilities | 0.98 | % | 1.12 | % | 1.23 | % | 1.27 | % | 1.26 | % | |||||
| Cost of Funds | 0.66 | % | 0.76 | % | 0.90 | % | 0.92 | % | 0.92 | % | |||||
| Net Interest Margin | 3.65 | % | 3.54 | % | 3.75 | % | 3.79 | % | 3.90 | % | |||||
| Return on average stockholder’s<br> equity | 10.15 | % | 0.21 | % | 0.34 | % | 3.19 | % | 6.49 | % | |||||
| Return on average assets | 0.75 | % | 0.02 | % | 0.03 | % | 0.24 | % | 0.50 | % | |||||
| Efficiency Ratio* | 73.59 | % | 92.48 | % | 87.27 | % | 84.37 | % | 76.93 | % | |||||
| Loan to Deposit Ratio | 88.4 | % | 87.9 | % | 89.0 | % | 90.5 | % | 89.8 | % | |||||
| Asset Quality | |||||||||||||||
| Allowance for loan loss<br> to total loans | 1.19 | % | 1.12 | % | 1.13 | % | 0.95 | % | 0.92 | % | |||||
| Net<br> Charge Offs to average loans, annualized | 0.03 | % | 0.21 | % | 0.02 | % | 0.39 | % | 0.76 | % | |||||
| Nonaccrual loans to total<br> loans | 0.91 | % | 1.22 | % | 1.77 | % | 0.92 | % | 0.83 | % | |||||
| Nonperforming assets to<br> total assets | 1.15 | % | 1.35 | % | 1.39 | % | 1.21 | % | 1.27 | % | |||||
| Capital Ratios (Bank Only) | |||||||||||||||
| Tier 1 leverage | 9.10 | % | 8.93 | % | 9.43 | % | 9.43 | % | 9.50 | % | |||||
| Tier 1 risk-based<br> capital | 14.59 | % | 14.19 | % | 13.81 | % | 13.72 | % | 13.60 | % | |||||
| Total risk-based<br> capital | 15.84 | % | 15.44 | % | 15.06 | % | 14.83 | % | 14.65 | % | |||||
| Total common<br> equity tier 1 capital | 14.59 | % | 14.19 | % | 13.81 | % | 13.72 | % | 13.60 | % |
*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 them differently.