Attached files
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| 8-K - NEW PEOPLES BANKSHARES INC | npbs8k051116.htm |
Exhibit 99.1
NEWS RELEASE
| FOR IMMEDIATE RELEASE: | FOR MORE INFORMATION, CONTACT: | |
| May 11, 2016 | C. Todd Asbury | |
| (276) 873-7000 |
NEW PEOPLES BANKSHARES ANNOUNCES FIRST QUARTER 2016 RESULTS
Honaker, Virginia -- New Peoples Bankshares (the “Company”) (OTCBB: NWPP) and its wholly-owned subsidiary New Peoples Bank (the “Bank”) today announced net income of $698,000, or $0.03 earnings per share, for the quarter ended March 31, 2016. This compares to net income of $622,000, or $0.03 per share, for the same period ended March 31, 2015, which is an improvement of $76,000, or 12.22%.
“During the fourth quarter of 2015 and the first quarter of 2016, we were able to attract several seasoned commercial bankers to our lending team” commented Todd Asbury, President and CEO. “As a result, we experienced $9 million of loan growth in the first quarter and are anticipating loan growth to continue in the second quarter as we have a healthy pipeline.” He continued, “We have also begun to replace our current ATMs with new and exciting state-of-the-act interactive teller machines (iTMs) which will allow us to service our customers from 7 a.m. to 7 p.m., Monday through Saturday. We believe the convenience of the extended hours, along with our other up-and-coming technologies, will further enhance our customers’ experience while setting us apart from our competition. We are extremely excited about our current phase of growth and our plans to build upon an already strong banking franchise.”
First Quarter Highlights
| o | Income Statement: |
| · | Net income increased $76,000, or 12.22%, compared to the same quarter of 2015; |
| · | Net interest income increased $41,000 compared to the same quarter of 2015; |
| · | Net interest margin was 3.95% in the first quarter of 2016, an improvement of twenty one basis points when compared to the same quarter last year; |
| · | No provision for loan losses taken in the first quarter of 2016; |
| · | Noninterest income for the first quarter of 2016 grew $142,000, or 9.83%, when compared to the same quarter in 2015; and |
| · | Salary and employee expense increased $268,000, or 9.11%, in the first quarter of 2016 versus the first quarter of 2015. |
| o | Balance Sheet: |
| · | Securities available for sale decreased $16.9 million, or 16.66%, during the quarter from $101.6 million at December 31, 2015 to $84.7 million at March 31, 2016; |
| · | Total loans increased $9.1 million, or 2.07%, during the quarter, to $450.3 million at March 31, 2016. |
| · | Total deposits declined $2.8 million to $555.2 million during the first quarter; |
| · | Total capital at March 31, 2016 was $47.2 million; and |
| · | The Company and Bank were above ‘well capitalized’ as defined by regulatory guidance. |
| o | Asset Quality: |
| · | Nonperforming assets, which includes nonaccrual loans and other real estate owned, declined $522,000, or 1.92% during the first quarter of 2016. Nonperforming assets declined $8.9 million, or 24.84%, when compared to March 31, 2015; |
| · | Nonperforming assets as a percentage of total assets was 4.20% at quarter end; |
| · | Loans past due 30 days or more totaled $14.9 million, or 3.31% of total loans outstanding; |
| · | Annualized net charge offs as a percentage of average loans and average assets for the quarter was 0.25% and 0.17%, respectively; and |
| · | The allowance for loan losses as a percentage to total loans was 1.60% at March 31, 2016. |
About New Peoples Bankshares, Inc.
New Peoples Bankshares, Inc. is a one-bank holding company headquartered in Honaker, Virginia. Its wholly-owned subsidiary provides banking products and services through its 19 locations throughout southwestern 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 news release may include forward-looking statements. These forward-looking statements are based on current expectations that involve risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may differ materially. These risks include: changes in business or other market conditions; the timely development, production and acceptance of new products and services; the challenge of managing asset/liability levels; the management of credit risk and interest rate risk; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks detailed from time to time in the Company's Securities and Exchange Commission reports including, but not limited to, the Annual Report on Form 10-K for the most recent fiscal year end. Pursuant to the Private Securities Litigation Reform Act of 1995, the Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
NEW PEOPLES BANKSHARES, INC.
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2016 AND DECEMBER 31, 2015
(IN THOUSANDS EXCEPT SHARE DATA)
| ASSETS | March 31, 2016 | December 31, 2015 | ||||||
| UNAUDITED | AUDITED | |||||||
| Cash and due from banks | $ | 15,549 | $ | 15,087 | ||||
| Interest-bearing deposits with banks | 23,838 | 11,251 | ||||||
| Total Cash and Cash Equivalents | 39,387 | 26,338 | ||||||
| Investment securities available-for-sale | 84,710 | 101,642 | ||||||
| Loans receivable | 450,309 | 441,169 | ||||||
| Allowance for loan losses | (7,219 | ) | (7,493 | ) | ||||
| Net Loans | 443,090 | 433,676 | ||||||
| Bank premises and equipment, net | 30,812 | 28,148 | ||||||
| Equity securities (restricted) | 2,755 | 2,441 | ||||||
| Other real estate owned | 13,196 | 12,398 | ||||||
| Accrued interest receivable | 1,794 | 1,816 | ||||||
| Life insurance investments | 12,135 | 12,105 | ||||||
| Deferred taxes, net | 4,960 | 5,121 | ||||||
| Other assets | 3,620 | 2,213 | ||||||
| Total Assets | $ | 636,459 | $ | 625,898 | ||||
| LIABILITIES | ||||||||
| Deposits | ||||||||
| Demand deposits: | ||||||||
| Noninterest bearing | $ | 147,970 | $ | 149,714 | ||||
| Interest-bearing | 42,691 | 30,251 | ||||||
| Savings deposits | 113,260 | 121,076 | ||||||
| Time deposits | 251,295 | 256,978 | ||||||
| Total Deposits | 555,216 | 558,019 | ||||||
| Federal Home Loan Bank advances | 12,658 | 2,958 | ||||||
| Accrued interest payable | 287 | 288 | ||||||
| Accrued expenses and other liabilities | 4,568 | 2,050 | ||||||
| Trust preferred securities | 16,496 | 16,496 | ||||||
| Total Liabilities | 589,225 | 579,811 | ||||||
| STOCKHOLDERS’ EQUITY | ||||||||
| Common stock - $2.00 par value; 50,000,000 shares authorized; | 46,708 | 46,708 | ||||||
| 23,354,082 shares issued and outstanding at | ||||||||
| March 31, 2016 and December 31, 2015 | ||||||||
| Common stock warrants | 764 | 764 | ||||||
| Additional paid-in capital | 13,965 | 13,965 | ||||||
| Retained deficit | (14,325 | ) | (15,023 | ) | ||||
| Accumulated other comprehensive income (loss) | 122 | (327 | ) | |||||
| Total Stockholders’ Equity | 47,234 | 46,087 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 636,459 | $ | 625,898 | ||||
NEW PEOPLES BANKSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2016 AND 2015
(IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA)
| (UNAUDITED) | ||||||||
| INTEREST AND DIVIDEND INCOME | March 31, 2016 | March 31, 2015 | ||||||
| Loans including fees | $ | 5,565 | $ | 5,781 | ||||
| Federal funds sold | — | 1 | ||||||
| Interest-earning deposits with banks | 21 | 26 | ||||||
| Investments | 464 | 426 | ||||||
| Dividends on equity securities (restricted) | 32 | 32 | ||||||
| Total Interest and Dividend Income | 6,082 | 6,266 | ||||||
| INTEREST EXPENSE | ||||||||
| Deposits | ||||||||
| Demand | 11 | 9 | ||||||
| Savings | 41 | 41 | ||||||
| Time deposits below $100,000 | 265 | 387 | ||||||
| Time deposits above $100,000 | 154 | 271 | ||||||
| FHLB advances | 36 | 40 | ||||||
| Federal funds purchased | 2 | — | ||||||
| Trust preferred securities | 122 | 108 | ||||||
| Total Interest Expense | 631 | 856 | ||||||
| NET INTEREST INCOME | 5,451 | 5,410 | ||||||
| PROVISION FOR LOAN LOSSES | — | — | ||||||
| NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 5,451 | 5,410 | ||||||
| NONINTEREST INCOME | ||||||||
| Service charges | 488 | 536 | ||||||
| Fees, commission and other income | 805 | 714 | ||||||
| Insurance and investment fees | 158 | 124 | ||||||
| Net realized gains on sale of investment securities | 105 | 35 | ||||||
| Life insurance investment income | 30 | 35 | ||||||
| Total Noninterest Income | 1,586 | 1,444 | ||||||
| NONINTEREST EXPENSES | ||||||||
| Salaries and employee benefits | 3,210 | 2,942 | ||||||
| Occupancy and equipment expenses | 853 | 942 | ||||||
| Advertising and public relations | 104 | 57 | ||||||
| Data processing and telecommunications | 581 | 499 | ||||||
| FDIC insurance premiums | 134 | 218 | ||||||
| Other real estate owned and repossessed assets, net | 163 | 359 | ||||||
| Other operating expenses | 1,292 | 1,212 | ||||||
| Total Noninterest Expenses | 6,337 | 6,229 | ||||||
| INCOME BEFORE INCOME TAXES | 700 | 625 | ||||||
| INCOME TAX EXPENSE | 2 | 3 | ||||||
| NET INCOME | $ | 698 | $ | 622 | ||||
| Income Per Share | ||||||||
| Basic and Fully Diluted | $ | 0.03 | $ | 0.03 | ||||
| Average Weighted Shares of Common Stock | ||||||||
| Basic and Fully Diluted | 23,354,082 | 22,878,654 | ||||||
| NEW PEOPLES BANKSHARES, INC. | ||||||||||||
| KEY PERFORMANCE, ASSET QUALITY, AND CAPITAL RATIOS | ||||||||||||
| (UNAUDITED) | ||||||||||||
| For the three months ended, | ||||||||||||
| March 31, 2016 | December 31, 2015 | March 31, 2015 | ||||||||||
| Key Performance Ratios | ||||||||||||
| Earning Asset Yield | 4.41 | % | 4.70 | % | 4.32 | % | ||||||
| Cost of interest bearing liabilities | 0.58 | % | 0.60 | % | 0.75 | % | ||||||
| Cost of Funds | 0.44 | % | 0.45 | % | 0.56 | % | ||||||
| Net Interest Margin | 3.95 | % | 4.23 | % | 3.74 | % | ||||||
| Return on average stockholders’ equity | 5.99 | % | (6.02 | )% | 5.82 | % | ||||||
| Return on average assets | 0.45 | % | (0.45 | )% | 0.38 | % | ||||||
| Efficiency Ratio* | 90.05 | % | 122.39 | % | 90.88 | % | ||||||
| Loan to Deposit Ratio | 81.10 | % | 79.06 | % | 75.83 | % | ||||||
| Asset Quality Ratios | ||||||||||||
| Allowance for loan loss to total loans | 1.60 | % | 1.70 | % | 1.99 | % | ||||||
| Net Charge Offs to average loans | 0.25 | % | 0.16 | % | 0.85 | % | ||||||
| Nonaccrual loans to total loans | 3.00 | % | 3.37 | % | 4.61 | % | ||||||
| Nonperforming assets to total assets | 4.20 | % | 4.35 | % | 5.39 | % | ||||||
| Capital Ratios** | ||||||||||||
| Tier 1 leverage ratio | ||||||||||||
| The Company | 9.95 | % | 9.74 | % | 8.75 | % | ||||||
| The Bank | 9.83 | % | 9.67 | % | 8.88 | % | ||||||
| Tier 1 risk-based capital ratio | ||||||||||||
| The Company | 16.20 | % | 16.40 | % | 14.97 | % | ||||||
| The Bank | 16.02 | % | 16.29 | % | 15.17 | % | ||||||
| Total risk-based capital ratio | ||||||||||||
| The Company | 17.54 | % | 17.80 | % | 16.61 | % | ||||||
| The Bank | 17.28 | % | 17.55 | % | 16.44 | % | ||||||
| Total common equity tier 1 capital ratio | ||||||||||||
| The Company | 12.14 | % | 12.27 | % | 11.20 | % | ||||||
| The Bank | 16.02 | % | 16.29 | % | 15.17 | % | ||||||
*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.
**The capital ratios as of December 31, 2015 are audited.