Attached files
| file | filename |
|---|---|
| 8-K - NEW PEOPLES BANKSHARES INC | npbs8k112216.htm |
Exhibit 99.1
NEWS RELEASE
| FOR IMMEDIATE RELEASE: | FOR MORE INFORMATION, CONTACT |
| November 23, 2016 | C. Todd Asbury |
| (276) 873-7000 |
NEW PEOPLES BANKSHARES ANNOUNCES THIRD QUARTER 2016 RESULTS
Honaker, Virginia -- New Peoples Bankshares, Inc. (the “Company”) (OTCBB: NWPP) and its wholly-owned subsidiary New Peoples Bank (the “Bank”) today announced third quarter net income of $346,000, or $0.01 per share, for the quarter ended September 30, 2016. This compares to net income of $2.3 million, or $0.10 per share, for the same period ended September 30, 2015. Backing out the $1.2 million negative provision for loan losses recorded in the third quarter of 2015, net income declined $747,000, or 68.3%, when comparing the third quarter of 2016 to the third quarter of 2015. For the nine-months ended September 30, 2016, the Company reported net income of $1.9 million, or $0.08 per share. This compares to net income of $3.4 million, or $0.15 per share, for the same period ended September 30, 2015.
“During 2016, our primary focus has been threefold: (1) continuing the trend of improving asset quality, (2) adding high-caliber commercial bankers to our commercial lending team in order to grow our commercial loan and deposit portfolios and (3) investing in new technologies and processes, such as interactive teller machines (“ITMs”), that add more convenient banking for our existing customers while attracting new customers looking for these types of delivery channels”, stated Todd Asbury, President and Chief Executive Officer. He continued “Our efforts have been proven successful. Asset quality continues to improve as nonperforming assets to total assets has decreased to 4.20% during the first nine months of 2016. We have added several commercial bankers, mainly focused on growing our Tri-Cities presence that have helped grow our loan portfolio nearly $24 million so far in 2016. On the technology front and process changes, we have installed ITMs at all of our branch locations which allow our customers to talk to a teller from 7 a.m. to 7 p.m. Monday through Saturday, we have implemented online deposit account opening, and we are making great progress at modifying and adding new delivery channels to meet the changing needs of our customers. We have other technology-driven projects in the works for the near future. We are certainly excited about the direction we are headed.”
Third Quarter Highlights
| o | For the quarter ended September 30, 2016: |
| · | Strong net interest margin of 3.92%; |
| · | $5.1 million, or 1.11%, increase in loans; |
| · | A reduction in other real estate owned of $940 thousand, or 6.65%; |
| · | A $3.4 million, or 21.78%, decrease in delinquencies; |
| · | The Bank is considered well-capitalized under regulatory standards; |
| · | The Bank opened a loan production office in Jonesborough, Tennessee; and, |
| · | Book value per share of $2.09 as of September 30, 2016. |
| o | Year-to-date September 30, 2016: |
| · | Strong net interest margin of 3.94%; |
| · | A reduction in nonaccrual loans of $1.4 million, or 9.42%; |
| · | Nonperforming assets to total assets lowered to 4.20% during the first nine months of 2016, as compared to 5.22% for the first nine months of 2015; |
| · | $23.5 million, or 5.37%, increase in loans; and, |
| · | $9.0 million, or 3.51%, decrease in higher-costing time deposits. |
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 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 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
(IN THOUSANDS EXCEPT SHARE DATA)
| ASSETS | September 30, | December 31, | ||||||
| 2016 | 2015 | |||||||
| (Unaudited) | (Audited) | |||||||
| Cash and due from banks | $ | 16,625 | $ | 15,087 | ||||
| Interest-bearing deposits with banks | 15,776 | 11,251 | ||||||
| Federal funds sold | 36 | — | ||||||
| Total Cash and Cash Equivalents | 32,437 | 26,338 | ||||||
| Investment securities available-for-sale | 74,561 | 101,642 | ||||||
| Loans receivable | 464,721 | 441,169 | ||||||
| Allowance for loan losses | (6,358 | ) | (7,493 | ) | ||||
| Net Loans | 458,363 | 433,676 | ||||||
| Bank premises and equipment, net | 30,259 | 28,148 | ||||||
| Equity securities (restricted) | 2,613 | 2,441 | ||||||
| Other real estate owned | 13,194 | 12,398 | ||||||
| Accrued interest receivable | 1,924 | 1,816 | ||||||
| Life insurance investments | 12,223 | 12,105 | ||||||
| Deferred taxes, net | 4,819 | 5,121 | ||||||
| Other assets | 3,474 | 2,213 | ||||||
| Total Assets | $ | 633,867 | $ | 625,898 | ||||
| LIABILITIES | ||||||||
| Deposits: | ||||||||
| Demand deposits: | ||||||||
| Noninterest bearing | $ | 152,930 | $ | 149,714 | ||||
| Interest-bearing | 40,623 | 30,251 | ||||||
| Savings deposits | 115,007 | 121,076 | ||||||
| Time deposits | 247,956 | 256,978 | ||||||
| Total Deposits | 556,516 | 558,019 | ||||||
| Federal Home Loan Bank advances | 9,058 | 2,958 | ||||||
| Accrued interest payable | 294 | 288 | ||||||
| Accrued expenses and other liabilities | 2,718 | 2,050 | ||||||
| Trust preferred securities | 16,496 | 16,496 | ||||||
| Total Liabilities | 585,082 | 579,811 | ||||||
| Commitments and contingencies | — | — | ||||||
| STOCKHOLDERS’ EQUITY | ||||||||
| Common stock - $2.00 par value; 50,000,000 shares authorized; | ||||||||
| 23,354,257 and 23,354,082 shares issued and outstanding at | ||||||||
| September 30, 2016 and December 31, 2015, respectively | 46,708 | 46,708 | ||||||
| Common stock warrants | 764 | 764 | ||||||
| Additional paid-in-capital | 13,965 | 13,965 | ||||||
| Retained deficit | (13,097 | ) | (15,023 | ) | ||||
| Accumulated other comprehensive income (loss) | 445 | (327 | ) | |||||
| Total Stockholders’ Equity | 48,785 | 46,087 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 633,867 | $ | 625,898 |
NEW PEOPLES BANKSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016 AND 2015
(IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA)
(UNAUDITED)
| INTEREST AND DIVIDEND INCOME | 2016 | 2015 | ||||||
| Loans including fees | $ | 16,910 | $ | 17,595 | ||||
| Federal funds sold | — | 2 | ||||||
| Interest-earning deposits with banks | 67 | 73 | ||||||
| Investments | 1,161 | 1,306 | ||||||
| Dividends on equity securities (restricted) | 99 | 98 | ||||||
| Total Interest and Dividend Income | 18,237 | 19,074 | ||||||
| INTEREST EXPENSE | ||||||||
| Deposits | ||||||||
| Demand | 37 | 28 | ||||||
| Savings | 122 | 129 | ||||||
| Time deposits below $100,000 | 808 | 1,062 | ||||||
| Time deposits above $100,000 | 480 | 735 | ||||||
| FHLB advances | 109 | 113 | ||||||
| Federal funds purchased | 2 | — | ||||||
| Trust preferred securities | 373 | 328 | ||||||
| Total Interest Expense | 1,931 | 2,395 | ||||||
| NET INTEREST INCOME | 16,306 | 16,679 | ||||||
| PROVISION FOR LOAN LOSSES | (500 | ) | (1,200 | ) | ||||
| NET INTEREST INCOME AFTER | ||||||||
| PROVISION FOR LOAN LOSSES | 16,806 | 17,879 | ||||||
| NONINTEREST INCOME | ||||||||
| Service charges | 1,926 | 1,667 | ||||||
| Fees, commissions and other income | 2,694 | 2,333 | ||||||
| Insurance and investment fees | 404 | 411 | ||||||
| Net realized gains on sale of investment securities | 240 | 35 | ||||||
| Life insurance investment income | 118 | 316 | ||||||
| Total Noninterest Income | 5,382 | 4,762 | ||||||
| NONINTEREST EXPENSES | ||||||||
| Salaries and employee benefits | 9,954 | 8,816 | ||||||
| Occupancy and equipment expense | 3,042 | 2,767 | ||||||
| Advertising and public relations | 332 | 240 | ||||||
| Data processing and telecommunications | 1,726 | 1,552 | ||||||
| FDIC insurance premiums | 407 | 652 | ||||||
| Other real estate owned and repossessed vehicles, net | 599 | 1,398 | ||||||
| Other operating expenses | 4,208 | 3,822 | ||||||
| Total Noninterest Expenses | 20,268 | 19,247 | ||||||
| INCOME BEFORE INCOME TAXES | 1,920 | 3,394 | ||||||
| INCOME TAX EXPENSE (BENEFIT) | (6 | ) | 17 | |||||
| NET INCOME | $ | 1,926 | $ | 3,377 | ||||
| Income Per Share | ||||||||
| Basic | $ | 0.08 | $ | 0.15 | ||||
| Fully Diluted | $ | 0.08 | $ | 0.15 | ||||
| Average Weighted Shares of Common Stock | ||||||||
| Basic | 23,354,092 | 22,878,654 | ||||||
| Fully Diluted | 23,354,092 | 22,878,654 |
NEW PEOPLES BANKSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2016 AND 2015
(IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA)
(UNAUDITED)
| INTEREST AND DIVIDEND INCOME | 2016 | 2015 | ||||||
| Loans including fees | $ | 5,732 | $ | 5,889 | ||||
| Federal funds sold | — | — | ||||||
| Interest-earning deposits with banks | 23 | 18 | ||||||
| Investments | 334 | 457 | ||||||
| Dividends on equity securities (restricted) | 35 | 32 | ||||||
| Total Interest and Dividend Income | 6,124 | 6,396 | ||||||
| INTEREST EXPENSE | ||||||||
| Deposits | ||||||||
| Demand | 13 | 10 | ||||||
| Savings | 44 | 44 | ||||||
| Time deposits below $100,000 | 273 | 315 | ||||||
| Time deposits above $100,000 | 168 | 213 | ||||||
| FHLB Advances | 45 | 35 | ||||||
| Federal funds purchased | — | — | ||||||
| Trust Preferred Securities | 128 | 111 | ||||||
| Total Interest Expense | 671 | 728 | ||||||
| NET INTEREST INCOME | 5,453 | 5,668 | ||||||
| PROVISION FOR LOAN LOSSES | — | (1,200 | ) | |||||
| NET INTEREST INCOME AFTER | ||||||||
| PROVISION FOR LOAN LOSSES | 5,453 | 6,868 | ||||||
| NONINTEREST INCOME | ||||||||
| Service charges | 854 | 579 | ||||||
| Fees, commissions and other income | 1,031 | 796 | ||||||
| Insurance and investment fees | 103 | 155 | ||||||
| Net realized gains on sale of investment securities | — | — | ||||||
| Life insurance investment income | 55 | 247 | ||||||
| Total Noninterest Income | 2,043 | 1,777 | ||||||
| NONINTEREST EXPENSES | ||||||||
| Salaries and employee benefits | 3,405 | 2,992 | ||||||
| Occupancy and equipment expense | 1,121 | 905 | ||||||
| Advertising and public relations | 99 | 111 | ||||||
| Data processing and telecommunications | 569 | 550 | ||||||
| FDIC insurance premiums | 137 | 213 | ||||||
| Other real estate owned and repossessed vehicles, net | 347 | 332 | ||||||
| Other operating expenses | 1,477 | 1,235 | ||||||
| Total Noninterest Expenses | 7,155 | 6,338 | ||||||
| INCOME BEFORE INCOME TAXES | 341 | 2,307 | ||||||
| INCOME TAX EXPENSE (BENEFIT) | (5 | ) | 14 | |||||
| NET INCOME | $ | 346 | $ | 2,293 | ||||
| Income Per Share | ||||||||
| Basic | $ | 0.01 | $ | 0.10 | ||||
| Fully Diluted | $ | 0.01 | $ | 0.10 | ||||
| Weighted Average Shares of Common Stock | ||||||||
| Basic | 23,354,111 | 22,878,654 | ||||||
| Fully Diluted | 23,354,111 | 22,878,654 |
NEW PEOPLES BANKSHARES, INC.
KEY PERFORMANCE AND CAPITAL RATIOS
(UNAUDITED)
| For the three-months ended, | |||||||||||||
| September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | |||||||||
| Key Performance Ratios | |||||||||||||
| Cost of interest bearing liabilities | 0.62% | 0.59% | 0.58% | 0.60% | 0.65% | ||||||||
| Cost of Funds | 0.46% | 0.43% | 0.44% | 0.45% | 0.49% | ||||||||
| Net Interest Margin | 3.92% | 3.94% | 3.95% | 4.23% | 3.99% | ||||||||
| Return on average stockholder’s equity | 2.84% | 7.49% | 5.99% | (6.02)% | 20.52% | ||||||||
| Return on average assets | 0.22% | 0.56% | 0.45% | (0.45)% | 1.43% | ||||||||
| Efficiency Ratio* | 95.45% | 94.70% | 90.05% | 122.39% | 84.95% | ||||||||
| Loan to Deposit Ratio | 83.51% | 82.80% | 81.10% | 79.06% | 77.67% | ||||||||
| Asset Quality | |||||||||||||
| Allowance for loan loss to total loans | 1.37% | 1.45% | 1.60% | 1.70% | 1.98% | ||||||||
| Net Charge Offs to average loans, annualized | 0.25% | 0.06% | 0.25% | 0.16% | (1.03)% | ||||||||
| Nonaccrual loans to total loans | 2.89% | 2.72% | 3.00% | 3.37% | 4.08% | ||||||||
| Nonperforming assets to total assets | 4.20% | 4.22% | 4.20% | 4.35% | 5.22% | ||||||||
| Capital Ratios (Bank Only)** | |||||||||||||
| Tier 1 leverage | 10.00% | 9.98% | 9.83% | 9.67% | 9.66% | ||||||||
| Tier 1 risk-based capital | 15.72% | 15.70% | 16.02% | 16.29% | 16.44% | ||||||||
| Total risk-based capital | 16.98% | 16.95% | 17.28% | 17.55% | 17.71% | ||||||||
| Total common equity tier 1 capital | 15.72% | 15.70% | 16.02% | 16.29% | 16.44% | ||||||||
*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 Bank’s capital ratios as of December 31, 2015 are audited.