Attached files
| file | filename |
|---|---|
| 8-K - NEW PEOPLES BANKSHARES INC | npbs8k051117.htm |
Exhibit 99.1
NEWS RELEASE
| FOR IMMEDIATE RELEASE: | FOR MORE INFORMATION, CONTACT: |
| May 12, 2017 | C. Todd Asbury |
| (276) 873-7000 |
NEW PEOPLES BANKSHARES ANNOUNCES 2017 FIRST QUARTER 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 $115,000, or $0.005 earnings per share, for the quarter ended March 31, 2017. This compares to net income of $698,000, or $0.03 per share, for the same period ended March 31, 2016, representing a decline of $583,000, or 83.52%.
“During the first quarter of 2017, we continued our focus on balance sheet growth and problem asset clean-up with positive results” commented Todd Asbury, President and CEO. “Annualized loan growth checked in at about 7% which is what our aim was at the onset of the year. Also, not reflected in the March numbers was the sale of one of our largest OREO properties, which reduced OREO by $1.3 million in April, while another $2.2 million of OREO is under contract as of early May 2017. We expect capital levels to remain strong, our earning assets to grow, and asset quality to continue to improve during the remaining part of 2017. However, as we work through this growth/cleanup phase, we also expect a continued lag in earnings growth.”
First Quarter Highlights
| · | A $7.9 million, or 1.68%, increase in loans, during the quarter; |
| · | No provision for loan losses taken in the first quarter; |
| · | An increase of $18.3 million, or 3.30%, in total deposits; |
| · | A decrease of $1.7 million, or 9.57%, in substandard loans during the quarter; |
| · | A decrease of $4.2 million, or 26.20%, in total past due loans during the quarter; |
| · | The Bank is considered well-capitalized under regulatory standards; and, |
| · | Book value per share of $2.02 as of March 31, 2017. |
About New Peoples Bankshares, Inc.
New Peoples Bankshares, Inc. is a one-bank holding company headquartered in Honaker, Virginia. Its wholly-owned subsidiary, New Peoples Bank, Inc., provides banking products and services through its 20 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, 2017 AND DECEMBER 31, 2016
(IN THOUSANDS EXCEPT SHARE DATA)
| ASSETS | March 31, | December 31, | ||||||
| 2017 | 2016 | |||||||
| (Unaudited) | (Audited) | |||||||
| Cash and due from banks | $ | 17,924 | $ | 18,500 | ||||
| Interest-bearing deposits with banks | 21,664 | 16,816 | ||||||
| Federal funds sold | 108 | 132 | ||||||
| Total Cash and Cash Equivalents | 39,696 | 35,448 | ||||||
| Investment securities available-for-sale | 72,010 | 70,011 | ||||||
| Loans receivable | 476,490 | 468,629 | ||||||
| Allowance for loan losses | (5,968 | ) | (6,072 | ) | ||||
| Net Loans | 470,522 | 462,557 | ||||||
| Bank premises and equipment, net | 29,937 | 29,985 | ||||||
| Equity securities (restricted) | 2,585 | 2,802 | ||||||
| Other real estate owned | 10,161 | 10,655 | ||||||
| Accrued interest receivable | 1,734 | 1,848 | ||||||
| Life insurance investments | 12,301 | 12,274 | ||||||
| Deferred taxes, net | 5,255 | 5,285 | ||||||
| Other assets | 3,393 | 3,470 | ||||||
| Total Assets | $ | 647,594 | $ | 634,335 | ||||
| LIABILITIES | ||||||||
| Deposits: | ||||||||
| Demand deposits: | ||||||||
| Noninterest bearing | $ | 159,301 | $ | 151,914 | ||||
| Interest-bearing | 41,663 | 40,213 | ||||||
| Savings deposits | 123,403 | 114,492 | ||||||
| Time deposits | 248,384 | 247,819 | ||||||
| Total Deposits | 572,751 | 554,438 | ||||||
| Federal Home Loan Bank advances | 8,458 | 13,758 | ||||||
| Accrued interest payable | 342 | 331 | ||||||
| Accrued expenses and other liabilities | 2,455 | 2,395 | ||||||
| Trust preferred securities | 16,496 | 16,496 | ||||||
| Total Liabilities | 600,502 | 587,418 | ||||||
| Commitments and contingencies | ||||||||
| STOCKHOLDERS’ EQUITY | ||||||||
| Common stock - $2.00 par value; 50,000,000 shares authorized; | ||||||||
| 23,355,457
and 23,354,457 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively | 46,711 | 46,709 | ||||||
| Common stock warrants | 763 | 764 | ||||||
| Additional paid-in-capital | 13,965 | 13,965 | ||||||
| Retained deficit | (13,950 | ) | (14,065 | ) | ||||
| Accumulated other comprehensive loss | (397 | ) | (456 | ) | ||||
| Total Stockholders’ Equity | 47,092 | 46,917 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 647,594 | $ | 634,335 |
NEW PEOPLES BANKSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2017 AND 2016
(IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA)
(UNAUDITED)
| INTEREST AND DIVIDEND INCOME | 2017 | 2016 | ||||||
| Loans including fees | $ | 5,664 | $ | 5,565 | ||||
| Interest-earning deposits with banks | 43 | 21 | ||||||
| Investments | 350 | 464 | ||||||
| Dividends on equity securities (restricted) | 32 | 32 | ||||||
| Total Interest and Dividend Income | 6,089 | 6,082 | ||||||
| INTEREST EXPENSE | ||||||||
| Deposits | ||||||||
| Demand | 13 | 11 | ||||||
| Savings | 47 | 41 | ||||||
| Time deposits below $100,000 | 289 | 265 | ||||||
| Time deposits above $100,000 | 189 | 154 | ||||||
| FHLB advances | 45 | 36 | ||||||
| Federal funds purchased | — | 2 | ||||||
| Trust preferred securities | 141 | 122 | ||||||
| Total Interest Expense | 724 | 631 | ||||||
| NET INTEREST INCOME | 5,365 | 5,451 | ||||||
| PROVISION FOR LOAN LOSSES | — | — | ||||||
| NET INTEREST INCOME AFTER | ||||||||
| PROVISION FOR LOAN LOSSES | 5,365 | 5,451 | ||||||
| NONINTEREST INCOME | ||||||||
| Service charges | 833 | 488 | ||||||
| Fees, commissions and other income | 802 | 805 | ||||||
| Insurance and investment fees | 52 | 158 | ||||||
| Net realized gains on sale of investment securities | — | 105 | ||||||
| Life insurance investment income | 27 | 30 | ||||||
| Total Noninterest Income | 1,714 | 1,586 | ||||||
| NONINTEREST EXPENSES | ||||||||
| Salaries and employee benefits | 3,381 | 3,210 | ||||||
| Occupancy and equipment expense | 1,127 | 853 | ||||||
| Advertising and public relations | 93 | 104 | ||||||
| Data processing and telecommunications | 553 | 581 | ||||||
| FDIC insurance premiums | 102 | 134 | ||||||
| Other real estate owned and repossessed vehicles, net | 300 | 163 | ||||||
| Other operating expenses | 1,422 | 1,292 | ||||||
| Total Noninterest Expenses | 6,978 | 6,337 | ||||||
| INCOME BEFORE INCOME TAXES | 101 | 700 | ||||||
| INCOME TAX EXPENSE (BENEFIT) | (14 | ) | 2 | |||||
| NET INCOME | $ | 115 | $ | 698 | ||||
| Income Per Share | ||||||||
| Basic | $ | 0.00 | $ | 0.03 | ||||
| Fully Diluted | $ | 0.00 | $ | 0.03 | ||||
| Average Weighted Shares of Common Stock | ||||||||
| Basic | 23,354,890 | 23,354,082 | ||||||
| Fully Diluted | 23,354,890 | 23,354,082 |
NEW PEOPLES BANKSHARES, INC.
QUARTERLY KEY PERFORMANCE AND CAPITAL RATIOS
(UNAUDITED)
| For the three-months ended, | ||||||||||||||||||||
| March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | ||||||||||||||||
| Key Performance Ratios | ||||||||||||||||||||
| Earning Asset Yield | 4.37 | % | 4.40 | % | 4.40 | % | 4.39 | % | 4.41 | % | ||||||||||
| Cost of interest bearing liabilities | 0.67 | % | 0.64 | % | 0.62 | % | 0.59 | % | 0.58 | % | ||||||||||
| Cost of Funds | 0.50 | % | 0.47 | % | 0.46 | % | 0.43 | % | 0.44 | % | ||||||||||
| Net Interest Margin | 3.85 | % | 3.90 | % | 3.92 | % | 3.94 | % | 3.95 | % | ||||||||||
| Return on average stockholder’s equity | 0.99 | % | (7.95 | )% | 2.84 | % | 7.49 | % | 5.99 | % | ||||||||||
| Return on average assets | 0.07 | % | (0.61 | )% | 0.22 | % | 0.56 | % | 0.45 | % | ||||||||||
| Efficiency Ratio* | 98.57 | % | 113.25 | % | 95.45 | % | 94.70 | % | 90.05 | % | ||||||||||
| Loan to Deposit Ratio | 83.19 | % | 84.52 | % | 83.51 | % | 82.80 | % | 81.10 | % | ||||||||||
| Asset Quality | ||||||||||||||||||||
| Allowance for loan loss to total loans | 1.25 | % | 1.30 | % | 1.37 | % | 1.45 | % | 1.60 | % | ||||||||||
| Net charge offs to average loans, annualized | 0.09 | % | 0.24 | % | 0.25 | % | 0.06 | % | 0.25 | % | ||||||||||
| Nonaccrual loans to total loans | 2.93 | % | 2.86 | % | 2.89 | % | 2.72 | % | 3.00 | % | ||||||||||
| Nonperforming assets to total assets | 3.73 | % | 3.79 | % | 4.20 | % | 4.22 | % | 4.20 | % | ||||||||||
| Capital Ratios (Bank Only)** | ||||||||||||||||||||
| Tier 1 leverage | 9.73 | % | 9.93 | % | 10.00 | % | 9.98 | % | 9.83 | % | ||||||||||
| Tier 1 risk-based capital | 14.94 | % | 15.39 | % | 15.72 | % | 15.70 | % | 16.02 | % | ||||||||||
| Total risk-based capital | 16.19 | % | 16.64 | % | 16.98 | % | 16.95 | % | 17.28 | % | ||||||||||
| Total common equity tier 1 capital | 14.94 | % | 15.39 | % | 15.72 | % | 15.70 | % | 16.02 | % | ||||||||||
*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, 2016 are audited.