New Peoples Bankshares, Inc. · OTC:NWPP
New Peoples Bankshares — Shareholder Meeting (October 2020)
30 slides from New Peoples Bankshares's shareholder meeting presentation, Oct 22, 2020
Slide 1: 2020 Annual Shareholders' Meeting
a NEW 7 PEOPLES BANKSHARES INC 2020 Annual Shareholders’ Meeting
Slide 2: Introduction of Directors
INTRODUCTION OF DIRECTORS ¢ Harold Lynn Keene, Chairman * B. Scott White, Vice-Chairman * C. Todd Asbury * Tim W. Ball * Gina Preservati-Boggess ¢ J. Robert Buchanan * Joe M. Carter * John D. Cox * Charles Gent * Eugene S. Hearl * Michael G. McGlothlin * Fred W. Meade NEW PEOPLES BANKSHARES INC
Slide 3: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements This presentation includes 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 sh
Slide 4: Vision
Vision New Peoples Bank is the financial institution of choice in the Central Appalachia communities we serve, providing innovative solutions and personalized service in a manner that improves the lives of our customers, employees and investors.
Slide 5: New Peoples Bank provides high-quality banking services
New Peoples Bank provides high-quality, state-of-the-art, golden-rule banking services to our communities while generating a reasonable return to our stockholders and providing a challenging and rewarding work environment for our family of employees.
Slide 6: Strategic Focus
Strategic Focus = Improve earnings by maximizing efficiencies, growing earning assets and increasing non-interest income revenue = Manage risks to an acceptable level while improving capital levels and proactively safeguarding asset quality = Recruit, develop, reward, support and equip a high-perfor
Slide 7: Strategic Focus: Improve earnings
Strategic Focus Improve earnings by maximizing efficiencies, growing earning assets and increasing non- interest income revenue
Slide 8: Efficiency Ratio (Bank Only)
Efficiency Ratio (Bank Only) December 31, 2010 through September 30, 2020 120.00% 110.00% 103.06% 100.00% 96.28%, 1 56 6.37% 96.32% 97.25% 87.78% 82.62% 90.00% 3-o1% 80.00% 70.00% pg a 4, 68.45%67.92% 9 9 60.00% 66.85% 67.62% 66.62% 66.28% 65.63% 64.32% 63.60% 63.95% 62.86% 50.00% © A & Yr S 6 w er
Slide 9: 2019 Initiatives
2019 Initiatives ¢ Expense policy change in Q1 2019 * Group Health Insurance change Q1 2019 ¢ Paylocity implementation Q1 2019 * Contract Renegotiations — future savings > $3 million over 5 to 6 years Q2 ¢ Sale of underperforming mortgages Q2 * Reorganization — Project Wings Q3 * Staffing - $1.19 mi
Slide 10: Project Accelerate
Q4 2019 & 2020 Project Accelerate
Slide 11: Project Accelerate Results
Project Accelerate Results * Hired a consultant specializing in bank performance and efficiency improvements * Made significant process changes to utilize technology and reduce unnecessary activity * Reorganized the bank structure to align with strategic plan * Reduced staffing with an estimated $1.
Slide 12: Strategic Balance Sheet Trend
Strategic Balance Sheet Trend (In Millions) December 31, 2010 - September 30, 2020 $1,000 $950 $900 $850 $800 $750 $700 $650 $600 $550 $500 $450 $400 Dollars in millions 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 6/30/20 9/30/20 — =Total Assets 852.6 780.4 719.0 | 684.7 | 651.1 | 625.9 634.3
Slide 13: Net Income Trend (in thousands)
Net Income Trend (in thousands) Last Five Quarters September 30, 2019 through September 30, 2020 Quarterly Net Income and Pre Tax Pre Provision Income $3,000 $2,500 m2) 2 FA $2,000 3 £ = $1,500 2 s $1,000 [-] [=) - = $0 9/30/2019 12/31/2019 3/31/2020 6/30/2020 9/30/2020 Net Income $875 $432 $46 $28
Slide 14: Strategic Focus: Manage risks and asset quality
Strategic Focus Manage risks to an acceptable level while improving capital levels and proactively safeguarding asset quality
Slide 15: Slide 15
Slide 16: COVID-19 Pandemic Response
COVID- 19 Pandemic Response *« Pandemic Team * Activated and meets on weekly basis to discuss current conditions and to document actions by the team * Policies and procedures have been update or created to address pandemic concerns for employee and customer safety ¢ Payroll Protection Program Loans
Slide 17: Nonperforming Assets (in thousands)
Nonperforming Assets (in thousands) December 31, 2010 through September 30, 2020 Nonperforming Assets $60,000 $55,000 a $50,000 z $45,000 8 $40,000 3 $35,000 = $30,000 A $25,000 § $20,000 { 3 $15,000 $10,000 i y = _ 0 oi ; a 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 6/30/20 | 9/30/20 Total N
Slide 18: Loan Classifications (in thousands)
Loan Classifications (in thousands) December 31, 2017 through June 30, 2020 Loans by Classification 0/2 la 0) $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 2017 2018 2019 6/30/20 l@ Special Mention $12,076 $10,510 $8,832 $9,546 @ Substandard $11,883 $7,274 $4,846 $7,161 ‘4 Doubtful S- S- $286 S- Do
Slide 19: ALLL Trends
ALLL Trends (In thousands & percentage) December 31, 2017 through September 30, 2020 ALLL Trends $10,000 1.40% sean 1.21% 1.12% 1.19% - 1.20% $0! 0.98% 0.95% < $7,000 ~ 1.00% 8 2 $6,000 - 0.80% = $5,000 ‘2 $4,000 ; 0.60% o 6 $3,000 - 0.40% a $2,000 - 0.20% $1,000 $0 2017 2018 2019 6/30/20 9/30/20 0:
Slide 20: Provision for Loan Losses
Provision for Loan Losses as Compared to Net Charge Offs (in thousands) December 31, 2017 through YTD September 30, 2020 $3,000 $2,750 $2,500 % $2,250 & $2,000 3 $1,750 = $1,500 2 $1,250 S $1,000 8 $750 $500 $250 0 $ 2017 2018 2019 YTD 9/30/20 l@ Provision for Loan Loss $450 $252 $2,050 $2,000 lm Ne
Slide 21: Capital Ratio Trend - Actual
Capital Ratio Trend — Actual Tier 1 Leverage Ratio (Bank Only) December 31, 2010 through September 30, 2020 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% ° 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 | 6/30/20 9/30/20 ‘emmLeverage Ratio 6.00% | 5.99% | 7.08% | 7.49% | 8.19% 9.67% | 9.93% 9.56% 9
Slide 22: Strategic Focus: Workforce
Strategic Focus Recruit, develop, reward, support and equip a high-performing workforce
Slide 23: Strategic Focus: Customer experience
Strategic Focus Enhance customer experience through superior service, state of the art digital banking solutions, relevant products, and community presence
Slide 24: Strategic Focus: Targeted growth
Strategic Focus Strategically grow in targeted markets and segmented demographics
Slide 25: Kingsport, Tennessee Relocation Q3 2020
Kingsport, Tennessee Relocation Q3 2020
Slide 26: Proposed - Bristol State Street Location
Proposed - Bristol State Street Location 2021
Slide 27: Strategic Focus: Cash dividend and shareholder value
Strategic Focus Issue a cash dividend and enhance shareholder experience, value, return and liquidity
Slide 28: Retained Deficit Trend (in thousands)
Retained Deficit Trend (in thousands) December 31, 2010 through September 30, 2020 “yyy $20,000 $15,000 $10,000 $5,000 $0 -$5,000 Dollars in thousands -$10,000 -$15,000 -$20,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 9/30/20 @ Retained Deficit (4,175) (13,084) (19,408) (17,924) (17,685) (
Slide 29: Stock Price & Book Value Trend
Stock Price & Book Value Trend December 31, 2013 - October 19, 2020 $3.00 $2.75 $2.50 $2.25 $2.00 $1.75 $1.50 $1.25 $1.00 $0.75 $0.50 $0.25 $0.00 6/30/20 10/19/20 l—e=Stock Price 1.65 1.61 * Book Value 2.32 2.38 l=te= High 2.10 1.95 1.40 1.40 * At October 19, 2020 PEOPLES
Slide 30: Thank you!
Thank you! NEW PEOPLES BANKSHARES INC Market Makers OTCMKTS: NWPP Janney Montgomery Scott LLC 1475 Peachtree St. NE, Suite 800 Atlanta, GA 30309 Office: 800.526.6397 DA Davidson & Co. 121 W. Forsyth St., Suite 820 Jacksonville, FL 32202 Office: 888.877.6807
New Peoples Bankshares — Shareholder Meeting (October 2020) on 6ix