New Peoples Bankshares, Inc. · OTC:NWPP
New Peoples Bankshares — Shareholder Meeting (May 2017)
75 slides from New Peoples Bankshares's shareholder meeting presentation, May 19, 2017
Slide 1: 2017 Annual Shareholders' Meeting
2017 Annual Shareholders’ Meeting Exhibit 99.1
Slide 2: Introduction of Directors
INTRODUCTION OF DIRECTORS • Lynn Keene, Chairman • Charles Gent, Vice - Chairman • Tim Ball • Joe Carter • John Cox • Eugene Hearl • Michael McGlothlin • Fred Meade • Scott White 2
Slide 3: Introduction of Senior Management Team
INTRODUCTION OF SENIOR MANAGEMENT TEAM • Todd Asbury, President and CEO • Frank Sexton, Jr., EVP and COO • Karen Wimmer, EVP and Director of Special Assets • Bill Beard, EVP and CCO • Joseph Pennington, SVP and CFO • Andy Mullins, FSVP and Senior Retail Officer • J. W. Kiser, FSVP and Senior Commerc
Slide 4: 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 materiali
Slide 5: Why does New Peoples Bank exist?
5 Why does New Peoples Bank exist?
Slide 6: Answer: To Help Make Dreams Come True
6 Answer: To Help Make Dreams Come True
Slide 7: Our Shareholders, Customers, Employees, Communities
7 • Our Shareholders • Our Customers • Our Employees • Our Communities
Slide 8: People Have Dreams
8 People Have Dreams
Slide 9: Our Shareholders Have Dreams
9 Our Shareholders Have Dreams
Slide 10: Our Mission
The mission of New Peoples Bank is to provide 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 10 Our Mission
Slide 11: High Performing Stock Yielding a Great Return
11 • High Performing Stock Yielding a Great Return • High earning • Dividend Paying • Safe and Strong • Highly efficient
Slide 12: Excellent Customer Service
12 • Excellent Customer Service • # 1 In Total Deposits in market area • Lender of choice • Meeting customer needs and exceeding expectations • Deep multiple account relationships • Knowledgeable and professional bankers
Slide 13: Innovative
13 • Innovative • Cutting edge technology • Products and Services that meet customer’s needs • Staying ahead of the competition
Slide 14: Making a Positive Difference for our Region
14 • Making a Positive Difference for our Region • Deeply involved in the community • Economic catalyst for our region • Stellar reputation • Employer of choice
Slide 15: Making Shareholders' Dreams Come True
15 Making Shareholders’ Dreams Come True
Slide 16: Our Customers Have Dreams
16 Our Customers Have Dreams
Slide 17: Customer Dreams
Helping people get that New Home Giving Peace of Mind through Life Insurance Helping people plan for Retirement 17 Customer Dreams
Slide 18: Customer Dreams (Cont.)
Helping Business E xpansion creating New Jobs Helping People to get ahead financially Provide Reliable, Hassle free, Convenient Banking 18 Customer Dreams (Cont.)
Slide 19: Making Customers' Dreams Come True
19 Making Customers’ Dreams Come True
Slide 20: Our Employees Have Dreams
20 Our Employees Have Dreams
Slide 21: Employees' Dreams
21 Employees’ Dreams
Slide 22: Employee Dreams
• Fair compensation and benefits • Opportunities for advancement • Recognition and appreciation for a good job • Well trained and equipped • Peace of mind 22 Employee Dreams
Slide 23: Employee Dreams (Cont.)
• Low stress work environment • Knowing that their employer cares • Being heard and knowing that their opinion matters • Being respected and kept abreast of what is going on 23 Employee Dreams (Cont.)
Slide 24: Making Employees' Dreams Come True
24 Making Employees’ Dreams Come True
Slide 25: Our Communities Have Dreams
25 Our Communities Have Dreams
Slide 26: Community Dreams
26 Community Dreams
Slide 27: Community Dreams
• Helping improve the quality of life • Providing leadership in the community • Promoting great things happening in our region • Improving the economy • Serving underserved areas • Working with local government and politicians to help improve our area 27 Community Dreams
Slide 28: Making Community Dreams Come True
28 Making Community Dreams Come True
Slide 29: Quote on dreams
29 “Your dreams will remain just a dream unless you take small and realistic steps towards achieving them.” ― Eileen Anglin
Slide 30: USS
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Slide 32: In order for us to fulfill our purpose of Helping Make Dreams Come True
32 In order for us to fulfill our purpose of Helping Make Dreams Come True…
Slide 33: There is a Process
33 There is a Process
Slide 34: Strategic Organization Theme
34 Strategic Organization Theme
Slide 35: Strategic Priorities: Near-Term Priorities
STRATEGIC PRIORITIES NEAR - TERM PRIORITIES (1 - 2 years) Reduce Credit Risk Profile Conservative/ Modest Balance Sheet Growth Increase Earnings and Capital Maximize Efficiencies Improve Risk Management Capabilities Continue to Recruit, Develop and Support Our People Be the Market Lead
Slide 36: Strategic Priorities: Long-Term Priorities
STRATEGIC PRIORITIES LONG - TERM PRIORITIES (2 - 5 years) Enhance Shareholder Liquidity, Value and Return Differentiate Ourselves from the Competition Through the Technologies We Offer, Superior Service and Local Market Presence Continue Targeted Growth in Clearly Defined Segments Expand on
Slide 37: Where are We in the Process?
37 Where are We in the Process?
Slide 38: Financial Goals 2016 & GREAT Goals
Financial Goals 2016 & GREAT Goals 38 Financial Goals 2016 & Great Goals 12/31/16 12/31/2016 GREAT! Financial Actual Goals Goals Assets $634M $639M Asset Growth 1.35% 2.10% > 5.00% Loan Growth 6.22% 2.11% > 5.00% Deposit Growth (0.64%) 1.81% > 5.00% Return on Average Assets 0.15% 0.48% > 1.25% Retur
Slide 39: State of New Peoples Bankshares
We are Safer and Stronger We are Growing We are Improving Efficiencies We are Differentiating Ourselves 39 State of New Peoples Bankshares
Slide 40: We are Safer and Stronger
40 We are Safer and Stronger
Slide 41: We are Safer and Stronger
We are Safer and Stronger • Asset quality is continually improving but still higher levels than desired • Capital Levels are stronger and closer to peer • Risk management tools are robust and effective to help us manage appropriately 41 State of New Peoples Bankshares
Slide 42: Nonperforming Assets
NONPERFORMING ASSETS (IN THOUSANDS) DECEMBER 31, 2010 THROUGH DECEMBER 31, 2016 2010 2011 2012 2013 2014 2015 2016 Total NPAs $59,820 $58,912 $47,956 $44,161 $36,910 $27,245 $24,060 OREO $12,346 $15,092 $13,869 $15,853 $15,049 $12,398 $10,655 Nonaccrual Loans $45,781 $42,316 $33,536 $28,307 $21,861
Slide 43: Capital Ratio Trend – Tier Leverage Ratio
CAPITAL RATIO TREND – ACTUAL TIER 1 LEVERAGE RATIO (BANK ONLY) DECEMBER 31, 2010 THROUGH DECEMBER 31, 2016 2010 2011 2012 2013 2014 2015 2016 Leverage Ratio 6.00% 5.99% 7.08% 7.49% 8.19% 9.67% 9.93% Short Term Goal 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 9.00% Long Term Goal 9.00% 9.00% 9.00% 9.00% 9.00
Slide 44: We are Growing
44 We are Growing
Slide 45: We are Growing
We are Growing • Balance Sheet continues to increase • Net interest margin remains higher than peers • Noninterest income revenue sources are being added • Common Stock Book Value is increasing • Stock Performance is improving • New products and services have been added during 2016 • Employees are g
Slide 46: Strategic Balance Sheet Trend
STRATEGIC BALANCE SHEET TREND (IN MILLIONS) DECEMBER 31, 2010 THROUGH MARCH 31, 2017 2010 2011 2012 2013 2014 2015 2016 2017 Q1 Total Assets $852.6 $780.4 $719.0 $684.7 $651.1 $625.9 $634.3 $647.6 Total Loans $707.8 $597.8 $522.4 $493.0 $457.5 $441.2 $468.6 $476.5 Total Deposits $766.1 $708.3 $652.9
Slide 47: Net Interest Margin Trend
NET INTEREST MARGIN TREND (BANK ONLY) DECEMBER 31, 2010 THROUGH DECEMBER 31, 2016 4.44% 4.34% 4.20% 4.09% 3.80% 4.01% 4.01% 3.84% 3.88% 3.83% 3.73% 3.77% 3.74% 3.76% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 2010 2011 2012 2013 2014 2015 2016 Net Interest Margin Peer Data UBPR $300 Million to $1 Billion 4
Slide 48: Non-Interest Income as % of Average Assets Trend
NON - INTEREST INCOME AS % OF AVERAGE ASSETS TREND (BANK ONLY) DECEMBER 31, 2010 THROUGH DECEMBER 31, 2016 0.67% 0.66% 0.62% 0.68% 0.85% 0.97% 1.12% 0.72% 0.70% 0.78% 0.78% 0.75% 0.76% 0.76% 0.00% 0.50% 1.00% 1.50% 2.00% 2010 2011 2012 2013 2014 2015 2016 NII Peer Data $300 Million to $1 Billion 48
Slide 49: Stock Price & Book Value Trend
STOCK PRICE & BOOK VALUE TREND DECEMBER 31, 2013 THROUGH MAY 15, 2017 2013 2014 2015 2016 5/15/2017 Stock Price $1.00 $1.26 $1.51 $1.75 $1.65 Book Value 1.83 1.87 1.97 2.01 2.01 $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 $1.75 $2.00 $2.25 $2.50 $2.75 $3.00 Dollars 49
Slide 50: Retained Deficit Trend
RETAINED DEFICIT TREND (IN THOUSANDS) DECEMBER 31, 2010 THROUGH DECEMBER 31, 2016 2010 2011 2012 2013 2014 2015 2016 3/31/2017 Retained Deficit (4,175) (13,085) (19,409) (17,925) (17,685) (15,023) (14,065) (13,950) -$20,000 -$15,000 -$10,000 -$5,000 $0 $5,000 $10,000 $15,000 $20,000 Dollars in thous
Slide 51: New Products & Services – 2016 & 2017
51 New Products & Services – 2016 & 2017 • Chairman’s Club Shareholder Account • iTMs • Heroes Checking Account • OOPS – Optional Overdraft Protection Services • EMV Chip Cards • Card Valet • Instant Balance enhancement to mobile app • Online account opening • ClickSwitch • NPB Credit Cards • Second
Slide 52: New Products & Services – 2016 & 2017
52 New Products & Services – 2016 & 2017
Slide 53: Employee Development
53 Employee Development • Started Bankwide meetings for employees and managers • Training Site • Establishing a Management Training Program • Exploring developing a Library for Employee Development • Tuition Assistance Program • Payscale Enhancement • Profit Sharing Plan • Changed sick time to 2 hou
Slide 54: We are Improving Efficiency
54 We are Improving Efficiency
Slide 55: We are Improving Efficiency
We are Improving Efficiency • Transforming Branch network and how we operate • New systems and processes are being implemented but not complete yet • Facilities optimization • Exceptions are improving • Asset quality related expenses are decreasing • Technology is being utilized more 55 State of New
Slide 56: Efficiency Ratio (Bank Only)
EFFICIENCY RATIO (BANK ONLY) DECEMBER 31, 2010 THROUGH DECEMBER 31, 2016 78.01% 103.06% 96.28% 91.59% 96.37% 96.32% 97.25% 68.45% 67.92% 66.85% 67.62% 66.62% 66.28% 65.63% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00% 110.00% 120.00% 2010 2011 2012 2013 2014 2015 2016 NII Peer Data $300 Million to $1 B
Slide 57: Efficiency Improvement Initiatives
57 Efficiency Improvement Initiatives • Relationship Bankers transition • Retail Training University • Revised job descriptions • Cross training • Complete by end of 2017 for all branches
Slide 58: Efficiency Improvement Initiatives (Cont.)
58 Efficiency Improvement Initiatives (Cont .) • Centralization • Overdraft approval • Retail and Mortgage Collections • File Maintenance • Underwriting • Loan Processing • Customer Contact Center • Taking incoming calls and assisting with customer questions
Slide 59: Efficiency Improvements Initiatives (Cont.)
59 Efficiency Improvements Initiatives (Cont.) • Specialization • Commercial Loans with Commercial Bankers • Problem loans with Special Assets • Mortgage loans through Mortgage Originators • Retail banking with Retail Bankers • Support services with Support Specialists • Loss Mitigation department
Slide 60: Efficiency Improvements Initiatives (Cont.)
60 Efficiency Improvements Initiatives (Cont.) • Technology enhancements • Cash Recyclers installation • iTMs to help with drive thru traffic and hours of operation • Digital signage • 360 View • Electronic signatures • Coin counters • Video Monitors • Network Upgrades
Slide 61: Efficiency Initiatives Improvements (Cont.)
61 Efficiency Initiatives Improvements (Cont.) • Process Refinement • Reviewing and refining policies and processes to be more efficient • Transformed Operations area to accommodate new branch operations
Slide 62: Efficiency Initiatives Improvements (Cont.)
62 Efficiency Initiatives Improvements (Cont.) • Facilities Optimization • Branch remodeling • Teller pods • Conference rooms • Possible layout changes of some locations • Sale/ Leaseback of facilities • Lease out unused space • Determining best use for closed offices • iTMs in remote locations • Lo
Slide 63: We are Differentiating Ourselves
63 We are Differentiating Ourselves
Slide 64: We are Differentiating Ourselves
• We are Differentiating Ourselves • Incorporating technology focused on enhancing the customer experience • Golden Rule Banking is being lived out • Caring for our customers through excellent service • Actively involved in the community • Generously showing love and compassion 64 State of New Peopl
Slide 65: President's Award
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Slide 66: Community Involvement
66 Community Involvement • Farm, Fishing, Hunting and Camping Show – Meadow View Conference Center • Remote Area Medical of Southwest Virginia • Washington Co. Tennessee Agricultural Business Appreciation Dinner • ICBA Community Banking Month • Wise Co. Chamber of Commerce Gala • Bank Day for High S
Slide 67: Community Involvement (Cont.)
67 Community Involvement (Cont.) • Tazewell Co. Spring Expo • Best Friends Festival, Wise County/Norton • Pound Heritage Days • Scott Co. Fair • Tazewell Co. Fair • Dickenson Co. Fair • Bluefield College Scholarship Golf Tournament • Russell Co Fair • Washington Co. Fair • Tazewell Co. Business to B
Slide 68: Community Involvement (Cont.)
68 Community Involvement (Cont.) • Community Thanksgiving – Honaker VA • Area Christmas Parades • 4 - H Organization • American Cancer Society • Relay for Life • Appalachian Soccer Association • Clinch River Days • Chuck Mathena Center • Duffield Daze • Little League • Lions Club • Police, Fire and
Slide 69: Community Involvement (Cont.)
69 Community Involvement (Cont.) • St. Jude’s Hospital • Southwest Virginia Music Festival • Southwest VA Ecomic Summit Sponsorship and Committee members • Special Olympics • Southwest Virginia Children’s Choir • Ruritan Club • Rotary Club • United Way Sponsorship • West Virginia Flood Relief assist
Slide 70: Where are We in the Process?
70 Where are We in the Process?
Slide 71: What we strive to do to be Great & Help Make Dreams come true?
71 What we strive to do to be Great & Help Make Dreams come true? • Follow the Golden Rule • Take excellent and genuine care of our customers and exceed their expectations • Build Trustworthy Relationships • Establish relationships with our customers based on integrity and trust that creates loyalty
Slide 72: What we strive to do to be Great (Cont.)
72 What we strive to do to be Great & Help Make Dreams come true? (Cont.) • Continue to Improve • Understand that there is always room for improvement • How can I be and do better tomorrow? • Make your voice heard if you have an idea • Work Together as a Team • Not one person can do it all alone, it
Slide 73: Again, Where Are We in the Process?
73 Again, Where Are We in the Process?
Slide 74: Thank You! But We Are Headed to Greater things
74 Thank You! But We Are Headed to Greater things…
Slide 75: Helping Make Dreams Come True: Buy or Sell Stock Contact Information
75 Helping Make Dreams Come True Buy or Sell Stock Contact Information Mike Acampora Senior Vice President FIG Partners, LLC 1654 Pearl Street Jacksonville, Florida 32206 Office: 904 - 354 - 0441 macampora@figpartners.com
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