New Peoples Bankshares, Inc. · OTC:NWPP
New Peoples Bankshares — Shareholder Meeting (May 2021)
31 slides from New Peoples Bankshares's shareholder meeting presentation, May 19, 2021
Slide 1: 2021 Annual Shareholders' Meeting
BANKSHARES INC 2021 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: In Honor of Fred W. Meade
In Honor of Fred W. Meade WHEREAS, Fred W. Meade retired, after completing outstanding service to New Peoples Bankshares, Inc. and Subsidiaries since 19968; and WHEREAS, Mr. Meade provided excellent leadership and service to New Peoples and Subsidiaries by serving as a Board member and made a ompary
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 materialize or sh
Slide 5: 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 6: Mission
Mission 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 7: 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 8: Strategic Focus: Improve earnings
Strategic Focus Improve earnings by maximizing efficiencies, growing earning assets and increasing non- interest income revenue
Slide 9: Efficiency Ratio (Bank Only)
Efficiency Ratio (Bank Only) December 31, 2017 through March 31, 2021 120.00% 110.00% 0, QO3-955, 100.00% 96.67% 92.95% 90.00% 79.51% 80.00% 70.00% -_ ——he 1d i=. 60.00% = . : = 50.00% 64.32 63.60% 63.95% 62.70% 60.68% 2017 2018 2019 2020 3/31/2021 «Efficiency Ratio -#-Peer Data $300 Million to $1 B
Slide 10: Project Accelerate
Q4 2019, 2020 and 2021 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, 2017 — March 31, 2021 $1,000 $950 $900 o $850 § $800 810.3 = i 721.0 & $700 —¥”_— : 4 $650 -—VW0 Cem 3 Sl 594.5 $550 nl $500 $450 $400 2017 2018 2019 2020 3/31/2021 —y=Total Assets 666.7 682.1 706.4 756.3 810.3 ‘=Total Loans 513.0 547.1 562.5
Slide 13: Net Income Trend (in thousands)
Net Income Trend (in thousands) Last Five Quarters March 31, 2020 through March 31, 2021 Quarterly Net Income $3,000 $2,500 ww N i=) i=) o ? $1,500 mn RB i=) i=} o ? Dollars in thousands $500 $o ST 3/31/2020 6/30/2020 9/30/2020 12/31/2020 3/31/2021 | ‘a Net Income $46 $29 $1,424 $1,391 $1,585 NEW PE
Slide 14: Strategic Focus: Manage risks
Strategic Focus Manage risks to an acceptable level while improving capital levels and proactively safeguarding asset quality
Slide 15: COVID-19
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, 2017 through March 31, 2021 Nonperforming Assets $30,000 wa $25,000 st c 3 $20,000 3 2 ad $15,000 & 2 & $10,000 — 8 $5,000 $0 2017 2018 2019 3/31/2021 Total NPAs $14,423 $12,306 $8,549 $8,697 ta OREO $6,859 $5,937 $3,393 $3,342 @ Nonaccrual Loans $7,5
Slide 18: Loan Classifications (in thousands)
Loan Classifications (in thousands) December 31, 2017 through March 31, 2021 Loans by Classification 3/31/2021 2020 2019 2018 2017 2 so $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 2017 2018 2019 2020 3/31/2021 @ Special Mention $12,076 $10,510 $8,832 $14,614 $15,327 @ Substandard $11,883 $7,274 $
Slide 19: ALLL Trends (In thousands & percentage)
ALLL Trends (In thousands & percentage) December 31, 2017 through March 31, 2021 ALLL Trends $10,000 er 1.40% 1.25 .23% aes 1.19% $9,000 21% 112% es L 1.20% 98,000 0.98% 0.95: an ie. ie z $7,000 2 L 1.00% 3 3 ied | 0.80% = $5,000 F $4,000 - 0.60% 3 $3,000 | 0.40% $2,000 - 0.20% $1,000 : °° ton 2018
Slide 20: Provision for Loan Losses
Provision for Loan Losses as Compared to Net Charge Offs (in thousands) December 31, 2017 through YTD March 31, 2021 $3,000 $2,750 $2,500 % $2,250 & $2,000 |— 3 $1,750 |— = $1,500 ‘a 91,250 & $1,000 & $750 |— $500 “|i $o ale 2017 2018 3/31/2021 @ Provision for Loan Loss $450 $252 $2,050 $2,300 $186
Slide 21: Capital Ratio Trend — Actual
Capital Ratio Trend — Actual Tier 1 Leverage Ratio (Bank Only) December 31, 2017 through March 31, 2021 11.00% 10.00% he ic nic ie hi: 9.00% 8.00% 7.00% 6.00% 5.00% 2017 2018 2019 2020 3/31/2021 jestueLeverage Ratio 9.56% 9.59% 9.43% 9.49% 9.41% =lMShort Term Goal 9.00% 9.00% 9.00% 9.00% 9.00% =i» L
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: Strategic 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: Boone, NC Loan Production Office Q4 2020
Boone, NC Loan Production Office Q4 2020
Slide 27: Proposed - Bristol State Street Location 2021
Proposed - Bristol State Street Location 2021
Slide 28: Strategic Focus: Profits and capital
Strategic Focus Generate profits to provide sufficient capital for growth and dividends while enhancing shareholders’ value, return and liquidity
Slide 29: Retained Deficit Trend (in thousands)
Retained Deficit Trend (in thousands) December 31, 2010 through March 31, 2021 $20,000 $15,000 $10,000 $5,000 "i | iS om “| | | | | | | (3,394) -$10,000 Dollars in thousands -$15,000 -$20, 000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 3/31/2021 [ Retained Deficit} (4,175) (13,084) (19,4
Slide 30: At May 17, 2021
75 136 * At May 17, 2021 j V PEOPLES BANKSHARES INC
Slide 31: Thank you!
~NEW PEOPLES BANKSHARES INC Thank you! 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 31
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