New Peoples Bankshares, Inc. · OTC:NWPP
New Peoples Bankshares — Shareholder Meeting (May 2023)
31 slides from New Peoples Bankshares's shareholder meeting presentation, May 18, 2023
Slide 1: Annual Shareholders' Meeting May 16, 2023
z Annual Shareholders’ Meeting May 16, 2023 2023
Slide 2: Charles H. Gent, Jr. Recognition
z Charles H. Gent, Jr. Recognition WHEREAS, Charles H. Gent, Jr. has submitted his resignation effective February 21, 2023, after completing outstanding service to New Peoples Bankshares , Inc. and Subsidiaries since 1998; and WHEREAS, Mr. Gent provided excellent leadership and service to New People
Slide 3: Cautionary Statement Regarding Forward-Looking Statements
z 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 materia
Slide 4: Vision Statement
z Vision Statement New Peoples Bank will be a high performing bank and the #1 financial institution of choice in Central Appalachia making our customers’, investors’, employees’ and communities’ dreams come true.
Slide 5: Mission Statement
z Mission Statement New Peoples Bank provides high - quality, state - of - the - art, Golden - Rule banking services to our customers generating an above average return to our shareholders and providing an engaging and rewarding work environment for our family of employees.
Slide 6: Strategic Goals
z Strategic Goals ▪ Improve earnings by maximizing efficiencies, growing deposits, loans and other earning assets; and increasing non - interest income revenue
Slide 7: Net Income Trend
z Net Income Trend 2020 $2.9M 2021 $7.0M 2022 $8.1M
Slide 8: Net Interest Income Trend
z Net Interest Income Trend 2020 $25.1M 2021 $27.2M 2022 $28.2M
Slide 9: Efficiency Ratio Trend
z Efficiency Ratio Trend 2020 81.10% 2021 75.56% 2022 70.60% The efficiency ratio, a non - GAAP measure, which is defined as noninterest expense divided by the sum of net interest income plus noninterest income.
Slide 10: Past Quarters Key Performance Trends
z Past 5 Quarters Key Performance Trends 3/31/22 6/30/22 9/30/22 12/31/22 3/31/23 Net Income (In Thousands) $1,921 $1,923 $1,986 $2,252 $2,021 Return on Average Equity 12.35% 13.45% 13.70% 16.25% 14.05% Return on Average Assets 0.97% 0.94% 0.94% 1.10% 1.07% Efficiency Ratio 71.59% 72.40% 70.25% 68.5
Slide 11: Strategic Balance Sheet Trend
z Strategic Balance Sheet Trend (In Millions) December 31, 2018 – March 31, 2023 2018 2019 2020 2021 2022 3/31/2023 Total Assets 682.1 706.4 756.3 794.6 775.4 793.6 Total Loans 547.1 562.5 575.6 593.7 584.6 590.5 Total Deposits 596.0 621.5 668.0 707.5 692.7 708.8 793.6 590.5 708.8 $400 $450 $500 $55
Slide 12: Past Quarters Key Balance Sheet Trends
z Past 5 Quarters Key Balance Sheet Trends (In Millions) 3/31/22 6/30/22 9/30/22 12/31/22 3/31/23 Total Assets $813.5 $847.0 $828.6 $775.4 $793.6 Total Loans, net of allowance for credit losses $588.3 $578.8 $573.3 $577.9 $583.8 Total Deposits $731.0 $707.1 $723.9 $692.7 $708.8 Total Stockholders’ E
Slide 13: Strategic Goals
z Strategic Goals ▪ Manage risks to an acceptable level while maintaining capital levels and proactively safeguarding asset quality
Slide 14: Accomplishments 2022 & QTD March 31, 2023
z Accomplishments 2022 & QTD March 31, 2023 ▪ Successfully Overcame Cybersecurity Incident ▪ Leverage Capital Ratio Now Exceeds Long Term Goal of > 10.00% ▪ Asset Quality Is Best It’s Been in over 15 Years ▪ Received Great Safety and Soundness And Compliance Regulatory Exams
Slide 15: Capital Ratio Trend – Actual Tier Leverage Ratio (Bank Only)
z Capital Ratio Trend – Actual Tier 1 Leverage Ratio (Bank Only) December 31, 2018 through March 31, 2023 2018 2019 2020 2021 2022 3/31/2023 Leverage Ratio 9.59% 9.43% 9.49% 9.86% 10.40% 10.98% Short Term Goal 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% Long Term Goal 10.00% 10.00% 10.00% 10.00% 10.00% 10.0
Slide 16: Nonperforming Assets
z Nonperforming Assets (In thousands) December 31, 2018 through March 31, 2023 2018 2019 2020 2021 2022 3/31/2023 Total NPAs $12,306 $8,549 $8,882 $4,302 $3,674 $3,088 OREO $5,937 $3,393 $3,334 $1,361 $261 $261 Nonaccrual Loans $6,369 $5,156 $5,548 $2,941 $3,413 $2,827 90 Days + Accruing Interest $-
Slide 17: Past Quarters Key Ratios Trends
z Past 5 Quarters Key Ratios Trends 3/31/22 6/30/22 9/30/22 12/31/22 3/31/23 NPA to Total Assets 0.42% 0.47% 0.49% 0.47% 0.39%
Slide 18: Loan Classifications
z Loan Classifications (In thousands) December 31, 2018 through March 31, 2023 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 2018 2019 2020 2021 2022 3/31/2023 Dollars in thousands 2018 2019 2020 2021 2022 45016 Special Mention $10,510 $8,832 $14,614 $11,706 $3,238 $737 Substandard $7,274 $4,846
Slide 19: ALLL Trends
z ALLL Trends (In thousands & percentage) December 31, 2018 through March 31, 2023 2018 2019 2020 2021 2022 3/31/2023 ALLL $5,336 $5,368 $7,191 $6,735 $6,727 $6,661 ALLL as % of Total Loans 0.98% 0.95% 1.25% 1.13% 1.15% 1.13% 0.98% 0.95% 1.25% 1.13% 1.15% 1.13% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.
Slide 20: Strategic Goals
z Strategic Goals ▪ Recruit, retain, develop, reward, support equip and empower a higher performing diversified workforce
Slide 21: Accomplishments 2022 & QTD March 31, 2023
z Accomplishments 2022 & QTD March 31, 2023 ▪ Performed Compensation Payscale Review and Implemented Changes ▪ Rewarded Employees with Profit Sharing and Production Incentive Pay ▪ Further Developing Training Program ▪ Raised Minimum Wage to $16.00 per hour ▪ Improved Employee Benefits ▪ 6% Match on
Slide 22: Strategic Goals
z Strategic Goals ▪ Obtain new and retain existing profitable customer relationships by providing a customer experience focused on superior customer service, state of the art digital banking solutions, and relevant products
Slide 23: Accomplishments 2022 & QTD March 31, 2023
z Accomplishments 2022 & QTD March 31, 2023 ▪ Successful Small Business Product Launch ▪ Enhanced Features of Various Deposit Products ▪ Received Forbes 2022 Award For Best in State Banks for Virginia
Slide 24: Strategic Goals
z Strategic Goals ▪ Strategically grow and build brand awareness in targeted markets and demographics
Slide 25: Boone, NC
z Boone, NC IMG_3113.CR2IMG_3113.CR2IMG_3113.CR2
Slide 26: Strategic Goals
z Strategic Goals ▪ Generate profits to provide sufficient capital for growth and dividends while enhancing shareholder value, return and liquidity
Slide 27: Retained Deficit / Earnings & Dividend Trend
z Retained Deficit / Earnings & Dividend Trend (In thousands) December 31, 2012 through March 31, 2023 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 3/31/2023 Dividend 1,196 1,430 Retained (Deficit)/ Earnings (19,409) (17,925) (17,685) (15,023) (14,065) (10,847) (9,928) (7,869) (4,979) 2,03
Slide 28: Stock Price & Book Value Trend
z 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 5/15/23 Stock Price $1.00 $1.26 $1.51 $1.75 $2.00 $2.00 $2.02 $1.65 $2.04 $2.30 $2.05 Book Value 1.83 1.87 1.97 2.01 2.13 2.14 2.28 2.43 2.66 2.40 2.50 High 2.20 1.66 1.69 1.75 2.40 2.40 3.30 2.95 2.50 2.41 2.53 Low 1.00 1.00 1.26 1.36 1.64 1.25 1.
Slide 29: Stock Repurchase Program
z Stock Repurchase Program ▪ The board of directors has given authorization to repurchase up to 500,000 shares of the Company’s outstanding common stock through March 31, 2024. ▪ Repurchases may be made through open market purchases or in privately negotiated transactions. ▪ The actual means and tim
Slide 30: We are your bank. New Peoples Bank
z We ar e your bank . NEW PEOPLES BANK
Slide 31: Thank you!
z 31 Thank you! 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 Market Makers OTCMKTS: NWPP
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