New Peoples Bankshares, Inc. · OTC:NWPP
New Peoples Bankshares — Shareholder Meeting (May 2022)
35 slides from New Peoples Bankshares's shareholder meeting presentation, May 18, 2022
Slide 1: Annual Shareholders' Meeting May 17, 2022
z Annual Shareholders’ Meeting May 17, 2022 2022 Shareholders’ Meeting
Slide 2: Eugene Hearl Recognition
z Eugene Hearl Recognition WHEREAS, Eugene S. Hearl retired May 17, 2022, after completing outstanding service to New Peoples Bankshares , Inc. and Subsidiaries since 2010; and WHEREAS, Mr. Hearl provided excellent leadership and service to New Peoples Bankshares Inc. and Subsidiaries by serving as
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 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 excellent return to our stockholders and providing a challenging and rewarding work environment for our employee family.
Slide 6: Strategic Goals
z Strategic Goals ▪ 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 higher
Slide 7: Accomplishments 2021 & QTD March 31, 2022
z Accomplishments 2021 & QTD March 31, 2022 ▪ Generated Record Net Income of $7.0 Million YTD 2021 ▪ Produced Consecutively Increasing Earnings Per Quarter for the Past 5 Quarters
Slide 8: Net Income Trend
z Net Income Trend 2019 $2.1M 2020 $2.9M 2021 $7.0M
Slide 9: Non Interest Income Trend
z Non Interest Income Trend 2019 $8.7M 2020 $8.1M 2021 $10.0M
Slide 10: Net Interest Income Trend
z Net Interest Income Trend 2019 $25.0M 2020 $25.1M 2021 $27.2M
Slide 11: Efficiency Ratio Trend
z Efficiency Ratio Trend 2019 86.23% 2020 81.10% 2021 75.56% 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 12: Past Quarters Key Ratios Trends
z Past 5 Quarters Key Ratios Trends 3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 Return on Average Equity 10.96% 11.15% 11.75% 12.14% 12.35% Return on Average Assets 0.83% 0.82% 0.91% 0.95% 0.97% Efficiency Ratio 74.30% 74.45% 77.62% 72.84% 71.59%
Slide 13: Strategic Goals
z Strategic Goals ▪ 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 higher
Slide 14: Accomplishments 2021 & QTD March 31, 2022
z Accomplishments 2021 & QTD March 31, 2022 ▪ Obtained “Superior” Rating by IDC in Q4 2021 ▪ Received Best Regulatory Exam in History of the Bank ▪ Prevailed in All Litigation Suits Against the Bank ▪ Effectively Managed Through the Pandemic
Slide 15: Capital Ratio Trend – Actual Tier Leverage Ratio
z Capital Ratio Trend – Actual Tier 1 Leverage Ratio (Bank Only) December 31, 2017 through March 31, 2022 2017 2018 2019 2020 2021 3/31/2022 Leverage Ratio 9.56% 9.59% 9.43% 9.49% 9.86% 9.95% 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% 10.00%
Slide 16: Nonperforming Assets
z Nonperforming Assets (In thousands) December 31, 2017 through March 31, 2022 2017 2018 2019 2020 2021 3/31/2022 Total NPAs $14,423 $12,306 $8,549 $8,882 $4,302 $3,435 OREO $6,859 $5,937 $3,393 $3,334 $1,361 $795 Nonaccrual Loans $7,564 $6,369 $5,156 $5,548 $2,941 $2,640 90 Days + Accruing Interest
Slide 17: Loan Classifications
z Loan Classifications (In thousands) December 31, 2017 through March 31, 2022 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 2017 2018 2019 2020 2021 3/31/22 Dollars in thousands 2017 2018 2019 2020 2021 3/31/22 Special Mention $12,076 $10,510 $8,832 $14,614 $11,706 $11,456 Substandard $11,883 $
Slide 18: ALLL Trends
z ALLL Trends (In thousands & percentage) December 31, 2017 through March 31, 2022 2017 2018 2019 2020 2021 3/31/2022 ALLL $6,196 $5,336 $5,368 $7,191 $6,735 $6,759 ALLL as % of Total Loans 1.21% 0.98% 0.95% 1.25% 1.13% 1.14% 1.21% 0.98% 0.95% 1.25% 1.13% 1.14% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.
Slide 19: Past Quarters Key Ratios Trends
z Past 5 Quarters Key Ratios Trends 3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 NPA to Total Assets 1.07% 0.77% 0.68% 0.54% 0.42% Tier 1 Leverage Ratio 9.41% 9.19% 9.53% 9.86% 9.95%
Slide 20: Pandemic Management
z Pandemic Management ▪ 2021 - Round 2 PPP Loans ▪ $25.3 million ▪ 567 Small Businesses ▪ Average Size Loan = $44,542
Slide 21: Strategic Goals
z Strategic Goals ▪ 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 higher
Slide 22: Accomplishments 2021 & QTD March 31, 2022
z Accomplishments 2021 & QTD March 31, 2022 ▪ Recruiting Top Performing Bankers ▪ Completed 13 Major Projects ▪ Rewarded Employees with Profit Sharing and Production Incentive Pay ▪ Further Developing Training Program ▪ Raised Minimum Wage to $15.00 per hour ▪ Improving Employee Benefits such as pay
Slide 23: Strategic Goals
z Strategic Goals ▪ 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 higher
Slide 24: Accomplishments 2021 & QTD March 31, 2022
z Accomplishments 2021 & QTD March 31, 2022 ▪ Successful HELOC Promotion ▪ Customer Relationship Management Tool Development ▪ Market Segmentation Data Obtained for Targeted Marketing ▪ Digital Banking Reorganization for greater efficiency ▪ Improved call and ITM wait times to surpass industry stand
Slide 25: Community Involvement 2021 & QTD March 31, 2022
z Community Involvement 2021 & QTD March 31, 2022 ▪ $7.6 million in Community Development Loans ▪ Financial Literacy in 36 Schools – 945 students with How To Do Your Banking resources ▪ VBA Community Bank Day for High School Seniors ▪ 31 Students ▪ 12 High Schools Represented ▪ 1 Regional Scholarshi
Slide 26: Strategic Goals
z Strategic Goals ▪ 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 higher
Slide 27: Strategic Balance Sheet Trend
z Strategic Balance Sheet Trend (In Millions) December 31, 2017 – March 31, 2022 2017 2018 2019 2020 2021 3/31/2022 Total Assets 666.7 682.1 706.4 756.3 794.6 813.5 Total Loans 513.0 547.1 562.5 575.6 593.7 595.1 Total Deposits 582.5 596.0 621.5 668.0 707.5 731.0 813.5 595.1 731.0 $400 $450 $500 $55
Slide 28: Bristol – State Street Branch
z Bristol – State Street Branch IMG_3113.CR2IMG_3113.CR2IMG_3113.CR2
Slide 29: Strategic Goals
z Strategic Goals ▪ 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 higher
Slide 30: Retained Deficit / Earnings Trend
z Retained Deficit / Earnings Trend (In thousands) December 31, 2010 through March 31, 2022 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 3/31/22 Retained (Deficit)/ Earnings (4,175) (13,085) (19,409) (17,925) (17,685) (15,023) (14,065) (10,847) (9,928) (7,869) (4,979) 2,031 2,756 2,75
Slide 31: Stock Price & Book Value Trend
z 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q1 22 5/16/22 Stock Price $1.00 $1.26 $1.51 $1.75 $2.00 $2.00 $2.02 $1.65 $2.04 $2.31 $2.27 Book Value 1.83 1.87 1.97 2.01 2.13 2.14 2.28 2.43 2.66 2.46 High 2.20 1.66 1.69 1.75 2.40 2.40 3.30 2.95 2.50 2.38 2.27 Low 1.00 1.00 1.26 1.36 1.64 1.25 1.40 1
Slide 32: Accomplishments 2021 & QTD March 31, 2022
z Accomplishments 2021 & QTD March 31, 2022 ▪ Returned to Positive Retained Earnings in Q3 2021 – first time since 2010 ▪ Declared and Paid $0.05 Dividend Per Share, or $1.2 million, in 2022 – first time in history of the company ▪ Implemented Stock Repurchase Plan
Slide 33: 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, 2023. ▪ Repurchases may be made through open market purchases or in privately negotiated transactions. ▪ The actual means and tim
Slide 34: We are your bank. New Peoples Bank
z We ar e your bank . NEW PEOPLES BANK
Slide 35: Thank you!
z 35 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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