New Peoples Bankshares, Inc. · OTC:NWPP
New Peoples Bankshares — Shareholder Meeting (May 2018)
38 slides from New Peoples Bankshares's shareholder meeting presentation, May 17, 2018
Slide 1: 2018 Annual Shareholders’ Meeting
2018 Annual Shareholders’ Meeting
Slide 2: Introduction of Directors
Harold Lynn Keene, Chairman Charles H. Gent, Jr., Vice - Chairman Tim W. Ball J. Robert Buchanan Joe M. Carter John D. Cox Eugene S. Hearl Michael G. McGlothlin Fred W. Meade B. Scott White 2 INTRODUCTION OF DIRECTORS
Slide 3: 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 should underlying assumptions prove incorrect, actual
Slide 4: Our Mission
The mission of New Peoples Bank is to provide high quality, state of the art, Golden R ule 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 4 Our Mission
Slide 5: Vision
5 Vision • Excellent Customer Service • Innovative • Making a Positive Difference for Our Region • The Very Best Team of Bankers • High Performing Stock Yielding a Great Return
Slide 6: How we strive to be Great & Help Make Dreams come true
6 How we strive to be Great & Help Make Dreams come true? • We Follow the Golden Rule • We Build Trustworthy Relationships • We Meet People at Their Needs - It’s Always About the People • We Continue to Improve • We Work Together As a Team • We Celebrate and Share Great News!
Slide 7: Process
Process
Slide 8: Where Are We in the Process?
Where Are We In t he Process?
Slide 9: Strategic Priorities: Near-Term
NEAR - TERM PRIORITIES (1 - 2 years) Increase Earnings, Maximize Efficiencies and Maintain Capital Levels Enhance Our Customers’ Experience Continue to Recruit, Develop, Reward and Support Our People Differentiate Ourselves from the Competition Through Superior Service, Cutting Edge Technolo
Slide 10: Strategic Priorities: Long-Term
LONG - TERM PRIORITIES (2 - 5 years) Enhance Shareholder Liquidity, Value and Return with a Dividend Target Date of 2020 Continue Targeted Growth in Clearly Defined Segments and Markets Expand on Building a Growing Loan Portfolio and Low - Cost, Relationship - Based Deposits Portfolio Contin
Slide 11: State of New Peoples Bankshares
We had a Pretty Great 2017! We are Safer and Stronger We are Growing We are Improving Efficiencies We are Differentiating Ourselves 11 State of New Peoples Bankshares
Slide 12: Financial Goals 2017 & Great Goals
Actual Year - End GREAT 12 - 31 - 17 2017 GOALS Financial Assets $666.7M $664M Asset Growth 5.00% 4.74% >5.00% Loan Growth 9.50% 6.61% >5.00% Deposit Growth 5.10% 5.46% >5.00% ROAA 0.47% 0.36% >1.00% ROAE 4.73% 3.66% >10.00% Net Interest Margin 4.04% >4.00% >4.00% Non - Interest Income 1.50% >1.00%
Slide 13: We are Safer and Stronger
13 We are Safer and Stronger
Slide 14: We are Safer and Stronger: Asset Quality
Asset quality is continually improving Reduced Non - performing assets by $9.7 million, or 40.05% Past due loans > 30 days dropped to below 2% 14 We are Safer and Stronger
Slide 15: Nonperforming Assets
2010 2011 2012 2013 2014 2015 2016 2017 Total NPAs $59,820 $58,912 $47,956 $44,161 $36,910 $27,245 $24,060 $14,423 OREO $12,346 $15,092 $13,869 $15,853 $15,049 $12,398 $10,655 $6,859 Nonaccrual Loans $45,781 $42,316 $33,536 $28,307 $21,861 $14,847 $13,405 $7,564 90 Days + Accruing Interest $1,693 $1
Slide 16: We are Safer and Stronger: Capital Levels
Capital Levels are strong $1.1 million in new capital from exercised warrants 16 We are Safer and Stronger
Slide 17: Capital Ratio Trend – Tier 1 Leverage Ratio
2010 2011 2012 2013 2014 2015 2016 2017 Leverage Ratio 6.00% 5.99% 7.08% 7.49% 8.19% 9.67% 9.93% 9.56% Short Term Goal 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 9.00% 9.00% Long Term Goal 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 10.00% 10.00% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 17 Capital Ratio Trend –
Slide 18: We are Safer and Stronger: Risk Management
Risk management tools are robust and effective to help us manage appropriately 18 We are Safer and Stronger
Slide 19: We are Growing
19 We are Growing
Slide 20: 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 2017 Opened LPO in Kingsport, TN an
Slide 21: Strategic Balance Sheet Trend
2010 2011 2012 2013 2014 2015 2016 2017 Total Assets $852.6 $780.4 $719.0 $684.7 $651.1 $625.9 $634.3 $666.7 Total Loans $707.8 $597.8 $522.4 $493.0 $457.5 $441.2 $468.6 $513.0 Total Deposits $766.1 $708.3 $652.9 $619.0 $585.2 $558.0 $554.4 $582.5 $400 $450 $500 $550 $600 $650 $700 $750 $800 $850 $9
Slide 22: Net Interest Margin Trend
4.44% 4.34% 4.20% 4.09% 3.80% 4.01% 4.01% 4.03% 3.84% 3.88% 3.83% 3.73% 3.77% 3.74% 3.76% 3.81% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 2010 2011 2012 2013 2014 2015 2016 2017 Net Interest Margin Peer Data UBPR $500 Million to $1 Billion 22 Net Interest Margin Trend (Bank Only) December 31, 2010 through
Slide 23: Non-Interest Income as % of Average Assets Trend
0.67% 0.66% 0.62% 0.68% 0.85% 0.97% 1.12% 1.51% 0.72% 0.70% 0.78% 0.78% 0.75% 0.76% 0.76% 0.72% 0.00% 0.50% 1.00% 1.50% 2.00% 2010 2011 2012 2013 2014 2015 2016 2017 NII Peer Data $500 Million to $1 Billion 23 Non - Interest Income as % of Average Assets Trend (bank Only) December 31, 2010 through 2
Slide 24: Stock Price & Book Value Trend
2013 2014 2015 2016 2017 5/14/2018 Stock Price $1.00 $1.26 $1.51 $1.75 $2.00 $2.00 Book Value 1.83 1.87 1.97 2.01 2.13 2.10 High 2.20 1.36 1.68 1.75 2.40 2.20 Low 1.00 1.00 1.30 1.36 1.60 1.92 $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 24 Stock Price & Book
Slide 25: Retained Deficit Trend
2010 2011 2012 2013 2014 2015 2016 2017 Retained Deficit (4,175) (13,084) (19,408) (17,924) (17,685) (15,022) (14,065) (10,847) -$20,000 -$15,000 -$10,000 -$5,000 $0 $5,000 $10,000 $15,000 $20,000 Dollars in thousands 25 Retained Deficit trend (In thousands) December 31, 2010 through December 31, 20
Slide 26: New Products & Services – 2017
26 New Products & Services – 2017 • Chairman’s Club Account • Senior Adult Protection Program – Elder Abuse • Enhanced Card Services • Credit Cards • Card Valet • 24/7 Card Support • Card Free Cash • Fraud Text Alerts • Innovative Services • Live Chat • Touch ID for Mobiliti • AllData Personal Finan
Slide 27: New Products & Services – 2018
27 New Products & Services – 2018 • State of the Art Website Enhancement • Google/ Apple/ Samsung Pay • Private Client Advisory Services
Slide 28: New Branch Location Oakvale Road, Princeton, WV
28 New Branch Location Oakvale Road, Princeton, WV
Slide 29: New Commercial Lending Center Kingsport, TN
29 New Commercial Lending Center Kingsport, TN
Slide 30: Employee Development, Recruitment, Retention and Rewarding
30 Employee Development, Recruitment, Retention and Rewarding
Slide 31: We are Improving Efficiency
31 We are Improving Efficiency
Slide 32: We are Improving Efficiency
Transforming Branch network and how we operate Focused efforts on process refinements Renegotiated contracts Facilities optimization Reducing exceptions and errors Asset quality related expenses are decreasing Technology is being utilized more with a continued focus to realize positive
Slide 33: Efficiency Ratio Trend
78.01% 103.06% 96.28% 91.59% 96.37% 96.32% 97.25% 86.67% 68.45% 67.92% 66.85% 67.62% 66.62% 66.28% 65.63% 64.32% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00% 110.00% 120.00% 2010 2011 2012 2013 2014 2015 2016 2017 Efficiency Ratio Peer Data $500 Million to $1 Billion 33 Efficiency Ratio (Bank Only) De
Slide 34: We are Differentiating Ourselves
34 We are Differentiating Ourselves
Slide 35: High Tech - High Touch
High Tech - High Touch T echnology 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 35 We are Differentiating Ourselves
Slide 36: Where Are We in the Process?
Where Are We In t he Process?
Slide 37: Thank You! But We Are Headed to Greater Things
37 Thank You! But We Are Headed to Greater things…
Slide 38: Helping Make Dreams Come True
38 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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