Enterprising Investor
9 años hace
New Peoples Bankshares Reports 2015 Results (3/04/16)
Honaker, Virginia -- New Peoples Bankshares (the “Company”) (OTCPINK: NWPP) and its wholly-owned subsidiary New Peoples Bank (the “Bank”) today announced consolidated net income of $2.7 million, or $0.12 earnings per share, for the year ended December 31, 2015. This compares to consolidated net income of $240,000, or $0.01 earnings per share, for the year ended December 31, 2014 which is an improvement of $2.4 million, or $0.11 earnings per share.
Highlights from the year ended December 31, 2015 include:
• A negative provision for loan losses of $2.2 million;
• A cumulative writedown of other real estate owned properties of $3.2 million, an increase of $2.1 million, or 195.36% when compared to 2014;
• A reduction of $1.0 million, or 24.70%, in interest expenses when compared to 2014;
• Salaries and employee benefits decreased from $12.7 million in 2014 to $11.8 million in 2015, a decrease of $902,000, or 7.09%;
• Received regulatory approval to make all required interest payments on trust preferred securities;
• A decrease of $7.1 million, or 32.08% in nonaccrual loans during 2015;
• Net charge offs of $229,000 for 2015, which is an improvement of $2.9 million, or 92.75%,versus net charge offs of $3.2 million in 2014;
• A decrease of $7.8 million, or 28.41%, in substandard loans during 2015;
• A decrease of $2.6 million, or 17.62%, in other real estate owned during 2015;
• A decrease of $43.0 million, or 14.33%, in higher-costing time deposits during 2015;
• A strong net interest margin of 3.93% for 2015, which is an increase of 22 basis points over the 3.71% net interest margin for 2014;
• An improvement in all regulatory capital ratios which exceeds “well capitalized” as defined by regulatory guidelines; and,
• Tangible book value per share of $1.97 as of December 31, 2015.
“On February 2nd of 2016, we announced the termination of the formal written agreement the Company and Bank were under for over 5 years” stated Todd Asbury, President and Chief Executive Officer. He added “The tremendous progress made during 2015 in our financial results, capital position and credit quality that led to the termination of the formal written agreement was the result of the foundation laid in previous years. This foundation, which includes enhanced board and management oversight and risk-management practices, as well as stricter credit underwriting, will be the springboard for future balance sheet growth as we intend to prudently and conservatively increase loans and deposits. We believe we are well-positioned to achieve our growth goals and are extremely excited about the next phase of our Company.”
2015 Year-to-Date Results
The Company‘s consolidated net income for the year ended December 31, 2015 was $2.7 million, or earnings per share of $0.12, compared to consolidated net income of $240,000, or earnings per share of $0.01, for the year ended December 31, 2014. This is an improvement of $2.4 million, or $0.11 earnings per share. The improvement was mainly driven by maintaining a strong net interest margin of 3.93%, cost savings strategies initiated in prior periods but realized in the current period, and a negative provision for loan losses of $2.2 million. The annualized return on average assets for the fiscal year 2015 was 0.41% as compared to 0.04% for the same period in 2014. The annualized return on average equity was 5.95% for the fiscal year 2015 and 0.59% for the same period in 2014.
The Company’s primary source of income, net interest income, slightly increased by $13,000, or 0.06%, from 2014 to 2015. The increase in net interest income is due primarily to the $1.0 million savings in interest expense during 2015 mainly driven by the $43.0 million reduction in time deposits. The savings in interest expense offset the $989,000 decrease in interest income, which was due to a reduction in average loans during 2015 and decreased interest income from new and renewed loans recorded at lower interest rates, and an elevated level of nonaccrual loans. Loan interest income decreased $1.2 million, or 4.84%, from $24.9 million in 2014 to $23.7 million in 2015.
For 2015, noninterest income increased to $6.4 million from $6.2 million for the same period in 2014. This is an increase of $162,000, or 2.60%. This increase was primarily due to the $217,000 in life insurance earnings we received in August 2015 as the result of the death benefits we received on a bank-owned life insurance policy.
Noninterest expenses decreased $71,000, or 0.25%, to $28.5 million in 2015 from $28.6 million in 2014. Salaries and employee benefits decreased from $12.7 million in 2014 to $11.8 million in 2015, a decrease of $902,000, or 7.09%. This decrease was mainly due to management’s decision to close four lower-performing branches in October 2014 which resulted in staff reductions and salary and employee benefit savings in 2015. Occupancy and equipment expenses remained constant at $3.9 million in 2015 and 2014. Advertising expense decreased $56,000 from 2014 to 2015. Data processing and telecommunication expenses decreased $95,000 from 2014 to 2015. In 2015, FDIC assessment expense decreased $585,000, or 41.0%, from $1.4 million in 2014 to $842,000 in 2015. Expenses related to other real estate owned and repossessed assets increased $1.8 million, or 78.8%, from $2.3 million in 2014 to $4.1 million in 2015. During 2015 we recorded writedowns on other real estate owned properties in the amount of $3.2 million compared to $1.2 million in 2014. OREO decreased in 2015 to $12.4 million at December 31, 2015 from $15.0 million at December 31, 2014.
Balance Sheet
At December 31, 2015, total assets were $625.9 million, total loans were $441.2 million, and total deposits were $558.0 million. Total assets decreased $25.2 million in 2015, or 3.87%, from $651.1 million at December 31, 2014. During the 2014 and early 2015, we strategically decreased total assets and total loans to improve our capital position. However, going forward, we anticipate total assets increasing due to our plan to conservatively and prudently grow the loan portfolio, namely commercial loans. In August 2015, we hired an experienced commercial loan officer as our First Senior Vice President and Senior Commercial Banking Officer of the Bank. Subsequently, we have hired two additional commercial loan officers and a business development officer to assist in growing the loan portfolio.
On the liability side of the balance sheet, during 2015, as funding needs declined, total deposits declined $27.2 million, or 4.64% to $558.0 million. However, lower-costing non-time deposits increased $15.8 million, or 5.55%, while time deposits declined $43.0 million, or 14.33%. FHLB advances declined $1.2 million to $2.96 million while trust preferred securities remained unchanged at $16.5 million.
Total equity was $46.1 million at December 31, 2015. The Bank improved its capital position and maintained a well-capitalized status during both 2015 and 2014. The Bank’s capital ratios at December 31, 2015 as compared to December 31, 2014, respectively were as follows: Tier 1 leverage ratio of 9.67% versus 8.19%; Tier 1 risk based capital ratio of 16.29% versus 14.46%; and total risk based capital ratio of 17.55% versus 15.73%. The Company and Bank are considered well-capitalized under regulatory guidelines.
Asset Quality and Allowance for Loan Losses
Asset quality continued its trend of improvement during 2015. We have experienced a decrease in loan delinquencies and nonaccrual loans in 2015. Total past due loans were $13.4 million as of December 31, 2015, a decrease of $6.1 million, or 31.20%, from the $19.5 million as of December 31, 2014. At December 31, 2015, there were 161 loans in non-accrual status totaling $14.8 million, or 3.37% of total loans. At December 31, 2014, there were 165 loans in non-accrual status totaling $21.9 million, or 4.78% of total loans. There were no loans past due 90 days or greater and still accruing interest at December 31, 2015 or 2014.
Nonperforming assets, which include nonaccrual loans, loans past due 90 days or greater still accruing interest, and other real estate owned, decreased $9.7 million, or 26.18%, from $36.9 million to $27.2 million during 2015. Total nonperforming assets represented 4.35% and 5.67% of total assets at December 31, 2015 and December 31, 2014, respectively. Nonaccrual loans have declined $7.1 million, or 32.08%, to $14.8 million and other real estate owned declined $2.6 million or 17.62%, to $12.4 million during 2015.
The allowance for loan losses decreased to $7.5 million at December 31, 2015 as compared to $9.9 million at December 31, 2014. The allowance for loan losses at the end of 2015 was approximately 1.70% of total loans as compared to 2.17% at the end of 2014. No provision for loan losses was recorded during 2014, while negative provisions of $2.2 million were recorded in 2015. Net loans charged off decreased in 2015 as they were $229,000, or 0.05% of average loans, compared to $3.2 million, or 0.67% of average loans, in 2014.
About New Peoples Bankshares, Inc.
New Peoples Bankshares, Inc. is a one-bank holding company headquartered in Honaker, Virginia. Its wholly-owned subsidiary provides banking products and services through its 19 locations throughout southwest Virginia, Eastern Tennessee, and southern West Virginia. The Company’s common stock is traded over the counter under the trading symbol “NWPP”. Additional investor information can be found on the Company’s website at www.npbankshares.com.
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http://www.sec.gov/Archives/edgar/data/1163389/000072174816001021/nwpp8k030416ex99_1.htm
genlou
10 años hace
Salty,NEW PEOPLES BANKSHARES ANNOUNCES PROFITABLE FIRST QUARTER 2015
Honaker, Virginia – New Peoples Bankshares (the “Company”) (OTCQB: NWPP) and its wholly-owned subsidiary New Peoples Bank (the “Bank”) today announced net income of $622,000, or $0.03 earnings per share, for the quarter ended March 31, 2015. This compares to a net loss of $(72,000), or $(0.003) per share, for the same period ended March 31, 2014 which is an improvement of $694,000, or $0.03 per share. The improvement was mainly driven by reductions of $417,000 in expenses related to other real estate owned and repossessed assets, $292,000 in salaries and employee benefits, and $156,000 in deposit insurance expense. The expense reductions were partially offset by a decline in net interest income of $333,000 in the 1st quarter of 2015 versus the 1st quarter of 2014. On a linked quarter basis, net income improved $546,000 from the $76,000 profit recorded for the quarter ended December 31, 2014.
Todd Asbury, President and CEO commented “We are pleased with the 1st quarter results as our efforts to improve efficiencies via multiple branch closings in the 4th quarter of 2014 proved to favorably impact our 1st quarter’s bottom line. Our efforts to stabilize and improve credit quality and better manage expenses related to our other real estate were also key drivers in the improved earnings. We are excited about our short and long term prospects for sustainable profitability as we continue our focus on being more efficient, improving asset quality, and building on our well-capitalized position.” He continued by saying “We are working through the lingering issues the Great Recession had on our Company, but we believe we are turning the corner and are poised for conservative balance sheet growth.”
Highlights from the 1st quarter of 2015 include:
A reduction of $1.1 million in noninterest expenses when compared to the 1st quarter of 2014;
No provision for loan losses taken in the 1st quarter;
Received regulatory approval to make the first quarter interest payments on trust preferred securities;
A reduction in nonaccrual loans of $1.2 million, or 5.2% during the quarter;
An increase of $16.7 million in lower costing non-time deposits;
A decrease of $8.6 million in higher costing time deposits; and
The Bank is considered well-capitalized under regulatory standards.
2015 1st Quarter Results
Net interest income for the quarter ended March 31, 2015 was $5.4 million, a 5.8% decrease when compared to the quarter ended March 31, 2014 amount of $5.7 million. The average loan balance of $454.2 million for the 1st quarter of 2015 was $33.2 million less than the average loan balance of $487.4 million for the quarter ended March 31, 2014 and $8.1 million less than the $462.3 million balance recorded for the quarter ended December 31, 2014. Interest income from loan and loan fees was $5.8 million for the 1st quarter of 2015, down $607,000, or 9.5% from the $6.4 million reported in the same period in 2014. On a linked quarter basis, interest income on loans and loan fees declined $280,000 or 4.6%. The cost of interest-bearing liabilities decreased nine basis points to 0.75% for the 1st quarter of 2015 when compared to the 0.84% recorded for the 1st quarter of 2014. The net interest margin declined four basis points to 3.74% for the quarter ended March 31, 2015 when compared to the 3.78% recorded for the same quarter in 2014. On a linked quarter basis, the margin improved two basis points from the 3.72% recorded for the quarter ended December 31, 2014.
Noninterest income for the 1st quarter of 2015 was $1.4 million, which is a modest decline of $95,000 when compared to the $1.5 million for the same period in 2014. A nonrecurring bonus incentive from a vendor of $252,000 was recorded in the 1st quarter of 2014 which was partially offset by increases of $32,000 in gains on sale of securities and $91,000 in deposit service charge income in the 1st quarter of 2015 when compared to the same period in 2014.
Noninterest expenses declined $1.2 million to $6.2 million for the first quarter of 2015 when compared to $7.4 million in noninterest expense in the same period in 2014. Salary and employee benefits expense was $2.9 million for the quarter ended March 31, 2015 which represents declines of $292,000, or 9.0%, and $173,000, or 5.6%, when compared to the $3.2 million and $3.1 million of salary and employee benefit expense recorded in the first and fourth quarters of 2014, respectively. The decline in salary and employee benefit expense was mainly due to management’s decision to close four lower-performing branches in October of 2014. Expenses related to other real estate owned and repossessed assets declined $417,000 to $359,000 for the first quarter of 2015 versus the $776,000 recorded during the first quarter of 2014. FDIC insurance premiums declined $156,000 from $374,000 recorded in the 1st quarter of 2014 to $218,000 recorded for the same period in 2015.
Balance Sheet
Consolidated assets grew to $660.1 million at March 31, 2015, an increase of 1.4%, or $9.0 million over the December 31, 2014 level of $651.1 million. Interest-bearing deposits with banks increased $12.4 million during the quarter to a total of $33.3 million at March 31, 2015. Total loans during the quarter ended March 31, 2015 declined $7.6 million, or 1.7%, to $449.9 million compared to $457.5 million as of December 31, 2014. Investment securities remained relatively flat during the quarter with a balance of $102.5 million at March 31, 2015.
On the liability side of the balance sheet, total deposits grew $8.1 million to $593.3 million during the 1st quarter of 2015. Non-time deposits grew $16.7 million, or 5.9%, from $285.2 million at December 31, 2014 to $301.9 million at March 31, 2015. Time deposits declined $8.6 million, or 3.0%, during the 1st quarter of 2015 to a balance of $291.4. The shift from higher-costing time deposits to lower-costing non-time deposits represents a favorable repositioning of the Company’s deposit mix.
Total equity was $43.9 million at March 31, 2015. The Company and Bank were considered well-capitalized under regulatory guidelines.
Asset Quality and Allowance for Loan Losses
Nonperforming assets declined $1.3 million, or 3.7%, from $36.9 million to $35.6 million during the first quarter of 2015. Total nonperforming assets represented 5.4% and 5.7% of total assets at March 31, 2015 and December 31, 2014, respectively. Nonaccrual loans declined $1.2 million, or 5.2%, to $20.7 million and other real estate owned declined $212,000, or 1.4%, to $14.8 million during the first quarter of 2015.
The allowance for loan losses was $9.0 million as of March 31, 2015, or 1.99% of total loans outstanding, compared to $9.9 million as of December 31, 2014 or 2.17% of outstanding loans. No provisions for loan losses were made in the first quarter of 2015 or during the year ended December 31, 2014. Net charges off during the quarter ended March 31, 2015 totaled $962,000.
About New Peoples Bankshares, Inc.
New Peoples Bankshares, Inc. is a one-bank holding company headquartered in Honaker, Virginia. Its wholly-owned subsidiary provides banking products and services through its 19 locations throughout southwest Virginia, Eastern Tennessee, and southern West Virginia. The Company’s common stock is traded over the counter under the trading symbol “NWPP”. Additional investor information can be found on the Company’s website at www.npbankshares.com.
This news release may include 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 results may differ materially. These risks include: changes in business or other market conditions; the timely development, production and acceptance of new products and services; the challenge of managing asset/liability levels; the management of credit risk and interest rate risk; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks detailed from time to time in the Company's Securities and Exchange Commission reports including, but not limited to, the Annual Report on Form 10-K for the most recent fiscal year end. Pursuant to the Private Securities Litigation Reform Act of 1995, the Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
CONDENSED CONSOLIDATED BALANCE SHEETS
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
KEY PERFORMANCE AND CAPITAL RATIOS
- See more at: http://www.npbankshares.com/Investor-News.aspx#sthash.Jre8OBfH.dpuf
genlou
11 años hace
NEW PEOPLES BANKSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
FOR THE THREE MONTHS ENDED JUNE 30, 2013 AND 2012
(IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA)
(UNAUDITED)
2013 2012
INTEREST AND DIVIDEND INCOME
Loans including fees
$ 7,370 $ 8,047
Federal funds sold
— 1
Interest-earning deposits with banks
53 48
Investments
195 240
Dividends on equity securities (restricted)
36 29
Total Interest and Dividend Income
7,654 8,365
INTEREST EXPENSE
Deposits
Demand
19 28
Savings
48 58
Time deposits below $100,000
556 782
Time deposits above $100,000
397 525
FHLB Advances
62 150
Other borrowings
— 44
Trust Preferred Securities
117 125
Total Interest Expense
1,199 1,712
NET INTEREST INCOME
6,455 6,653
PROVISION FOR LOAN LOSSES
— 1,176
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES
6,455 5,477
NONINTEREST INCOME
Service charges
565 642
Fees, commissions and other income
586 573
Insurance and investment fees
97 123
Net realized gains on sale of investment securities
— 265
Life insurance investment income
29 31
Total Noninterest Income
1,277 1,634
NONINTEREST EXPENSES
Salaries and employee benefits
3,211 3,509
Occupancy and equipment expense
1,027 1,085
Advertising and public relations
124 121
Data processing and telecommunications
465 450
FDIC insurance premiums
379 414
Other real estate owned and repossessed vehicles, net
255 1,273
Other operating expenses
1,360 1,400
Total Noninterest Expenses
6,821 8,252
INCOME (LOSS) BEFORE INCOME TAXES
911 (1,141 )
INCOME TAX EXPENSE (BENEFIT)
(34 ) 1,397
NET INCOME (LOSS)
$ 945 $ (2,538 )
Income (Loss) Per Share
Basic
$ 0.04 $ (0.25 )
Fully Diluted
$ 0.04 $ (0.25 )
Average Weighted Shares of Common Stock
Basic
21,871,063 10,010,178
Fully Diluted
21,871,063 10,010,178
The accompanying notes are an integral part of this statement.
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