New Peoples Bankshares, Inc.

What they do

New Peoples Bankshares conducts business primarily through its wholly owned subsidiary, New Peoples Bank, Inc., a Virginia state-chartered bank headquartered in Honaker, Virginia. The bank offers a range of banking and related financial services to individuals, small to medium-sized businesses, and professionals. It operates 17 full-service branches in Virginia, West Virginia, North Carolina, and Tennessee, and through its New Peoples Financial Services division provides investment products via a broker-dealer relationship with Osaic Institutions, Inc. NPB Insurance Services, Inc., a subsidiary of the bank, generates revenue through insurance referrals and holds a 39% interest in Lonesome Pine Title Agency, LLC.

Revenue drivers

• Net interest income — Primary income source; difference between interest earned on loans and investments and interest paid on deposits and borrowings. Net interest margin was 4.12% in Q2 2026, up from 3.86% in Q2 2025.
• Loan portfolio — Total loans held for investment were $732.3 million as of June 30, 2026, an increase of $22.7 million (3.20%) from year-end 2025. Loan growth is a key driver of interest income.
• Investment services and insurance referrals — Fee-based revenue from investment products (annuities, asset management) via Osaic Institutions and insurance referral fees from NPB Insurance Services. These are non-interest income streams with smaller scale relative to net interest income.

Recent performance

For the second quarter of 2026, the company reported net income of $3.5 million, or $0.15 per share. Net interest margin improved to 4.12% from 3.86% in the year-ago quarter. Annual net income rose to $10.1 million in 2025 from $8.2 million in 2024, while diluted EPS increased to $0.43 from $0.35. Revenue in 2025 was $3.6 million, down slightly from $3.8 million in 2024. Total assets were $942.1 million as of June 30, 2026, with shareholder equity of $86.3 million.

Strategy

Management focuses on serving individuals and small to medium-sized businesses in its market area through customized banking services and personal relationships. The bank prices loans on a deposit relationship basis and aims to provide easy access to decision makers. It seeks to participate loans with other institutions when customer needs exceed its lending limit. The company also offers investment and insurance products through its subsidiary and broker-dealer relationship to diversify revenue. A core processing platform conversion completed in Q4 2025 is intended to improve technology and operational efficiency.

Risks

• Credit risk — Deterioration in borrower financial condition could increase loan losses and require additional provisions, impacting earnings.
• Interest rate risk — Changes in interest rates could compress net interest margins if asset yields and funding costs adjust unfavorably.
• Operational and technology risk — The core processing system conversion and reliance on third-party vendors create risks of disruption, cyber incidents, or fraud.
• Local economic concentration — The bank's markets in southwestern Virginia, southern West Virginia, northeastern Tennessee, and western North Carolina are susceptible to demographic changes and fluctuations in real estate values and natural resource industries.

Outlook

Management expects continued loan growth, as evidenced by the 3.20% increase in loans held for investment during Q2 2026. Net interest margin improved in the recent quarter, suggesting a favorable interest rate environment. The company anticipates benefits from the core processing platform conversion through enhanced technology and customer service. Forward-looking statements cite risks such as economic conditions, regulatory changes, and competition, but no specific numerical guidance is provided.