NWPP's Net Income Jumps 28% on Strong Loan Growth, Net Interest Income

TL;DR

**NWPP is crushing it with loan growth and net interest income, making it a solid regional bank play.**

AI Summary

NEW PEOPLES BANKSHARES INC (NWPP) reported a significant increase in net income for the six months ended June 30, 2025, reaching $4.44 million, up 27.95% from $3.47 million in the same period of 2024. This growth was primarily driven by a 13.84% increase in net interest income, which rose to $15.824 million from $13.900 million. Loans receivable also saw a healthy increase, growing by $38.279 million to $695.815 million as of June 30, 2025, from $657.536 million at December 31, 2024. Total assets expanded by 4.45% to $892.930 million from $854.925 million. The provision for credit losses decreased by 3.73% to $413 thousand from $429 thousand, indicating improved credit quality or a more stable economic outlook. Despite an increase in total interest and dividend income to $23.309 million, interest expense on deposits and borrowed funds also rose, though net interest income still saw strong growth. The company's capital ratios remain robust, with a Total Capital to Risk Weighted Assets ratio of 15.81% at June 30, 2025, well above the 10.00% minimum for a 'well capitalized' institution.

Why It Matters

This strong performance from NEW PEOPLES BANKSHARES INC signals a healthy regional banking environment, particularly in southwest Virginia, southern West Virginia, western North Carolina, and northeastern Tennessee. For investors, the 27.95% net income increase and robust loan growth suggest operational efficiency and effective capital deployment, potentially leading to continued shareholder value. Employees benefit from a stable and growing company, while customers can expect continued access to banking services. In a competitive landscape, NWPP's ability to significantly grow its loan portfolio and net interest income, while maintaining strong capital ratios, positions it favorably against larger national banks and other regional players.

Risk Assessment

Risk Level: low — The risk level is low due to the company's strong capital position, with a Total Capital to Risk Weighted Assets ratio of 15.81% at June 30, 2025, significantly exceeding the 10.00% 'well capitalized' threshold. The provision for credit losses decreased to $413 thousand for the six months ended June 30, 2025, from $429 thousand in the prior year, indicating stable or improving asset quality. Furthermore, the Bank had a capital conservation buffer of 7.86% at June 30, 2025, well above the required 2.50%.

Analyst Insight

Investors should consider NWPP as a stable investment in the regional banking sector, given its strong financial performance and robust capital position. The consistent growth in net income and loans, coupled with a low provision for credit losses, suggests a well-managed institution. Monitor future interest rate changes and their impact on net interest margin, but the current trajectory is positive.

Financial Highlights

debt To Equity

0.36

revenue

$23,309,000

operating Margin

N/A

total Assets

$892,930,000

total Debt

$26,986,000

net Income

$4,440,000

eps

$0.19

gross Margin

N/A

cash Position

$72,159,000

revenue Growth

+7.84%

Revenue Breakdown

Key Numbers

• $4.44M — Net Income (Increased 27.95% for the six months ended June 30, 2025, from $3.47M in 2024.)
• $15.824M — Net Interest Income (Increased 13.84% for the six months ended June 30, 2025, from $13.900M in 2024.)
• $695.815M — Loans Receivable (Increased by $38.279M from December 31, 2024, to June 30, 2025.)
• $892.930M — Total Assets (Increased 4.45% from $854.925M at December 31, 2024.)
• 15.81% — Total Capital to Risk Weighted Assets Ratio (Well above the 10.00% 'well capitalized' minimum as of June 30, 2025.)
• $413K — Provision for Credit Losses (Decreased 3.73% for the six months ended June 30, 2025, from $429K in 2024.)
• $0.19 — Basic and Diluted Earnings Per Share (Increased from $0.15 for the six months ended June 30, 2024.)
• $72.159M — Cash and Cash Equivalents (Increased by $4.491M from December 31, 2024.)
• $781.909M — Total Deposits (Increased by $31.927M from December 31, 2024.)
• $74.844M — Total Shareholders' Equity (Increased by $4.103M from December 31, 2024.)

Key Players & Entities

• NEW PEOPLES BANKSHARES INC (company) — registrant
• New Peoples Bank, Inc. (company) — subsidiary bank
• Virginia Bureau of Financial Institutions (regulator) — state regulator
• Federal Deposit Insurance Corporation (regulator) — federal regulator
• Board of Governors of the Federal Reserve System (regulator) — federal regulator
• $4.44 million (dollar_amount) — net income for six months ended June 30, 2025
• $3.47 million (dollar_amount) — net income for six months ended June 30, 2024
• $15.824 million (dollar_amount) — net interest income for six months ended June 30, 2025
• $695.815 million (dollar_amount) — loans receivable as of June 30, 2025
• 23,598,399 (dollar_amount) — shares outstanding as of August 07, 2025

FAQ

Risk Factors

• Regulatory Compliance [high — regulatory]: As a state-chartered member bank, New Peoples Bank, Inc. is subject to regulation by the Virginia Bureau of Financial Institutions, the FDIC, and the Federal Reserve. Compliance with these regulations is critical to operations and can involve significant costs and potential penalties for non-compliance.
• Credit Risk [high — financial]: The company's primary financial risk stems from its loan portfolio. The allowance for credit losses was $7.948 million as of June 30, 2025, and the provision for credit losses for the six months ended June 30, 2025, was $413 thousand. Changes in economic conditions can impact borrowers' ability to repay, potentially increasing credit losses.
• Interest Rate Sensitivity [medium — market]: Fluctuations in interest rates can impact net interest income. While net interest income increased by 13.84% to $15.824 million for the six months ended June 30, 2025, a significant shift in interest rates could affect the bank's profitability.
• Cybersecurity and Data Breaches [medium — operational]: As a financial institution, the company is a target for cyberattacks. A breach could lead to financial losses, reputational damage, and regulatory scrutiny. Specific details on cybersecurity measures are not provided in this section.
• Liquidity Risk [medium — financial]: The company must maintain sufficient liquidity to meet deposit withdrawals and fund loan demand. Total deposits increased to $781.909 million as of June 30, 2025, requiring careful management of cash and investment securities.

Industry Context

New Peoples Bankshares, Inc. operates as a community bank, focusing on providing traditional banking services to individuals and small to medium-sized businesses in specific regions of Virginia, West Virginia, North Carolina, and Tennessee. The community banking sector is characterized by localized market focus, relationship-based lending, and competition from larger national banks, credit unions, and increasingly, fintech companies. Trends include digital transformation, evolving customer expectations for online services, and a dynamic regulatory environment.

Regulatory Implications

As a state-chartered member bank, New Peoples Bankshares, Inc. is subject to oversight from multiple federal and state regulators, including the FDIC and the Federal Reserve. Compliance with capital requirements, lending standards, and consumer protection laws is paramount. Changes in regulatory policy or enforcement can significantly impact operational costs and business strategies.

What Investors Should Do

1. Monitor loan growth and credit quality trends.
2. Analyze net interest margin trends.
3. Evaluate capital adequacy ratios.
4. Assess non-interest income diversification.

Key Dates

• 2025-06-30: End of Second Quarter 2025 — Reported net income of $4.44 million, total assets of $892.93 million, and total capital to risk-weighted assets ratio of 15.81%.
• 2024-12-31: End of Fiscal Year 2024 — Reported total assets of $854.93 million and loans receivable of $657.54 million.
• 2025-06-30: Six Months Ended June 30, 2025 — Net interest income grew 13.84% to $15.824 million, and net income increased 27.95% to $4.44 million.
• 2024-06-30: Six Months Ended June 30, 2024 — Reported net income of $3.47 million and net interest income of $13.900 million.

Glossary

Net Interest Income

The difference between the interest income generated by a bank and the interest paid out to its depositors and lenders. (A key driver of profitability for banks, showing the core earnings from lending and borrowing activities.)

Provision for Credit Losses

An expense set aside by a financial institution to cover potential losses from loans that may not be repaid. (Indicates management's assessment of the risk in the loan portfolio and its adequacy in covering potential defaults.)

Allowance for Credit Losses

A contra-asset account that reduces the carrying amount of loans receivable to reflect the estimated uncollectible portion. (Represents the cumulative estimate of potential loan losses, impacting the net value of the bank's loan portfolio.)

Total Capital to Risk Weighted Assets Ratio

A measure of a bank's capital adequacy, comparing its total capital to its risk-weighted assets. Higher ratios indicate greater financial strength. (A critical regulatory metric demonstrating the bank's ability to absorb potential losses and remain solvent.)

Loans Receivable

The total amount of money lent by the bank to its customers that is still outstanding. (The primary asset for a bank, representing its core business of lending and a significant source of interest income.)

Deposits

Funds held by the bank on behalf of its customers, representing a primary source of funding for the bank's lending activities. (Crucial for a bank's operations, providing the capital needed for lending and investment.)

Year-Over-Year Comparison

Compared to the prior year's comparable period, New Peoples Bankshares, Inc. has demonstrated significant financial improvement. Net income for the six months ended June 30, 2025, rose by 27.95% to $4.44 million, driven by a 13.84% increase in net interest income to $15.824 million. Total assets grew by 4.45% to $892.93 million, with loans receivable increasing by $38.279 million. The provision for credit losses saw a slight decrease, suggesting improved credit quality or a more stable outlook. Capital ratios remain strong, exceeding regulatory requirements.

Key Financial Figures

• $0.07 — 35 ) ( 835 ) Cash dividend declared ($0.07 per share) — — — ( 1,661 ) — ( 1,
• $0.08 — 1,880 1,880 Cash dividend declared ($0.08 per share) — — — ( 1,889 ) — ( 1,
• $3.0 billion — a bank must have consolidated assets of $3.0 billion or less. The primary benefit of being d

Filing Documents

• nwpp_10q.htm (10-Q) — 2437KB
• ex10_1.htm (EX-10.1) — 127KB
• ex31_1.htm (EX-31.1) — 11KB
• ex31_2.htm (EX-31.2) — 11KB
• ex32.htm (EX-32) — 11KB
• 0001903596-25-000406.txt ( ) — 11426KB
• nwpp-20250630.xsd (EX-101.SCH) — 45KB
• nwpp-20250630_cal.xml (EX-101.CAL) — 65KB
• nwpp-20250630_def.xml (EX-101.DEF) — 149KB
• nwpp-20250630_lab.xml (EX-101.LAB) — 346KB
• nwpp-20250630_pre.xml (EX-101.PRE) — 306KB
• nwpp_10q_htm.xml (XML) — 3197KB

Financial Statements

Financial Statements Consolidated Balance Sheets - June 30, 2025 (Unaudited) and December 31, 202 3 Consolidated Statements of Income – Three and six months ended June 30, 2025 and 2024 (Unaudited) 4 Consolidated Statements of Comprehensive Income – Three and six months ended June 30, 2025 and 2024 (Unaudited) 5 Consolidated Statements of Changes in Stockholders' Equity – Three and six months ended June , 2025 and 2024 (Unaudited) 6 Consolidated Statements of Cash Flows – Three months and six ended June 300, 2025 and 2024 (Unaudited) 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 32 Item 4.

Controls and Procedures

Controls and Procedures 32 PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 33 Item 1A.

Risk Factors

Risk Factors 33 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 33 Item 3. Defaults upon Senior Securities 33 Item 4. Mine Safety Disclosures 33 Item 5. Other Information 34 Item 6. Exhibits 34

Financial

Part I Financial Information

Financial

Item 1 Financial NEW PEOPLES BANKSHARES, INC. CONSOLIDATED BALANCE SHEETS JUNE 30, 2025 AND DECEMBER 31, 2024 (IN THOUSANDS EXCEPT PER SHARE AND SHARE DATA) (UNAUDITED) June 30, December 31, 2025 2024 ASSETS Cash and due from banks 18,838 $ 13,218 Interest-bearing deposits with banks 53,195 54,300 Federal funds sold 126 150 Total cash and cash equivalents 72,159 67,668 Investment securities available-for-sale, at fair value 96,749 95,984 Loans receivable 695,815 657,536 Allowance for credit losses ( 7,948 ) ( 7,684 ) Net loans 687,867 649,852 Bank premises and equipment, net 16,896 17,070 Other real estate owned 57 87 Accrued interest receivable 3,581 3,458 Deferred taxes, net 4,368 4,809 Insurance benefit receivable — 5,417 Right-of-use assets – operating leases 3,234 3,413 Other assets 8,019 7,167 Total assets 892,930 $ 854,925 LIABILITIES Deposits: Noninterest bearing 233,567 $ 224,938 Interest-bearing 548,342 525,044 Total deposits 781,909 749,982 Borrowed funds 26,986 24,986 Lease liabilities – operating leases 3,234 3,413 Accrued interest payable 1,427 1,442 Accrued expenses and other liabilities 4,530 4,361 Total liabilities 818,086 784,184 SHAREHOLDERS' EQUITY Common stock - $ 2.00 par value; 50,000,000 shares authorized; 23,600,878 and 23,636,724 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively 47,202 47,273 Additional paid-in-capital 14,416 14,451 Retained earnings 23,552 21,001 Accumulated other comprehensive loss ( 10,326 ) ( 11,984 ) Total shareholders' equity 74,844 70,741 Total liabilities and shareholders' equity 892,930 $ 854,925 The accompanying notes are an integral part of these consolidated financial statements. 3 NEW PEOPLES BANKSHARES, INC. CONSOLIDATED FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025 AND 2024 (IN THOUSANDS E

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS NOTE 1 NATURE OF OPERATIONS Nature of Operations – New Peoples Bankshares, Inc. (New Peoples or the Company) is a financial holding company whose principal activity is the under the laws of the Commonwealth of Virginia. As a state-chartered member bank, the Bank is subject to regulation by the Virginia Bureau of Financial Institutions, the Federal Deposit Insurance Corporation and the Board of Governors of the Federal Reserve System (the Federal Reserve). The Bank provides general banking services to individuals, small and medium size businesses and the professional community of southwest Virginia, southern West Virginia, western North Carolina and northeastern Tennessee. These services include commercial and consumer loans along with traditional deposit products such as checking and savings accounts. NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES These consolidated financial statements conform to U. S. generally accepted accounting principles (GAAP) and to general industry practices. In the opinion of management, the accompanying consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the Company's financial position as of June 30, 2025 and December 31, 2024, and the results of operations for the three- and six-month periods ended June 30, 2025 and 2024. The Notes included herein should be read in conjunction with the notes to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024. The results of operations for interim periods are not necessarily indicative of the results of operations that may be expected for a full year or any future period. The consolidated financial statements include New Peoples, the Bank, NPB Insurance Services, Inc., and NPB W

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