New Peoples Bankshares, Inc.

NWPP ·Financial, Banks - Regional, United States

Business Overview: New Peoples Bankshares, Inc. (OTCQX: NWPP)

Executive Summary

New Peoples Bankshares, Inc. is a Virginia financial holding company headquartered in Honaker, Virginia, operating through its primary subsidiary New Peoples Bank, Inc., a Virginia state-chartered, Federal Reserve member commercial bank. The company serves individuals, small-to-medium businesses, and professionals through 17 full-service branches across the "Tri-State Area" of southwestern Virginia, southern West Virginia, and northeastern Tennessee, plus Watauga County, North Carolina, with 177 full-time-equivalent employees as of December 31, 2025.

1. Core Business Model & How They Work

New Peoples Bank gathers local deposits and relationship-based loans across its small, rural footprint, supplementing interest income with investment services (via a broker-dealer relationship) and insurance referral fee income.

[ Local branch deposit gathering ] ➡️ [ Commercial & consumer lending ] ➡️ [ Net interest income ] ➡️ [ Investment services & insurance referral fees ]

2. Business Segments

                    ┌───────────────────────────────┐
                    │     New Peoples Bankshares, Inc.    │
                    └───────────────┬───────────────────┘
                                     ▼
                    ┌───────────────────────────────┐
                    │        New Peoples Bank, Inc.       │
                    └───────────────┬───────────────────┘
          ┌──────────────────────────┼──────────────────────────┐
          ▼                          ▼                          ▼
┌─────────────────────┐   ┌─────────────────────┐   ┌─────────────────────┐
│ New Peoples Financial  │   │ NPB Insurance Services │   │ Lonesome Pine Title   │
│ Services (broker-dealer│   │ (insurance referral    │   │ Agency (39% equity    │
│ via Osaic Institutions)│   │ fee income)             │   │ interest)              │
└─────────────────────┘   └─────────────────────┘   └─────────────────────┘

3. Product Portfolio

Product / Service	Purpose	Why It Matters
Commercial & industrial loans	Business lending	Core relationship-banking product
Residential 1-4 family mortgages	Consumer lending	Traditional community bank franchise
Construction & land development loans	Business/consumer lending	Regional growth-dependent lending category
Deposit products (checking, savings, CDs, HSAs/IRAs)	Funding base	Low-cost deposit gathering
Investment & insurance services	Fee income	Annuities, mutual funds, managed accounts via broker-dealer affiliation

4. Competitive Landscape

The company describes its market as "highly competitive," facing commercial banks, credit unions, mortgage companies, consumer finance companies, brokerage firms, insurers, money market funds, and online providers — many with greater resources and larger lending limits. Per June 2025 FDIC data, its deposit market share ranges widely by county, from a high of 40.80% in Dickenson County, VA to a low of 0.60% in Boone, NC.

5. Strategic Strengths & Risks

Strengths

Dominant deposit market share in its home county (Dickenson County, VA, ~40.80%) reflects deep local incumbency.
Diversified fee income streams from investment services, insurance referrals, and a title insurance equity stake.
Small, focused footprint allows close, relationship-driven service in underserved rural Appalachian markets.

Risks

Very small scale (177 FTEs, 17 branches) leaves limited resources to compete with larger regional and online banks on technology and rates.
Geographic concentration in a single rural, economically limited Tri-State region ties performance closely to local economic conditions.
As a smaller reporting company, Item 1A Risk Factors disclosure is not required, meaning less detailed risk transparency than larger peers.
Dividend capacity depends heavily on regulatory-limited payments from the bank subsidiary.

6. Financial Overview

Metric	New Peoples Bankshares	Strategic Context
Branches	17 (VA, WV, NC, TN)	Small, rural Tri-State footprint
Employees	177 FTE	Lean community bank operation
Top county deposit share	40.80% (Dickenson County, VA)	Strong local incumbency
Lowest county deposit share	0.60% (Boone, NC)	Limited penetration outside core markets

7. Summary Conclusion

New Peoples Bankshares is a small, rural Appalachian community bank whose moat is concentrated local deposit dominance in its home markets rather than broad geographic scale. Its very small size and single-region concentration leave it more exposed than larger peers to local economic cycles and to competitive and technological pressure from bigger regional and online banking rivals.