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NEW PEOPLES BANKSHARES INC (NWPP)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 net income was $1.9M ($0.08 per share), up 6.8% year over year, with net interest margin expanding to 3.69% on asset/deposit growth; sequentially, earnings declined from Q4’s seasonally strong $2.6M partly because Q4 included non‑recurring BOLI gains that added ~$0.03 to EPS .
  • Balance sheet trends were constructive: total gross loans rose to $670.7M (+$13.2M q/q) and deposits increased $26.9M in the quarter; capital remained strong with a 10.67% leverage ratio .
  • Asset quality ticked up but remains manageable: NPAs/Assets increased to 0.52% from 0.39% at year‑end 2024 .
  • No sell‑side consensus was available for EPS or revenue; thus, no beat/miss framing this quarter (S&P Global consensus showed no estimates). Values retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

  • Net interest margin expanded to 3.69% (from 3.56% in Q4 and 3.43% in Q3), supported by asset/deposit growth and lower borrowing costs after repayment of BTFP funding and trust preferred principal reductions .
  • Loan and funding momentum: gross loans reached $670.7M (+$13.2M q/q) and deposits rose $26.9M, aided by time deposits and money market relationships plus seasonal inflows .
  • Management executed shareholder and strategic actions: dividend lifted to $0.08/share (paid March 31) and core conversion to Jack Henry remains on track for Q4 2025; “We are excited by our start to the year and are committed to continuing this improvement throughout 2025” — J.W. Kiser, CEO .

What Went Wrong

  • Sequential earnings declined vs. Q4 (to $1.9M from $2.6M) as Q4 benefited from non‑recurring BOLI items (net ~$756K after tax, or ~$0.03/share), complicating sequential comparability .
  • Asset quality mixed: NPAs/Assets increased to 0.52% from 0.39% at year‑end 2024, though still low in absolute terms .
  • Competitive funding environment persists (industry‑wide), as noted in prior releases; although funding costs began to ease in late 2024, deposit pricing pressure remains a headwind to margin durability .

Financial Results

MetricQ3 2024Q4 2024Q1 2025
Revenues ($USD Millions)*$2.43* (S&P Global)$3.98* (S&P Global)$2.41* (S&P Global)
Net Income ($USD Millions)$2.10 $2.60 $1.90
Diluted EPS ($)$0.09 $0.11 $0.08
Net Interest Margin (%)3.43% 3.56% 3.69%
ROA (%)*0.97%* (S&P Global)1.21%* (S&P Global)0.88%* (S&P Global)
ROE (%)*12.28%* (S&P Global)14.81%* (S&P Global)10.65%* (S&P Global)
Net Income Margin (%)*22.05%* (S&P Global)23.30%* (S&P Global)19.54%* (S&P Global)

Values with asterisks (*) retrieved from S&P Global.

KPIs

KPIQ3 2024Q4 2024Q1 2025
Gross Loans ($USD Millions)—$657.5 $670.7
Deposits, q/q change ($USD Millions)——+$26.9
NPAs / Total Assets (%)—0.39% 0.52%
Leverage Ratio (%)—10.70% 10.67%
Dividend per share ($)——$0.08 (paid 3/31/25)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend per shareQ1 2025Not specified$0.08 per share declared (paid 3/31/25)Raised
Core systems conversion (Jack Henry)2025Not previously dated in Q3 2024 releaseTargeted for Q4 2025New timing detail

No quantitative guidance was provided for revenue, margins, OpEx, OI&E, tax rate, or segment metrics .

Earnings Call Themes & Trends

Note: The company did not host or publish an earnings call transcript for Q1 2025; themes derived from company press releases .

TopicPrevious Mentions (Q3 2024 and Q4 2024)Current Period (Q1 2025)Trend
Technology / Core platformAnnounced termination of legacy core; conversion planning underway Jack Henry core conversion targeted for Q4 2025 to enhance digital services and efficiency Advancing to execution
Funding costs / Deposit competitionDeposit costs elevated in 2024; some easing late-year; BTFP repayment planned Deposit growth of $26.9M; NIM expanded to 3.69% with lower borrowing costs after BTFP/trups actions Improving mix/cost
Regional growth / ProductionLoan portfolio growth; momentum into year-end 2024 Wythe County, VA loan origination office opened; initial results encouraging; loans to $670.7M Expanding footprint
Balance sheet optimizationBTFP repaid, trust preferred principal reductions lowered borrowing costs in late 2024 Lower average borrowing cost sustained; NIM expansion continued Positive carry
Asset qualityNonaccruals up modestly in 2024; still low absolute levels NPAs/Assets 0.52% vs 0.39% at YE’24; still contained Mixed but manageable

Management Commentary

  • “We are pleased to report net income of $1.9 million for the first quarter of 2025…our net interest margin…improved to 3.69%…we increased our annual dividend payment by 14% to $0.08 per share…our loan origination office in Wythe County, Virginia opened, and initial results are encouraging…we anticipate completing the conversion of our core operating system to Jack Henry…during the fourth quarter of 2025.” — J.W. Kiser, President & CEO .
  • Q4 context: 2024 results included non‑recurring BOLI items adding ~$0.03/share; management noted deposit growth and margin improvement into late 2024, framing a tougher sequential comparison for Q1 .

Q&A Highlights

  • The company did not publish an earnings call transcript for Q1 2025; no formal Q&A was available .

Estimates Context

  • S&P Global shows no sell‑side consensus for Q1 2025 EPS or revenue for NWPP; therefore, no beat/miss designation is available this quarter. Values retrieved from S&P Global.
  • Where “Revenue” and ratio figures are shown in the tables with asterisks, they are sourced from S&P Global and may not be directly comparable to company‑defined measures for banks (e.g., net interest income plus noninterest income). Values retrieved from S&P Global.

Key Takeaways for Investors

  • Margin resilience: NIM rose to 3.69% despite a competitive funding backdrop, aided by balance sheet mix and lower borrowing costs after BTFP/trust preferred actions; watch if this momentum persists as deposit pricing evolves .
  • Growth engine in place: new Wythe County loan origination office supports ongoing loan growth; Q1 loans reached $670.7M with healthy quarterly deposit inflows .
  • One‑offs skewed the sequential comp: Q4’s non‑recurring BOLI gains inflated EPS by ~$0.03, making Q1’s sequential decline less indicative of trend; underlying spread metrics improved q/q .
  • Asset quality watch‑item: NPAs/Assets rose to 0.52% (from 0.39% at YE’24), but remain low; monitor any follow‑through in subsequent quarters .
  • Tech upgrade as medium‑term catalyst: Jack Henry conversion targeted for Q4 2025 should enhance digital capabilities and operating efficiency, potentially supporting fee growth and expense discipline .
  • Capital and shareholder returns: leverage ratio of 10.67% and dividend raised to $0.08/share underscore balance sheet strength and return commitment .
  • Trading lens: With no consensus coverage and modest float, stock reactions can hinge on company‑disclosed KPIs (NIM trajectory, loan/deposit growth, asset quality). Upcoming quarters should clarify whether NIM expansion is sustainable and whether NPAs stabilize .

Notes on sources and prior periods:

  • Q1 2025 earnings press release (primary): April 25, 2025 .
  • Q4 2024 earnings press release: January 31, 2025 .
  • Q3 2024 earnings press release: October 30, 2024 .
  • Dividend declaration: February 25, 2025 .

S&P Global disclaimer: Where marked with an asterisk (*), values were retrieved from S&P Global.