Executive Summary

Q4 2024 net income rose to $2.6 million ($0.11 per share), up 69.4% year over year from $1.6 million ($0.07) on improved net interest margin and favorable non-recurring items .
Net interest margin expanded to 3.56% in Q4 2024 versus 3.43% in Q3 2024 and 3.52% in Q4 2023, driven by earning asset yields outpacing cost of funds .
Non-recurring items (core system termination/convert costs + BOLI portfolio transactions) net increased Q4 earnings by $756,000 (~$0.03 per share), partially obscuring underlying trends .
Loans grew to $657.5 million (+3.0% YoY), while deposits rose $33.5 million during 2024; capital remained strong (well-capitalized) .
No Q4 2024 earnings call transcript found; Wall Street consensus estimates via S&P Global were unavailable at time of analysis .

What Went Well and What Went Wrong

What Went Well

EPS and net income materially improved YoY in Q4 2024 ($0.11 vs $0.07; $2.6M vs $1.6M), supported by NIM expansion and select non-recurring items .
Asset growth: total gross loans reached $657.5 million (+$19.4 million YoY), validating lending momentum through year-end .
Capital strength: “New Peoples Bank remains well-capitalized with a leverage ratio of 10.70% as of December 31, 2024,” enabling dividend increase in early 2025 and supporting growth .

Quote: “Results for the fourth quarter and year ended December 31, 2024 were impacted by several non-recurring events... After consideration of the tax impact, these non-recurring items increased earnings by $756,000 or $0.03 per share.”

What Went Wrong

Reported Q4 profitability benefited from non-recurring items (BOLI transactions; core system termination costs), complicating run-rate interpretation for EPS and net income .
Funding cost pressures persisted throughout 2024; Q3 2024 press release explicitly cited deposit cost increases compressing NIM, a sector-wide headwind .
No Q4 2024 earnings call transcript available, limiting visibility into management’s granular outlook on deposit pricing, credit quality normalization, and core conversion expense cadence .

Financial Results

Metric	Q4 2023	Q3 2024	Q4 2024
Net Income ($USD Millions)	$1.6	$2.1	$2.6
Diluted EPS ($USD)	$0.07	$0.09	$0.11
Net Interest Margin (%)	3.52%	3.43%	3.56%
Total Gross Loans ($USD Millions)	$638.1	$646.4	$657.5

Segment breakdown: Not applicable (community bank with unified operations) .

KPIs

KPI	Q4 2023	Q3 2024	Q4 2024
Return on Avg Assets (ROAA) (%)	0.76%	0.97%	1.21%
Return on Avg Shareholders’ Equity (ROAE) (%)	10.18%	12.35%	14.84%

Notes:

Q4 2024 earnings benefited from non-recurring net impact of ~~$0.756M (~~$0.03 per share) from BOLI activity and core system termination charges .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per share	FY 2025 payment (Mar 31, 2025)	$0.07 (FY 2024 dividend)	$0.08 declared (Mar 31, 2025 payable)	Raised
Core system conversion	Target completion	N/A	Conversion to new core provider planned for Q4 2025; $850,000 termination/convert costs recognized in Q4 2024	New initiative

No formal quantitative revenue/EPS margin guidance was provided in Q4 2024 materials .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2: Q2 2024)	Previous Mentions (Q-1: Q3 2024)	Current Period (Q4 2024)	Trend
Net interest margin dynamics	Margin compression from rising deposit costs; NIM 3.41%	NIM 3.43%; deposit cost pressures persist industry-wide	NIM improved to 3.56% with earning asset yields outpacing cost of funds	Improving
Deposit growth and pricing	Deposits +$26.7M in 1H24; promotional rates to attract/retain balances	Deposits +$47.1M YTD (annualized 8.90%)	Deposits +$33.5M for 2024; continued efforts to attract/retain time/MM balances	Stable growth with pricing discipline
Loan growth	Loans $639.9M (+$1.8M YTD); growth despite margin pressure	Loans $646.4M; new Wythe County origination office planned	Loans $657.5M (+$19.4M YoY); momentum intact	Accelerating
Core systems modernization	Not discussed	Not discussed	Contract termination and plan to convert core in Q4 2025; $850k charges recognized	New strategic initiative
Non-recurring items	Gains/losses tied to OREO and other items in 1H24	Hurricane Helene monitoring; no widespread collateral impairment known	BOLI portfolio transactions and core termination costs net add ~$0.756M to earnings	One-time boost

Note: No Q4 2024 earnings call transcript available; themes derived from company press releases .

Management Commentary

“Results for the fourth quarter and year ended December 31, 2024 were impacted by several non-recurring events... After consideration of the tax impact, these non-recurring items increased earnings by $756,000 or $0.03 per share.” (Company press release, Jan 31, 2025) .
Q1 2025 look-ahead: “We anticipate completing the conversion of our core operating system to Jack Henry & Associates during the fourth quarter of 2025. This transition will enable us to deliver a superior customer experience through enhanced digital services and improve operational efficiency.” (CEO J.W. Kiser) .
Q3 2024 operating backdrop: “Net interest income showed improvement... due to the increase in average earning assets which offset the challenges of net interest margin compression... as our funding costs continue to rise.” .

Q&A Highlights

No Q4 2024 earnings call transcript was identified; therefore, no Q&A highlights or clarifications are available .

Estimates Context

Wall Street consensus estimates (EPS and revenue) via S&P Global were unavailable at the time of analysis; as such, no beat/miss assessment versus consensus can be provided .

Key Takeaways for Investors

Underlying NIM improved sequentially into Q4 2024 (3.56%) despite sector-wide funding cost pressure—a constructive sign for core earnings trajectory if deposit costs stabilize .
Q4 EPS/NI strength includes non-recurring items (+$0.03 per share); strip out the boost to gauge sustainable run rate for 2025 modeling .
Balance sheet growth remains healthy (loans $657.5M; deposits +$33.5M in 2024), and capital is ample, enabling a dividend increase to $0.08 in early 2025 .
Operational catalyst: core system conversion targeted for Q4 2025 may enhance digital experience and efficiency; monitor one-time conversion costs and execution risk through 2025 .
Without published consensus, near-term trading may anchor to dividend policy, NIM trajectory, and loan growth; watch updates on deposit mix/pricing and credit quality via subsequent releases .
If future quarters sustain NIM gains without outsized non-recurring income, medium-term EPS compounding could be supported by growth markets (e.g., Wythe County origination) and operational modernization .

NEW PEOPLES BANKSHARES INC (NWPP)·Q4 2024 Earnings Summary