New Peoples Bankshares Reports 60.5% Increase in Net Income for Q1 2026

New Peoples Bankshares, Inc. reported a significant increase in financial performance for the first quarter of 2026, with net income rising to $3.1 million, a 60.5% increase from $1.9 million in the same period of 2025. The company's net interest income also saw a notable increase of 15.9%, reaching $8.8 million compared to $7.6 million a year earlier. This growth was primarily driven by an increase in the loan portfolio, which rose by $13.7 million to $723.3 million, alongside a 25 basis point increase in the yield on loans to 6.35%. Total interest income for the quarter was $12.6 million, up from $11.4 million in the previous year.

The balance sheet expanded to $939.6 million in total assets as of March 31, 2026, reflecting a $29.9 million increase from the end of 2025. Total deposits increased by $29.4 million, or 3.7%, to $827.7 million, driven by growth in both noninterest-bearing and interest-bearing accounts. Interest-bearing deposits with banks also rose by $13.1 million to $76.2 million. The company declared a cash dividend of $0.09 per share, marking a 12.5% increase from the previous year, and continued its stock repurchase program, having repurchased 11,496 shares at an average price of $3.55 during the quarter.

Operationally, New Peoples Bankshares reported a decrease in noninterest expenses to $7.2 million, down from $7.3 million in the first quarter of 2025. This reduction was attributed to lower occupancy costs and decreased professional fees, although there was an increase in salaries and benefits due to merit increases. The efficiency ratio improved to 63.17% from 72.55% year-over-year, indicating better cost management relative to income. The company’s return on average assets and equity also improved to 1.34% and 14.69%, respectively, compared to 0.90% and 10.78% in the prior year.

Looking ahead, New Peoples Bankshares remains optimistic about its growth trajectory, supported by a solid capital position and a well-capitalized status under regulatory guidelines. The allowance for credit losses on loans was maintained at $8.1 million, representing 1.12% of total loans, reflecting a stable asset quality despite some charge-offs. The company continues to monitor economic conditions and market risks, particularly in light of geopolitical uncertainties, while focusing on enhancing operational efficiencies and customer service.