New Peoples Bankshares Reports 30.8% Increase in Q3 Net Income to $2.8 Million

New Peoples Bankshares, Inc. reported a net income of $2.8 million, or $0.12 per share, for the third quarter of 2025, marking a 30.8% increase from the $2.1 million, or $0.09 per share, recorded in the same period of 2024. For the nine months ending September 30, 2025, net income reached $7.2 million, up 29% from $5.6 million in the prior year. The company's return on average assets and equity improved to 1.21% and 14.28%, respectively, compared to 0.97% and 12.35% in the third quarter of 2024. The net interest margin also increased to 3.93%, up from 3.43% in the previous year, driven by a rise in interest income and a decrease in interest expense.

Total assets for New Peoples Bankshares increased to $910.7 million as of September 30, 2025, reflecting an 8.7% annualized growth from $854.9 million at the end of 2024. The growth in assets was primarily attributed to a $49.7 million increase in gross loans, which totaled $707.3 million, and a $13 million rise in cash and cash equivalents. Deposits also saw a significant increase, totaling $799.4 million, up from $750 million at the end of 2024, driven by efforts to attract time deposits and money market accounts.

The company’s noninterest income for the third quarter of 2025 was $2.5 million, a slight increase from $2.4 million in the same quarter of 2024. This growth was supported by modest increases in service charges, card processing, and financial services revenue. However, noninterest expenses rose to $7.4 million, up from $6.8 million in the prior year, primarily due to higher salaries and benefits, costs related to a core system conversion, and increased loan-related expenses.

In terms of operational metrics, the allowance for credit losses stood at $8 million, or 1.13% of total loans, as of September 30, 2025, compared to $7.7 million, or 1.17%, at the end of 2024. The company reported a decrease in nonperforming assets to $3.2 million, down from $3.4 million at the end of 2024, indicating improved asset quality. The company continues to maintain a well-capitalized status under regulatory guidelines, with total shareholders' equity increasing to $79.5 million, up from $70.7 million at the end of the previous year.

Looking ahead, New Peoples Bankshares aims to sustain its growth trajectory while managing potential risks associated with credit quality and market conditions. The company remains focused on enhancing operational efficiencies and expanding its customer base, particularly in its core markets across Virginia, West Virginia, North Carolina, and Tennessee. The management's outlook reflects a commitment to maintaining strong capital levels and supporting planned asset growth while navigating the evolving economic landscape.