New Peoples Bankshares announces net income of $3.1 million.
Honaker: New Peoples Bankshares announced consolidated net income of $3.1 million, or $0.13 earnings per share, for the year ended December 31, 2017.
Net income tax expense of $144 was recorded, comprised of $4.0 million due to changes in deferred tax assets resulting from the enactment of the Tax Cuts and Jobs Act in December, and a $318 thousand dollar tax penalty related to the surrender of several bank owned life insurance policies.
Noninterest expenses showed a slight increase of $360,000 to $28.9 million in 2017. Salaries and employee benefits increased from $13.1 million in 2016 to $13.5 million in 2017, an increase of $389 thousand, or 2.96%. This increase was primarily due to annual pay increases and strategic hires made throughout the year. Occupancy and equipment expenses increased $326 thousand to $4.5 million during 2017 primarily as a result of lease expenses resulting from the sale lease back transaction. Expenses related to other real estate owned and repossessed assets showed a decline of $749 thousand, or 34.15%, from $2.2 million in 2016 to $1.4 million in 2017.
"During 2017 we made great strides in growing the loan portfolio, improving credit quality, reducing nonperforming assets, growing deposits, increasing earnings and capital" stated C. Todd Asbury, President and Chief Executive Officer. He added "We had loan growth of $44.4 million during the year and were able to reduce other real estate owned by $3.8 million as well. We recognized a gain of $2.6 million on the sale and leaseback transactions, as we were able to tap into the equity we had built in our branch properties. The additional capital increased our capacity to continue to grow the balance sheet, namely loans, and also allowed us to be more aggressive in reducing our nonperforming assets to be more in line with our peers. Net earnings increased as a result of the improvements that we have made over the past years. We believe these improvements will continue to benefit net earnings going forward. Furthermore, we are appreciative of our shareholders who exercised stock warrants in late 2017 demonstrating their confidence in the Company's continued improvements." Asbury also added, "I am very proud of our team of board members' and employees' hard work to accomplish a lot of great things in 2017. It was a remarkable year."
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|Publication:||Daily the Pak Banker (Lahore, Pakistan)|
|Article Type:||Financial report|
|Date:||Feb 24, 2018|
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