New Peoples Bankshares, Inc. reported its financial results for the three and nine months ended September 30, 2024, showing a mixed performance compared to the same periods in 2023. Total interest and dividend income for the third quarter reached $11.5 million, a $2.0 million increase driven by a 57 basis point rise in yield on earning assets to 5.51% and a $65.5 million increase in the average balance of earning assets. Net interest income for the quarter was $7.2 million, up 1.99% from $7.0 million in Q3 2023.
Net income for Q3 2024 was $2.1 million, reflecting an 11.53% increase from $1.9 million in Q3 2023. However, net income for the nine months ended September 30, 2024, was $5.6 million, slightly down from $5.6 million in the same period last year. The provision for credit losses for the third quarter decreased to $49,000 from $155,000 in Q3 2023, attributed to the resolution of a specific loan relationship.
Total assets grew to $880.3 million as of September 30, 2024, an increase of 6.53% from $826.3 million at the end of 2023. Gross loans increased by $8.2 million to $646.4 million, while total deposits rose by $47.1 million to $763.6 million. The bank's liquidity position improved significantly, with cash and cash equivalents increasing by 59.64% to $103.7 million.
Noninterest income for Q3 2024 was $2.4 million, a slight decrease from the previous year, primarily due to declines in service charges and card processing activities. Noninterest expenses decreased by 0.78% to $6.8 million, reflecting cost reductions in salaries, occupancy, and legal fees. The efficiency ratio improved to 71.10% from 72.62% in Q3 2023.
The bank's capital position remains strong, with a capital conservation buffer of 8.90%, exceeding the required 2.50% under BASEL III rules. The allowance for credit losses as a percentage of loans increased to 1.19% as of September 30, 2024, from 1.14% at the end of 2023. Nonperforming assets rose to $5.1 million, a 39.34% increase since December 31, 2023.
In terms of strategic developments, the bank repaid a $10 million loan from the Federal Reserve Bank Term Funding Program on October 1, 2024, and made a partial repayment of $1.2 million on another trust obligation. The company continues to execute its stock repurchase program, having repurchased 23,989 shares at an average price of $2.67 per share during Q3 2024.
About NEW PEOPLES BANKSHARES INC
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