Company Overview of New Peoples Bankshares, Inc.

New Peoples Bankshares, Inc. reported unaudited consolidated earnings results for the full year ended December 31, 2017. For the year, the company reported, interest and dividend income of $2,017,000, total interest and dividend income of $25,993,000, net interest income of $22,780,000, net interest income after provision for loan losses of $22,330,000, total noninterest income of $9,836,000, income before income taxes of $3,238,000, compared to interest and dividend income of $2,016,000, total interest and dividend income of $24,346,000, net interest income of $21,726,000, net interest income after provision for loan losses of $22,226,000, total noninterest income of $7,291,000, income before income taxes of $949,000, for the same period a year ago. Net income was $3,094,000 against $958,000 a year ago. Basic and diluted was $0.13 against $0.04 a year ago. Return on average stockholder’s equity was negative 0.64% against 7.95% a year ago. Return on average assets was negative 0.05% against 0.61% a year ago.

John J. Boczar, age 59, has been appointed Executive Vice President and Chief Financial Officer, Treasurer and Secretary of New Peoples Bankshares, Inc. (Company) and its wholly-owned subsidiary New Peoples Bank, Inc. (Bank) effective January 22, 2018. Mr. Boczar, served as a Senior Vice President and Director of Tax Reporting and Compliance in 2017 and Vice President and Corporate Accountant from June 2012 to December 2016 for Bank of North Carolina, Thomasville, North Carolina. Prior to that, he served as the Chief Financial Officer of Carolina Federal Savings Bank from September 2006 until June 2012. Previously he served as an executive officer, including chief financial officer, for two community banking organizations in Pennsylvania. Mr. Boczar has over 35 years of community banking experience. Effective January 22, 2018, Frank Sexton, Jr. no longer serves as Interim Chief Financial Officer, Secretary and Treasurer of the Company and Bank. He will continue serving as the Company and Bank's Executive Vice President and Chief Operating Officer where he has served since 2003. The Board of Directors of the Company and Bank, respectively, at meetings held on January 22, 2018, appointed J. Robert "Bob" Buchanan to their respective Board of Directors. Mr. Buchanan, age 66, has over 40 years banking experience, which includes serving as President, Chief Executive Officer, and Director of First Region Bancshares and First Sentinel Bank, located in Richlands, Virginia from August of 2008 to October of 2015.

On December 18, 2017, Eugene Hearl informed New Peoples Bankshares, Inc., its wholly owned banking subsidiary, New Peoples Bank, Inc., and the Bank’s insurance subsidiary NPB Insurance Services, Inc. of his request to rescind his resignation from the Board of Directors of the company, the Bank, and Insurance Services which was to take effect on December 31, 2017, as previously announced, and to remain a member of the Boards of Directors of these entities. The Board of Directors approved Mr. Hearl’s request to rescind his resignation and accordingly Mr. Hearl will remain a member of the Boards of Directors of these entities.