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New Peoples Bankshares Inc – ‘10-K’ for 12/31/17 – ‘R24’

On:  Friday, 3/23/18, at 4:37pm ET   ·   For:  12/31/17   ·   Accession #:  1721868-18-198   ·   File #:  0-33411

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  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 3/23/18  New Peoples Bankshares Inc        10-K       12/31/17  111:10M                                    FILING2SEC/FA

Annual Report   —   Form 10-K   —   Sect. 13 / 15(d) – SEA’34
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-K        Annual Report                                       HTML    840K 
 2: EX-21       Subsidiaries List                                   HTML     25K 
 3: EX-31.1     Certification -- §302 - SOA'02                      HTML     32K 
 4: EX-31.2     Certification -- §302 - SOA'02                      HTML     31K 
 5: EX-32       Certification of Chief Executive Officer and Chief  HTML     30K 
                Financial Officer                                                
12: R1          Document and Entity Information                     HTML     57K 
13: R2          Consolidated Balance Sheets                         HTML    122K 
14: R3          Consolidated Balance Sheets (Parenthetical)         HTML     36K 
15: R4          Consolidated Statements of Income                   HTML    128K 
16: R5          Consolidated Statements of Comprehensive Income     HTML     49K 
17: R6          Consolidated Statements of Stockholders' Equity     HTML     61K 
18: R7          Consolidated Statements of Cash Flows               HTML    150K 
19: R8          Nature of Operations                                HTML     30K 
20: R9          Summary of Significant Accounting Policies          HTML     56K 
21: R10         Income Per Share                                    HTML     36K 
22: R11         Deposits in and Federal Funds Sold to Banks         HTML     31K 
23: R12         Investment Securities                               HTML    102K 
24: R13         Loans                                               HTML    240K 
25: R14         Allowance for Loan Losses                           HTML    149K 
26: R15         Troubled Debt Restructurings                        HTML     61K 
27: R16         Bank Premises and Equipment                         HTML     34K 
28: R17         Income Taxes                                        HTML     79K 
29: R18         Time Deposits                                       HTML     33K 
30: R19         Related Party Transactions                          HTML     31K 
31: R20         Retirement Plans                                    HTML     30K 
32: R21         Other Real Estate Owned                             HTML     45K 
33: R22         Bank Owned Life Insurance                           HTML     30K 
34: R23         Dividend Limitations on Subsidiary Bank             HTML     30K 
35: R24         Leasing Activities                                  HTML     41K 
36: R25         Available Lines of Credit and Federal Home Loan     HTML     48K 
                Bank Advances                                                    
37: R26         Financial Instruments With Off-Balance Sheet Risk   HTML     36K 
38: R27         Legal Contingencies                                 HTML     38K 
39: R28         Trust Preferred Securities                          HTML     42K 
40: R29         Capital                                             HTML     73K 
41: R30         Fair Values                                         HTML    141K 
42: R31         Recent Accounting Developments                      HTML     43K 
43: R32         Parent Corporation Only Financial Statements        HTML     84K 
44: R33         Selected Quarterly Information (Unaudited)          HTML     83K 
45: R34         Summary of Significant Accounting Policies          HTML    103K 
                (Policies)                                                       
46: R35         Summary of Significant Accounting Policies          HTML     32K 
                (Tables)                                                         
47: R36         Income Per Share (Tables)                           HTML     36K 
48: R37         Investment Securities (Tables)                      HTML    102K 
49: R38         Loans (Tables)                                      HTML    241K 
50: R39         Allowance for Loan Losses (Tables)                  HTML    150K 
51: R40         Troubled Debt Restructurings (Tables)               HTML     59K 
52: R41         Bank Premises and Equipment (Tables)                HTML     34K 
53: R42         Income Taxes (Tables)                               HTML     80K 
54: R43         Time Deposits (Tables)                              HTML     33K 
55: R44         Other Real Estate Owned (Tables)                    HTML     44K 
56: R45         Leasing Activities (Tables)                         HTML     33K 
57: R46         Available Lines of Credit and Federal Home Loan     HTML     47K 
                Bank Advances (Tables)                                           
58: R47         Financial Instruments With Off-Balance Sheet Risk   HTML     34K 
                (Tables)                                                         
59: R48         Trust Preferred Securities (Tables)                 HTML     42K 
60: R49         Capital (Tables)                                    HTML     61K 
61: R50         Fair Values (Tables)                                HTML    130K 
62: R51         Parent Corporation Only Financial Statements        HTML     85K 
                (Tables)                                                         
63: R52         Selected Quarterly Information (Tables)             HTML     83K 
64: R53         SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -        HTML     39K 
                Schedule of Estimated Useful Lives (Details)                     
65: R54         Income Per Share (Details)                          HTML     38K 
66: R55         Deposits in and Federal Funds Sold to Banks         HTML     34K 
                (Details Narrative)                                              
67: R56         Investment Securities (Details)                     HTML     47K 
68: R57         Investment Securities (Details 1)                   HTML     56K 
69: R58         Investment Securities (Details 2)                   HTML     34K 
70: R59         Investment Securities (Details 3)                   HTML     67K 
71: R60         Investment Securities (Details Narrative)           HTML     29K 
72: R61         Loans (Details)                                     HTML     48K 
73: R62         Loans (Details 1)                                   HTML     44K 
74: R63         Loans (Details 2)                                   HTML     82K 
75: R64         Loans (Details 3)                                   HTML     72K 
76: R65         Loans (Details 4)                                   HTML     75K 
77: R66         Allowance for Loan Losses (Details)                 HTML     71K 
78: R67         Allowance for Loan Losses (Details 1)               HTML     85K 
79: R68         Troubled Debt Restructurings (Details)              HTML     47K 
80: R69         Troubled Debt Restructurings (Details Narrative)    HTML     30K 
81: R70         Bank Premises and Equipment (Details)               HTML     40K 
82: R71         Income Taxes (Details)                              HTML     30K 
83: R72         Income Taxes (Details 1)                            HTML     38K 
84: R73         Income Taxes (Details 2)                            HTML     53K 
85: R74         Income Taxes (Details 3)                            HTML     78K 
86: R75         Income Taxes (Details Narrative)                    HTML     40K 
87: R76         Time Deposits (Details)                             HTML     43K 
88: R77         Related Party Transactions (Details Narrative)      HTML     37K 
89: R78         Retirement Plans (Details Narrative)                HTML     33K 
90: R79         Other Real Estate Owned (Details)                   HTML     47K 
91: R80         Bank Owned Life Insurance (Details Narrative)       HTML     35K 
92: R81         Leasing Activities (Details)                        HTML     42K 
93: R82         Available Lines of Credit and Federal Home Loan     HTML     33K 
                Bank Advances (Details)                                          
94: R83         Available Lines of Credit and Federal Home Loan     HTML     36K 
                Bank Advances (Details 1)                                        
95: R84         Available Lines of Credit and Federal Home Loan     HTML     36K 
                Bank Advances (Details 2)                                        
96: R85         Available Lines of Credit and Federal Home Loan     HTML     39K 
                Bank Advances (Details Narrative)                                
97: R86         Financial Instruments With Off-Balance Sheet Risk   HTML     31K 
                (Details)                                                        
98: R87         Trust Preferred Securities (Details)                HTML     43K 
99: R88         Trust Preferred Securities (Details Narrative)      HTML     32K 
100: R89         Capital (Details)                                   HTML     85K  
101: R90         Capital (Details 1)                                 HTML     47K  
102: R91         Fair Values (Details)                               HTML     60K  
103: R92         Fair Values (Details 1)                             HTML     43K  
104: R93         Fair Values (Details 2)                             HTML     42K  
105: R94         Parent Corporation Only Financial Statement         HTML    100K  
                (Details)                                                        
106: R95         Parent Corporation Only Financial Statements        HTML     67K  
                (Details 1)                                                      
107: R96         Parent Corporation Only Financial Statements        HTML     86K  
                (Details 2)                                                      
108: R97         Selected Quarterly Information (Details)            HTML     71K  
110: XML         IDEA XML File -- Filing Summary                      XML    207K  
109: EXCEL       IDEA Workbook of Financial Reports                  XLSX    122K  
 6: EX-101.INS  XBRL Instance -- nwpp-20171231                       XML   3.55M 
 8: EX-101.CAL  XBRL Calculations -- nwpp-20171231_cal               XML    307K 
 9: EX-101.DEF  XBRL Definitions -- nwpp-20171231_def                XML    675K 
10: EX-101.LAB  XBRL Labels -- nwpp-20171231_lab                     XML   1.11M 
11: EX-101.PRE  XBRL Presentations -- nwpp-20171231_pre              XML   1.06M 
 7: EX-101.SCH  XBRL Schema -- nwpp-20171231                         XSD    220K 
111: ZIP         XBRL Zipped Folder -- 0001721868-18-000198-xbrl      Zip    207K

‘R24’   —   Leasing Activities

This is an IDEA Financial Report.  [ Alternative Formats ]

 
v3.8.0.1
LEASING ACTIVITIES
 12 Months Ended
Leases [Abstract]  
LEASING ACTIVITIES

NOTE 17 LEASING ACTIVITIES

 

Sale and Leaseback Transactions

 

On May 31, 2017 the Bank, the wholly-owned subsidiary of the Company, sold four (4) of its properties, one each located in Abingdon, Bristol, Gate City and Castlewood, Virginia to a non affiliated third party for a total purchase price of $6.2 million. After selling expenses of $192 thousand, the net proceeds on the transactions were $6.0 million. The sales prices for the properties were based on outside appraisals obtained by the Bank. The Bank provided $4.9 million of financing to the purchaser for a term of 10 years for this transaction.

 

In connection with the sale of the four properties, the Bank on May 31, 2017 entered into commercial lease agreements with the purchaser for the properties (the “Leases”), which will allow the Bank to continue to service customers from these locations. The Leases, which commenced on June 1, 2017, provide the Bank with use of the properties for an initial term of fifteen (15) years.  Base rent payments for years 1 through 5 of the Leases are approximately $417 thousand a year.  The base rent payments will increase by 8% for years 6 through 10 of the Leases and then by another 8% for years 11 through 15 of the Leases.  The Bank has the option to renew the Leases five (5) times and each renewal would be for a term of five (5) years.  The base rent for the renewals would be negotiated at the time the renewal option is exercised by the Bank. While the cash lease payments are currently $417 thousand a year, the Company is required to straight-line the expense over the initial term of fifteen (15) years. As a result, the annual lease expense will be approximately $451 thousand. The weighted average remaining life of the leases is 14.42 years.

 

In anticipation of this transaction the Company early adopted ASU No. 2016-02 Leases (Topic 842). This ASU revised certain aspects of recognition, measurement, presentation, and disclosure of leasing transactions. As a result of this transaction the Company recognized right-to-use assets – operating leases of approximately $5.3 million, along with corresponding lease liabilities of approximately $5.3 million. The $5.3 million was determined by calculating the present value of the annual cash lease payments using a discount rate of 3.25%. The 3.25% discount rate was determined to be our fifteen (15) year incremental borrowing rate as of May 31, 2017.

 

As a result of the sale and the determination that the corresponding leases were operating leases, the Company recognized a gain of $2.6 million on the sale and leaseback transactions.

 

Kingsport Loan Production Office Lease

 

The Bank entered into a commercial lease for office space in Kingsport, TN for use as a loan production office, which is expected to open during the 1st Quarter of 2018. The lease, which commenced on December 1, 2017, provides the Bank with use of the office space for an intital term of three (3) years. Base rent payments are $25 thousand for year 1, $25 thousand for year 2, and $26 thousand for year 3. The Bank has the option to renew the lease one (1) time and the renewal would be for a term of one (1) year. The base rent for the renewal would increase by 5.00%. While the cash lease payments are currently $25 thousand a year, the Company is required to straight-line the expense over the initial term of three (3) years. As a result, the annual lease expense will be approximately $25 thousand. The weighted average remaining life of the lease is 2.97 years.

 

As a result of this transaction the Company recognized a right-to-use asset – operating lease of approximately $73 thousand, along with corresponding lease liability of approximately $73 thousand. The $73 thousand was determined by calculating the present value of the annual cash lease payments using a discount rate of 2.17%. The 2.17% discount rate was determined to be our three (3) year incremental borrowing rate as of December 1, 2017.

 

The Company’s operating lease cost for the year ended December 31, 2017 as a result of the transactions discussed above was $265 thousand.

 

All other operating leases the Company has were evaluated and determined that they are immaterial to the financial statements. At December 31, 2017, future minimum rental commitments under the non-cancellable operating leases discussed above are as follows (dollars are in thousands):

 

2018 $ 441
2019   442
2020   440
2021   492
2022   436
Thereafter   4,415
Total $ 6,666

Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘10-K’ Filing    Date    Other Filings
Filed on:3/23/18
For Period end:12/31/178-K
12/1/17
6/1/17
5/31/178-K
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Filing Submission 0001721868-18-000198   –   Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)
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