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New Peoples Bankshares Inc – ‘10-K’ for 12/31/17 – ‘R27’

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  


‘R27’   —   Legal Contingencies


This is an IDEA Financial Report.  [ Alternative Formats ]



 
v3.8.0.1
LEGAL CONTINGENCIES
12 Months Ended
Commitments and Contingencies Disclosure [Abstract]  
LEGAL CONTINGENCIES

NOTE 20 LEGAL CONTINGENCIES

 

In the course of operations, we may become a party to legal proceedings. There are no pending or threatened legal proceedings to which the Company or any of its subsidiaries is a party or to which the property of the Company or any of its subsidiaries is subject that, in the opinion of management, may materially impact the financial condition of the Company, except for the following:

 

On June 24, 2015 New Peoples Bank filed an Amended Complaint in the Circuit Court of Russell County Virginia against Arthur Wayne Bostic, Michael W. Bostic, Sr. and Jeffrey C. Bostic to enforce guarantees of loans made to Bostic Ford Sales, Inc. and seeking judgment against the guarantors for $1,427,709.76 with interest and legal fees.  On July 24, 2015 Arthur Bostic filed a counterclaim against New Peoples Bank asserting lender liability theories of recovery.  On March 8, 2016 Michael Bostic, Sr. and Jeffrey Bostic filed similar counterclaims against New Peoples Bank.  In January 2018, the parties reached a settlement in the matter resolving all claims asserted by New Peoples against the guarantors and all claims asserted against New Peoples by the guarantors.  A order dismissing all claims with prejudice was entered on February 7, 2018. This settlement had no material financial impact on our financial condition or results of operations.

 

In 2015, New Peoples Bank filed suit in the Circuit Court for Washington County, Virginia, seeking payment from Ms. Sandra Campbell due to breach of a promissory note executed in 2013. Ms. Campbell asserted a Counterclaim alleging that the Bank’s requirement that she provide her personal guaranty on a loan sought by her husband’s company was a violation of the Equal Credit Opportunity Act. The counterclaim seeks damages in the amount of $825,000. The Bank filed a motion for summary judgment in its favor on its Complaint and as to Defendant’s Counterclaim in May 2016. A hearing has not yet been held on this motion. If the matter is not dismissed, the Bank plans a vigorous defense and does not believe that Ms. Campbell’s claims will be successful.

  

In conjunction with the departure of Mr. Kenneth Hart, New Peoples’ former Chief Executive Officer, New Peoples entered into a separation agreement with him. Mr. Hart originally filed suit alleging various breaches by the Company and the Bank related to this and earlier agreements between the parties, which action was dismissed in April 2016 for failure to serve. He then refiled the suit on October 7, 2016, providing him another 12 months to have the Company and the Bank served. On October 3, 2017, the Company and Bank were served with the current complaint for breach of contract which is substantially the same as his original suit. Mr. Hart is asking the Court for an award of $1.5 million plus interest alleging a breach by the Company and the Bank of these various agreements with Mr. Hart. New Peoples filed a “demurrer” to the complaint, asking that the suit be dismissed, on October 23, 2017. New Peoples believes there is no merit to this suit or these claims which are based on conduct that occurred in 2010, and that the suit is a reaction to a judgment of over a million dollars awarded in favor of the Bank and against Mr. Hart in a separate matter. The Court has not yet ruled on this motion to dismiss. Should this suit not be dismissed, New Peoples intends to defend the matter vigorously to its conclusion and does not believe Mr. Hart’s claims will be successful.

 

Jonathan Mullins, is a former President and Chief Executive Officer of New Peoples who departed in December 2014. In 2017 he filed a Complaint in the Circuit Court of Russell County, Virginia against New Peoples Bank. This is his second lawsuit against the Bank (the first was dismissed), and he seeks payment of deferred compensation pursuant to a 2009 agreement made with the Board of Directors, in which he alleges it agreed to payments of $50,000/year for 15 years beginning at age 65. At the time Mullins’ severance agreement was negotiated, the Bank determined that the accrued value of the deferred compensation at that time was $144,445. Mullins seeks either the $50,000 annual payments when he reaches age 65 or a lump sum payment of $144,445 with prejudgment interest from December 2014, along with $20,000 in severance pay and accrued leave. New Peoples filed its “demurrer” to this lawsuit in January 2018, requesting dismissal. The demurrer argues that the Bank cannot make these payments to Plaintiff in compliance with federal law, and therefore, Mullins’ case must be dismissed. A hearing has not been set on this motion. If the matter is not dismissed, New Peoples intends to defend the matter vigorously to its conclusion and does not believe that Mr. Mullin’s claims will be successful.

 

In November 2017, Keith Carroll filed a complaint against New Peoples Bank in the United States District Court for the Western District of Virginia alleging violations of the Americans with Disabilities Act (the “ADA”). He has filed essentially the same lawsuit in multiple Virginia federal court divisions, alleging violations of the ADA against various banks and credit unions. Mr. Carroll is a blind individual and asserts that he attempted to do business with the Bank through its website, which he claims was inaccessible to him due to his disability. Mr. Carroll seeks injunctive relief and unspecified monetary damages, to include costs and attorneys’ fees. The Bank filed a Motion to Dismiss these claims. One of Mr. Carroll’s cases filed in the Eastern District of Virginia was recently dismissed on numerous grounds, including the ground that websites are not “places of public accommodation under the ADA,” and that even if they were, no regulations currently exist to govern them as such. The Bank has requested dismissal of this case for the same reason, among others. A hearing on the Bank’s motion is set for March 21, 2018. If the matter is not resolved on motions, New Peoples intends to defend the matter vigorously to its conclusion.


Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘10-K’ Filing    Date    Other Filings
Filed on:3/23/18
3/21/18
2/7/18
For Period end:12/31/178-K
10/23/17
10/3/17
10/7/16
3/8/16
7/24/15
6/24/15
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Filing Submission 0001721868-18-000198   –   Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

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