New Peoples Bankshares, Inc. (OTCMKTS:NWPP) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
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Entry into a Material Definitive |
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On May 31, 2017 in connection with the sale of four (4) of its
properties to NPB Good Steward Properties, LLC (Good Steward)
reported below to the Real Estate Purchase Agreement entered into
on April 13, 2017 New Peoples Bank, Inc. (the Bank), the
wholly-owned subsidiary of New Peoples Bankshares, Inc., entered
into Commercial Lease Agreements with Good Steward for the four
properties (the Leases) which will allow the Bank to continue to
serve its 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
$417,000 a year. The base rent payments will increase by 8% for
years 6 thru 10 of the Leases and then another 8% for years 11
thru 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.
In February 2016, the Financial Accounting Standards Board
amended the Leases topic of the Accounting Standards Codification
to revise certain aspects of recognition, measurement,
presentation, and disclosure of leasing transactions. The
amendments will be effective for fiscal years beginning after
December 15, 2018, including interim periods within those fiscal
years. The Company has elected to early adopt ASU No. 2016-02
Leases (Topic 842). Management is currently evaluating the impact
the early adoption will have on its financial statements as a
result of this transaction.
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Item 2.01 |
Completion of Acquisition or Disposition of Assets. |
On May 31, 2017 the Bank consummated the sale of four (4) of its
properties, one each located in Abingdon, Bristol, Gate City and
Castlewood, Virginia to Good Steward for a total purchase price
of $6.17 million. The sale prices for the properties were based
on outside appraisals obtained by the Bank. The Bank provided to
Good Steward financing in the ordinary course for $4.94 million
of the purchase price. The Bank and its parent, New Peoples
Bankshares, Inc. and affiliates have no relationship with Good
Steward other than those involved in these transactions.
About New Peoples Bankshares, Inc. (OTCMKTS:NWPP)
New Peoples Bankshares, Inc. is a Virginia bank holding company. The Company’s business is conducted primarily through New Peoples Bank, Inc. (the Bank), a Virginia banking corporation. The Bank has a division doing business as New Peoples Financial Services, which offers investment services through its broker dealer relationship with LPL Financial Services, Inc. NPB Insurance Services, Inc. is a subsidiary of the Bank and offers insurance services only. The Bank offers a range of short-to-medium term commercial, one- to four-family residential mortgages and personal loans. Its investment services include fixed income products, variable annuities, mutual funds, indexed certificates of deposit, individual retirement accounts, employee group benefit plans, college savings plans, financial planning, managed money accounts and estate planning. Its deposit products include demand deposit, interest-bearing demand deposit, savings deposit, and money market deposit accounts.