Current Report Filing (8-k)
June 06 2017 - 4:40PM
Edgar (US Regulatory)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May
31, 2017
New Peoples Bankshares, Inc.
(Exact name of registrant as specified in
its charter)
Commission File Number: 000-33411
VA
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31-1804543
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(State
or other jurisdiction of
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(IRS
Employer
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incorporation)
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Identification
No.)
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67 Commerce Drive
Honaker, VA 24260
(Address of principal executive offices,
including zip code)
(276) 873-7000
(Registrant’s telephone number, including
area code)
N/A
(Former name or former address, if changed
since last report)
Check the appropriate box below if the Form 8-K filing
is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
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Item 1.01
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Entry
into a Material Definitive Agreement.
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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 pursuant 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.
Item 2.01
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Completion
of Acquisition or Disposition of Assets.
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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.
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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NEW PEOPLES BANKSHARES, INC.
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(Registrant)
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Date: June 6, 2017
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/s/ JOSEPH
D. PENNINGTON
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Joseph D. Pennington
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Senior Vice President and
Chief Financial Officer
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