The deal will include the assumption of approximately $60.4 million in deposits in exchange for certain fixed assets of the offices, approximately $14.6 million in loans originated by the branches and cash. The offices will be operated within the Cumberland division of New Peoples Bank.
The transaction is expected to close in the second quarter of 2007, subject to bank regulatory approval and satisfaction of closing conditions.
"We have devoted ourselves to effectively provide personalized community banking services to both businesses and households in the Southwest Virginia, Northeast Tennessee and Southern West Virginia marketplaces over the last several years," said Kenneth Hart, president of New Peoples Bank.
"This acquisition contributes to that goal by adding a fourth full-service New Peoples Bank branch in Wise County to go along with the Wise, Pound and Big Stone Gap branches, and a full-service branch in Pennington Gap to complement our existing Lee County branch at Jonesville. The customers of the FNB Southeast Norton and Pennington Gap branches can expect to receive the same high level of service that they have grown to respect and trust, plus have many more local branches with which to do business," Hart said.
The Norton branch is located at 600 Trent St., and the Pennington Gap branch is located at 700 East Morgan Ave.
New Peoples Bank is a wholly owned subsidiary of New Peoples Bankshares, a $635 million bank holding company headquartered in Honaker. New Peoples Bank operates 26 full-service banking locations.