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			&lt;font style="display: inline;font-weight:bold;font-size:11pt;"&gt;NOTE 1&amp;nbsp;&amp;nbsp;NATURE OF OPERATIONS:&lt;/font&gt;
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			&lt;font style="display: inline;font-weight:bold;font-size:11pt;"&gt;&amp;nbsp;&lt;/font&gt;
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			&lt;font style="display: inline;"&gt;New Peoples Bankshares, Inc. (&amp;#x201C;The Company&amp;#x201D;) is a bank holding company whose principal activity is the ownership and management of a community bank.&amp;nbsp;&amp;nbsp;New Peoples Bank, Inc. (&amp;#x201C;Bank&amp;#x201D;) was organized and incorporated under the laws of the Commonwealth of Virginia on December 9, 1997.&amp;nbsp;&amp;nbsp;The Bank commenced operations on October 28, 1998, after receiving regulatory approval.&amp;nbsp;&amp;nbsp;As a state chartered member bank, the Bank is subject to regulation by the Virginia Bureau of Financial Institutions, the Federal Deposit Insurance Corporation and the Federal Reserve Bank.&amp;nbsp;&amp;nbsp;The Bank provides general banking services to individuals, small and medium size businesses and the professional community of southwestern Virginia, southern West Virginia, and eastern Tennessee.&amp;nbsp;&amp;nbsp;On June 9, 2003, the Company formed two wholly owned subsidiaries, NPB Financial Services, Inc. and NPB Web Services, Inc.&amp;nbsp;&amp;nbsp;On July 7, 2004 the Company established NPB Capital Trust I for the purpose of issuing trust preferred securities.&amp;nbsp;&amp;nbsp;On September 27, 2006, the Company established NPB Capital Trust 2 for the purpose of issuing additional trust preferred securities.&amp;nbsp;&amp;nbsp;NPB Financial Services, Inc. was a subsidiary of the Company until January 1, 2009 when it became a subsidiary of the Bank.&amp;nbsp;&amp;nbsp;In June 2012 the name of NPB Financial Services, Inc. was changed to NPB Insurance Services, Inc.&lt;/font&gt;&lt;font style="display: inline;"&gt; which operates solely as an insurance agency. &lt;/font&gt;&lt;font style="display: inline;"&gt; &amp;nbsp; &amp;nbsp;&lt;/font&gt;
		&lt;/p&gt;
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	&lt;/div&gt; &lt;/div&gt;</NonNumbericText><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell></Cells><ElementDataType>nonnum:textBlockItemType</ElementDataType><SimpleDataType>na</SimpleDataType><ElementDefenition>The entire disclosure for the nature of an entity's business, the major products or services it sells or provides and its principal markets, including the locations of those markets. If the entity operates in more than one business, the disclosure also indicates the relative importance of its operations in each business and the basis for the determination (for example, assets, revenues, or earnings).</ElementDefenition><ElementReferences>Reference 1: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Accounting Standards Codification

 -Topic 275

 -SubTopic 10

 -Section 50

 -Paragraph 2

 -URI http://asc.fasb.org/extlink&amp;oid=6927468&amp;loc=d3e6003-108592



Reference 2: http://www.xbrl.org/2003/role/presentationRef

 -Publisher AICPA

 -Name Statement of Position (SOP)

 -Number 94-6

 -Paragraph 10

 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.



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