On September 20, 2012, New Peoples Bankshares, Inc. ("Company") announced that on September 19, 2012, with regulatory approval, the Company converted loans totaling $5.45 million (director loans), plus accrued interest totaling $271.8 thousand, previously made to the Company by two Company directors, Harold Lynn Keene and B. Scott White, into 3,814,519 shares of common stock and warrants to purchase 762,903 shares of common stock. The conversions were effected pursuant to the terms and conditions of two convertible note payables, dated June 27, 2012. The notes would have been due and payable on December 31, 2012. The conversions have been conducted in accordance with the terms, including the price per share and the same rights, as offered in the common stock offering currently expected to expire on October 15, 2012. Director White received 1,959,889 shares and warrants for 391,977 shares, and Director Keene received 1,854,630 shares and warrants for 370,926 shares. Further information on the convertible notes payable may be found in the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on June 29, 2012. Further information related to the common stock offering may be found in the Company's Form S-1 registration statement, as amended, initially filed with the Securities and Exchange Commission on March 29, 2012.

A copy of the Company's press release, dated September 20, 2012, is attached as Exhibit 99.1 hereto and is incorporated herein by reference.

(d) Exhibits

Exhibit 10.1   Convertible Note Payable, B. Scott White, dated June 27, 2012
               (incorporated by reference to Exhibit 10.1 to Form 8-K filed
               June 29, 2012).

Exhibit 10.2   Convertible Note Payable, Harold Lynn Keene, dated June 27, 2012
               (incorporated by reference to Exhibit 10.2 to Form 8-K filed June
               29, 2012).

Exhibit 99.1   Press release dated September 20, 2012.