TRUST PREFERRED SECURITIES

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

TRUST PREFERRED SECURITIES

NOTE 21 TRUST PREFERRED SECURITIES

The following table details the subordinated debt transactions outstanding:

						December 31,
	Shares	12/31/2017		Maturity
	Issued	Interest Rate	Interest Rate (1)	Date		2017		2016
						(Dollars in thousands)
NPB Capital Trust I	341	3.96%	3 Month LIBOR plus 2.60%	7/7/2034	$	11,341	$	11,341
NPB Capital Trust 2	155	3.13%	3 Month LIBOR plus 1.77%	10/7/2036		5,155		5,155
					$	16,496	$	16,496

(1) Interest rate on both NPB Capital Trust I and NPB Capital Trust 2 are a floating rate, which resets quarterly.

Under the terms of the subordinated debt transactions, the securities have a 30-year maturity and are redeemable, in whole or in part, without penalty, at the option of the Company after five years of the issuance date. Due to the ability to defer interest and principal payments for 60 months without being considered in default, the regulatory agencies consider the trust preferred securities as Tier 1 capital up to certain limits. The Company is currently not deferring the quarterly interest payments on the trust preferred securities.