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BORROWED FUNDS

12 Months Ended

Dec. 31, 2023

NOTE 18 BORROWED FUNDS

The following table presents the breakdown of borrowed funds as of December 31, 2023 and 2022:

Schedule of breakdown of borrowed funds

			FHLB Revolving Advances		Federal Funds Lines		FHLB Term Loans Short-Term		FRB Term Funding Program		FHLB Term Loans Long-Term		NPB Capital Trust I		NPB Capital Trust 2		Total
			(a)		(b)		(a) (c)		(d)		(a) (e)
(Dollars in thousands)
Balance December 31, 2023		$	-	$	-	$	-	$	10,000	$	10,000	$	11,031	$	5,155	$	36,186
Highest balance at any month-end			-		-		-		10,000		10,000		11,341		5,155
Average weighted balance			384		-		-		110		6,630		11,271		5,155		23,550
Average interest rate:
	Paid during the year		4.96%		6.00%		0.00%		4.83%		3.51%		8.04%		7.20%		6.51%
	At year-end		0.00%		0.00%		0.00%		4.83%		3.51%		8.26%		7.43%		5.88%


Balance December 31, 2022		$	-	$	-	$	-	$	-	$	-	$	11,341	$	5,155	$	16,496
Highest balance at any month-end			-		-		60,000		-		-		11,341		5,155
Average weighted balance			863		-		19,507		-		-		11,341		5,155		36,866
Average interest rate:
	Paid during the year		1.68%		0.00%		2.48%		0.00%		0.00%		4.63%		3.79%		3.31%
	At year-end		0.00%		0.00%		0.00%		0.00%		0.00%		6.68%		5.85%		6.42%

(a) - The Bank has the ability to borrow up to an additional $96.9 million from FHLB under a line of credit which is secured by a blanket lien on residential real estate loans. With additional collateral, the Bank’s total credit availability would be $178.1 million. The Bank had no overnight borrowings subject to daily rate changes from the FHLB at December 31, 2023 or 2022.

We have used our line of credit with FHLB to issue letters of credit totaling $12.0 million to the Treasury Board of Virginia for collateral on public funds deposited in the Bank. No draws on the letters of credit have been issued. The letters of credit are considered draws on our FHLB line of credit.

(b) - Federal funds lines consist of $30.0 million in unsecured federal funds line of credit facilities with correspondent banks as of December 31, 2023 and 2022, respectively exclusive of any outstanding balance. The Company did not borrow from the lines other than to test the ability to access the lines.

(d) – As of December 31, 2023, there is a short-term, fixed rate borrowing outstanding under the FRB Bank Term Funding Program in the amount of $10.0 million. The loan matures December 28, 2024 and can be prepaid without penalty.

(e) – As of December 31, 2023, there is a fixed rate, FHLB advance in the amount of $10.0 million outstanding, which matures in 2028. There were no long term FHLB advances outstanding as of December 31, 2022.

TPS I - On July 7, 2004, the Company completed the issuance of $11.3 million in floating rate trust preferred securities, maturing July 7, 2034, offered by its wholly owned subsidiary, NPB Capital Trust I (TPS I). The rate is determined quarterly and floats based on the 3-month SOFR plus 260 basis points. During 2023, a principal reduction of $310 thousand was paid.

TPS 2 - On September 27, 2006, the Company completed the issuance of $5.2 million in floating rate trust preferred securities, maturing October 7, 2036, offered by its wholly owned subsidiary, NPB Capital Trust 2 (TPS 2). The rate is determined quarterly and floats based on the 3-month SOFR plus 177 basis points.

Under the terms of the subordinated debt transactions, the securities have 30-year maturities and are redeemable, in whole or in part, without penalty, at the option of the Company after five years from the issuance date, and on a quarterly basis thereafter.

Following are maturities of borrowed funds as of December 31, 2023 (dollars in thousands):

Schedule of maturities of borrowed funds


2024	$	10,000
2025		-
2026		-
2027		-
2028		10,000
2029 and thereafter		16,186
	$	36,186