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BORROWED FUNDS

12 Months Ended

Dec. 31, 2024

NOTE 18 BORROWED FUNDS

The following table presents the breakdown of borrowed funds as of December 31, 2024 and 2023:


			Short-term Borrowings								Long-term Borrowings
			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, 2024		$	-	$	-	$	-	$	-	$	10,000	$	9,831	$	5,155	$	24,986
Highest balance at any month-end			-		-		-		10,000		10,000		11,031		5,155
Average weighted balance			-		-		-		7,486		10,000		10,749		5,155		33,390
Average interest rate:
	Paid during the year		0.00%		5.61%		0.00%		4.83%		3.51%		8.15%		7.30%		5.88%
	At year-end		0.00%		0.00%		0.00%		0.00%		3.51%		7.52%		6.69%		5.74%


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%

(a) – The Bank has the ability to borrow up to an additional $86.6 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 $196.1 million. The Bank had no overnight borrowings subject to daily rate changes from the FHLB at December 31, 2024 or 2023.

We have used our line of credit with FHLB to issue letters of credit totaling $14.0 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 consisted of $30.0 million in unsecured federal funds line of credit facilities with correspondent banks as of December 31, 2024 and 2023, 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) – A short-term, fixed rate borrowing under the FRB Bank Term Funding Program in the amount of $10.0 million at December 31, 2023, was prepaid without penalty during the fourth quarter of 2024.

(e) – As of December 31, 2024 and 2023, there was a fixed rate, FHLB advance in the amount of $10.0 million outstanding, which matures in 2028.

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 Secured Overnight Financing Rate (SOFR) plus 260 basis points. During 2024, a principal reduction of $1.2 million was paid. On January 7, 2025, a principal reduction of $3.0 million 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, 2024 (dollars in thousands):


2025	$	-
2026		-
2027		-
2028		10,000
2029		-
2030 and thereafter		14,986
	$	24,986