Note 10 - Restrictions on Dividends

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Restrictions on Dividends, Loans and Advances [Text Block]

Note

1

0:

 Restrictions on Dividends

The Company’s principal source of funds for dividend payments is dividends received from its subsidiary bank. For the years ended

December 31, 2019,

2018

and

2017,

dividends received from the subsidiary bank were

$28,556,

$9,419

and

$8,141,

respectively.

Substantially all of NBI’s retained earnings are undistributed earnings of its sole banking subsidiary, which are restricted by various regulations administered by federal bank regulatory agencies. Bank regulatory agencies restrict, unless prior approval is obtained, the total dividend payments of a bank in any calendar year to the bank’s retained net income of that year to date, as defined, combined with its retained net income of the preceding

two

years, less any required transfers to surplus. At

December 31, 2019,

NBB’s retained net income, which was free of such restriction, amounted to approximately

$3,347.