NEW INDEPENDENT BANCSHARES, INC. AND SUBSIDIARY Notes to the Consolidated Financial Statements
NOTE 11. BORROWINGS( Continued)
The Bank also has a security agreement for federal funds secured lines of credit. As of December 31, 2025 and 2024, there were $ 33M of securities pledged toward, and an available line of credit of $ 26.8M. There were no outstanding balances on this line of credit.
The Company entered into a loan agreement on November 17, 2025. The loan agreement includes a revolving note and a term note. The loan agreement is secured by 80,000 shares of common stock in New Washington State Bank. Total assets of the Bank as of December 31, 2025, was $ 763M. The loan agreement includes a financial covenants rider that states the 1) the Bank should maintain a return on assets of not less than. 50 %; 2) the Bank shall not allow nonperforming assets to exceed 2.25 % of total assets; 3) the Company and the Bank shall be " well-capitalized " at all times; and 4) the Company and the Bank shall maintain sufficient minimum liquidity and capital requirements at all times. As of December 31, 2025, the Company and the Bank are in compliance with these financial covenants.
The revolving note is for $ 3,000,000 and matures on November 16, 2026, had no balance outstanding as of December 31, 2025. Interest is computed using the greater of prime rate minus. 5 % or 4 %, using a 360 day year. Accrued interest will be paid quarterly commencing on January 15, 2026, and continuing each successive quarter. Any unpaid principal and interest is due at final maturity of the note.
The term note is for $ 9,625,000 and matures November 17, 2032. Accrued interest on this note shall be paid quarterly commencing on January 15, 2026, and continuing each quarter thereafter until final maturity. Principal payments of $ 481,250 will be paid quarterly commencing on January 15, 2028 and continuing each quarter thereafter until final maturity.
NOTE 12.
NONINTEREST INCOME
The following is detail of other operating income including a disaggregation of revenue from contracts with customers and other revenue for the year ended December 31:
Noninterest Income
In-Scope of Topic 606 Service Charges on Deposit Accounts Card and Processing Fees Other Operating Income Noninterest Income( in-scope of Topic 606) Noninterest Income( out-of-scope of Topic 606)
Total Noninterest Income
2025 2024
$ |
747,647 |
$ |
780,224 |
|
1,433,249 |
|
1,442,785 |
|
295,973 |
|
( 678,557) |
|
2,476,869 |
|
1,544,452 |
|
784,753 |
|
2,904,434 |
$ |
3,261,622 |
$ |
4,448,886 |
2025 NWSB Annual Report | 47