Company: NSTS
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001437749-25-026943
Chunk: 34

Company: NSTS Bancorp, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 34
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 2.87
     %

      Average interest-earning assets to average-interest bearing liabilities 

     141.15
     %

     144.08
     %

     (1)
     Equals the difference between the yield on average earning-assets and the cost of average interest-bearing liabilities.

     (2)
     Equals total interest-earning assets less total interest-bearing liabilities.

     (3)
     Equals net interest income divided by average interest-earning assets.

       31

COMPARISON OF OPERATING RESULTS FOR THE three and six months ended June 30, 2025 and 2024

General. For the quarter ended June 30, 2025, we had a net loss of $258,000, compared to a net loss of $326,000 for the quarter ended June 30, 2024. The decrease in net loss for the quarter ended June 30, 2025 is due an increase in interest and noninterest income, partially offset by an increase in interest expense and noninterest expenses. For the six months ended June 30, 2025, we had a net loss of $586,000, compared to a net loss of $572,000 for the six months ended June 30, 2024. The increase in interest and noninterest income was offset by the increase in interest expense and noninterest expenses.

Net Interest Income. Net interest income increased $20,000, to $1.8 million for quarter ended June 30, 2025. Our interest rate spread decreased to 2.19% for the quarter ended June 30, 2025 from 2.36% for the quarter ended June 30, 2024. Our net interest margin decreased to 2.77% for the quarter ended June 30, 2025 compared to 2.92% for the quarter ended June 30, 2024. The decrease in interest rate spread and margin is driven by an increased average balance of higher earning interest-bearing liabilities, specifically interest-bearing deposits, as a percentage of total assets.

Average interest-earning assets of $260.7 million for the quarter ended June 30, 2025 increased $15.6 million compared to $245.1 million for the quarter ended June 30, 2024. The increase in average earning assets was driven by an increase in interest-bearing deposits at other banks, funded by an increase in average deposit balances during the period and reduction in investment securities. The average outstanding balance