Company: NSTS
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001437749-25-026943
Chunk: 64

Company: NSTS Bancorp, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 64
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1,176 
 Charge-offs   —   —   —   —   —   — 
 Recoveries   —   —   —   —   —   — 
 Net recoveries (charge-offs)   —   —   —   —   —   — 
 Provision for (release of) credit losses   71   (4)  4   20   —   91 
 Ending balance  $1,165  $36  $41  $24  $1  $1,267 

   The ACL on loans excludes $80,000 and $45,000 of allowance for off-balance sheet exposures as of  June 30, 2025 and 2024, respectively, recorded within Other Liabilities on the Consolidated Balance Sheets. The net provision for credit losses for the three and six months ended  June 30, 2025 in the table above excludes a provision for credit losses of $13,000 and $21,000, respectively, related to off balance sheet exposures. The net provision for credit losses for the three and six months ended  June 30, 2024 in the table above excludes a provision for credit losses of $33,000 and $31,000, respectively, related to off balance sheet exposures.

       11

   As of  June 30, 2025, there were two collateral dependent loan totaling $287,000 in the one to four-family residential loan segment. These loans are collateralized by residential real estate and have no ACL as of  June 30, 2025. There were no other collateral dependent loans as of  June 30, 2025. There were no collateral dependent loans as of  December 31, 2024. 
    
   The Bank evaluates collectability based on payment activity and other factors. The Bank uses a graded loan rating system as a means of identifying potential problem loans, as follows:
    
   Pass
   Loans in these categories are performing as expected with low to average risk.
    
   Special Mention
   Loans in this category are internally designated by management as “watch loans.” These loans are starting to show signs of potential weakness and are closely monitored by management.
    
   Substandard
   Loans in this category are internally designated by management as “substandard.” Generally, a loan is considered sub