Company: NSTS
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001437749-25-009831
Chunk: 371

Company: NSTS Bancorp, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 16
Chunk 371
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 Such securities are classified in Level 2 of the valuation hierarchy. In certain cases where Level 1 or Level 2 inputs are not available, securities would be classified within Level 3 of the hierarchy.
    
   Individually Evaluated (Nonrecurring) 
   Individually evaluated loans are recorded at fair value on a nonrecurring basis. The fair value of loans is generally based on recent real estate appraisals. These appraisals  may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral  may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Individually evaluated loans are evaluated on a quarterly basis for additional credit losses and adjusted accordingly. 
    
   The following table presents the Bank’s assets that are measured at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy as of  December 31, 2024 and 2023:

       Fair Value Measurements Using  
   Fair Value    Level 1    Level 2    Level 3  
  (Dollars in thousands) 
 December 31, 2024                 
 Securities Available-for-sale                 
 U.S. government agency obligations  $8,657  $—  $8,657  $— 
 Municipal obligations   11,736   —   11,736   — 
 Mortgage-backed residential obligations   25,915   —   25,915   — 
 Collateralized mortgage obligations   24,941   —   24,941   — 
 Total  $71,249  $—  $71,249  $— 
 December 31, 2023                 
 Securities Available-for-sale                 
 U.S. Treasuries  $2,973  $2,973  $—  $—