Company: NSTS
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001437749-25-016849
Chunk: 32

Company: NSTS Bancorp, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 8
Chunk 32
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      Interest rate spread(1) 

     2.23
     %

     2.31
     %

      Net interest-earning assets(2) 
      
     $
     75,794

     $
     74,489

      Net interest margin(3) 

     2.82
     %

     2.82
     %

      Average interest-earning assets to average-interest bearing liabilities 

     141.16
     %

     144.54
     %

      (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. 

       29

COMPARISON OF OPERATING RESULTS FOR THE three months ended March 31, 2025 and 2024

General. For the quarter ended March 31, 2025, we had a net loss of $328,000, compared to a net loss of $246,000 for the quarter ended March 31, 2024. The increase in net loss for the quarter ended March 31, 2025 is due an increase in noninterest expenses, partially offset by an increase in net interest income.

Net Interest Income. Net interest income increased $126,000, to $1.9 million for quarter ended March 31, 2025 compared to $1.7 million for the quarter ended March 31, 2024. Our interest rate spread decreased to 2.23% for the quarter ended March 31, 2025 from 2.31% for the quarter ended March 31, 2024. Our net interest margin remained at 2.82% for the quarters ended March 31, 2025 and 2024. The decrease in interest rate spread 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 $259.9 million for the quarter ended March 31, 2025 increased $18.2 million compared to $241.7 million for the quarter ended March 31, 2024. The increase in average earning assets was driven by an increase in loans and interest-bearing deposits at other banks, funded by an increase in average deposit balances during the period and reduction in investment securities.