Company: NSTS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001437749-25-034806
Chunk: 62

Company: NSTS Bancorp, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 1
Chunk 62
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 —   —   —   —   — 
 Recoveries   —   —   —   —   —   — 
 Net recoveries (charge-offs)   —   —   —   —   —   — 
 Provision for (release of) credit losses   70   (1)  5   20   1   95 
 Ending balance  $1,164  $39  $42  $24  $2  $1,271 

   The ACL on loans excludes $69,000 and $60,000 of allowance for off-balance sheet exposures as of  September 30, 2025 and 2024, respectively, recorded within Other Liabilities on the Consolidated Balance Sheets. Off-balance sheet exposures consist of unused lines of credit, the unused portion of construction loans and commitments to originate loans. The net provision for credit losses for the three and nine months ended  September 30, 2025 in the table above excludes a (reversal of) and a provision for credit losses of $(11,000) and $10,000, respectively, related to off balance sheet exposures. The net provision for credit losses for the three and nine months ended  September 30, 2024 in the table above excludes a provision for credit losses of $16,000 and $47,000, respectively, related to off balance sheet exposures.

       11

   As of  September 30, 2025, there were two collateral dependent loan totaling $285,000 in the one to four-family residential loan segment. These loans are collateralized by residential real estate and have no ACL as of  September 30, 2025. There were no other collateral dependent loans as of  September 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