Company: NSTS
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001437749-25-016849
Chunk: 37

Company: NSTS Bancorp, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 8
Chunk 37
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 securities in a loss position, management may consider the opportunity to reposition the investment securities portfolio in the future.

Loans held for sale. Our loans held for sale increased $1.4 million to $2.6 million at March 31, 2025 compared to $1.2 million at December 31, 2024. The increase was primarily due to timing of originations and sales. The Bank originated $1.2 million of loans held for sale on March 31, 2025, which were subsequently sold on April 8, 2025. During the quarter ended March 31, 2025, the Bank originated $11.3 million in loans held for sale. 

Loans, net. Our loans, net, decreased by $116,000 to $130.2 million at March 31, 2025 compared to $130.4 million at December 31, 2024. The Bank originated $6.0 million in loans to be held in the portfolio during the quarter ended March 31, 2025 and had loan principal payments and payoffs of $6.0 million. In an effort to continue to grow loan originations, the Bank hired one additional mortgage loan originator during the quarter ended March 31, 2025 and has hired another mortgage loan originator that started in April 2025.

As of March 31, 2025, the allowance for credit losses on loans (“ACL”) totaled $1.2 million, a decrease of $45,000 compared to December 31, 2024. The decrease in the ACL is driven by a reduction in proxy rates and positive economic factors such as a lower inflation rate and stable unemployment rates. As of March 31, 2025, there were two loans individually assessed, of which neither had credit losses identified. As of March 31, 2025, the Bank had one non-accrual loan and three loans past due greater than 30 days. The Bank actively monitors the loan portfolio for signs of weakening credit quality, noting as of March 31, 2025 the portfolio remains of high quality with limited credit concerns.

Deposits. Total deposits increased $3.5 million to $193.7 million at March 31, 2025 compared to $190.2 million at December 31, 2024. As mentioned earlier, the increase in deposits was driven by one large deposit into a customer account, totaling $3.