Company: NSTS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001437749-25-034806
Chunk: 87

Company: NSTS Bancorp, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 1
Chunk 87
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 September 30, 2025, we had net income of $65,000, compared to a net loss of $171,000 for the quarter ended September 30, 2024. The change is due to an increase in interest and noninterest income, and a reversal of provision for credit losses during the current quarter. These benefits were partially offset by an increase in interest expense and noninterest expenses. For the nine months ended September 30, 2025, we had a net loss of $521,000, compared to a net loss of $743,000 for the nine months ended September 30, 2024. Similarly, the change is due to an increase in interest and noninterest income, and a reversal of provision for credit losses. These benefits were partially offset by an increase in interest expense and noninterest expenses.

Net Interest Income. Net interest income increased $116,000, to $1.9 million for quarter ended September 30, 2025. Our interest rate spread increased to 2.48% for the quarter ended September 30, 2025 from 2.39% for the quarter ended September 30, 2024. Our net interest margin increased to 3.08% for the quarter ended September 30, 2025 compared to 2.96% for the quarter ended September 30, 2024. The increase in interest rate spread and margin is driven by a reduction of higher cost other borrowings. Additionally, the Bank received a loan payoff from a previously charged-off loan, which included $30,000 in interest income.

Average interest-earning assets of $252.8 million for the quarter ended September 30, 2025 increased $5.7 million compared to $247.1 million for the quarter ended September 30, 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 a reduction in investment securities. The average outstanding balance of loans, net increased to $138.7 million for the quarter ended September 30, 2025, an increase of $3.4 million from $135.3 million for the quarter ended September 30, 2024. Additionally, the average yield earned on those loans outstanding increased 37 basis points to 5.68% for the quarter ended September 30, 2025. This increase is a result of an overall increase in market