Company: NSTS
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001437749-25-026943
Chunk: 41

Company: NSTS Bancorp, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 41
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 represent realized losses and is due to market volatility and increased market interest rates. While the Bank does not currently intend to sell 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 $3.2 million to $4.4 million at June 30, 2025 compared to $1.2 million at December 31, 2024. The increase was primarily due an overall increase in the level of loans originated for sale during the second quarter of 2025. During the six months ended June 30, 2025, the Bank originated $38.4 million in loans held for sale. 

Loans, net. Our loans, net, increased by $2.5 million to $132.8 million at June 30, 2025 compared to $130.4 million at December 31, 2024. The Bank originated $18.2 million in loans to be held in the portfolio during the six months ended June 30, 2025 and had loan principal payments and payoffs of $15.8 million. In an effort to continue to grow loan originations, the Bank hired two additional mortgage loan originators during the six months ended June 30, 2025 and continues to look to hire additional loan officers.

As of June 30, 2025, the allowance for credit losses on loans (“ACL”) totaled $1.2 million, with a net change of approximately $1,000 during the six months ended June 30, 2025. While the balance of the ACL remained steady, the ACL as a percentage of the loans, net of unearned income decreased, driven by a reduction in peer group proxy rates. As of June 30, 2025, there were two loans individually assessed, of which neither had expected credit losses identified. The Bank actively monitors the loan portfolio for signs of weakening credit quality, noting as of June 30, 2025 the portfolio remains of high quality with limited credit concerns.

Deposits. Total deposits increased $2.8 million to $193.0 million at June 30, 2025 compared to $190.2 million at December 31, 2024. The increase primarily came in Time Deposits with customers entering the CD Special offered during the six months ended June 30, 2025. Additionally, there was a shift in funds from money market accounts to savings. Management continues