Company: NSTS
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001437749-25-009831
Chunk: 850

Company: NSTS Bancorp, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 6
Chunk 850
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 %

     -200

     77,262

     5,573

     7.8
     %

     26.7
     %

     0.4
     %

Net Interest Income Analysis. In addition to modeling changes in NPV, we also analyze potential changes to net interest income (“NII”) for a 12-month period under rising and falling interest rate scenarios. The following table shows our NII model as of December 31, 2024.

      Change in Interest 

      Rates in Basis Points 

      Net Interest 

      (Rate Shock) 

      Income 

      $ Change 

      % Change 

      (Dollars in thousands) 

      300bp 

     $
     7,102

     $
     173

     2.5
     %

     200

     7,186

     257

     3.7
     %

     100

     7,127

     198

     2.9
     %

      Static 

     6,929

     —

     0.0
     %

     -100

     6,585

     (344
     )

     (5.0
     )%

     -200

     6,245

     (684
     )

     (9.9
     )%

The table above indicates that as of December 31, 2024, in the event of an immediate and sustained 300 basis point increase in interest rates, our net interest income for the twelve months ending December 31, 2025 would be expected to increase by $173,000, or 2.5% to $7.1 million.

Certain shortcomings are inherent in the methodologies used in the above interest rate risk measurements. Modeling changes require making certain assumptions that may or may not reflect the manner in which actual yields and costs respond to changes in market interest rates. The above table assumes that the composition of our interest sensitive assets and liabilities existing at the date indicated remains constant uniformly across the yield curve regardless of the duration or repricing of specific assets and liabilities. Accordingly, although the table provides an indication of our interest rate risk exposure at a particular point in time, such measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates on our NPV and will differ from actual results.

      37

Liquidity and Capital Resources

North Shore Trust and Savings maintains levels of liquid assets