Company: NSTS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001437749-25-034806
Chunk: 78

Company: NSTS Bancorp, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 1
Chunk 78
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 Stock Based Compensation
    
   ESOP
    
   Employees participate in an Employee Stock Ownership Plan ("ESOP"). The ESOP borrowed funds from the Company to purchase 431,836 shares of stock at $10 per share. The Bank makes discretionary contributions to the ESOP, as well as paying dividends on unallocated shares to the ESOP, and the ESOP uses funds it receives to repay the loan. When loan payments are made, ESOP shares are allocated to participants based on relative compensation. Participants receive the shares at the end of employment. Dividends on allocated shares increase participants accounts. 
    
   There were no contributions to the ESOP during the first nine months of 2025, as the annual loan payment will be made during the fourth quarter. Expense recorded was $63,000 and $52,000 for the three months ended  September 30, 2025 and 2024, respectively, and is recognized over the service period. Expense recorded was $191,000 and $154,000 for the nine months ended  September 30, 2025 and 2024, respectively, and is recognized over the service period. 
    
   Shares held by the ESOP were as follows: 

       As of September 30,  
   2025    2024  
   (Dollars in thousands)  
 Shares allocated   64,844   43,624 
 Shares committed for allocation   15,915   15,885 
 Shares distributed to plan participants   (3,625)  — 
 Unallocated   351,077   372,327 
 Total ESOP shares   428,211   431,836 
         
 Fair value of unearned shares as of September 30, 2025 and 2024, respectively  $4,051  $3,854 

   Fair value of unearned shares is based on a stock price of $11.54 and $10.35 as of  September 30, 2025 and 2024, respectively. 
    
   Equity Incentive Plan
    
   At the Company's annual meeting of stockholders held on  May 24, 2023, stockholders approved the NSTS Bancorp, Inc. 2023 Equity Incentive Plan (“2023 Equity Plan”), which provides for the granting of up to 755,714 shares (215,918 shares