10q10k10q10k.net

What changed in NSTS Bancorp, Inc.'s 10-K — 2023 vs 2024

vs

Paragraph-level year-over-year comparison of NSTS Bancorp, Inc.'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+296 added−298 removedSource: 10-K (2025-03-28) vs 10-K (2024-03-28)

Top changes in NSTS Bancorp, Inc.'s 2024 10-K

296 paragraphs added · 298 removed · 213 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

147 edited+45 added−21 removed174 unchanged
Biggest changeOur market area consists of Lake County, Cook County and Will County which are located in Illinois, and Kenosha County which is located in Wisconsin. The largest employers in Lake County are pharmaceutical and healthcare companies, including Abbott Laboratories, AbbVie, and Baxter International. The largest employers in Cook County are government entities, including the U.S.
Biggest changeThe largest employers in Lake County are pharmaceutical and healthcare companies, including Abbott Laboratories, AbbVie, and Baxter International. The largest employers in Cook County are government entities, including the U.S. Government, Chicago Public Schools, and the City of Chicago. Will County's largest employers include Amazon and the local school district. Kenosha County’s largest employers include Amazon, Uline, and Snap-on.
Our policy is to obtain an appraisal on real estate subject to foreclosure proceedings prior to the time of foreclosure. We obtain re-appraisals on a periodic basis, generally on at least an annual basis, on foreclosed properties. We also conduct inspections on foreclosed properties. We account for our problem and potential problem loans in accordance with generally accepted accounting principles.
Prior to the time of foreclosure, our policy is to obtain an appraisal on real estate subject to foreclosure proceedings. We obtain re-appraisals on a periodic basis, generally on at least an annual basis, on foreclosed properties. We also conduct inspections on foreclosed properties. We account for our problem and potential problem loans in accordance with generally accepted accounting principles.
In part, CIRCIA requires the CISA to develop and issue regulations requiring covered entities to report to the CISA within 72 hours from the time an entity reasonably believes a covered cyber incident occurred and within 24 hours of making any ransom payments made as a result of a ransomware attack.
In part, CIRCIA requires CISA to develop and issue regulations requiring covered entities to report to CISA within 72 hours from the time an entity reasonably believes a covered cyber incident occurred and within 24 hours of making any ransom payments made as a result of a ransomware attack.
Under the final rule, federal agencies will evaluate small banks (i.e., those with assets of less than $600 million as of December 31 in either of the prior two calendar years), such as North Shore Trust and Savings, under either the current small bank test, referred to in the final rule as the Small Bank Lending Test or, at the Bank's option, the new "Retail Lending Test," however, banks of all sizes will maintain the option to elect to be evaluated under a strategic plan with the final rule updating the standards for obtaining approval for such plan.
Under the final rule, federal agencies will evaluate small banks (i.e., those with assets of less than $600.0 million as of December 31 in either of the prior two calendar years), such as North Shore Trust and Savings, under either the current small bank test, referred to in the final rule as the Small Bank Lending Test or, at the Bank's option, the new "Retail Lending Test," however, banks of all sizes will maintain the option to elect to be evaluated under a strategic plan with the final rule updating the standards for obtaining approval for such plan.
Change in Control Regulations Under the Change in Bank Control Act, no person may acquire “control” of a savings and loan holding company, such as NSTS Bancorp, Inc., unless the Federal Reserve Board has been given 60 days’ prior written notice and has not issued a notice disapproving the proposed acquisition, taking into consideration certain factors, including the financial and managerial resources of the acquirer and the competitive effects of the acquisition.
Change in Control Regulations Under the Change in Bank Control Act, no person may acquire "control" of a savings and loan holding company, such as NSTS Bancorp, Inc., unless the Federal Reserve Board has been given 60 days' prior written notice and has not issued a notice disapproving the proposed acquisition, taking into consideration certain factors, including the financial and managerial resources of the acquirer and the competitive effects of the acquisition.
NSTS Bancorp, Inc. could remain an “emerging growth company” for up to five years following its intital public offering in 2022, or until the earliest of (a) the last day of the first fiscal year in which our annual gross revenues exceed $1.235 billion, (b) the date that we become a “large accelerated filer” as defined in Rule 12b-2 under the Exchange Act, which would occur if the market value of our common stock that is held by non-affiliates exceeds $700.0 million as of the last business day of our most recently completed second fiscal quarter, or (c) the date on which we have issued more than $1.0 billion in non-convertible debt during the preceding three-year period.
NSTS Bancorp, Inc. could remain an “emerging growth company” for up to five years following its initial public offering in 2022, or until the earliest of (a) the last day of the first fiscal year in which our annual gross revenues exceed $1.235 billion, (b) the date that we become a “large accelerated filer” as defined in Rule 12b-2 under the Exchange Act, which would occur if the market value of our common stock that is held by non-affiliates exceeds $700.0 million as of the last business day of our most recently completed second fiscal quarter, or (c) the date on which we have issued more than $1.0 billion in non-convertible debt during the preceding three-year period.
On November 16, 2023, the FDIC approved a final rule to implement a special assessment on certain banking organizations with financial institution subsidiaries with more than $5 billion in assets, in order to recover the costs associated with protecting uninsured depositors following the closures of Silicon Valley Bank and Signature Bank in March 2023.
On November 16, 2023, the FDIC approved a final rule to implement a special assessment on certain banking organizations with financial institution subsidiaries with more than $5.0 billion in assets, in order to recover the costs associated with protecting uninsured depositors following the closures of Silicon Valley Bank and Signature Bank in March 2023.
A less than satisfactory rating may also prevent a financial institution, such as North Shore Trust and Savings or its holding company, NSTS Bancorp, Inc., from obtaining necessary regulatory approvals to access the capital markets, pay dividends, acquire other financial institutions or establish new branches.
A less than satisfactory CAMELS rating may also prevent a financial institution, such as North Shore Trust and Savings or its holding company, NSTS Bancorp, Inc., from obtaining necessary regulatory approvals to access the capital markets, pay dividends, acquire other financial institutions or establish new branches.
Assessments for institutions of less than $10 billion of assets are based on financial measures and supervisory ratings derived from statistical modeling estimating the probability of an institution’s failure within three years. 22 Table of Contents The FDIC has authority to increase insurance assessments.
Assessments for institutions of less than $10.0 billion of assets are based on financial measures and supervisory ratings derived from statistical modeling estimating the probability of an institution's failure within three years. 22 Table of Contents The FDIC has authority to increase insurance assessments.
Department of Homeland Security's Cybersecurity and Infrastructure Security Agency (the "CISA") to develop and implement regulations requiring covered entities to report covered cyber incidents and ransomware payments to the CISA in an effort to better equip the CISA to provide resources and assistance to victims suffering attacks and share information necessary to warn other potential victims.
Department of Homeland Security's Cybersecurity and Infrastructure Security Agency ("CISA") to develop and implement regulations requiring covered entities to report covered cyber incidents and ransomware payments to CISA in an effort to better equip CISA to provide resources and assistance to victims suffering attacks and share information necessary to warn other potential victims.
Federal regulations require federally insured depository institutions to meet several minimum capital standards: a common Tier 1 capital to risk-based assets ratio of 4.5%, a Tier 1 capital to risk-based assets ratio of 6.0%, a total capital to risk-based assets ratio of 8.0%, and a 4.0% Tier 1 capital to total assets (known as the "leverage ratio").
Federal regulations require federally insured depository institutions to meet several minimum capital standards: a common Tier 1 capital to risk-based assets ratio of 4.5%, a Tier 1 capital to risk-based assets ratio of 6%, a total capital to risk-based assets ratio of 8%, and a 4% Tier 1 capital to total assets (known as the "leverage ratio").
We also established a loan production office in Chicago, Illinois in 2016 to originate loans outside of our branch network in a more densely populated metropolitan area, which we believe benefits us geographically.
We established a loan production office in Chicago, Illinois in 2016 to originate loans outside of our branch network in a more densely populated metropolitan area, which we believe benefits us geographically.
The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: ● general economic conditions, either nationally or in our market areas, that are different than expected; ● changes in the level and direction of loan delinquencies and charge-offs and changes in estimates of the adequacy of the allowance for credit losses; ● fluctuations in real estate values and both residential and commercial real estate market conditions; ● inflation and changes in the interest rate environment that reduce our margins and yields, reduce the fair value of financial instruments or reduce the origination levels in our lending business, or increase the level of defaults, losses and prepayments on loans; ● our ability to manage our liquidity and to access cost-effective funding, including significant fluctuations in our deposit accounts; ● major catastrophes such as tornadoes, floods or other natural disasters, as well as public health emergencies and pandemics, the related disruption to local, regional and global economic activity and financial markets, and the impact that any of the foregoing may have on us and our customers and other constituencies; ● further data processing and other technological changes that may be more difficult or expensive than expected; ● success or consummation of new business initiatives may be more difficult or expensive than expected; ● interruptions involving information technology and communications systems of service providers; ● breaches or failures of information security controls or cyber-related incidents; ● demand for loans and deposits in our market area; ● our ability to continue to implement our business strategies; ● competition among depository and other financial institutions; ● adverse changes in the securities markets; 2 Table of Contents ● changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements; ● our ability to manage market risk, credit risk and operational risk in the current economic conditions; ● our ability to enter new markets successfully and capitalize on growth opportunities; ● our ability to successfully integrate any assets, liabilities, customers, systems and management personnel we may acquire into our operations and our ability to realize related revenue synergies and cost savings within expected time frames and any goodwill charges related thereto; ● changes in consumer spending, borrowing and savings habits; ● changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission or the Public Company Accounting Oversight Board; ● our ability to hire and retain key employees and our reliance on our executive officers; and ● our compensation expense associated with equity allocated or awarded to our employees.
The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: ● general economic conditions, either nationally or in our market areas, that are different than expected; ● changes in the level and direction of loan delinquencies and charge-offs and changes in estimates of the adequacy of the allowance for credit losses; ● fluctuations in real estate values and both residential and commercial real estate market conditions; ● inflation and changes in the interest rate environment that reduce our margins and yields, reduce the fair value of financial instruments or reduce the origination levels in our lending business, or increase the level of defaults, losses and prepayments on loans; ● our ability to manage our liquidity and to access cost-effective funding, including significant fluctuations in our deposit accounts; ● major catastrophes such as tornadoes, floods or other natural disasters, as well as public health emergencies and pandemics, the related disruption to local, regional and global economic activity and financial markets, and the impact that any of the foregoing may have on us and our customers and other constituencies; ● further data processing and other technological changes that may be more difficult or expensive than expected; ● success or consummation of new business initiatives may be more difficult or expensive than expected; ● interruptions involving information technology and communications systems of service providers; ● breaches or failures of information security controls or cyber-related incidents; ● demand for loans and deposits in our market area; ● our ability to continue to implement our business strategies; ● competition among depository and other financial institutions; ● adverse changes in the securities markets; 1 Table of Contents ● changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements, especially in light of the new United States presidential administration; ● our ability to manage market risk, credit risk and operational risk in the current economic conditions; ● our ability to enter new markets successfully and capitalize on growth opportunities; ● our ability to successfully integrate any assets, liabilities, customers, systems and management personnel we may acquire into our operations and our ability to realize related revenue synergies and cost savings within expected time frames and any goodwill charges related thereto; ● changes in consumer spending, borrowing and savings habits; ● changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission or the Public Company Accounting Oversight Board; ● our ability to hire and retain key employees and our reliance on our executive officers; and ● our compensation expense associated with equity allocated or awarded to our employees.
We will actively monitor the performance of such loans made in the future through the receipt of regular reports from the lead lender regarding the loan’s performance, physically inspecting the loan security property on a periodic basis, discussing the loan with the lead lender on a regular basis and receiving copies of updated financial statements from the borrower. 6 Table of Contents Loan Originations and Sales The following table shows our total loans originated, purchased, sold and repaid during the periods indicated.
We will actively monitor the performance of such loans made in the future through the receipt of regular reports from the lead lender regarding the loan’s performance, physically inspecting the loan security property on a periodic basis, discussing the loan with the lead lender on a regular basis and receiving copies of updated financial statements from the borrower. 5 Table of Contents Loan Originations and Sales The following table shows our total loans originated, purchased, sold and repaid during the periods indicated.
Treasury obligations, securities of various federal agencies and of state and municipal governments, time deposits at federally insured banks and savings institutions, corporate debt obligations and federal funds. Our investment strategy is established by the board of directors. At December 31, 2023 2022 Amortized Market Amortized Market Cost Value Cost Value (Dollars in thousands) Securities available-for-sale U.S.
Treasury obligations, securities of various federal agencies and of state and municipal governments, time deposits at federally insured banks and savings institutions, corporate debt obligations and federal funds. Our investment strategy is established by the board of directors. At December 31, 2024 2023 Amortized Market Amortized Market Cost Value Cost Value (Dollars in thousands) Securities available-for-sale U.S.
An additional amount may be loaned, equal to 10% of unimpaired capital and surplus, if the excess is secured by readily marketable collateral, which generally does not include real estate. As of December 31, 2023, North Shore Trust and Savings was in compliance with the loans-to-one borrower limitations. Capital Distributions .
An additional amount may be loaned, equal to 10% of unimpaired capital and surplus, if the excess is secured by readily marketable collateral, which generally does not include real estate. As of December 31, 2024, North Shore Trust and Savings was in compliance with the loans-to-one borrower limitations. Capital Distributions .
Available-for-sale securities are accounted for at fair value, with unrealized gains and losses on these securities, net of income tax provisions, reflected as accumulated other comprehensive income. At December 31, 2023 , all securities were classified as securities available for sale. At December 31, 2023 , we had no investments in a single issuer other than securities issued by U.S.
Available-for-sale securities are accounted for at fair value, with unrealized gains and losses on these securities, net of income tax provisions, reflected as accumulated other comprehensive income. At December 31, 2024 , all securities were classified as securities available for sale. At December 31, 2024 , we had no investments in a single issuer other than securities issued by U.S.
These modifications are made only when a workout plan has been agreed to by the borrower that we believe is reasonable and attainable and in our best interests. There were no modifications on loans to borrowers experiencing financial difficulty during the years ended December 31, 2023 and 2022. Delinquent Loans .
These modifications are made only when a workout plan has been agreed to by the borrower that we believe is reasonable and attainable and in our best interests. There were no modifications on loans to borrowers experiencing financial difficulty during the years ended December 31, 2024 and 2023. Delinquent Loans .
The following table shows the scheduled contractual maturities of our loans as of December 31, 2023 , before giving effect to net deferred loan costs and the allowance for credit losses. Demand loans, loans having no stated schedule of repayments and no stated maturity, and overdrafts are reported as due in one year or less.
The following table shows the scheduled contractual maturities of our loans as of December 31, 2024 , before giving effect to net deferred loan costs and the allowance for credit losses. Demand loans, loans having no stated schedule of repayments and no stated maturity, and overdrafts are reported as due in one year or less.
The second final rule provides that such CDD requirements could include anti-money laundering and countering the financing of terrorism obligations set forth under the BSA (e.g., anti-money laundering program, customer identification, suspicious activity reports filing and enhanced due diligence requirements) and compliance with the OFAC sanctions.
The second final rule provides that such CDD requirements could include anti-money laundering ("AML") and countering the financing of terrorism (“CFT”) obligations set forth under the BSA (e.g., anti-money laundering program, customer identification, suspicious activity reports filing and enhanced due diligence requirements) and compliance with the OFAC sanctions.
NSTS Bancorp, Inc. may hire additional employees, as appropriate, to the extent it expands its business in the future. 3 Table of Contents North Shore Trust and Savings North Shore Trust and Savings, a federally-chartered stock savings institution, was established in 1921 as North Shore Building and Loan, an Illinois-chartered institution.
NSTS Bancorp, Inc. may hire additional employees, as appropriate, to the extent it expands its business in the future. 2 Table of Contents North Shore Trust and Savings North Shore Trust and Savings, a federally-chartered stock savings institution, was established in 1921 as North Shore Building and Loan, an Illinois-chartered institution.
The Federal Reserve Board has promulgated regulations implementing the “source of strength” doctrine that require holding companies, including savings and loan holding companies, to act as a source of strength to their subsidiary depository institutions by providing capital, liquidity and other support in times of financial stress.
The Federal Reserve Board has promulgated regulations implementing the "source of strength" doctrine that require holding companies, including savings and loan holding companies, to act as a source of strength to their subsidiary depository institutions by providing capital, liquidity and other support in times of financial stress.
At December 31, 2023 , none of our commercial real estate or multi-family loans were delinquent more than 30 days, nor were any on non-accrual. We have had no charge-offs of commercial real estate and multi-family residential loans for the years ended December 31, 2023 and 2022 .
At December 31, 2024 , none of our commercial real estate or multi-family loans were delinquent more than 30 days, nor were any on non-accrual. We have had no charge-offs of commercial real estate and multi-family residential loans for the years ended December 31, 2024 and 2023 .
Such authority is subject to OCC approval for new branches. 21 Table of Contents Prompt Corrective Action . Federal law requires, among other things, that federal bank regulators take “prompt corrective action” with respect to institutions that do not meet minimum capital requirements.
Such authority is subject to OCC approval for new branches. 21 Table of Contents Prompt Corrective Action . Federal law requires, among other things, that federal bank regulators take "prompt corrective action" with respect to institutions that do not meet minimum capital requirements.
Applications for one to four-family residential mortgage loans are accepted at any of our banking offices for processing, which consists primarily of obtaining all documents required to complete the underwriting, which includes making a determination whether the loan meets our underwriting standards.
Applications for one to four-family residential mortgage loans are accepted at any of our banking offices for processing, which consists primarily of obtaining all documents required to complete the underwriting, and making a determination whether the loan meets our underwriting standards.
The fair values are expected to recover as the securities approach their maturity dates. The following table sets forth the amount of investment securities which mature during each of the periods indicated and the weighted average yields for each range of maturities as of December 31, 2023 .
The fair values are expected to recover as the securities approach their maturity dates. The following table sets forth the amount of investment securities which mature during each of the periods indicated and the weighted average yields for each range of maturities as of December 31, 2024 .
Effective July 1, 2019, the OCC issued a final rule, pursuant to a provision of the Economic Growth Regulatory Relief and Consumer Protection Act (“EGRRCPA”), that permits a federal savings association to elect to exercise national bank powers without converting to a national bank charter.
Effective July 1, 2019, the OCC issued a final rule, pursuant to a provision of the Economic Growth Regulatory Relief and Consumer Protection Act ("EGRRCPA"), that permits a federal savings association to elect to exercise national bank powers without converting to a national bank charter.
While the final rule formally takes effect on April 1, 2024, the majority of its provisions have a compliance date of January 1, 2026. The final rule implements a revised regulatory framework that, like the current framework, is based on bank asset size and business model.
While the final rule formally took effect on April 1, 2024, the majority of its provisions have a compliance date of January 1, 2026. The final rule implements a revised regulatory framework that, like the current framework, is based on bank asset size and business model.
The principal requirements for an insured depository institution include (i) establishment of an anti-money laundering program that includes training and audit components, (ii) establishment of a “know your customer” program involving due diligence to confirm the identities of persons seeking to open accounts and to deny accounts to those persons unable to demonstrate their identities, (iii) the filing of currency transaction reports for deposits and withdrawals of large amounts of cash, (iv) additional precautions for accounts sought and managed for non-U.S. persons and (v) verification and certification of money-laundering risk with respect to private banking and foreign correspondent banking relationships.
The principal requirements for an insured depository institution include (i) establishment of an anti-money laundering program that includes training and audit components, (ii) establishment of a "know your customer" program involving due diligence to confirm the identities of persons seeking to open accounts and to deny accounts to those persons unable to demonstrate their identities, (iii) the filing of currency transaction reports for deposits and withdrawals of large amounts of cash, (iv) additional precautions for accounts sought and managed for non-U.S. persons and (v) verification and certification of money-laundering risk with respect to private banking and foreign correspondent banking relationships.
The two largest commercial real estate loans outstanding were $1.7 million and $1.2 million, and both loans were paying in accordance with all of their contractual terms. Although terms for commercial real estate and multi-family residential loans vary, our underwriting standards generally allow for terms not exceeding 30 years and loan-to-value ratios of not more than 75%.
The two largest commercial real estate loans outstanding were $1.6 million and $1.1 million, and both loans were paying in accordance with all of their contractual terms. Although terms for commercial real estate and multi-family residential loans vary, our underwriting standards generally allow for terms not exceeding 30 years and loan-to-value ratios of not more than 75%.
These commercial real estate loans included 13 loans secured primarily by investor properties, which include multiple one to four-family residences. Additionally, North Shore Trust and Savings has two commercial real estate loans secured by retail frontage.
These commercial real estate loans included 14 loans secured primarily by investor properties, which include multiple one to four-family residences. Additionally, North Shore Trust and Savings has two commercial real estate loans secured by retail frontage.
The following table shows certain information regarding our borrowings at or for the dates indicated: At or For the Year Ended December 31, 2023 2022 (Dollars in thousands) FHLB of Chicago advances and other borrowings: Average balance outstanding $ 3,461 $ 1,945 Maximum amount outstanding at any month-end during the period 15,000 5,000 Balance outstanding at end of period 5,000 — Average interest rate during the period 5.0 % 0.0 % Weighted average interest rate at end of period 4.8 % 0.0 % As of December 31, 2023 , there was $5.0 million in outstanding borrowings with the FHLB Chicago.
The following table shows certain information regarding our borrowings at or for the dates indicated: At or For the Year Ended December 31, 2024 2023 (Dollars in thousands) FHLB of Chicago advances and other borrowings: Average balance outstanding $ 5,000 $ 3,461 Maximum amount outstanding at any month-end during the period 5,000 15,000 Balance outstanding at end of period 5,000 5,000 Average interest rate during the period 4.8 % 5.0 % Weighted average interest rate at end of period 4.8 % 4.8 % As of December 31, 2024 , there was $5.0 million in outstanding borrowings with the FHLB Chicago.
If an institution fails to meet these standards, the appropriate federal banking agency may require the institution to implement an acceptable compliance plan. Failure to implement such a plan can result in further enforcement action, including the issuance of a cease and desist order or the imposition of civil money penalties. Branching .
If an institution fails to meet these standards, the appropriate federal banking agency may require the institution to implement an acceptable compliance plan. Failure to implement such a plan can result in further enforcement action, including the issuance of a cease and desist order or the imposition of civil money penalties. Reserve Requirements .
Additionally, at December 31, 2023 and 2022 we had a $10.0 million federal funds line of credit with the BMO Harris Bank, none of which was drawn at December 31, 2023 and 2022.
Additionally, at December 31, 2024 and 2023 we had a $10.0 million federal funds line of credit with the BMO Harris Bank, none of which was drawn at December 31, 2024 and 2023.
An institution is “undercapitalized” if it has a total risk-based capital ratio of less than 8%, a Tier 1 risk-based capital ratio of less than 6%, a leverage ratio of less than 4% or a common equity Tier 1 ratio of less than 4.5%.
An institution is "undercapitalized" if it has a total risk-based capital ratio of less than 8%, a Tier 1 risk-based capital ratio of less than 6%, a leverage ratio of less than 4% or a common equity Tier 1 ratio of less than 4.5%.
If an “undercapitalized” bank fails to submit an acceptable plan, it is treated as if it is “significantly undercapitalized.” “Significantly undercapitalized” banks must comply with one or more of a number of additional restrictions, including a regulatory order to sell sufficient voting stock to become adequately capitalized, requirements to reduce total assets, ceasing receipt of deposits from correspondent banks, dismissal of directors or officers and restrictions on interest rates paid on deposits, compensation of executive officers and capital distributions by the parent holding company.
If an "undercapitalized" bank fails to submit an acceptable plan, it is treated as if it is "significantly undercapitalized." "Significantly undercapitalized" banks must comply with one or more of a number of additional restrictions, including a regulatory order to sell sufficient voting stock to become adequately capitalized, requirements to reduce total assets, ceasing receipt of deposits from correspondent banks, dismissal of directors or officers and restrictions on interest rates paid on deposits, compensation of executive officers and capital distributions by the parent holding company.
Expense and Tax Allocation North Shore Trust and Savings has an agreement with NSTS Bancorp, Inc., to provide it with certain administrative support services for compensation not less than the fair market value of the services provided. During the year ended December 31, 2023, the total of these services was $1.2 million.
Expense and Tax Allocation North Shore Trust and Savings has an agreement with NSTS Bancorp, Inc., to provide it with certain administrative support services for compensation not less than the fair market value of the services provided. During the year ended December 31, 2024, the total of these services was $1.3 million.
There was no related specific valuation allowance in the allowance for credit losses on our classified loans at December 31, 2023 and 2022 .
There was no related specific valuation allowance in the allowance for credit losses on our classified loans at December 31, 2024 and 2023 .
In addition, North Shore Trust and Savings and NSTS Bancorp, Inc. have an agreement that establishes a method for allocating and for reimbursing the payment of their consolidated tax liability. Employees and Human Capital Resources At December 31, 2023 , we had 46 full-time equivalent employees.
In addition, North Shore Trust and Savings and NSTS Bancorp, Inc. have an agreement that establishes a method for allocating and for reimbursing the payment of their consolidated tax liability. Employees and Human Capital Resources At December 31, 2024 , we had 53 full-time equivalent employees.
As of December 31, 2023 , no impairment had been recognized. 24 Table of Contents Holding Company Regulation NSTS Bancorp, Inc. is a unitary savings and loan holding company subject to regulation and supervision by the Federal Reserve Board. The Federal Reserve Board has enforcement authority over NSTS Bancorp, Inc. and its non-savings institution subsidiaries.
As of December 31, 2024 , no impairment had been recognized. 25 Table of Contents Holding Company Regulation NSTS Bancorp, Inc. is a unitary savings and loan holding company subject to regulation and supervision by the Federal Reserve Board. The Federal Reserve Board has enforcement authority over NSTS Bancorp, Inc. and its non-savings institution subsidiaries.
As of December 31, 2023 , and 2022 , loans identified for individual evaluation of expected credit losses, amounted to $200,000 and $873,000 , respectively. Federal regulations and our policies require that we utilize an internal asset classification system as a means of reporting problem and potential problem assets.
As of December 31, 2024 , and 2023 , loans identified for individual evaluation of expected credit losses, amounted to $0 and $200,000 , respectively. Federal regulations and our policies require that we utilize an internal asset classification system as a means of reporting problem and potential problem assets.
EGRRCPA required the federal banking agencies, including the OCC, to establish a “community bank leverage ratio” (the "CBLR") of between 8% and 10% for institutions with assets of less than $10.0 billion. The CBLR is the ratio of a bank’s tangible Tier 1 equity capital to average total consolidated assets and is set by the regulators at 9%.
The EGRRCPA required the federal banking agencies, including the OCC, to establish a "community bank leverage ratio" ("CBLR") of between 8% and 10% for institutions with assets of less than $10.0 billion. The CBLR is the ratio of a bank's tangible Tier 1 equity capital to average total consolidated assets and has been set by the regulators at 9%.
Our deposits consist of checking, both interest-bearing and noninterest-bearing, money market, savings and time deposit accounts. As of December 31, 2023 , 60.2% of the funds deposited with North Shore Trust and Savings were in core deposits, which are deposits other than time deposits.
Our deposits consist of checking, both interest-bearing and noninterest-bearing, money market, savings and time deposit accounts. As of December 31, 2024 , 51.2% of the funds deposited with North Shore Trust and Savings were in core deposits, which are deposits other than time deposits.
North Shore Trust and Savings was in compliance with this requirement as of December 31, 2023 based on its ownership of $550,000 in capital stock of the FHLB of Chicago. The stock has no quoted market value and is carried at cost.
North Shore Trust and Savings was in compliance with this requirement as of December 31, 2024 based on its ownership of $585,000 in capital stock of the FHLB of Chicago. The stock has no quoted market value and is carried at cost.
Government agencies or U.S. Government sponsored enterprises, which had an aggregate book value in excess of 10% of our stockholders’ equity. At December 31, 2023, the available-for-sale securities portfolio had a net unrealized loss position of $11.5 million. Some investment securities held in the portfolio have declined in value but do not presently represent realized losses.
Government agencies or U.S. Government sponsored enterprises, which had an aggregate book value in excess of 10% of our stockholders’ equity. At December 31, 2024, the available-for-sale securities portfolio had a net unrealized loss position of $12.0 million. Some investment securities held in the portfolio have declined in value but do not presently represent realized losses.
Under applicable regulations, an institution is deemed to be “well-capitalized” if it has a total risk-based capital ratio of 10% or greater, a Tier 1 risk-based capital ratio of 8% or greater, a leverage ratio of 5% or greater and a common equity Tier 1 ratio of 6.5% or greater.
Under applicable regulations, an institution is deemed to be "well-capitalized" if it has a total risk-based capital ratio of 10% or greater, a Tier 1 risk-based capital ratio of 8% or greater, a leverage ratio of 5% or greater and a common equity Tier 1 ratio of 6.5% or greater.
Various officers or combinations of officers of North Shore Trust and Savings have the authority within specifically identified limits to approve new loans. As of December 31, 2023 , the maximum loan amount that may be approved by an individual officer is $648,250, which is consistent with secondary market limits for conforming loans.
Various officers or combinations of officers of North Shore Trust and Savings have the authority within specifically identified limits to approve new loans. As of December 31, 2024 , the maximum loan amount that may be approved by an individual officer is $766,550, which is consistent with secondary market limits for conforming loans.
The special assessment will be collected beginning with the first quarterly assessment period of 2024 at an annual rate of approximately 13.4 basis points for an anticipated total of eight quarterly periods and is subject to periodic adjustments. The assessment base is equal to uninsured deposits reported as of December 31, 2022, adjusted to exclude the first $5 billion.
The special assessment began being collected with the first quarterly assessment period of 2024 at an annual rate of approximately 13.4 basis points for an anticipated total of eight quarterly periods and is subject to periodic adjustments. The assessment base is equal to uninsured deposits reported as of December 31, 2022, adjusted to exclude the first $5.0 billion.
Freddie Mac issues participation certificates backed principally by conventional mortgage loans. Freddie Mac guarantees the timely payment of interest and the ultimate return of principal on participation certificates. Fannie Mae is a private corporation chartered by the U.S. Congress with a mandate to establish a secondary market for mortgage loans.
Freddie Mac guarantees the timely payment of interest and the ultimate return of principal on participation certificates. Fannie Mae is a private corporation chartered by the U.S. Congress with a mandate to establish a secondary market for mortgage loans. Fannie Mae guarantees the timely payment of principal and interest on Fannie Mae securities.
A savings association’s failure to comply with the provisions of the CRA could, at a minimum, result in denial of certain corporate applications such as branches or mergers, or in restrictions on its activities.
A savings association's failure to comply with the provisions of the CRA could, at a minimum, result in denial of certain corporate applications such as branch or merger applications, or in restrictions on its activities.
An institution is deemed to be “significantly undercapitalized” if it has a total risk-based capital ratio of less than 6%, a Tier 1 risk-based capital ratio of less than 4%, a leverage ratio of less than 3% or a common equity Tier 1 ratio of less than 3%.
An institution is deemed to be "significantly undercapitalized" if it has a total risk-based capital ratio of less than 6%, a Tier 1 risk-based capital ratio of less than 4%, a leverage ratio of less than 3% or a common equity Tier 1 ratio of less than 3%.
An institution is considered to be “critically undercapitalized” if it has a ratio of tangible equity (as defined in the regulations) to total assets that is equal to or less than 2%.
An institution is considered to be "critically undercapitalized" if it has a ratio of tangible equity (as defined in the regulations) to total assets that is equal to or less than 2%.
Due-on-sale clauses are an important means of adjusting the yields of fixed-rate mortgage loans in portfolio and we generally exercise our rights under these clauses. 7 Table of Contents Multi-Family Residential and Commercial Real Estate Lending . At December 31, 2023 , our multi-family residential mortgage loans amounted to $3.1 million, or 2.5% of the total loan portfolio.
Due-on-sale clauses are an important means of adjusting the yields of fixed-rate mortgage loans in the portfolio and we generally exercise our rights under these clauses. 6 Table of Contents Multi-Family Residential and Commercial Real Estate Lending . At December 31, 2024 , our multi-family residential mortgage loans amounted to $3.4 million, or 2.6% of the total loan portfolio.
To complement the existing offices, during the third quarter of 2023, we established two additional loan production offices in Aurora and Plainfield, Illinois to expand our loan originations within the Chicagoland area. The lending teams operating in the Aurora and Plainfield, Illinois loan production offices originate as Oak Leaf Community Mortgage, powered by North Shore Trust and Savings.
To complement the existing offices, during the third quarter of 2023, we established two additional loan production offices in Aurora and Plainfield, Illinois to expand our loan originations within the Chicagoland area. The lending team originates loans as Oak Leaf Community Mortgage, powered by North Shore Trust and Savings.
Small Business Lending Rule. On March 30, 2023, the Consumer Finance Protection Bureau (the "CFPB") issued a final rule amending Regulation B, the implementing regulation of the ECOA, to implement section 1071 of the Dodd-Frank Act.
Small Business Lending Rule. On March 30, 2023, the CFPB issued a final rule amending Regulation B, the implementing regulation of the ECOA, to implement section 1071 of the Dodd-Frank Act.
As of December 31, 2023 , North Shore Trust and Savings met the criteria for being considered “well-capitalized.” Insurance of Deposit Accounts . The DIF of the FDIC insures deposits at FDIC-insured financial institutions such as North Shore Trust and Savings, generally up to a maximum of $250,000 per separately insured depositor.
As a result, as of December 31, 2024, North Shore Trust and Savings met the criteria for being considered "well-capitalized." Insurance of Deposit Accounts . The DIF of the FDIC insures deposits at FDIC-insured financial institutions such as North Shore Trust and Savings, generally up to a maximum of $250,000 per separately insured depositor.
An institution is “adequately capitalized” if it has a total risk-based capital ratio of 8% or greater, a Tier 1 risk-based capital ratio of 6% or greater, a leverage ratio of 4% or greater and a common equity Tier 1 ratio of 4.5% or greater.
An institution is "adequately capitalized" if it has a total risk-based capital ratio of 8% or greater, a Tier 1 risk-based capital ratio of 6% or greater, a leverage ratio of 4% or greater and a common equity Tier 1 ratio of 4.5% or greater.
Applicable regulations authorize a federal association that has exercised the CSA election to terminate the election and thereby again operate as a federal savings association that has not made a CSA election. We have no current plans to elect to be treated as a CSA. Capital Requirements .
Applicable regulations authorize a federal association that has exercised the CSA election to terminate the election and thereby again operate as a federal savings association that has not made a CSA election. North Shore Trust and Savings has not exercised the CSA election and has no current plans to elect to be treated as a CSA. Capital Requirements .
“Critically undercapitalized” institutions are subject to additional measures including, subject to a narrow exception, the appointment of a receiver or conservator within 270 days after it obtains such status.
"Critically undercapitalized" institutions are subject to additional measures including, subject to a narrow exception, the appointment of a receiver or conservator within 270 days after it obtains such status.
Because North Shore Trust and Savings' uninsured deposits at the measurement date were below $5 billion, North Shore Trust and Savings will not be subject to this special assessment.
Because North Shore Trust and Savings' uninsured deposits at the measurement date were below $5.0 billion, North Shore Trust and Savings was not subject to this special assessment.
This rule provides that FinCEN may disclose BOI to an authorized financial institution provided that such institution has developed and implemented administrative, technical, and physical safeguards reasonably designed to protect the information and has received the relevant reporting company's consent to such disclosure. The second final rule is effective February 20, 2024. Prohibitions against Tying Arrangements .
This rule provides that FinCEN may disclose BOI to an authorized financial institution provided that such institution has developed and implemented administrative, technical, and physical safeguards reasonably designed to protect the information and has received the relevant reporting company's consent to such disclosure. The second final rule became effective on February 20, 2024.
At December 31, 2023 , we had a total of 10 multi-family residential mortgage loans and the average size of our multi-family residential mortgage loans was approximately $311,000. Our commercial real estate loan portfolio amounted to $3.8 million, or 3.2% of the total loan portfolio, at December 31, 2023 .
At December 31, 2024 , we had a total of 10 multi-family residential mortgage loans and the average size of our multi-family residential mortgage loans was approximately $337,000. Our commercial real estate loan portfolio amounted to $4.2 million, or 3.2% of the total loan portfolio, at December 31, 2024 .
The FDIC also has the authority to terminate deposit insurance or recommend to the OCC that enforcement action be taken with respect to a particular federal savings association. If such action is not taken by the OCC, the FDIC has authority to take action under specified circumstances. Standards for Safety and Soundness .
The FDIC also has the authority to terminate deposit insurance or recommend to the OCC that enforcement action be taken with respect to a particular federal savings association. If such action is not taken by the OCC, the FDIC has authority to take action under specified circumstances. Assessments .
Federal savings associations are also subject to a “Qualified Thrift Lender Test,” or “QTL Test,” which generally requires that a specified percentage of overall assets be residential mortgages and related investments.
Federal savings associations are also subject to a "Qualified Thrift Lender Test," or "QTL Test," which generally requires that a specified percentage of overall assets be residential mortgages and related investments.
Amounts at December 31, 2023, Which Mature In After One After Five One Year through Five through 10 Over 10 or Less Years Years Years Total (Dollars in thousands) Securities available for sale: U.S. Treasuries $ 2,973 $ — $ — $ — $ 2,973 U.S.
Amounts at December 31, 2024, Which Mature In After One After Five One Year through Five through 10 Over 10 or Less Years Years Years Total (Dollars in thousands) Securities available for sale: U.S.
North Shore Trust and Savings derives its income principally from interest earned on loans and investment securities and, to a lesser extent, from fees received in connection with the origination of loans, service charges on deposit accounts and for other services.
North Shore Trust and Savings derives its income principally from interest earned on loans and investment securities, the gain on sale of mortgage loans sold into the secondary mortgage market, and, to a lesser extent, from fees received in connection with the origination of loans, service charges on deposit accounts and for other services.
Appraisal reports prepared by independent appraisers are obtained on each loan to substantiate the property’s market value and are reviewed by us prior to the closing of the loan. Construction Lending. At December 31, 2023, our construction lending amounted to $2.5 million, or 2.1% of the total loan portfolio.
Appraisal reports prepared by independent appraisers are obtained on each loan to substantiate the property’s market value and are reviewed by us prior to the closing of the loan. Construction Lending. At December 31, 2024, our construction lending amounted to $3.7 million, or 2.8% of the total loan portfolio.
The Bank does not have any subsidiaries. 26 Table of Contents
The Bank does not have any subsidiaries. 27 Table of Contents
At December 31, 2023, North Shore Trust and Savings' CBLR was 24.72% . 18 Table of Contents As of December 31, 2023 , North Shore Trust and Savings’ capital exceeded all applicable requirements including the applicable conservation buffer. Loans-to-One Borrower .
At December 31, 2024, North Shore Trust and Savings' CBLR was 23.53%. 18 Table of Contents As of December 31, 2024 , North Shore Trust and Savings’ capital exceeded all applicable requirements including the applicable conservation buffer. Loans-to-One Borrower .
Our board of directors establishes North Shore Trust and Savings’ lending policies and procedures. Our Loan Policy is reviewed on at least an annual basis by our management team in order to propose modifications as a result of market conditions, regulatory changes and other factors. All modifications must be approved by our Board of Directors.
Our Loan Policy is reviewed on at least an annual basis by our management team in order to propose modifications as a result of market conditions, regulatory changes and other factors. All modifications must be approved by our board of directors.
There is a presumption of control upon the acquisition of 10% or more of a class of voting stock if the holding company involved has its shares registered under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or, if the holding company involved does not have its shares registered under the Exchange Act, if no other persons will own, control or hold the power to vote a greater percentage of that class of voting security after the acquisition. 25 Table of Contents Federal Securities Laws NSTS Bancorp, Inc. common stock is registered with the SEC.
There is a presumption of control upon the acquisition of 10% or more of a class of voting stock if the holding company involved has its shares registered under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or, if the holding company involved does not have its shares registered under the Exchange Act, if no other persons will own, control or hold the power to vote a greater percentage of that class of voting security after the acquisition.
As a savings and loan holding company, NSTS Bancorp, Inc.’s activities are limited to those activities permissible by law for financial holding companies (if NSTS Bancorp, Inc. makes an election to be treated as a financial holding company and meets the other requirements to be a financial holding company) or multiple savings and loan holding companies.
As a savings and loan holding company, NSTS Bancorp, Inc.'s activities are limited to those activities permissible by law for financial holding companies (if an election to be treated as a financial holding company is made) or multiple savings and loan holding companies.
The Bank is eligible to borrow up to a total of $77.2 million and $68.6 million at December 31, 2023 and 2022 , respectively, which would be collateralized by $102.6 million and $86.6 million of first mortgage loans under a blanket lien arrangement at December 31, 2023 and 2022 , respectively.
The Bank is eligible to borrow up to a total of $78.1 million and $77.2 million at December 31, 2024 and 2023 , respectively, which would be collateralized by $103.8 million and $102.6 million of first mortgage loans under a blanket lien arrangement at December 31, 2024 and 2023 , respectively.
Compliance with the small business lending rule beginning October 1, 2024 is required for covered financial institutions that originate the most covered credit transactions for small businesses (i.e., at least 2,500 covered originations in both 2022 and 2023).
Compliance with the small business lending rule beginning July 18, 2025 is required for covered financial institutions that originate the most covered credit transactions for small businesses (i.e., at least 2,500 covered originations in either 2022 and 2023 or 2023 and 2024).
Such risk ratings are periodically reviewed by management and revised as deemed appropriate. At December 31, 2023 , our allowance for credit losses amounted to $1.2 million and our allowance for loan losses amount to $624,000 at December 31, 2022.
Such risk ratings are periodically reviewed by management and revised as deemed appropriate. At both December 31, 2024 and December 31, 2023 our allowance for credit losses amounted to $1.2 million .
The election is available to federal savings associations that had total consolidated assets of $20.0 billion or less as of December 31, 2017. North Shore Trust and Savings has not exercised the covered savings association ("CSA") election.
The election is available to federal savings associations that had total consolidated assets of $20.0 billion or less as of December 31, 2017, and is referred to as the covered savings association ("CSA") election.
At or for the Year Ended December 31, 2023 2022 (Dollars in thousands) Total loans outstanding at end of period $ 120,783 $ 102,991 Total non-accrual loans at end of period 200 154 Total non-performing loans at end of period 200 154 Total average loans outstanding 107,438 97,714 Allowance for credit losses, beginning of period 624 779 Cumulative effect of ASU 2016-13 adoption (CECL) 384 N/A Provision for (reversal of) credit losses 168 (230 ) Charge-offs: 1-4 family residential — — Multi-family — — Commercial — — Construction — — Consumer — — Total charge-offs $ — $ — Recoveries on loans previously charged-off: 1-4 family residential $ — $ (75 ) Multi-family — — Commercial — — Construction — — Consumer — — Total recoveries $ — $ (75 ) Net (recoveries) charge-offs $ — $ (75 ) Allowance for credit losses, end of period $ 1,176 $ 624 Allowance for credit losses as a percent of non-performing loans 588.00 % 405.19 % Allowance for credit losses as a percent of total loans outstanding 0.97 % 0.61 % Allowance for credit losses as a percent of total non-accrual loans 588.00 % 405.19 % Ratio of net (recoveries) charge-offs during the period to average loans outstanding during the period 0.00 % (0.08 )% 11 Table of Contents The allowance for credit losses is established through a provision for credit losses.
At or for the Year Ended December 31, 2024 2023 (Dollars in thousands) Total loans outstanding at end of period $ 130,907 $ 120,783 Total non-accrual loans at end of period — 200 Total non-performing loans at end of period — 200 Total average loans outstanding 133,176 107,438 Allowance for credit losses, beginning of period 1,176 624 Cumulative effect of ASU 2016-13 adoption (CECL) N/A 384 Provision for credit losses 25 168 Charge-offs: 1-4 family residential — — Multi-family — — Commercial — — Construction — — Consumer — — Total charge-offs $ — $ — Recoveries on loans previously charged-off: 1-4 family residential $ — $ — Multi-family — — Commercial — — Construction — — Consumer — — Total recoveries $ — $ — Net (recoveries) charge-offs $ — $ — Allowance for credit losses, end of period $ 1,201 $ 1,176 Allowance for credit losses as a percent of non-performing loans — % 588.00 % Allowance for credit losses as a percent of total loans outstanding 0.92 % 0.97 % Allowance for credit losses as a percent of total non-accrual loans — % 588.00 % Ratio of net (recoveries) charge-offs during the period to average loans outstanding during the period 0.00 % 0.00 % 11 Table of Contents The allowance for credit losses is established through a provision for credit losses.
The construction loan portfolio consisted of three loans, the largest totaling $2.3 million, which is the construction of a single family home in the Chicago, Illinois metro area expected to be completed in 2024, in which the loan will convert to a conventional mortgage loan with a remaining term of 29 years.
The construction loan portfolio consisted of 13 loans, the largest totaling $940,000, which is the construction of a single family home in the Chicago, Illinois metro area expected to be completed in 2025, in which the loan will convert to a conventional mortgage loan with a remaining term of 29 years.
The largest component of our investment securities portfolio at December 31, 2023 was investment in pass-through mortgage-backed securities issued by Fannie Mae, Ginnie Mae and Freddie Mac, which amounted to $30.3 million, followed by collateralized mortgage obligations issued by Fannie Mae, Ginnie Mae and Freddie Mac, which amounted to $26.1 million.
The largest component of our investment securities portfolio at December 31, 2024 was investment in pass-through mortgage-backed securities issued by Fannie Mae, Ginnie Mae and Freddie Mac, which amounted to $25.9 million, followed by collateralized mortgage obligations issued by Fannie Mae, Ginnie Mae and Freddie Mac, which amounted to $24.9 million.
At December 31, 2023 2022 (Dollars in thousands) Substandard loans $ 200 $ 188 Doubtful loans — — Loss loans — — Total classified loans $ 200 $ 188 10 Table of Contents In addition to classified loans, our other real estate owned, (“OREO”) is classified as substandard.
At December 31, 2024 2023 (Dollars in thousands) Substandard loans $ — $ 200 Doubtful loans — — Loss loans — — Total classified loans $ — $ 200 In addition to classified loans, our other real estate owned, (“OREO”) is classified as substandard.

… 133 more changes not shown on this page.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

3 edited+0 added−0 removed4 unchanged
Biggest changeThis information security program is a key part of our overall risk management system, which is administered by our AVP Information Technology. The program includes administrative, technical and physical safeguards to help ensure the security and confidentiality of customer records and information. These security and privacy policies and procedures are in effect across the Bank and each of its locations.
Biggest changeThis information security program is a key part of our overall risk management system, which is administered by our VP Information Technology. The program includes administrative, technical and physical safeguards to help ensure the security and confidentiality of customer records and information. These security and privacy policies and procedures are in effect across the Bank and each of its locations.
The AVP Information Technology reports directly to the Board of Directors on a quarterly, or more frequently if necessary, basis. We face a number of cybersecurity risks in connection with our business. From time-to-time, we have identified cybersecurity threats that require us to make changes to our processes and to implement additional safeguards.
The VP Information Technology reports directly to the board of directors on a quarterly, or more frequently if necessary, basis. We face a number of cybersecurity risks in connection with our business. From time-to-time, we have identified cybersecurity threats that require us to make changes to our processes and to implement additional safeguards.
While none of these identified threats have materially affected us, it is possible that threats and incidents we identify in the future could have a material adverse effect on our business, results of operations, and financial condition. 27 Table of Contents
While none of these identified threats have materially affected us, it is possible that threats and incidents we identify in the future could have a material adverse effect on our business, results of operations, and financial condition. 28 Table of Contents

Item 2. Properties

Properties — owned and leased real estate

3 edited+1 added−1 removed0 unchanged
Biggest changeRoscoe Street, Chicago, Illinois 60618 (1) N/A N/A 75 Executive Dr, Aurora, Illinois 60504 (2) N/A N/A 24252 West Main Street, Plainfield, Illinois 60544 (2) N/A N/A (1) The loan production office is leased by North Shore Trust and Savings and does not accept deposits. The lease expired on December 31, 2023 and was not renewed.
Biggest changeSand Lake Road, Lindenhurst, Illinois 60046 3,221 27,005 Total $ 5,200 $ 190,156 Loan Production Offices: 875 North Michigan Avenue, Chicago, Illinois 60611 (1) N/A N/A 75 Executive Dr, Aurora, Illinois 60504 (1) N/A N/A 24252 West Main Street, Plainfield, Illinois 60544 (1) N/A N/A (1) T he loan production offices are leased by North Shore Trust and Savings and do not accept deposits.
Item 2. Properties We currently conduct business from our main office, two full-service branch offices and three loan production offices. The following table sets forth the net book value of the land, building and leasehold improvements and certain other information with respect to our offices at December 31, 2023 .
Item 2. Properties We currently conduct business from our main office, two full-service branch offices and three loan production offices. The following table sets forth the net book value of the land, building and leasehold improvements and certain other information with respect to our offices at December 31, 2024 .
Description/Address Net Book Value of Property Amount of Deposits (Dollars in thousands) Main Office: 700 S. Lewis Avenue, Waukegan, Illinois 60085 $ 823 $ 106,529 Branch Offices: 1233 N. Green Bay Road, Waukegan, Illinois 60085 1,040 39,610 3060 W. Sand Lake Road, Lindenhurst, Illinois 60046 3,316 22,687 Total $ 5,179 $ 168,826 Loan Production Offices: 2149 W.
Description/Address Net Book Value of Property Amount of Deposits (Dollars in thousands) Main Office: 700 S. Lewis Avenue, Waukegan, Illinois 60085 $ 969 $ 114,166 Branch Offices: 1233 N. Green Bay Road, Waukegan, Illinois 60085 1,010 48,985 3060 W.
Removed
A new lease was signed for 875 N. Michigan Ave, Chicago, IL 60611 which is set to expire in December 2024. (2) T he loan production offices are leased by North Shore Trust and Savings and do not accept deposits. The leases are short-term in nature and expire in 12-24 months.
Added
The leases are short-term in nature and expire in 3-12 months and are expected to be renewed.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

4 edited+0 added−7 removed5 unchanged
Biggest change(a) (b) (c) (d) Period Total number of Shares Purchased (1) Average Price Paid Per Share Total Number of Shares Purchased As part of Publicly Announced Plans or Programs Maximum Number of Shares that May Yet to be Purchased Under the Plans or Programs (1) October 1 - October 31, 2023 117,217 $ 8.75 117,217 — Total 117,217 $ 8.75 117,217 — (1) On March 29, 2023, the Company adopted a program to repurchase up to 269,898 shares, or 5%, of its then outstanding common stock.
Biggest change(a) (b) (c) (d) Period Total number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased As part of Publicly Announced Plans or Programs Maximum Number of Shares that May Yet to be Purchased Under the Plans or Programs October 1 - October 31, 2024 12,766 $ 10.73 12,766 201,152 November 1 - November 31, 2024 29,121 11.13 29,121 172,031 December 1 - December 31, 2024 — N/A — 172,031 Total 41,887 $ 11.01 41,887 172,031 There were no unregistered sales of NSTS Bancorp, Inc.'s common stock during the year ended December 31, 2024 . 30 Table of Contents Item 6. [Reserved]
The following table sets forth information about the Company's purchases of its common stock during the three months ended December 31, 2023. There were no repurchases during the months ended November 30, 2023 and December 31, 2023.
The following table sets forth information about the Company's purchases of its common stock during the three months ended December 31, 2024. There were no repurchases during the month ended December 31, 2024.
Effective December 21, 2023, the Company's Board of Directors authorized a new share repurchase program that authorizes the Company to repurchase up to an aggregate of 265,763 shares, or 5%, of its then outstanding common stock. The program will be in effect until December 31, 2024, unless earlier terminated.
Is suer Purchases of Securities Effective December 21, 2023, the Company's Board of Directors authorized a new share repurchase program that authorizes the Company to repurchase up to an aggregate of 265,763 shares, or 5%, of its then outstanding common stock. The program was in effect until December 31, 2024.
As of March 25, 2024, there were 5,585,159 shares of our common stock issued and 5,315,261 shares outstanding, which were held by approximately 229 stockholders of record (excluding the number of persons or entities holding stock in street name through various brokerage firms).
As of March 24, 2025, there were 5,599,859 shares of our common stock issued and 5,247,826 shares outstanding, which were held by approximately 222 stockholders of record (excluding the number of persons or entities holding stock in street name through various brokerage firms).
Removed
Is suer Purchases of Securities On March 29, 2023, the Company adopted a program to repurchase up to 269,898 shares, or 5%, of its then outstanding common stock. The original program expired on September 29, 2023 and was extended with a new expiration date of September 30, 2024, unless terminated earlier.
Removed
As of October 30, 2023, the Company had completed the share repurchase program, repurchasing a total of 269,898 shares for approximately $2.4 million at an average cost of $8.82 per share.
Removed
Under the new share repurchase program, the Company is authorized to repurchase shares from time to time in the open market or negotiated transactions at prevailing market rates, or by other means in accordance with federal securities laws.
Removed
In connection with the share repurchase program, the Company intends to implement a trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1 under the Securities Exchange Act.
Removed
The trading plan will allow the Company to repurchase shares of its common stock at times when it otherwise might have been prevented from doing so under insider trading laws by requiring that an agent selected by the Company repurchase shares of common stock on the Company's behalf on pre-determined terms.
Removed
The original program expired on September 29, 2023 and was extended with a new expiration date of September 30, 2024, unless terminated earlier. As of October 30, 2023, the Company had repurchased all of the shares remaining available to be repurchased pursuant to the terms of the then existing stock repurchase program.
Removed
There were no unregistered sales of NSTS Bancorp, Inc.'s common stock during the year ended December 31, 2023 . 29 Table of Contents Item 6. [Reserved]

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

1 edited+0 added−0 removed0 unchanged
Biggest changeItem 6. [Reserved] 30 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 30 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 40 Item 8. Financial Statements and Supplementary Data 40 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. 40 Item 9A. Controls and Procedures 41
Biggest changeItem 6. [Reserved] 31 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 31 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 40 Item 8. Financial Statements and Supplementary Data 40 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. 40 Item 9A. Controls and Procedures 41

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

55 edited+37 added−56 removed31 unchanged
Biggest changeAt or For the Year Ended December 31, 2023 2022 Average Outstanding Balance Interest Average Yield/ Rate Average Outstanding Balance Interest Average Yield/ Rate (Dollars in thousands) Interest-earning assets: Loans $ 107,438 $ 4,360 4.06 % $ 97,714 $ 3,618 3.70 % Interest-bearing bank deposits 9,805 348 3.55 % 38,061 259 0.68 % Time deposits with other financial institutions 2,736 94 3.44 % 3,926 41 1.04 % Securities available for sale 114,744 2,902 2.53 % 118,988 2,415 2.03 % Federal Home Loan Bank stock 550 24 4.36 % 550 15 2.73 % Total interest-earning assets $ 235,273 $ 7,728 3.28 % $ 259,239 $ 6,348 2.45 % Noninterest-earning assets 21,550 21,010 Total assets $ 256,823 $ 280,249 Interest-bearing liabilities: Interest-bearing demand $ 16,714 $ 9 0.05 % $ 17,817 $ 9 0.05 % Money market 36,875 226 0.61 % 45,328 96 0.21 % Savings 45,696 68 0.15 % 48,787 73 0.15 % Time deposits 56,573 1,033 1.83 % 61,414 586 0.95 % Total interest-bearing deposits $ 155,858 $ 1,336 0.86 % $ 173,346 $ 764 0.44 % Other borrowings 3,461 172 4.97 % 1,945 — 0.00 % Total interest-bearing liabilities $ 159,319 $ 1,508 0.95 % $ 175,291 $ 764 0.44 % Noninterest-bearing liabilities 17,896 23,038 Total liabilities $ 177,215 $ 198,329 Equity 79,608 81,920 Total liabilities and equity $ 256,823 $ 280,249 Net interest income $ 6,220 $ 5,584 Interest rate spread (1) 2.33 % 2.01 % Net interest-earning assets (2) 75,954 83,948 Net interest margin (3) 2.64 % 2.15 % Average interest-earning assets to average-interest bearing liabilities 147.67 % 147.89 % (1) Equals the difference between the yield on average earning-assets and the cost of average interest-bearing liabilities.
Biggest changeAt or For the Year Ended December 31, 2024 2023 Average Outstanding Balance Interest Average Yield/ Rate Average Outstanding Balance Interest Average Yield/ Rate (Dollars in thousands) Interest-earning assets: Loans $ 133,176 $ 6,785 5.09 % $ 107,438 $ 4,360 4.06 % Interest-bearing bank deposits 35,554 1,613 4.54 % 9,805 348 3.55 % Time deposits with other financial institutions 1,647 85 5.16 % 2,736 94 3.44 % Securities available for sale 76,260 1,783 2.34 % 114,744 2,902 2.53 % Federal Home Loan Bank stock 576 38 6.60 % 550 24 4.36 % Total interest-earning assets $ 247,213 $ 10,304 4.17 % $ 235,273 $ 7,728 3.28 % Noninterest-earning assets 19,626 21,550 Total assets $ 266,839 $ 256,823 Interest-bearing liabilities: Interest-bearing demand $ 15,316 $ 8 0.05 % $ 16,714 $ 9 0.05 % Money market 30,617 196 0.64 % 36,875 226 0.61 % Savings 41,273 62 0.15 % 45,696 68 0.15 % Time deposits 80,485 2,734 3.40 % 56,573 1,033 1.83 % Total interest-bearing deposits $ 167,691 $ 3,000 1.79 % $ 155,858 $ 1,336 0.86 % Other borrowings 5,000 243 4.86 % 3,461 172 4.97 % Total interest-bearing liabilities $ 172,691 $ 3,243 1.88 % $ 159,319 $ 1,508 0.95 % Noninterest-bearing liabilities 17,162 17,896 Total liabilities $ 189,853 $ 177,215 Equity 76,986 79,608 Total liabilities and equity $ 266,839 $ 256,823 Net interest income $ 7,061 $ 6,220 Interest rate spread (1) 2.29 % 2.33 % Net interest-earning assets (2) 74,522 75,954 Net interest margin (3) 2.86 % 2.64 % Average interest-earning assets to average-interest bearing liabilities 143.15 % 147.67 % (1) Equals the difference between the yield on average earning-assets and the cost of average interest-bearing liabilities.
The accounting estimates relating to the allowance for credit losses is also a “critical accounting policy” as: ● changes in the provision for credit losses can materially affect our financial results; ● estimates relating to the allowance for credit losses require us to project future borrower performance, including cash flows, delinquencies and charge-offs, along with, when applicable, collateral values, based on a reasonable and supportable forecast period utilizing forward-looking economic scenarios in order to estimate probability of default and loss given default; ● the allowance for credit losses is influenced by factors outside of our control such as industry and business trends, geopolitical events and the effects of laws and regulations as well as economic conditions such as trends in housing prices, interest rates, GDP, inflation, energy prices and unemployment; and ● considerable judgment is required to determine whether the models used to generate the allowance for credit losses produce an estimate that is sufficient to encompass the current view of lifetime expected credit losses.
The accounting estimates relating to the allowance for credit losses is a “critical accounting policy” as: ● changes in the provision for credit losses can materially affect our financial results; ● estimates relating to the allowance for credit losses require us to project future borrower performance, including cash flows, delinquencies and charge-offs, along with, when applicable, collateral values, based on a reasonable and supportable forecast period utilizing forward-looking economic scenarios in order to estimate probability of default and loss given default; ● the allowance for credit losses is influenced by factors outside of our control such as industry and business trends, geopolitical events and the effects of laws and regulations as well as economic conditions such as trends in housing prices, interest rates, GDP, inflation, energy prices and unemployment; and ● considerable judgment is required to determine whether the models used to generate the allowance for credit losses produce an estimate that is sufficient to encompass the current view of lifetime expected credit losses.
Our results of operations and financial condition are also significantly affected by general economic and competitive conditions, particularly changes in interest rates, changes in accounting guidance, government policies and actions of regulatory authorities. 30 Table of Contents Critical Accounting Policies In reviewing and understanding financial information for NSTS Bancorp, Inc., you are encouraged to read and understand the significant accounting policies used in preparing our financial statements.
Our results of operations and financial condition are also significantly affected by general economic and competitive conditions, particularly changes in interest rates, changes in accounting guidance, government policies and actions of regulatory authorities. 31 Table of Contents Critical Accounting Policies In reviewing and understanding financial information for NSTS Bancorp, Inc., you are encouraged to read and understand the significant accounting policies used in preparing our financial statements.
During the year ended December 31, 2023, management assessed the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing net operating losses. A significant piece of objective negative evidence evaluated is the cumulative taxable loss incurred over the four-year period ended December 31, 2023.
During the year ended December 31, 2024, management assessed the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing net operating losses. A significant piece of objective negative evidence evaluated is the cumulative taxable loss incurred over the four-year period ended December 31, 2024.
Management ’ s Discussion and Analysis of Financial Condition and Results of Operations This discussion and analysis reflects the consolidated financial statements and other relevant statistical data, and is intended to enhance your understanding of the financial condition and results of operations of NSTS Bancorp, Inc. and North Shore Trust and Savings for the years ended December 31, 2023 and 2022 .
Management ’ s Discussion and Analysis of Financial Condition and Results of Operations This discussion and analysis reflects the consolidated financial statements and other relevant statistical data, and is intended to enhance your understanding of the financial condition and results of operations of NSTS Bancorp, Inc. and North Shore Trust and Savings for the years ended December 31, 2024 and 2023 .
(2) Equals total interest-earning assets less total interest-bearing liabilities. (3) Equals net interest income divided by average interest-earning assets. 33 Table of Contents Rate/Volume Analysis . The following table shows the extent to which changes in interest rates and changes in volume of interest-earning assets and interest-bearing liabilities affected our interest income and expense during the periods indicated.
(2) Equals total interest-earning assets less total interest-bearing liabilities. (3) Equals net interest income divided by average interest-earning assets. 34 Table of Contents Rate/Volume Analysis . The following table shows the extent to which changes in interest rates and changes in volume of interest-earning assets and interest-bearing liabilities affected our interest income and expense during the periods indicated.
Management reviews the quarterly reports from the OCC, which show the impact of changing interest rates on net portfolio value. The following table sets forth our NPV as of December 31, 2023 and reflects the changes to NPV as a result of immediate and sustained changes in interest rates as indicated.
Management reviews the quarterly reports from the OCC, which show the impact of changing interest rates on net portfolio value. The following table sets forth our NPV as of December 31, 2024 and reflects the changes to NPV as a result of immediate and sustained changes in interest rates as indicated.
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, 2023 .
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 .
Additionally, due to the uncertainty that the Bank will be able to generate future state taxable income sufficient to utilize the net operating loss carryforwards, a full valuation allowance of $532,000 has been recorded on the related deferred tax asset. There were no uncertain tax positions outstanding as of December 31, 2023 and 2022 .
Additionally, due to the uncertainty that the Bank will be able to generate future state taxable income sufficient to utilize the net operating loss carryforwards, a full valuation allowance of $515,000 has been recorded on the related deferred tax asset. There were no uncertain tax positions outstanding as of December 31, 2024 and 2023 .
Under CBLR, if a qualifying depository institution or depository institution holding company elects to use such measure, such institution or holding company will be considered well capitalized if its ratio of Tier 1 capital to average total consolidated assets (i.e., leverage ratio) exceeds 8% in 2020, 8.5% in 2021 and 9% in 2022, subject to a limited two quarter grace period, during which the leverage ratio cannot go 100 basis points below the then applicable threshold, and will not be required to calculate and report risk-based capital ratios.
Under CBLR, if a qualifying depository institution or depository institution holding company elects to use such measure, such institution or holding company will be considered well capitalized if its ratio of Tier 1 capital to average total consolidated assets (i.e., leverage ratio) exceeds 9%, subject to a limited two quarter grace period, during which the leverage ratio cannot go 100 basis points below the then applicable threshold, and will not be required to calculate and report risk-based capital ratios.
Such objective evidence limits the ability to consider other subjective evidence, such as our projections for future growth. On the basis of this evaluation, as of December 31, 2023, a full valuation allowance of $2.1 million, against the net deferred tax assets has been recorded.
Such objective evidence limits the ability to consider other subjective evidence, such as our projections for future growth. On the basis of this evaluation, as of December 31, 2024, a full valuation allowance of $2.5 million, against the net deferred tax assets has been recorded.
As of December 31, 2023 , tax years remaining open for State of Illinois and Wisconsin were 2019 through 2022. Federal tax years that remained open were 2020 through 2022. As of December 31, 2023 , there were also no unrecognized tax benefits that are expected to significantly increase or decrease within the next twelve months.
As of December 31, 2024 , tax years remaining open for State of Illinois and Wisconsin were 2020 through 2023. Federal tax years that remained open were 2021 through 2023. As of December 31, 2024 , there were also no unrecognized tax benefits that are expected to significantly increase or decrease within the next twelve months.
These policies require numerous estimates or economic assumptions that may prove inaccurate or may be subject to variations which may significantly affect our reported results and financial condition for the period or in future periods. Employee Retention Credit.
These policies require numerous estimates or economic assumptions that may prove inaccurate or may be subject to variations which may significantly affect our reported results and financial condition for the period or in future periods. Allowance for Credit Losses .
The levels of these assets are dependent on our operating, financing, lending, and investing activities during any given period. Our cash flows are comprised of three primary classifications: cash flows from operating activities, investing activities, and financing activities. Net cash provided by operating activities was $431,000 and $3.0 million for the years ended December 31, 2023 and 2022 , respectively.
The levels of these assets are dependent on our operating, financing, lending, and investing activities during any given period. Our cash flows are comprised of three primary classifications: cash flows from operating activities, investing activities, and financing activities. Net cash provided by operating activities was $9.4 million and $431,000 for the years ended December 31, 2024 and 2023 , respectively.
Net cash provided by or (used in) investing activities, which consists primarily of net change in loans receivable and net change in investment securities, was $25.0 million and $(44.5) million for the years ended December 31, 2023 and 2022 , respectively.
Net cash (used in) or provided by investing activities, which consists primarily of net change in loans receivable and net change in investment securities, was $(8.2) million and $25.0 million for the years ended December 31, 2024 and 2023 , respectively.
Federal net operating losses as of December 31, 2023 are $5.0 million, of which $1.3 million is subject to expire in 2027, the remainder does not expire.
Federal net operating losses as of December 31, 2024 are $6.7 million, of which $1.3 million is subject to expire in 2027, the remainder does not expire.
For the year ended December 31, 2023, we had a net loss of $4.0 million compared to net income of $27,000 for the year ended December 31, 2022 .
For the year ended December 31, 2024, we had a net loss of $789,000 compared to a net loss of $4.0 million for the year ended December 31, 2023 .
The following table summarizes our contractual cash obligations at December 31, 2023 .
The following table summarizes our cash obligations at December 31, 2024 .
The Bank is eligible to borrow up to a total of $72.2 million and $68.6 million at December 31, 2023 and 2022 , respectively, which would be collateralized by $102.6 million and $86.6 million of first mortgage loans under a blanket lien arrangement at December 31, 2023 and 2022 , respectively.
The Bank is eligible to borrow up to a total of $78.1 million and $77.2 million at December 31, 2024 and 2023 , respectively, which would be collateralized by $103.8 million and $102.6 million of first mortgage loans under a blanket lien arrangement at December 31, 2024 and 2023 , respectively.
Determining the allowance for loan and lease losses has historically been identified as a critical accounting policy. On January 1, 2023, we adopted the new CECL accounting methodology which requires entities to estimate and recognize an allowance for lifetime expected credit losses for loans and other financial assets measured at amortized cost.
On January 1, 2023, we adopted the new CECL accounting methodology which requires entities to estimate and recognize an allowance for lifetime expected credit losses for loans and other financial assets measured at amortized cost.
Our total letters and lines of credit and unused lines of credit totaled $4.1 million at December 31, 2023 . Commitments . The following table summarizes our outstanding commitments to originate loans and to advance additional amounts pursuant to outstanding letters of credit, lines of credit and undisbursed construction loans at December 31, 2023 .
The following table summarizes our outstanding commitments to originate loans and to advance additional amounts pursuant to outstanding letters of credit, lines of credit and undisbursed construction loans at December 31, 2024 .
Total at Payments Due By Period December 31, 2023 To 1 Year 1-3 Years 4-5 Years After 5 Years (Dollars in thousands) Time deposits $ 67,255 $ 46,637 $ 13,945 $ 6,673 $ — Other borrowings 5,000 — 5,000 — — Total contractual obligations $ 72,255 $ 46,637 $ 18,945 $ 6,673 $ — Impact of Inflation and Changing Prices The financial statements and related financial data presented herein have been prepared in accordance with accounting principles generally accepted in the United States of America, which generally require the measurement of financial position and operating results in terms of historical dollars, without considering changes in relative purchasing power over time due to inflation.
Total at Payments Due By Period December 31, 2024 To 1 Year 1-3 Years 4-5 Years After 5 Years (Dollars in thousands) Time deposits $ 92,819 $ 63,630 $ 15,246 $ 13,943 $ — Other borrowings 5,000 5,000 — — — Total cash obligations $ 97,819 $ 68,630 $ 15,246 $ 13,943 $ — Impact of Inflation and Changing Prices The financial statements and related financial data presented herein have been prepared in accordance with accounting principles generally accepted in the United States of America, which generally require the measurement of financial position and operating results in terms of historical dollars, without considering changes in relative purchasing power over time due to inflation.
Net cash used in financing activities, consisting primarily of the activity in deposit accounts, proceeds from the issuance of common stock and FHLB of Chicago advances, was $7.1 million and $67.0 million for the years ended December 31, 2023 and 2022 , respectively. We are committed to maintaining a strong liquidity position.
Net cash provided by (used in) financing activities, consisting primarily of the activity in deposit accounts and FHLB of Chicago advances, was $20.8 million and $(7.1) million for the years ended December 31, 2024 and 2023 , respectively. We are committed to maintaining a strong liquidity position. We monitor our liquidity position on a daily basis.
See Note 1 – Basis of Presentation and Changes in Significant Accounting Policies in the accompanying notes to the consolidated financial statements included elsewhere in this report for a discussion of our allowance for credit losses. 31 Table of Contents Comparison of Financial Condition at December 31, 2023 and December 31, 2022 At December 31, 2023 2022 (Dollars in thousands) Selected Consolidated Financial Condition Data: Total assets $ 256,776 $ 264,206 Cash and cash equivalents 31,388 13,147 Securities available for sale 82,135 121,205 Federal Home Loan Bank stock 550 550 Loans, net 120,623 103,359 Total deposits 168,826 178,714 Other borrowings 5,000 — Total equity $ 77,545 $ 80,542 General.
See Note 1 – Summary of Significant Accounting Policies in the accompanying notes to the consolidated financial statements included elsewhere in this report for a discussion of our allowance for credit losses. 32 Table of Contents Comparison of Financial Condition at December 31, 2024 and December 31, 2023 At December 31, 2024 2023 (Dollars in thousands) Selected Consolidated Financial Condition Data: Total assets $ 278,688 $ 256,776 Cash and cash equivalents 53,481 31,388 Securities available for sale 71,249 82,135 Federal Home Loan Bank stock 585 550 Loans held for sale 1,218 380 Loans, net 130,356 120,623 Total deposits 190,156 168,826 Other borrowings 5,000 5,000 Total equity 76,490 77,545 Total Assets .
For the Year Ended December 31, 2023 2022 (Dollars in thousands) Noninterest income: Gain on sale of mortgage loans $ 32 $ 106 Loss on sale of securities (1,794 ) — Rental income on office building 64 53 Service charges on deposits 270 291 Increase in cash surrender value of BOLI 192 178 Other 86 608 Total noninterest income $ (1,150 ) $ 1,236 Noninterest income decreased $2.4 million for the year ended December 31, 2023 compared 2022.
For the Year Ended December 31, 2024 2023 (Dollars in thousands) Noninterest income: Gain on sale of mortgage loans $ 1,245 $ 32 Loss on sale of securities — (1,794 ) Rental income on office building 64 64 Service charges on deposits 256 270 Increase in cash surrender value of BOLI 220 192 Other 156 86 Total noninterest income $ 1,941 $ (1,150 ) For the year ended December 31, 2024 compared to the same period ended December 31, 2023, noninterest income increased $3.1 million to $1.9 million.
Change in Interest Rates in Basis Points Net Interest (Rate Shock) Income $ Change % Change (Dollars in thousands) 300bp $ 5,985 $ (239 ) (3.8 )% 200 6,169 (55 ) (0.9 )% 100 6,251 27 0.4 % Static 6,224 — 0.0 % -100 6,025 (199 ) (3.2 )% -200 5,833 (391 ) (6.3 )% The table above indicates that as of December 31, 2023 , 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, 2024 would be expected to decrease by $239,000, or 3.8% to $6.0 million.
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.
For the year ended December 31, 2023 2022 (Dollars in thousands) Noninterest expense: Salaries and employee benefits $ 4,554 $ 3,846 Equipment and occupancy 739 658 Data processing 684 632 Professional services 601 500 Advertising 104 90 Supervisory fees and assessments 140 142 Loan expenses 117 86 Deposit expenses 217 203 Director fees 216 223 Other 480 497 Total noninterest expense $ 7,852 $ 6,877 Noninterest expense increased $975,000 for the year ended December 31, 2023 to $7.9 million compared to $6.9 million for 2022.
For the year ended December 31, 2024 2023 (Dollars in thousands) Noninterest expense: Salaries and employee benefits $ 5,939 $ 4,554 Equipment and occupancy 782 739 Data processing 884 684 Professional services 513 601 Advertising 286 104 Supervisory fees and assessments 142 140 Loan expenses 212 117 Deposit expenses 239 217 Director fees 215 216 Other 508 480 Total noninterest expense $ 9,720 $ 7,852 Noninterest expenses increased $1.8 million for the year ended December 31, 2024, compared to the year ended December 31, 2023.
Our interest rate spread increased to 2.33% for the year ended December 31, 2023 from 2.01% for the same period ending December 31, 2022. Our net interest margin increased to 2.64% for the year ended December 31, 2023 from 2.15% for the same period ended December 31, 2022.
Our interest rate spread decreased to 2.29% for the year ended December 31, 2024 from 2.33% for the year ended December 31, 2023. Our net interest margin increased to 2.86% for the year ended December 31, 2024 compared to 2.64% for the year ended December 31, 2023.
During the year ended December 31, 2023, the Bank received principal and interest payments of $8.2 million, had calls and maturities of $4.1 million, had net premium amortization and discount accretion of $538,000 and had a decrease in the unrealized loss on the portfolio of $4.1 million.
During the year ended December 31, 2024, the Bank received principal payments of $5.5 million, had maturities of $4.3 million, had net premium amortization and discount accretion of $515,000 and had an increase in the unrealized loss on the portfolio of $535,000.
Total Amounts Committed at Amount of Commitment Expiration – Per Period December 31, 2023 To 1 Year 1-3 Years 4-5 Years After 5 Years (Dollars in thousands) Unused line of credit $ 4,050 $ 561 $ 927 $ 247 $ 2,315 Commitments to originate loans 3,770 3,770 — — — Total commitments $ 7,820 $ 4,331 $ 927 $ 247 $ 2,315 38 Table of Contents Contractual Cash Obligations .
Total Amounts Committed at Amount of Commitment Expiration – Per Period December 31, 2024 To 1 Year 1-3 Years 4-5 Years After 5 Years (Dollars in thousands) Unused line of credit $ 8,950 $ 254 $ 1,360 $ 765 $ 6,571 Commitments to originate loans 1,109 1,109 — — — Total commitments $ 10,059 $ 1,363 $ 1,360 $ 765 $ 6,571 38 Table of Contents Cash Obligations .
However, if a substantial portion of these deposits is not retained, we may utilize FHLB of Chicago advances or raise interest rates on deposits to attract new accounts, which may result in higher levels of interest expense. As of December 31, 2023 , North Shore Trust and Savings was well capitalized under the regulatory framework for prompt corrective action.
As such, we expect a decrease in the time deposits as these mature during 2025. However, if a substantial portion of these deposits is not retained, we may utilize FHLB of Chicago advances or raise interest rates on deposits to attract new accounts, which may result in higher levels of interest expense.
North Shore Trust and Savings’ Tier 1 capital to Average Assets was 24.72% and 24.81% at December 31, 2023 and 2022 , respectively. Off-Balance Sheet Arrangements . At December 31, 2023 , we had $3.8 million of outstanding commitments to originate loans.
North Shore Trust and Savings’ Tier 1 capital to Average Assets was 23.53% and 24.72% at December 31, 2024 and 2023 , respectively. Commitments . At December 31, 2024 , we had $1.1 million of outstanding commitments to originate loans. Our total letters and lines of credit and unused lines of credit totaled $9.0 million at December 31, 2024 .
During the year ended December 31, 2020, North Shore Trust and Savings elected to begin using the CBLR.
As of December 31, 2024 , North Shore Trust and Savings was well capitalized under the regulatory framework for prompt corrective action. During the year ended December 31, 2020, North Shore Trust and Savings elected to begin using the CBLR.
Our loans, net, increased by $17.3 million to $120.6 million at December 31, 2023 compared to $103.3 million at December 31, 2022. The Bank originated $29.4 million in loans to be held in the portfolio during the year ended December 31, 2023. Additionally, during the year ended December 31, 2023, loan principal payments and paydowns totaled $11.2 million.
Our loans, net, increased by $9.8 million to $130.4 million at December 31, 2024 compared to $120.6 million at December 31, 2023. The Bank originated $43.2 million in loans to be held in the portfolio during the year ended December 31, 2024 and had loan principal payments and payoffs and changes to deferred fees and costs of $25.0 million.
Management monitors the portfolio for credit losses and believes that the decline in value does not presently represent realized losses and is due to market volatility and increased market interest rates.
As of December 31, 2024, the securities available for sale portfolio included an unrealized loss position of $12.0 million, or 14.5% of the total book value of the portfolio. Management monitors the portfolio for credit losses and believes that the decline in value does not presently represent realized losses and is due to market volatility and increased market interest rates.
The average outstanding balance of loans, net increased to $107.4 million, an increase of $9.7 million for the year ended December 31, 2023. Additionally, the average yield earned on those loans outstanding increased 36 basis points to 4.06% for the year ended December 31, 2023, which is the result of new originations made at higher market rates.
The average outstanding balance of loans, net increased to $133.2 million for the year ended December 31, 2024, an increase of $25.8 million from $107.4 million for the year ended December 31, 2023. Additionally, the average yield earned on those loans outstanding increased 103 basis points to 5.09% for the year ended December 31, 2024.
As of December 31, 2023 , we had total assets of $256.8 million, including $120.6 million in net loans and $82.1 million of securities available for sale, total deposits of $168.8 million and total equity of $77.5 million.
As of December 31, 2024 , we had total assets of $278.7 million, including $130.4 million in net loans and $71.2 million of securities available for sale, total deposits of $190.2 million and total equity of $76.5 million.
We recorded a provision for credit losses of $176,000 during the year ended December 31, 2023, comprised of $168,000 in provision of credit losses to loans and $8,000 in provision of credit losses related to unfunded commitments. The increase in the ACL is driven by an increase in loan balances throughout the year.
During the year ended December 31, 2024, we recorded a provision for credit losses of $71,000, comprised of $25,000 provision for credit losses on loans and $46,000 provision for credit losses related to unfunded commitments.
We monitor our liquidity position on a daily basis. We anticipate that we will have sufficient funds to meet our current funding commitments. Time deposits that are scheduled to mature in less than one year from December 31, 2023 , totaled $46.6 million.
We anticipate that we will have sufficient funds to meet our current funding commitments. Time deposits that are scheduled to mature in less than one year from December 31, 2024 , totaled $63.6 million. While we historically have experienced strong deposit retention, many of the new time deposits were brought in with a growth pricing strategy.
Change in Interest NPV as % of Rates In Basis Points Net Portfolio Value Portfolio Value of Assets (Rate Shock) Amount $ Change % Change NPV Ratio Change (Dollars in thousands) 300bp $ 58,780 $ (13,947 ) (19.2 )% 26.4 % (3.1 )% 200 63,144 (9,583 ) (13.2 )% 27.5 % (2.0 )% 100 67,743 (4,984 ) (6.9 )% 28.5 % (1.0 )% Static 72,727 — — 29.5 % — -100 75,239 2,512 3.5 % 29.6 % 0.1 % -200 77,083 4,356 6.0 % 29.4 % (0.1 )% Net Interest Income Analysis .
Change in Interest NPV as % of Rates In Basis Points Net Portfolio Value Portfolio Value of Assets (Rate Shock) Amount $ Change % Change NPV Ratio Change (Dollars in thousands) 300bp $ 58,410 $ (13,279 ) (18.5 )% 23.4 % (2.9 )% 200 62,836 (8,853 ) (12.3 )% 24.5 % (1.8 )% 100 67,257 (4,432 ) (6.2 )% 25.4 % (0.9 )% Static 71,689 — — 26.3 % — -100 74,513 2,824 3.9 % 26.6 % 0.3 % -200 77,262 5,573 7.8 % 26.7 % 0.4 % Net Interest Income Analysis .
Additionally, the Bank recorded a higher provision for credit losses during the year ended 2023 compared to the year ended 2022. Net Interest Income. Net interest income increased $636,000, or 11.4%, to $6.2 million for the year ended December 31, 2023 compared to $5.6 million for the year ended December 31, 2022.
Additionally, net interest income after provision for credit losses increased $946,000, and the gain on sale of loans increased $1.2 million for the year ended December 31, 2024 compared to the year ended December 31, 2023.
As of December 31, 2023, the allowance for credit losses (“ACL”) which includes the allowance for credit losses on loans, and the allowance for credit losses on off-balance sheet exposures, totaled $1.2 million, an increase of $176,000 from the date of adoption of ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) .
As of December 31, 2024, the allowance for credit losses on loans (“ACL”) totaled $1.2 million, an increase of $25,000 compared to December 31, 2023.
Years Ended December 31, 2023 vs. 2022 Total Increase (Decrease) Due to Increase Volume Rate (Decrease) (Dollars in thousands) Interest-earning assets: Loans $ 378 $ 364 $ 742 Federal funds sold and interest-bearing deposits in other banks (314 ) 403 89 Time deposits in other banks (16 ) 69 53 Investment securities (89 ) 576 487 FHLB of Chicago stock — 9 9 Total interest-earning assets $ (41 ) $ 1,421 $ 1,380 Interest-bearing liabilities: Interest-bearing demand $ (1 ) $ 1 $ — Money market (21 ) 151 130 Savings (5 ) — (5 ) Time deposit (50 ) 497 447 Total interest-bearing deposits $ (77 ) $ 649 $ 572 Other borrowings — 172 172 Total interest-bearing liabilities $ (77 ) $ 821 $ 744 Change in net interest income $ 36 $ 600 $ 636 Comparison of Operating Results for the Years Ended December 31, 2023 and 2022 General.
Years Ended December 31, 2024 vs. 2023 Total Increase (Decrease) Due to Increase Volume Rate (Decrease) (Dollars in thousands) Interest-earning assets: Loans $ 1,174 $ 1,251 $ 2,425 Federal funds sold and interest-bearing deposits in other banks 1,144 121 1,265 Time deposits in other banks (46 ) 37 (9 ) Investment securities (913 ) (206 ) (1,119 ) FHLB of Chicago stock 1 13 14 Total interest-earning assets $ 1,360 $ 1,216 $ 2,576 Interest-bearing liabilities: Interest-bearing demand $ (1 ) $ — $ (1 ) Money market (40 ) 10 (30 ) Savings (7 ) 1 (6 ) Time deposit 560 1,141 1,701 Total interest-bearing deposits $ 512 $ 1,152 $ 1,664 Other borrowings 75 (4 ) 71 Total interest-bearing liabilities $ 587 $ 1,148 $ 1,735 Change in net interest income $ 773 $ 68 $ 841 Comparison of Operating Results for the Years Ended December 31, 2024 and 2023 General.
The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years and are applied prospectively, except with respect to the recognition and measurement of TDRs, where an entity has the option to apply a modified retrospective transition method. Early adoption of the amendments in this update is permitted.
The amendments in the update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted.
Average interest-earning assets of $235.3 million for the year ended December 31, 2023 reflect a decrease of $24.0 million compared to 2022. The decrease in average earning assets was driven by the refunds issued on the stock oversubscription in the prior year.
Average interest-earning assets of $247.2 million for the year ended December 31, 2024 increased $11.9 million compared to $235.3 million for the year ended December 31, 2023.
Treasury notes with an average expected yield in excess of 5.0% and to fund additional residential loan growth and general working capital at the Bank. For the year ended December 31, 2023, we had a net loss of $4.0 million, compared to net income of $27,000 for the year ended December 31, 2022.
For the year ended December 31, 2024, we had a net loss of $789,000, compared to a net loss of $4.0 million for the year ended December 31, 2023.
Overview North Shore Trust and Savings is a community-oriented savings institution headquartered in Waukegan, Illinois. We operate as a traditional thrift relying on the origination of long-term one to four-family residential mortgage loans secured by property in Lake County, Illinois and surrounding communities.
Overview North Shore Trust and Savings is a community-oriented savings institution headquartered in Waukegan, Illinois. Our business strategy is to continually enhance our products and services with a focus on one- to four- family residential first mortgage loans, and to maintain our holdings of commercial real estate and multi-family residential real estate loans.
The increased yield on securities available-for-sale was the result of an overall increase in market rates available at the time of purchase throughout 2022. The cost of interest-bearing deposits increased 42 basis points, to 0.86%, for the year ended December 31, 2023 compared to the year ended December 31, 2022.
The cost of interest-bearing liabilities increased 93 basis points for the year ended December 31, 2024 compared to the year ended December 31, 2023. The net increase in our funding costs was primarily due to an increase in rates offered on time deposit accounts to remain competitive with the local market. Provision for Credit Losses.
During 2023, the Bank sold approximately $30.3 million in book value of lower yielding available-for-sale investment securities, generating a loss of $1.8 million. Additionally, the gain on sale of mortgage loans decreased $74,000, or 69.8%, to $32,000 for the year ended December 31, 2023 compared to $106,000 for the year ended December 31, 2022.
The increase was driven by an increase in the gain on sale of mortgage loans and no loss on sale of securities during the year ended December 31, 2024. Gain on sale of mortgage loans increased $1.2 million, from $32,000 to $1.2 million for the year ended December 31, 2024 compared to the year ended December 31, 2023.
Subsequent to the balance sheet repositioning, cash and cash equivalents increased while securities available-for-sale decreased. Cash and cash equivalents. Cash and cash equivalents increased $18.3 million to $31.4 million as of December 31, 2023 from $13.1 million at December 31, 2022.
Cash and cash equivalents increased $22.1 million to $53.5 million as of December 31, 2024, from $31.4 million at December 31, 2023. The increase in cash was driven by an increase in time deposits during the same period and principal payments received on securities available for sale.
Total assets decreased $7.4 million to $256.8 million as of December 31, 2023 compared to $264.2 million at December 31, 2022. The decrease in total assets was driven by a decrease in deposits during the year. The decrease in deposits resulted in an overall reduction to cash throughout the year prior to the balance sheet repositioning.
Total assets increased $21.9 million to $278.7 million as of December 31, 2024 compared to $256.8 million at December 31, 2023. The increase was driven by an increase in loans, net, funded by an increase in time deposits and a reduction in securities available for sale due to maturities and principal payments of securities. Cash and cash equivalents.
The increase in net loss is primarily the result of the balance sheet repositioning, which resulted in a loss on sale of securities of $1.8 million and the tax expense related to the addition to the valuation allowance on the remaining portion of the deferred tax asset of $1.0 million.
The decrease in net loss for the year-ended December 31, 2024 is primarily due to a loss on sale of securities and a valuation allowance on the deferred tax assets recognized in 2023 which did not occur in 2024.
Management continues to actively monitor the deposit balances and interest rates offered to maintain an adequate level of liquidity. 32 Table of Contents Other borrowings. During the year ended December 31, 2023, the Bank borrowed $5.0 million from the FHLB Chicago with a term of 24 months at 4.78%.
As of December 31, 2024, the Bank has $5.0 million in outstanding advances from FHLB Chicago with a term of 24 months at 4.78%, that is scheduled to mature in June 2025. No additional borrowings were made during the year ended December 31, 2024. Total Equity. Total equity decreased $1.0 million to $76.5 million at December 31, 2024.
During the year ended December 31, 2023, the Bank recorded income tax expense of $1.0 million, consisting of $9,000 current tax expense, $2.1 million change in valuation allowance and $1.2 million deferred tax benefit.
Management intends to continue to invest in the people and processes in place to achieve efficiencies as loan production continues to grow. 36 Table of Contents Provision for Income Tax Expense. During the year ended December 31, 2024, the Bank recorded no income tax expense. The change in valuation allowance of $389,000 was offset by an equal deferred tax benefit.
We also originate multi-family and commercial real estate loans and, to a lesser extent, construction, home equity, and consumer loans. We currently operate three full-service banking offices in Lake County, Illinois and three loan production offices in Chicago, Plainfield and Aurora, Illinois.
Our traditional lending market is centered in our retail branch area of Lake County, Illinois and has expanded to counties in the greater Chicagoland area in Illinois as well as Kenosha County in Wisconsin. We currently operate three full-service banking offices in Lake County, Illinois and three loan production offices in Chicago, Plainfield and Aurora, Illinois.
Removed
Under the provisions of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) signed into law on March 27, 2020 and the subsequent extension of the CARES Act, the Bank was eligible for a refundable employee retention credit subject to certain criteria.
Added
Additionally, the Bank sold $5.9 million of loans on December 30, 2024, resulting in an increase in cash held as of the end of the year. Currently, the Bank holds a majority of the cash on hand at the Federal Reserve Bank of Chicago, earning 4.40%, to keep the funds available to fund loan demand.
Removed
The Bank qualified for the tax credit for the quarters ended June 30, 2021 and September 30, 2021 under the CARES Act. The Bank utilized the gross receipts method of calculating eligibility.
Added
Management continues to actively monitor our liquidity position on a daily basis and maintains levels of liquid assets deemed adequate. Securities Available for Sale. Securities available-for-sale decreased to $71.2 million as of December 31, 2024, compared to $82.1 million at December 31, 2023. There were no purchases or sales of securities available-for-sale during the year ended December 31, 2024.
Removed
Based on the eligibility, the tax credit is equal to 70% of qualified wages paid to employees during a quarter, and the limit on qualified wages per employee is $10,000 of qualified wages per quarter. The Employee Retention Credit of $503,000 was recorded during the second quarter of 2022, when the Bank determined it was eligible.
Added
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 $838,000 to $1.2 million at December 31, 2024 compared to $380,000 at December 31, 2023.
Removed
The credit is recorded as other non-interest income and offsets $503,000 of salaries and employee benefits expense previously recorded during 2021. Subsequent to December 31, 2022, the Bank has received $259,000 of the Employee Retention Credit, which represents the tax credit for the quarter ended June 30, 2021. The Bank cannot reasonably estimate when it will receive the remaining refunds.
Added
With the addition of Oak Leaf Community Mortgage during the late third and early fourth quarters of 2023, and the related increase in loan originations, management has increased the proportion of loan originations held for sale to the secondary market. During the year ended December 31, 2024, the Bank originated $45.6 million in loans held for sale. Loans, net.
Removed
A receivable is recorded in other assets on the consolidated balance sheets to reflect the remaining amount of the credit yet to be received. The CARES Act and related Employee Retention Credit was terminated as of September 30, 2021, and therefore the Company does not expect to file for any additional refunds. Allowance for Credit Losses .
Added
In an effort to continue to grow loan originations, the Bank hired three additional mortgage loan originators during the year ended December 31, 2024. The Bank sold $8.4 million in loans that were originally held in the portfolio to local community banks.
Removed
Previously, an allowance for loan and lease losses was recognized based on probable incurred losses.
Added
The increase in the ACL is driven by an increase in the portfolio loan balances, partially offset by a reduction in proxy expected lifetime loss rates due to high credit quality of the portfolio and positive economic factors such as a lower inflation rate and stable unemployment rates.
Removed
During the first half of the year ended December 31, 2023, deposit balances decreased as a result of various large customers moving money to higher yielding accounts outside the Bank. During the second half of the year ended December 31, 2023, the Bank offered highly competitive special CDs for terms of 13 and 30 months.
Added
As of December 31, 2024, there were no loans individually assessed and no loans were rated substandard or watch. As of December 31, 2024, the Bank has no non-accrual loans and two loans past due greater than 30 days.
Removed
With the introduction of this offer, deposit balances stabilized. As a result of the overall decrease in deposits, the Bank borrowed $5.0 million from the FHLB Chicago in June, 2023 and an additional $10.0 million from the Federal Reserve Bank in November, 2023.
Added
The Bank actively monitors the loan portfolio for signs of weakening credit quality, noting as of December 31, 2024 the portfolio remains of high quality with limited credit concerns. Deposits. Total deposits increased $21.4 million to $190.2 million at December 31, 2024 compared to $168.8 million at December 31, 2023.
Removed
Additionally, with the continued rise of market interest rates, the unrealized losses on the securities available-for-sale portfolio increased during 2023. During the fourth quarter, management repositioned the balance sheet by selling $30.3 million in securities for a recognized loss of $1.8 million.
Added
The increase in deposits is primarily within the time deposit accounts as the Bank continued to offer a competitive CD special during the year ended December 31, 2024.
Removed
A portion of the funds received from the sale was used to pay down a portion of the borrowings entered into during 2023 with the remaining held primarily in cash as of December 31, 2023. During 2023, the Board approved a stock buyback program totaling 5% of the then outstanding shares.
Added
Based on current offering rates in our market area and our current deposit pricing strategy, as well as our strong historical deposit retention, management anticipates that a significant portion of maturing time deposits will be retained. Management continues to actively monitor the deposit balances and interest rates offered to maintain an adequate level of liquidity. Other Borrowings.
Removed
This program was completed during the fourth quarter of 2023. A second stock buyback program was approved during the fourth quarter, allowing for an additional 5% of the then outstanding shares to be repurchased. This program is expected to be completed during 2024. Total Assets .
Added
The decrease is primarily due to an increase in the unrealized loss position on the securities available-for-sale portfolio, a reduction in retained earnings due to a net loss during the year and an increase in treasury stock as a result of stock repurchases completed during the year ended December 31, 2024. 33 Table of Contents Average Balances, Net Interest Income, and Yields Earned and Rates Paid .
Removed
The increase in cash was the result of the balance sheet repositioning described above, which resulted in proceeds of approximately $28.5 million. A portion of the proceeds was used to repay $10.0 million in borrowings from the Federal Reserve Bank. Additionally, during December 2023, the Bank invested approximately $750,000 in time deposits with other financial institutions.
Added
However, the increase in noninterest expenses of $1.9 million during year ended December 31, 2024 compared to December 31, 2023 partially offsets the decrease in net loss. Net Interest Income. Net interest income increased $841,000, to $7.1 million for year ended December 31, 2024 compared to $6.2 million for the year ended December 31, 2023.
Removed
The remaining proceeds remain in an interest-bearing deposit account with the Federal Reserve Bank. Management continues to actively monitor our liquidity position on a daily basis and maintain levels of liquid assets deemed adequate. Time deposits with other financial institutions.

… 68 more changes not shown on this page.

Other NSTS 10-K year-over-year comparisons