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What changed in NSTS Bancorp, Inc.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of NSTS Bancorp, Inc.'s 2024 and 2025 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 2025 report.

+243 added−253 removedSource: 10-K (2026-03-27) vs 10-K (2025-03-28)

Top changes in NSTS Bancorp, Inc.'s 2025 10-K

243 paragraphs added · 253 removed · 204 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

124 edited+24 added−30 removed212 unchanged
Biggest changeLoan operations are also subject to state and federal laws applicable to credit transactions, such as the: ● Home Mortgage Disclosure Act, requiring financial institutions to provide information to enable the public and public officials to determine whether a financial institution is fulfilling its obligation to help meet the housing needs of the community it serves; ● Truth-In-Lending Act, governing disclosures of credit terms to consumer borrowers; ● Equal Credit Opportunity Act, prohibiting discrimination on the basis of race, creed or other prohibited factors in extending credit; ● Fair Credit Reporting Act, governing the use and provision of information to credit reporting agencies; ● Fair Debt Collection Act, governing the manner in which consumer debts may be collected by collection agencies; and ● Rules and regulations of the various federal agencies charged with the responsibility of implementing such federal laws.
Biggest changeLoan operations are also subject to state and federal laws applicable to credit transactions, such as: ● the Home Mortgage Disclosure Act, requiring financial institutions to provide information to enable the public and public officials to determine whether a financial institution is fulfilling its obligation to help meet the housing needs of the community it serves; ● the Truth-In-Lending Act, governing disclosures of credit terms to consumer borrowers; ● the Real Estate Settlement Procedures Act, requiring that borrowers for mortgage loans for one- to four-family residential real estate receive various disclosures, including good faith estimates of settlement costs, lending servicing and escrow account practices, and prohibiting certain practices that increase the cost of settlement services; ● the Equal Credit Opportunity Act, prohibiting discrimination on the basis of race, creed or other prohibited factors in extending credit; ● the Fair Credit Reporting Act, governing the use and provision of information to credit reporting agencies; ● the Fair Debt Collection Act, governing the manner in which consumer debts may be collected by collection agencies; and ● the rules and regulations of the various federal agencies charged with the responsibility of implementing such federal laws.
Maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be called or repaid without any penalties. Therefore, these securities have been included in based on average remaining life. The below yields represent tax equivalent yield.
Maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be called or repaid without any penalties. Therefore, these securities have been included based on average remaining life. The below yields represent tax equivalent yield.
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").
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 ratio (known as the "leverage ratio").
The deposit operations of North Shore Trust and Savings also are subject to, among others, the: ● Right to Financial Privacy Act, which imposes a duty to maintain confidentiality of consumer financial records and prescribes procedures for complying with administrative subpoenas of financial records; ● Check Clearing for the 21st Century Act (also known as “Check 21”), which gives “substitute checks,” such as digital check images and copies made from that image, the same legal standing as the original paper check; and ● Electronic Funds Transfer Act and Regulation E promulgated thereunder, which govern automatic deposits to and withdrawals from deposit accounts and customers’ rights and liabilities arising from the use of automated teller machines and other electronic banking services.
The deposit operations of North Shore Trust and Savings also are subject to, among others: ● the Right to Financial Privacy Act, which imposes a duty to maintain confidentiality of consumer financial records and prescribes procedures for complying with administrative subpoenas of financial records; ● the Check Clearing for the 21st Century Act (also known as “Check 21”), which gives “substitute checks,” such as digital check images and copies made from that image, the same legal standing as the original paper check; and ● the Electronic Funds Transfer Act and Regulation E promulgated thereunder, which govern automatic deposits to and withdrawals from deposit accounts and customers’ rights and liabilities arising from the use of automated teller machines and other electronic banking services.
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.
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; ● 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 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 AML 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.
Federal savings associations are prohibited, subject to some exceptions, from extending credit to or offering any other service, or fixing or varying the consideration for such extension of credit or service, on the condition that the customer obtain some additional service from the institution or its affiliates or not obtain services of a competitor of the institution. 24 Table of Contents Other Regulations Interest and other charges collected or contracted by North Shore Trust and Savings are subject to state usury laws and federal laws concerning interest rates.
Federal savings associations are prohibited, subject to some exceptions, from extending credit to or offering any other service, or fixing or varying the consideration for such extension of credit or service, on the condition that the customer obtain some additional service from the institution or its affiliates or not obtain services of a competitor of the institution. 25 Table of Contents Other Regulations Interest and other charges collected or contracted by North Shore Trust and Savings are subject to state usury laws and federal laws concerning interest rates.
Under this system of regulation, the regulatory authorities have extensive discretion in connection with their supervisory, enforcement, rulemaking and examination activities and policies, including rules or policies that: establish minimum capital levels; restrict the timing and amount of dividend payments; govern the classification of assets; provide oversight for the adequacy of loan loss reserves for regulatory purposes; and establish the timing and amounts of assessments and fees.
Under this system of regulation, the regulatory authorities have extensive discretion in connection with their supervisory, enforcement, rulemaking and examination activities and policies, including rules or policies that: establish minimum capital levels; restrict the timing and amount of dividend payments; govern the classification of assets; provide oversight for the adequacy of credit loss reserves for regulatory purposes; and establish the timing and amounts of assessments and fees.
We are also an active originator of residential home loans in Lake County, Illinois as well as other counties in the greater Chicagoland area, as well as Kenosha County in Wisconsin.
We are an active originator of residential home loans in Lake County, Illinois as well as other counties in the greater Chicagoland area, as well as Kenosha County in Wisconsin.
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.
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, 2025 2024 Amortized Market Amortized Market Cost Value Cost Value (Dollars in thousands) Securities available-for-sale U.S.
In addition, we must comply with significant anti-money laundering and anti-terrorism laws and regulations, the Community Reinvestment Act of 1977 (the "CRA") and fair lending laws and regulations.
In addition, we must comply with significant anti-money laundering ("AML") and anti-terrorism laws and regulations, the Community Reinvestment Act of 1977 (the "CRA") and fair lending laws and regulations.
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 .
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, 2025, North Shore Trust and Savings was in compliance with the loans-to-one borrower limitations. Capital Distributions .
North Shore Trust and Savings has established appropriate anti-money laundering and customer identification programs. North Shore Trust and Savings also maintains records of cash purchases of negotiable instruments, files reports of certain cash transactions exceeding $10,000 (daily aggregate amount) and reports suspicious activity that might signify money laundering, tax evasion or other criminal activities pursuant to the BSA.
North Shore Trust and Savings has established appropriate AML and customer identification programs. North Shore Trust and Savings also maintains records of cash purchases of negotiable instruments, files reports of certain cash transactions exceeding $10,000 (daily aggregate amount) and reports suspicious activity that might signify money laundering, tax evasion or other criminal activities pursuant to the BSA.
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%.
The EGRRCPA requires 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%.
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.
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, 2025 , all securities were classified as securities available for sale. At December 31, 2025 , we had no investments in a single issuer other than securities issued by U.S.
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.
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, 2025, the total of these services was $1.3 million.
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 .
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, 2025 and 2024. Delinquent Loans .
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 following table shows the scheduled contractual maturities of our loans as of December 31, 2025 , 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.
If North Shore Trust and Savings finds a name on any transaction, account or wire transfer that is on an OFAC list, North Shore Trust and Savings must freeze or block such account or transaction, file a suspicious activity report and notify the appropriate authorities. 23 Table of Contents On January 1, 2021, the U.S.
If North Shore Trust and Savings finds a name on any transaction, account or wire transfer that is on an OFAC list, North Shore Trust and Savings must freeze or block such account or transaction, file a suspicious activity report and notify the appropriate authorities. 24 Table of Contents On January 1, 2021, the U.S.
Attorney General resulting in monetary sanctions exceeding $1.0 million (including disgorgement and interest but excluding forfeiture, restitution, or compensation to victims) will receive not more than 30% of the monetary sanctions collected and will receive increased protections; (iii) increased penalties for violations of anti-money laundering laws and regulations; (iv) improvements to existing information sharing provisions that permit financial institutions to share information relating to suspicious activity reports with foreign branches, subsidiaries, and affiliates (except those located in the People's Republic of China, the Russian Federation or certain other jurisdictions) for the purpose of combating illicit finance risks; and (v) expanded duties and enforcement powers for FinCEN.
Attorney General resulting in monetary sanctions exceeding $1.0 million (including disgorgement and interest but excluding forfeiture, restitution, or compensation to victims) will receive not more than 30% of the monetary sanctions collected and will receive increased protections; (iii) increased penalties for violations of AML laws and regulations; (iv) improvements to existing information-sharing provisions that permit financial institutions to share information relating to suspicious activity reports with foreign branches, subsidiaries, and affiliates (except those located in the People's Republic of China, the Russian Federation or certain other jurisdictions) for the purpose of combating illicit finance risks; and (v) expanded duties and enforcement powers for FinCEN.
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 .
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.
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.
As a result, as of December 31, 2025, 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.
Notable amendments include (i) significant changes to the collection of beneficial ownership information ("BOI") and the establishment of a beneficial ownership registry, which requires corporate entities (generally, any corporation, limited liability company, or other similar entity with 20 or fewer employees and annual gross income of $5.0 million or less) to report BOI to FinCEN (which will be maintained by FinCEN and made available upon request to financial institutions); (ii) enhanced whistleblower provisions, which provide that one or more whistleblowers who voluntarily provide original information leading to the successful prosecution of violations of the anti-money laundering laws in any judicial or administrative action brought by the Secretary of the U.S.
Notable amendments include (i) significant changes to the collection of beneficial ownership information ("BOI") and the establishment of a beneficial ownership registry, which requires corporate entities (generally, any corporation, limited liability company, or other similar entity with 20 or fewer employees and annual gross income of $5.0 million or less) to report BOI to FinCEN (which will be maintained by FinCEN and made available upon request to financial institutions); (ii) enhanced whistleblower provisions, which provide that one or more whistleblowers who voluntarily provide original information leading to the successful prosecution of violations of the AML laws in any judicial or administrative action brought by the Secretary of the U.S.
Among other things, financial institutions are expected to design multiple layers of security controls to establish lines of defense and ensure that their risk management processes address the risks posed by compromised customer credentials, including security measures to authenticate customers accessing Internet-based services.
Among other risk-management considerations, financial institutions are expected to design multiple layers of security controls to establish lines of defense and ensure that their risk management processes address the risks posed by compromised customer credentials, including security measures to authenticate customers accessing Internet-based services.
There were no OREO properties as of December 31, 2024 and 2023 . 10 Table of Contents Non-performing Assets . The following table shows the amounts of our non-performing assets, which include non-accruing loans, accruing loans 90 days or more past due and real estate owned at the dates indicated.
There were no OREO properties as of December 31, 2025 and 2024 . 10 Table of Contents Non-performing Assets . The following table shows the amounts of our non-performing assets, which include non-accruing loans, accruing loans 90 days or more past due and real estate owned at the dates indicated.
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 .
At December 31, 2025 , 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, 2025 and 2024 .
While the Federal Reserve Board has indicated that it does not plan to reinstate such Regulation D reserve requirements, it may do so in the future. As of December 31, 2024, North Shore Trust and Savings was in compliance with these requirements. Branching .
While the Federal Reserve Board has indicated that it does not plan to reinstate such Regulation D reserve requirements, it may do so in the future. As of December 31, 2025, North Shore Trust and Savings was in compliance with these requirements. Branching .
The Gramm-Leach-Bliley Act (the "GLBA"), and its implementing regulations issued by federal regulatory agencies require financial institutions (including banks) to adopt policies and procedures regarding the disclosure of nonpublic personal information about their customers to non-affiliated third parties.
The Gramm-Leach-Bliley Act (the "GLBA"), and its implementing regulations issued by federal regulatory agencies require financial institutions (including banks) to adopt policies and procedures regarding the disclosure of non-public personal information about their customers to non-affiliated third parties.
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 .
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, 2025 .
We use traditional means of advertising deposit products, including broadcast and print media and we generally do not solicit deposits from outside our market area. During 2023 and 2024, we offered a CD Special that attracted funds into Time Deposits.
We use traditional means of advertising deposit products, including broadcast and print media and we generally do not solicit deposits from outside our market area. During 2025 and 2024, we offered a CD Special that attracted funds into Time Deposits.
A CSA may make loans to its customers without regard to the lending restrictions applicable to federal savings associations, such as the percentage of capital or assets limits on various types of loans and the QTL Test.
A CSA may make loans to its customers without regard to the lending restrictions applicable to federal savings associations, such as the percentage of capital or asset limits on various types of loans and the QTL Test.
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%.
The two largest commercial real estate loans outstanding were $1.4 million and $1.0 million, 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 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.
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.
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.
Assessments for institutions with 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. 23 Table of Contents The FDIC has authority to increase insurance assessments.
We believe our commitment to living out our core values, actively prioritizing concern for our employees’ well-being, supporting our employees’ career goals, offering competitive wages and providing valuable fringe benefits aids in retention of our top-performing employees. Federal Income Taxation General .
We believe our commitment to living out our core values, actively prioritizing concern for our employees’ well-being, supporting our employees’ career goals, offering competitive wages and providing valuable fringe benefits aids in retention of our top-performing employees. 16 Table of Contents Federal Income Taxation General .
Formal enforcement actions by the OCC may range from the issuance of a capital directive, formal agreement or cease and desist order against institutions, and can also include the removal of officers and/or directors of the institution. The OCC can appoint receivers and/or conservators for the institutions it supervises if certain circumstances are met.
Formal enforcement actions by the OCC may range from the issuance of a capital directive, formal agreement or cease and desist order against institutions, and can also include the removal of officers and/or directors of the institution. The OCC can appoint receivers and/or conservators for the institutions it supervises if certain circumstances arise.
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.
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, 2025 , our multi-family residential mortgage loans amounted to $3.2 million, or 2.5% of the total loan portfolio.
In general, financial institutions are required to explain to customers their policies and procedures regarding the disclosure of such nonpublic personal information and, unless otherwise required or permitted by law, financial institutions are prohibited from disclosing such information except as provided in their policies and procedures.
In general, financial institutions are required to explain to customers their policies and procedures regarding the disclosure of such non-public personal information and, unless otherwise required or permitted by law, financial institutions are prohibited from disclosing such information except as provided in their policies and procedures.
There was no related specific valuation allowance in the allowance for credit losses on our classified loans at December 31, 2024 and 2023 .
There was no related specific valuation allowance in the allowance for credit losses on our classified loans at December 31, 2025 and 2024 .
For many of these tasks a bank must keep records to be made available to its primary federal regulator. Anti-money laundering rules and policies are developed by a bureau within the U.S. Department of the Treasury (the "U.S. Treasury"), the Financial Crimes Enforcement Network ("FinCEN"), but compliance by individual institutions is overseen by its primary federal regulator.
For many of these tasks a bank must keep records to be made available to its primary federal regulator. AML rules and policies are developed by a bureau within the U.S. Department of the Treasury (the "U.S. Treasury") and the Financial Crimes Enforcement Network ("FinCEN"), but compliance by individual institutions is overseen by its primary federal regulator.
All other loans must be approved by the board of directors of North Shore Trust and Savings. Asset Quality General . One of our key objectives has been, and continues to be, maintaining a high level of asset quality.
All other loans must be approved by the board of directors of North Shore Trust and Savings. 8 Table of Contents Asset Quality General . One of our key objectives has been, and continues to be, maintaining a high level of asset quality.
At December 31, 2024 , our largest multi-family residential mortgage loan relationship, which consists of two loans, was $1.3 million, secured by various one to four-family investment homes and one multi-family apartment building located in Waukegan and North Chicago, Illinois, and was performing in accordance with its terms.
At December 31, 2025 , our largest multi-family residential mortgage loan relationship, which consists of two loans, was $1.2 million, secured by various one to four-family investment homes and one multi-family apartment building located in Waukegan and North Chicago, Illinois, and was performing in accordance with its terms.
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.
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, 2025 , we had 49 full-time equivalent employees.
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, 2025 , no impairment had been recognized. 26 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.
Shares of NSTS Bancorp, Inc.’s common stock began trading on January 19, 2022 on The Nasdaq Capital Market under the trading symbol “NSTS.” NSTS Bancorp, Inc., as the holding company of North Shore Trust and Savings, is authorized to pursue other business activities permitted by applicable laws and regulations, which may include the acquisition of banking and financial services companies.
Shares of NSTS Bancorp, Inc.’s common stock trade on The Nasdaq Capital Market under the trading symbol “NSTS.” NSTS Bancorp, Inc., as the holding company of North Shore Trust and Savings, is authorized to pursue other business activities permitted by applicable laws and regulations, which may include the acquisition of banking and financial services companies.
As of December 31, 2024 , $119.4 million, or 91.2% of our total loan portfolio, consisted of one- to four-family residential mortgage loans. Our headquarters office is located at 700 S. Lewis Avenue, Waukegan, Illinois, and our telephone number is (847) 336-4430. We maintain a website at www.northshoretrust.com, and we provide our customers with on-line banking services.
As of December 31, 2025 , $118.2 million, or 91.3% of our total loan portfolio, consisted of one- to four-family residential mortgage loans. Our headquarters office is located at 700 S. Lewis Avenue, Waukegan, Illinois, and our telephone number is (847) 336-4430. We maintain a website at www.northshoretrust.com, and we provide our customers with on-line banking services.
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.
North Shore Trust and Savings was in compliance with this requirement as of December 31, 2025 based on its ownership of $605,000 in capital stock of the FHLB of Chicago. The stock has no quoted market value and is carried at cost.
We plan to elect to use the extended transition period to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. Such an election is irrevocable during the period a company is an emerging growth company.
We have elected to use the extended transition period to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. Such an election is irrevocable during the period a company is an emerging growth company.
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.
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, 2025, the available-for-sale securities portfolio had a net unrealized loss position of $8.1 million. Some investment securities held in the portfolio have declined in value but do not presently represent realized losses.
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.
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, 2025 , the maximum loan amount that may be approved by an individual officer is $806,500, which is consistent with secondary market limits for conforming loans.
Moreover, as part of their examination authority, the banking regulators assign numerical ratings to banks and savings institutions relating to capital, asset quality, management, liquidity, earnings and other factors (known as an institution's CAMELS rating).
Moreover, as part of their examination authority, the banking regulators assign numerical ratings to banks and savings institutions relating to capital, asset quality, management, earnings, liquidity, and sensitivity to market risk (known as an institution's CAMELS rating).
One to Four-Family Residential Mortgage Lending . Our primary lending continues to be the origination of loans secured by first mortgages on one to four-family residences in our market area. As of December 31, 2024 , $119.4 million, or 91.2% of our total loan portfolio, consisted of one to four-family residential mortgage loans.
One to Four-Family Residential Mortgage Lending . Our primary lending continues to be the origination of loans secured by first mortgages on one to four-family residences in our market area. As of December 31, 2025 , $118.2 million, or 91.3% of our total loan portfolio, consisted of one to four-family residential mortgage loans.
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.
At December 31, 2025 2024 (Dollars in thousands) Substandard loans $ 284 $ — Doubtful loans — — Loss loans — — Total classified loans $ 284 $ — In addition to classified loans, our other real estate owned, (“OREO”) is classified as substandard.
As of December 31, 2024 , approximately 32.7% of our one to four-family residential mortgage loans maturing after December 31, 2025 were ARM loans. The interest rate on our ARM loans is based on either the Wall Street Journal Prime rate, the one-year Treasury rate or SOFR.
As of December 31, 2025 , approximately 37.9% of our one to four-family residential mortgage loans maturing after December 31, 2026 were ARM loans. The interest rate on our ARM loans is based on either the Wall Street Journal Prime rate, the one-year Treasury rate or SOFR.
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.
Our deposits consist of checking, both interest-bearing and noninterest-bearing, money market, savings and time deposit accounts. As of December 31, 2025 , 50.7% of the funds deposited with North Shore Trust and Savings were in core deposits, which are deposits other than time deposits.
Congress passed the Corporate Transparency Act (the "CTA") as part of the National Defense Authorization Act, which enacted the most significant overhaul of the anti-money laundering laws since the USA PATRIOT Act.
Congress passed the Corporate Transparency Act (the "CTA") as part of the National Defense Authorization Act, which enacted the most significant overhaul of the AML laws since the USA PATRIOT Act.
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.
Amounts at December 31, 2025, 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 $ — $ 7,085 $ — $ — $ 7,085 U.S.
The Bank does not have any subsidiaries. 27 Table of Contents
The Bank does not have any subsidiaries. 28 Table of Contents
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 .
At December 31, 2025, North Shore Trust and Savings' CBLR was 24.32%. 18 Table of Contents As of December 31, 2025 , North Shore Trust and Savings’ capital exceeded all applicable requirements including the applicable conservation buffer. Loans-to-One Borrower .
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 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.
Federal savings associations pay assessments to the OCC to fund its operations. The general assessments, paid on a semi-annual basis, are based upon the federal savings association’s total assets (including consolidated subsidiaries), its financial condition and the complexity of its portfolio. During 2024, our assessments totaled $44,835. Standards for Safety and Soundness .
Federal savings associations pay assessments to the OCC to fund its operations. The general assessments, paid on a semi-annual basis, are based upon the federal savings association’s total assets (including consolidated subsidiaries), its financial condition and the complexity of its portfolio. During 2025, our assessments totaled $40,000. 21 Table of Contents Standards for Safety and Soundness .
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.
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, 2025, our construction lending outstanding amounted to $3.9 million, or 3.0% of the total loan portfolio.
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 .
Such risk ratings are periodically reviewed by management and revised as deemed appropriate. Our allowance for credit losses amount to $1.1 million and $1.2 million at December 31, 2025 and December 31, 2024, respectively .
The policy also permits investments in mortgage-backed securities, including pass-through securities issued and guaranteed by Fannie Mae, Freddie Mac and the Government National Mortgage Association (“Ginnie Mae”). As of December 31, 2024 , our securities available-for-sale portfolio totaled $71.2 million, or 25.6% of total assets at such date.
The policy also permits investments in mortgage-backed securities, including pass-through securities issued and guaranteed by Fannie Mae, Freddie Mac and the Government National Mortgage Association (“Ginnie Mae”). As of December 31, 2025 , our securities available-for-sale portfolio totaled $78.7 million, or 29.5% of total assets at such date.
Borrowings . There were no additional borrowings made during the year ended December 31, 2024. In June 2023, the Company borrowed $5.0 million from the FHLB Chicago at a rate of 4.78% for 24 months, payable on June 20, 2025.
Borrowings . There were no additional borrowings made during the year ended December 31, 2025. In June 2023, the Company borrowed $5.0 million from the FHLB Chicago at a rate of 4.78% for 24 months, which was paid off in June 2025.
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.
The Bank is eligible to borrow up to a total of $79.1 million and $78.1 million at December 31, 2025 and 2024 , respectively, which would be collateralized by $105.1 million and $103.8 million of first mortgage loans under a blanket lien arrangement at December 31, 2025 and 2024 , respectively.
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 .
At December 31, 2025 , we had a total of 10 multi-family residential mortgage loans and the average size of our multi-family residential mortgage loans was approximately $324,000. Our commercial real estate loan portfolio amounted to $3.8 million, or 3.0% of the total loan portfolio, at December 31, 2025 .
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.
As of December 31, 2025 , loans identified for individual evaluation of expected credit losses, amounted to $284,000 . There were no loans identified for individual evaluation of expected credit losses as of December 31, 2024. Federal regulations and our policies require that we utilize an internal asset classification system as a means of reporting problem and potential problem assets.
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.
The following table shows certain information regarding our borrowings at or for the dates indicated: At or For the Year Ended December 31, 2025 2024 (Dollars in thousands) FHLB of Chicago advances and other borrowings: Average balance outstanding $ 2,322 $ 5,000 Maximum amount outstanding at any month-end during the period 5,000 5,000 Balance outstanding at end of period — 5,000 Average interest rate during the period 4.8 % 4.8 % Weighted average interest rate at end of period — 4.8 % As of December 31, 2025 , there were no outstanding borrowings with the FHLB Chicago.
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.
Additionally, at December 31, 2025 and 2024 we had a $10.0 million uncommitted, unsecured line of credit with the BMO Harris Bank, none of which was drawn at December 31, 2025 and 2024.
At December 31, 2024 2023 (Dollars in thousands) Fixed-rate $ 70,095 $ 80,899 Adjustable-rate 1,154 1,236 Total securities available for sale $ 71,249 $ 82,135 Additionally, we hold interest-bearing deposits at financial institutions throughout the United States. Some of these accounts have balances above the FDIC’s per account insurance limit of $250,000.
At December 31, 2025 2024 (Dollars in thousands) Fixed-rate $ 77,606 $ 70,095 Adjustable-rate 1,113 1,154 Total securities available for sale $ 78,719 $ 71,249 Additionally, we hold interest-bearing deposits at financial institutions throughout the United States. Some of these accounts have balances above the FDIC’s per account insurance limit of $250,000.
CISA is required to complete mandatory rulemaking activities before the reporting requirements go into effect. On March 28, 2024, CISA issued a notice of proposed rulemaking to implement CIRCIA and, under such proposal, regulated financial institutions such as banks would be required to comply with CIRCIA. CISA has indicated that it intends to finalize the rule in late 2025.
CISA is required to complete mandatory rulemaking activities before the reporting requirements go into effect. On March 28, 2024, CISA issued a notice of proposed rulemaking to implement CIRCIA and, under such proposal, regulated financial institutions such as banks would be required to comply with CIRCIA.
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.
The largest component of our investment securities portfolio at December 31, 2025 was investment in collateralized mortgage obligations issued by Fannie Mae, Ginnie Mae and Freddie Mac, which amounted to $27.2 million, followed by pass-through mortgage-backed securities issued by Fannie Mae, Ginnie Mae and Freddie Mac, which amounted to $23.8 million.
Accordingly, all of the Company’s operations are considered by management to be aggregated in one reportable operating segment. Lending Activities General . As of December 31, 2024 , our net loan portfolio totaled $130.4 million or 46.8% of total assets.
Accordingly, all of the Company’s operations are considered by management to be aggregated in one reportable operating segment. Lending Activities General . As of December 31, 2025 , our net loan portfolio totaled $128.6 million or 48.2% of total assets.
On October 25, 2023, the FRB proposed rules that would reduce the maximum permissible interchange fee cap and would adopt an approach for future adjustments to such cap.
In October 2023, the Federal Reserve Board proposed rules that would reduce the maximum permissible interchange fee cap and would adopt an approach for future adjustments to such cap.
At December 31, 2024 2023 Percent Percent of Percent of Percent of of Allowance Loans in Allowance Loans in Amount of to Total Category to Amount of to Total Category to Allowance Allowance Total Loans Allowance Allowance Total Loans (Dollars in thousands) 1-4 family residential $ 1,056 87.93 % 91.22 % $ 1,094 93.03 % 91.97 % Multi-family 37 3.08 % 2.57 % 40 3.40 % 2.58 % Commercial 41 3.41 % 3.21 % 37 3.15 % 3.17 % Construction 65 5.41 % 2.79 % 4 0.34 % 2.08 % Consumer 2 0.17 % 0.21 % 1 0.08 % 0.20 % Total $ 1,201 100.00 % 100.00 % $ 1,176 100.00 % 100.00 % Investment Activities We have authority to invest in various types of securities, including mortgage-backed securities, U.S.
At December 31, 2025 2024 Percent Percent of Percent of Percent of of Allowance Loans in Allowance Loans in Amount of to Total Category to Amount of to Total Category to Allowance Allowance Total Loans Allowance Allowance Total Loans (Dollars in thousands) 1-4 family residential $ 989 87.68 % 91.32 % $ 1,056 87.93 % 91.22 % Multi-family 39 3.46 % 2.50 % 37 3.08 % 2.57 % Commercial 37 3.28 % 2.95 % 41 3.41 % 3.21 % Construction 61 5.41 % 3.03 % 65 5.41 % 2.79 % Consumer 2 0.17 % 0.20 % 2 0.17 % 0.21 % Total $ 1,128 100.00 % 100.00 % $ 1,201 100.00 % 100.00 % Investment Activities We have authority to invest in various types of securities, including mortgage-backed securities, U.S.
At December 31, 2024 2023 (Dollars in thousands) Non-accruing loans: 1-4 family residential $ — $ 200 Multi-family — — Commercial — — Construction — — Consumer — — Total non-accruing loans $ — $ 200 Accruing loans 90 days or more past due: 1-4 family residential — — Multi-family — — Commercial — — Construction — — Consumer — — Total accruing loans 90 days or more past due — — Total non-performing loans — 200 Other real estate owned — — Total non-performing assets — 200 Total loans outstanding $ 130,907 $ 120,783 Total assets outstanding $ 278,688 $ 256,776 Total non-accruing loans as a percentage of total loans outstanding — % 0.17 % Total non-performing loans as a percentage of total loans outstanding — % 0.17 % Total non-performing loans as a percentage of total assets — % 0.08 % Total non-performing assets as a percentage of total assets — % 0.08 % Allowance for Credit Losses .
At December 31, 2025 2024 (Dollars in thousands) Non-accruing loans: 1-4 family residential $ 284 $ — Multi-family — — Commercial — — Construction — — Consumer — — Total non-accruing loans $ 284 $ — Accruing loans 90 days or more past due: 1-4 family residential — — Multi-family — — Commercial — — Construction — — Consumer — — Total accruing loans 90 days or more past due — — Total non-performing loans 284 — Other real estate owned — — Total non-performing assets 284 — Total loans outstanding $ 129,464 $ 130,907 Total assets outstanding $ 266,648 $ 278,688 Total non-accruing loans as a percentage of total loans outstanding 0.22 % — % Total non-performing loans as a percentage of total loans outstanding 0.22 % — % Total non-performing loans as a percentage of total assets 0.11 % — % Total non-performing assets as a percentage of total assets 0.11 % — % Allowance for Credit Losses .
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. Our traditional lending market is centered in our retail branch area of Lake County, 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.
In general, transactions between an insured depository institution and its affiliates are subject to certain quantitative limits and collateral requirements. In addition, federal regulations prohibit a savings association from lending to any of its affiliates that are engaged in activities that are not permissible for bank holding companies and from purchasing the securities of any affiliate, other than a subsidiary.
In addition, federal regulations prohibit a savings association from lending to any of its affiliates that are engaged in activities that are not permissible for bank holding companies and from purchasing the securities of any affiliate, other than a subsidiary.
Government and agency obligations 9,719 8,657 10,234 9,106 Municipal obligations 14,103 11,736 15,451 13,570 Mortgage-backed securities 30,681 25,915 34,884 30,351 Collateralized mortgage obligations 28,783 24,941 30,073 26,135 Total securities available-for-sale $ 83,286 $ 71,249 $ 93,637 $ 82,135 12 Table of Contents The investment policy is designed primarily to manage the interest rate sensitivity of the assets and liabilities, to generate a favorable return without incurring undue interest rate and credit risk, to complement the lending activities and to provide and maintain liquidity.
Government and agency obligations 9,219 8,534 9,719 8,657 Municipal obligations 13,975 12,146 14,103 11,736 Mortgage-backed securities 26,759 23,769 30,681 25,915 Collateralized mortgage obligations 29,736 27,185 28,783 24,941 Total securities available-for-sale $ 86,777 $ 78,719 $ 83,286 $ 71,249 12 Table of Contents The investment policy is designed primarily to manage the interest rate sensitivity of the assets and liabilities, to generate a favorable return without incurring undue interest rate and credit risk, to complement the lending activities and to provide and maintain liquidity.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeWhile 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
Biggest changeWhile 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. 29 Table of Contents

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeDescription/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.
Biggest changeDescription/Address Net Book Value of Property Amount of Deposits (Dollars in thousands) Main Office: 700 S. Lewis Avenue, Waukegan, Illinois 60085 $ 847 $ 105,906 Branch Offices: 1233 N. Green Bay Road, Waukegan, Illinois 60085 1,026 48,858 3060 W.
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 .
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, 2025 .
Sand 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.
Sand Lake Road, Lindenhurst, Illinois 60046 3,126 26,708 Total $ 4,999 $ 181,472 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 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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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]
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, 2025 — $ — — — November 1 - November 31, 2025 — — — — December 1 - December 31, 2025 505 12.01 — — Total 505 $ 12.01 — — There were no unregistered sales of NSTS Bancorp, Inc.'s common stock during the year ended December 31, 2025 . 31 Table of Contents Item 6. [Reserved]
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).
As of March 27, 2026, there were 5,599,859 shares of our common stock issued and 5,261,533 shares outstanding, which were held by approximately 217 stockholders of record (excluding the number of persons or entities holding stock in street name through various brokerage firms).
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.
Is suer Purchases of Securities The following table sets forth information about the Company's purchases of its common stock during the three months ended December 31, 2025. There were no repurchases during the months ended October 31 and November 30, 2025.
Removed
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.
Added
The repurchases for the month ended December 31, 2025 were as a result of taxes withheld on RSA grants vesting.

Item 6. [Reserved]

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

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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
Biggest changeItem 6. [Reserved] 32 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 32 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 41 Item 8. Financial Statements and Supplementary Data 41 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. 41 Item 9A. Controls and Procedures 42

Item 7. Management's Discussion & Analysis

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

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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.
Biggest changeAt or For the Year Ended December 31, 2025 2024 Average Outstanding Balance Interest Average Yield/ Rate Average Outstanding Balance Interest Average Yield/ Rate (Dollars in thousands) Interest-earning assets: Loans $ 136,849 $ 7,453 5.45 % $ 133,176 $ 6,785 5.09 % Interest-bearing bank deposits 45,119 1,737 3.85 % 35,554 1,613 4.54 % Time deposits with other financial institutions 1,394 65 4.66 % 1,647 85 5.16 % Securities available for sale 72,852 1,704 2.34 % 76,260 1,783 2.34 % Federal Home Loan Bank stock 600 34 5.67 % 576 38 6.60 % Total interest-earning assets $ 256,814 $ 10,993 4.28 % $ 247,213 $ 10,304 4.17 % Noninterest-earning assets 19,513 19,626 Total assets $ 276,327 $ 266,839 Interest-bearing liabilities: Interest-bearing demand $ 15,644 $ 8 0.05 % $ 15,316 $ 8 0.05 % Money market 27,749 174 0.63 % 30,617 196 0.64 % Savings 40,749 61 0.15 % 41,273 62 0.15 % Time deposits 92,696 3,174 3.42 % 80,485 2,734 3.40 % Total interest-bearing deposits $ 176,838 $ 3,417 1.93 % $ 167,691 $ 3,000 1.79 % Other borrowings 2,322 113 4.87 % 5,000 243 4.86 % Total interest-bearing liabilities $ 179,160 $ 3,530 1.97 % $ 172,691 $ 3,243 1.88 % Noninterest-bearing liabilities 19,407 17,162 Total liabilities $ 198,567 $ 189,853 Equity 77,760 76,986 Total liabilities and equity $ 276,327 $ 266,839 Net interest income $ 7,463 $ 7,061 Interest rate spread (1) 2.31 % 2.29 % Net interest-earning assets (2) 77,654 74,522 Net interest margin (3) 2.91 % 2.86 % Average interest-earning assets to average-interest bearing liabilities 143.34 % 143.15 % (1) Equals the difference between the yield on average earning-assets and the cost of average interest-bearing liabilities.
Accordingly, although the table provides an indication of our interest rate risk exposure at a particular point in time, such measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates on our NPV and will differ from actual results. 37 Table of Contents Liquidity and Capital Resources North Shore Trust and Savings maintains levels of liquid assets deemed adequate by management.
Accordingly, although the table provides an indication of our interest rate risk exposure at a particular point in time, such measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates on our NPV and will differ from actual results. 38 Table of Contents Liquidity and Capital Resources North Shore Trust and Savings maintains levels of liquid assets deemed adequate by management.
Our interest rate sensitivity is monitored by management through the use of models which generate estimates of the change in its net portfolio value ("NPV") over a range of interest rate scenarios.
Net Portfolio Value Analysis . Our interest rate sensitivity is monitored by management through the use of models which generate estimates of the change in its net portfolio value ("NPV") over a range of interest rate scenarios.
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.
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. 32 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.
We will continue to assess and evaluate the estimated future credit loss impact of current market conditions in subsequent reporting periods, which will be highly dependent on credit quality, macroeconomic forecasts and conditions, as well as the composition of our loan and available-for-sale securities portfolios. 35 Table of Contents Noninterest Income .
We will continue to assess and evaluate the estimated future credit loss impact of current market conditions in subsequent reporting periods, which will be highly dependent on credit quality, macroeconomic forecasts and conditions, as well as the composition of our loan and available-for-sale securities portfolios. 36 Table of Contents Noninterest Income .
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.
During the year ended December 31, 2025, 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, 2025.
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.
As such, we expect a decrease in the time deposits as these mature during 2026. 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.
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 .
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, 2025 and 2024 .
(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.
(2) Equals total interest-earning assets less total interest-bearing liabilities. (3) Equals net interest income divided by average interest-earning assets. 35 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, 2024 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, 2025 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, 2024 .
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, 2025 .
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 .
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, 2025 .
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.
Net cash (used in) provided by financing activities, consisting primarily of the activity in deposit accounts and FHLB of Chicago advances, was $(13.7) million and $20.8 million for the years ended December 31, 2025 and 2024 , respectively. We are committed to maintaining a strong liquidity position. 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, 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.
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, 2025 , totaled $64.3 million. While we historically have experienced strong deposit retention, many of the new time deposits were brought in with a growth pricing strategy.
Current Accounting Developments In March 2024, the FASB issued ASU No. 2024-01, “Compensation—Stock Compensation (Topic 718): Scope Applications of Profits Interests and Similar Awards” (ASU 2024-01).
In March 2024, the FASB issued ASU No. 2024-01, “Compensation—Stock Compensation (Topic 718): Scope Applications of Profits Interests and Similar Awards” (ASU 2024-01).
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.
In an effort to continue to grow loan originations, the Bank hired two additional mortgage loan originators during the year ended December 31, 2025. The Bank sold $7.8 million in loans that were originally held in the portfolio to local community banks.
The following table summarizes our cash obligations at December 31, 2024 .
The following table summarizes our cash obligations at December 31, 2025 .
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.
The decrease in the ACL is driven by a decrease in the portfolio loan balances and a reduction in proxy expected lifetime loss rates due to high credit quality of the portfolio and positive economic factors such as a stable inflation and unemployment rates.
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.
The Bank is eligible to borrow up to a total of $79.1 million and $78.1 million at December 31, 2025 and 2024 , respectively, which would be collateralized by $105.1 million and $103.8 million of first mortgage loans under a blanket lien arrangement at December 31, 2025 and 2024 , respectively.
Results of operations are also affected by our provisions for credit losses, fee income and other noninterest income and noninterest expense. Noninterest expense principally consists of compensation, office occupancy and equipment expense, data processing, advertising and business promotion and other expenses. We expect that our noninterest expenses will increase as we grow and expand our operations.
Results of operations are also affected by our provisions for credit losses, fee income and other noninterest income and noninterest expense. Noninterest expense principally consists of compensation, office occupancy and equipment expense, data processing, advertising and business promotion and other expenses.
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.
Net cash used in investing activities, which consists primarily of net change in loans receivable and net change in investment securities, was $9.8 million and $8.2 million for the years ended December 31, 2025 and 2024 , respectively.
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.
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, 2025, a valuation allowance of $3.2 million, against the net deferred tax assets has been recorded. There were no uncertain tax positions outstanding as of December 31, 2025 and 2024 .
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.
Total at Payments Due By Period December 31, 2025 To 1 Year 1-3 Years 4-5 Years After 5 Years (Dollars in thousands) Time deposits $ 89,482 $ 64,305 $ 17,922 $ 7,255 $ — Other borrowings — — — — — Total cash obligations $ 89,482 $ 64,305 $ 17,922 $ 7,255 $ — 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.
Included in the number and amount of loans sold during the period were loans sold that were originated as held for investment, but subsequently sold to local community banks, totaling $8.4 million, for a total gain on sale of $352,000.
Included in the number and amount of loans sold during the periods were loans sold that were originated as held for investment, but subsequently sold to local community banks, totaling $7.8 million, for a total gain on sale of $321,000, and $8.4 million, for a total gain on sale of $352,000, for the years ended December 31, 2025 and 2024, respectively.
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 .
For the year ended December 31, 2025, we had a net loss of $386,000 compared to a net loss of $789,000 for the year ended December 31, 2024 .
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.
For the year ended December 31, 2025, we had a net loss of $386,000, compared to a net loss of $789,000 for the year ended December 31, 2024.
The increase in noninterest expenses was primarily driven by increases in salaries and employee benefits. The average number of employees increased to 50 for the year ended December 31, 2024 compared to 39 for the year ended December 31, 2023.
The increase in noninterest expenses was primarily driven by increases in salaries and employee benefits. The average number of employees increased to 51 for the year ended December 31, 2025 compared to 50 for the year ended December 31, 2024. The increase in salaries and employee benefits primarily stemmed from a 4% increase in salaries recognized during the year.
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.
The Current Expected Credit Losses ("CECL") accounting methodology requires entities to estimate and recognize an allowance for lifetime expected credit losses for loans and other financial assets measured at amortized cost.
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.
During the year ended December 31, 2025, we recorded a reversal of provision for credit losses of $(192,000), comprised of $(172,000) reversal of provision for credit losses on loans and $(20,000) reversal provision for credit losses related to unfunded commitments.
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.
The average outstanding balance of loans, net increased to $136.8 million for the year ended December 31, 2025, an increase of $3.6 million from $133.2 million for the year ended December 31, 2024. Additionally, the average yield earned on those loans outstanding increased 36 basis points to 5.45% for the year ended December 31, 2025.
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.
Our loans, net, decreased by $1.8 million to $128.6 million at December 31, 2025 compared to $130.4 million at December 31, 2024. The Bank originated $36.5 million in loans to be held in the portfolio during the year ended December 31, 2025 and had loan principal payments and payoffs and changes to deferred fees and costs of $30.5 million.
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.
Average interest-earning assets of $256.8 million for the year ended December 31, 2025 increased $9.6 million compared to $247.2 million for the year ended December 31, 2024.
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 .
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. 33 Table of Contents Comparison of Financial Condition at December 31, 2025 and December 31, 2024 At December 31, 2025 2024 (Dollars in thousands) Selected Consolidated Financial Condition Data: Total assets $ 266,648 $ 278,688 Cash and cash equivalents 34,042 53,481 Securities available for sale 78,719 71,249 Federal Home Loan Bank stock 605 585 Loans held for sale 4,459 1,218 Loans, net 128,635 130,356 Total deposits 181,472 190,156 Other borrowings — 5,000 Total equity 79,974 76,490 Total Assets .
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.
For the Year Ended December 31, 2025 2024 (Dollars in thousands) Noninterest income: Gain on sale of mortgage loans $ 1,565 $ 1,245 Rental income on office building 65 64 Service charges on deposits 252 256 Increase in cash surrender value of BOLI 233 220 Other 157 156 Total noninterest income $ 2,272 $ 1,941 For the year ended December 31, 2025 compared to the same period ended December 31, 2024, noninterest income increased $331,000 to $2.3 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.
Change in Interest Rates in Basis Points Net Interest (Rate Shock) Income $ Change % Change (Dollars in thousands) 300bp $ 7,526 $ 63 0.8 % 200 7,677 214 2.9 % 100 7,698 235 3.1 % Static 7,463 — 0.0 % -100 7,120 (343 ) (4.6 )% -200 6,727 (736 ) (9.9 )% The table above indicates that as of December 31, 2025 , 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 $63,000, or 0.8% to $7.5 million.
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.
As of December 31, 2025, the allowance for credit losses on loans (“ACL”) totaled $1.1 million, a decrease of $73,000 compared to December 31, 2024.
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.
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 increased to $78.7 million as of December 31, 2025, compared to $71.2 million at December 31, 2024. The Bank purchased $10.8 million of securities available-for-sale during the year ended December 31, 2025.
Marketing and advertising costs increased during 2024 as a result of an increased focus on lending operations and related marketing to our new lending area, Will County, Illinois. Data processing expenses increased as we have continued to invest in systems and processes to improve the lending experience for our customers as well as implement efficiencies within our internal processes.
Marketing and advertising costs decreased during 2025 as a result of marketing initiatives in 2024 that did not continue into 2025. Data processing expenses increased as we have continued to invest in systems and processes to improve the lending experience for our customers as well as implement efficiencies within our internal processes.
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.
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 portion of the maturing time deposits will not renew, however a significant portion of maturing time deposits will be retained.
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.
As of December 31, 2025, there were two loans individually assessed, both of which had no allowance for credit losses. As of December 31, 2025, the Bank has two non-accrual loans and two loans past due greater than 30 days.
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.
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.
Interest rates do not necessarily move in the same direction or in the same magnitude as the prices of goods and services, since such prices are affected by inflation to a larger extent than interest rates.
Interest rates do not necessarily move in the same direction or in the same magnitude as the prices of goods and services, since such prices are affected by inflation to a larger extent than interest rates. Current Accounting Developments On December 14, 2023, the FASB issued ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”.
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.
The Bank actively monitors the loan portfolio for signs of weakening credit quality, noting as of December 31, 2025 the portfolio remains of high quality with limited credit concerns. Deposits.
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.
For the year ended December 31, 2025 2024 (Dollars in thousands) Noninterest expense: Salaries and employee benefits $ 6,266 $ 5,939 Equipment and occupancy 875 782 Data processing 951 884 Professional services 570 513 Advertising 141 286 Supervisory fees and assessments 150 142 Loan expenses 301 212 Deposit expenses 292 239 Director fees 210 215 Other 557 508 Total noninterest expense $ 10,313 $ 9,720 Noninterest expenses increased $593,000 for the year ended December 31, 2025, compared to the year ended December 31, 2024.
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 .
Total Amounts Committed at Amount of Commitment Expiration – Per Period December 31, 2025 To 1 Year 1-3 Years 4-5 Years After 5 Years (Dollars in thousands) Unused line of credit $ 7,220 $ 556 $ 235 $ 437 $ 5,992 Commitments to originate loans 1,586 1,586 — — — Total commitments $ 8,806 $ 2,142 $ 235 $ 437 $ 5,992 39 Table of Contents Cash Obligations .
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.
As of December 31, 2025 , we had total assets of $266.6 million, including $128.6 million in net loans and $78.7 million of securities available for sale, total deposits of $181.5 million and total equity of $80.0 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.
There were no sales of securities available-for-sale during the year ended December 31, 2025. During the year ended December 31, 2025, the Bank received principal payments of $5.8 million, had maturities of $1.1 million, had net premium amortization and discount accretion of $461,000 and had a decrease in the unrealized loss on the portfolio of $4.0 million.
Consequently, our ability to maintain a positive spread between the interest earned on assets and the interest paid on deposits and borrowings will be adversely affected as market rates of interest continue to rise. Net Portfolio Value Analysis .
Our interest-earning assets consist primarily of securities available-for-sale and long-term residential and commercial mortgage loans, which generally have fixed rates of interest. Consequently, our ability to maintain a positive spread between the interest earned on assets and the interest paid on deposits and borrowings will be adversely affected as market rates of interest continue to rise.
The increase in gain on sale of mortgages was primarily the result of an overall increase in total mortgage loans originated during the period. During the year ended December 31, 2024, we sold 199 loans totaling $53.1 million for a gain on sale of $1.2 million.
During the year ended December 31, 2025, we sold 244 loans totaling $75.5 million for a gain on sale of $1.6 million. During the year ended December 31, 2024, we sold 199 loans totaling $53.1 million for a gain on sale of $1.2 million.
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.
Net interest income increased $402,000, to $7.5 million for year ended December 31, 2025 compared to $7.1 million for the year ended December 31, 2024. Our interest rate spread increased to 2.31% for the year ended December 31, 2025 from 2.29% for the year ended December 31, 2024.
This increase is a result of an overall increase in market rates on mortgage loans originated during 2024, as well as increased loan demand for specialty portfolio products which are originated at higher interest rates and with additional origination fees.
This increase is a result of an increased loan demand for specialty portfolio products which are originated at higher interest rates and with additional origination fees. The cost of interest-bearing liabilities increased 9 basis points for the year ended December 31, 2025 compared to the year ended December 31, 2024.
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.
The increase in valuation allowance of $196,000 was offset by an equal deferred tax benefit. Federal net operating losses as of December 31, 2025 are $7.4 million, of which $1.3 million is subject to expire in 2027, the remainder does not expire. State net operating losses as of December 31, 2025 are $6.1 million and will begin expiring in 2026.
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.
Additionally, the cash and cash equivalents balance at December 31, 2024 was higher due to timing of a loan sale, and cash coming in at the end of the year. Currently, the Bank holds a majority of the cash on hand at the Federal Reserve Bank of Chicago to keep the funds available to fund loan demand.
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.
As of December 31, 2025 , North Shore Trust and Savings was well capitalized under the regulatory framework for prompt corrective action. North Shore Trust and Savings’ Tier 1 capital to Average Assets was 24.32% and 23.53% at December 31, 2025 and 2024 , respectively. Commitments .
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 .
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 $ 66,209 $ (7,209 ) (9.8 )% 27.4 % (0.8 )% 200 69,116 (4,302 ) (5.9 )% 27.9 % (0.3 )% 100 71,735 (1,683 ) (2.3 )% 28.3 % 0.1 % Static 73,418 — — 28.2 % — -100 74,891 1,473 2.0 % 28.0 % (0.2 )% -200 75,337 1,919 2.6 % 27.5 % (0.7 )% Net Interest Income Analysis .
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.
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. 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.
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 .
At December 31, 2025 , we had $1.6 million of outstanding commitments to originate loans. Our total letters and lines of credit and unused lines of credit totaled $7.2 million at December 31, 2025 .
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.
As of December 31, 2025 , tax years remaining open for State of Illinois and Wisconsin were 2021 through 2024. Federal tax years that remained open were 2022 through 2024.
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.
The guidance is effective for public business entities for fiscal years beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted.
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.
Total assets decreased $12.1 million to $266.6 million as of December 31, 2025 compared to $278.7 million at December 31, 2024. The decrease was driven by a reduction in total deposits held at the bank, reducing cash and cash equivalents. Additionally, loans, net decreased. Cash and cash equivalents.
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.
Years Ended December 31, 2025 vs. 2024 Total Increase (Decrease) Due to Increase Volume Rate (Decrease) (Dollars in thousands) Interest-earning assets: Loans $ 189 $ 479 $ 668 Federal funds sold and interest-bearing deposits in other banks 393 (269 ) 124 Time deposits in other banks (12 ) (8 ) (20 ) Investment securities (78 ) (1 ) (79 ) FHLB of Chicago stock 2 (6 ) (4 ) Total interest-earning assets $ 494 $ 195 $ 689 Interest-bearing liabilities: Interest-bearing demand $ — $ — $ — Money market (18 ) (4 ) (22 ) Savings (1 ) — (1 ) Time deposit 420 20 440 Total interest-bearing deposits $ 401 $ 16 $ 417 Other borrowings (130 ) — (130 ) Total interest-bearing liabilities $ 271 $ 16 $ 287 Change in net interest income $ 223 $ 179 $ 402 Comparison of Operating Results for the Years Ended December 31, 2025 and 2024 General.
The Company will adopt this ASU for the reporting period beginning January 1, 2025, and does not expect the amendments to have a material impact to the financial statements of the Company. 39 Table of Contents
The Company is assessing ASU 2024-03 and its impact on its Consolidated Financial Statements and disclosures, and does not expect the amendments to have a material impact to the annual financial statements of the Company. 40 Table of Contents
Upon adoption, ASU 2024-01 is not expected to have an impact on the Company’s consolidated balance sheets or consolidated statements of income. On November 27, 2023, the FASB issued ASU 2023-07, "Segment Reporting (ASC 280): Improvements to Reportable Segment Disclosures", intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.
Upon adoption, ASU 2024-01 is not expected to have an impact on the Company’s consolidated balance sheets or consolidated statements of operations.
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.
Cash and cash equivalents decreased $19.5 million to $34.0 million as of December 31, 2025, from $53.5 million at December 31, 2024. The decrease was driven by a reduction in total deposits, as well as purchases of securities available-for-sale throughout the year ended December 31, 2025.
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 .
These increases were offset by a decrease in retained earnings as a result of a net loss during the year. 34 Table of Contents Average Balances, Net Interest Income, and Yields Earned and Rates Paid .
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.
The Bank paid off the advance from FHLB Chicago totaling $5.0 million, in June 2025 that was outstanding as of December 31, 2024. Total Equity. Total equity increased $3.5 million to $80.0 million at December 31, 2025.
Exposure to Changes in Interest Rates Our ability to maintain net interest income depends upon our ability to earn a higher yield on interest-earning assets than the rates we pay on deposits and borrowings. Our interest-earning assets consist primarily of securities available-for-sale and long-term residential and commercial mortgage loans, which generally have fixed rates of interest.
As of December 31, 2025 , there were also no unrecognized tax benefits that are expected to significantly increase or decrease within the next twelve months. 37 Table of Contents Exposure to Changes in Interest Rates Our ability to maintain net interest income depends upon our ability to earn a higher yield on interest-earning assets than the rates we pay on deposits and borrowings.
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.
The net increase in our funding costs was primarily due to a shift in our deposit balances, with an increased percentage of the total portfolio being related to higher-rate time deposits compared to core deposits. Provision for Credit Losses.
The Company adopted this standard effective January 1, 2024, and did not have a material impact on the consolidated financial statements. On December 14, 2023, the FASB issued ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”.
The ASU is effective for public business entities for annual periods beginning after December 15, 2024. The Company adopted this standard effective for its fiscal year ended December 31, 2025, and did not have a material impact on the consolidated financial statements.
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.
The decrease in net loss for the year-ended December 31, 2025 is primarily attributable to an increase in net interest income, an increase in noninterest income, and a reversal of provision for credit losses. Net Interest Income.
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.
Our net interest margin increased to 2.91% for the year ended December 31, 2025 compared to 2.86% for the year ended December 31, 2024. The increases are driven by an increase in yields earned on loans, driving an overall increase in yields on interest-earning assets.
Management continues to look for opportunities and markets to sell loans as we continue to see increased loan production compared to prior years. Noninterest Expense . The following table shows the components of noninterest expense for the periods presented.
Noninterest Expense . The following table shows the components of noninterest expense for the periods presented.
Removed
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.
Added
During the year the Bank purchased U.S. Treasury securities to replace the previously matured securities. As of December 31, 2025, the securities available for sale portfolio included an unrealized loss position of $8.1 million, or 9.3% of the total book value of the portfolio.
Removed
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.
Added
Loans held for sale. Our loans held for sale increased $3.3 million to $4.5 million at December 31, 2025 compared to $1.2 million at December 31, 2024.
Removed
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.
Added
During the year ended December 31, 2025, the Bank originated $70.9 million in loans held for sale, transferred $7.8 million in loans to held for sale from the portfolio, and sold $75.5 million in loans held for sale. Loans, net.
Removed
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.
Added
Total deposits decreased $8.7 million to $181.5 million at December 31, 2025 compared to $190.2 million at December 31, 2024. $3.3 million of the decrease was the result of maturities of time deposits that did not renew at the then offered rate.

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