NSTS Bancorp, Inc. reported a net loss of $386,000 for the year ended December 31, 2025, a significant improvement from the net loss of $789,000 recorded in the previous year. The company's total assets decreased to $266.6 million, down from $278.7 million in 2024, primarily due to a reduction in total deposits and net loans. Total deposits fell to $181.5 million, a decline of $8.7 million, attributed to maturing time deposits that did not renew and increased competition in the market. Despite these challenges, the bank's total equity rose to $80 million, bolstered by a decrease in unrealized losses on securities and an increase in additional paid-in capital.
In terms of operational performance, NSTS Bancorp's net interest income increased by $402,000 to $7.5 million, driven by a higher yield on loans and an increase in average interest-earning assets. The interest rate spread improved to 2.31%, while the net interest margin rose to 2.91%. The bank's average outstanding loans increased to $136.8 million, reflecting a growing demand for specialty portfolio products. Additionally, the bank recorded a reversal of provision for credit losses of $192,000, indicating a positive shift in credit quality.
Strategically, NSTS Bancorp expanded its lending capabilities by hiring two additional mortgage loan originators during the year, aiming to enhance loan originations. The bank also established two new loan production offices in Aurora and Plainfield, Illinois, to further penetrate the Chicagoland market. As of December 31, 2025, the bank's loan portfolio consisted primarily of one- to four-family residential mortgage loans, which accounted for 91.3% of total loans.
The bank's operational metrics showed a slight increase in noninterest income, which rose to $2.3 million, primarily due to an increase in gains from the sale of mortgage loans. The bank sold 244 loans totaling $75.5 million during the year, compared to 199 loans for $53.1 million in 2024. Noninterest expenses also increased to $10.3 million, driven by higher salaries and employee benefits, reflecting the bank's commitment to investing in its workforce.
Looking ahead, NSTS Bancorp anticipates challenges in retaining maturing time deposits due to competitive pressures in the market. However, management remains optimistic about maintaining adequate liquidity and capital levels, with a Tier 1 capital ratio of 24.32%, well above regulatory requirements. The bank's focus on enhancing its product offerings and expanding its market presence positions it for potential growth in the coming years, despite the uncertainties in the economic landscape.
About NSTS Bancorp, Inc.
NSTS Bancorp, Inc. is a Delaware-based holding company for North Shore Trust and Savings, a community-focused savings bank serving Illinois and Wisconsin. It originates residential, multi-family, and commercial real estate loans, primarily in its local markets. The company generates income from loans, securities, and deposit services, maintaining asset quality and regulatory compliance while offering deposit products and investment securities to support its banking operations.
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