NSTS Bancorp Reports $258,000 Net Loss in Q2 2025, Sees Improvement from Last Year

NSTS Bancorp, Inc. reported a net loss of $258,000 for the second quarter of 2025, a slight improvement from a loss of $326,000 in the same period last year. For the first half of 2025, the company recorded a net loss of $586,000, compared to a loss of $572,000 in the prior year. The increase in losses was attributed to rising interest and noninterest expenses, which outweighed gains in interest and noninterest income. Total interest income for the quarter increased to $2.74 million, up from $2.56 million a year earlier, while interest expense rose to $930,000 from $775,000, leading to a net interest income of $1.81 million, a marginal increase from $1.79 million in the previous year.

In terms of operational metrics, NSTS Bancorp's total assets decreased to $275.98 million as of June 30, 2025, down from $278.69 million at the end of 2024. The decline was primarily due to a reduction in cash and cash equivalents, which fell to $47.49 million from $53.48 million, largely as a result of repaying a $5 million advance from the Federal Home Loan Bank. Total deposits increased to $192.96 million, up from $190.16 million, driven by a rise in time deposits as customers took advantage of special certificate of deposit offers.

The company also saw a notable increase in loans held for sale, which rose to $4.43 million from $1.22 million, reflecting a higher volume of loans originated for sale during the quarter. Loans, net of unearned income, increased to $132.84 million, compared to $130.36 million at the end of 2024. The allowance for credit losses remained stable at $1.2 million, representing 0.90% of total loans, indicating a consistent assessment of credit risk despite the economic environment.

Strategically, NSTS Bancorp has focused on expanding its loan origination capabilities, hiring additional mortgage loan originators to enhance its market presence in the greater Chicagoland area. The company operates three loan production offices in Chicago, Aurora, and Plainfield, Illinois, under the Oak Leaf Community Mortgage brand. The management continues to monitor market conditions closely, particularly regarding interest rates and credit quality, to navigate potential challenges in the lending landscape.

Looking ahead, NSTS Bancorp anticipates that its financial performance will be influenced by ongoing economic conditions, including interest rate fluctuations and market demand for loans. The company remains committed to maintaining a strong liquidity position and is well-capitalized, with a Tier 1 capital ratio of 23.20% as of June 30, 2025, significantly above the regulatory minimum. Management is optimistic about future growth opportunities while remaining cautious about potential risks associated with credit quality and market volatility.