NSTS Bancorp Reports $328,000 Net Loss in First Quarter of 2025

NSTS Bancorp, Inc. reported a net loss of $328,000 for the first quarter of 2025, compared to a loss of $246,000 in the same period of 2024. The increase in net loss is attributed to a rise in noninterest expenses, which outpaced the growth in net interest income. For the quarter, net interest income rose to $1.9 million, up from $1.7 million a year earlier, driven by an increase in average interest-earning assets, which reached $259.9 million, a rise of $18.2 million from the previous year. The interest rate spread decreased slightly to 2.23%, while the net interest margin remained stable at 2.82%.

The company experienced a notable increase in noninterest income, which rose to $334,000 from $312,000 in the prior year, primarily due to a higher gain on the sale of mortgage loans. NSTS sold 31 loans totaling $9.9 million during the quarter, generating a gain of $189,000, compared to 26 loans sold for a gain of $156,000 in the previous year. However, noninterest expenses increased to $2.5 million, up from $2.3 million, largely due to higher salaries and employee benefits, reflecting an increase in headcount to support expanded operations.

In terms of operational metrics, total assets increased to $282.7 million as of March 31, 2025, up from $278.7 million at the end of 2024. This growth was primarily driven by an increase in cash and cash equivalents, which rose to $57.5 million, supported by a significant deposit into a customer account. Total deposits also increased to $193.7 million, up from $190.2 million, indicating a positive trend in customer engagement and retention. The allowance for credit losses on loans decreased to $1.2 million, reflecting improved economic conditions and credit quality.

Looking ahead, NSTS Bancorp remains focused on enhancing its product offerings and expanding its loan origination capabilities, particularly in the Chicagoland area. The company has recently opened additional loan production offices to capitalize on growth opportunities. Management continues to monitor market conditions closely, particularly regarding interest rates and credit quality, to navigate potential challenges and leverage opportunities for future growth. The bank is well-capitalized, with a Tier 1 capital ratio of 23.11%, significantly above the regulatory minimum, positioning it favorably for ongoing operations and strategic initiatives.