NSTS Bancorp(US:NSTS)2025-05-14 20:16Financial Performance - For the quarter ended March 31, 2025, the company reported a net loss of $328,000, compared to a net loss of $246,000 for the same period in 2024, indicating an increase in net loss due to higher noninterest expenses [115]. - The company's net interest income for the three months ended March 31, 2025, was $1,831,000, an increase from $1,705,000 in the same period of 2024 [112]. - Net interest income increased by $126,000 to $1.9 million for the quarter ended March 31, 2025, compared to $1.7 million for the same period in 2024 [116]. - Noninterest income increased by $22,000 to $334,000 for the quarter ended March 31, 2025, primarily due to a $33,000 increase in gain on sale of mortgage loans [123]. - Total noninterest expenses rose by $266,000 to $2.53 million for the quarter ended March 31, 2025, mainly due to higher salaries and employee benefits [125]. Asset and Liability Management - Total interest-earning assets rose to $259,919,000 in Q1 2025, compared to $241,740,000 in Q1 2024, showing growth in asset base [112]. - The company's total assets increased to $280,110,000 as of March 31, 2025, up from $261,378,000 as of March 31, 2024 [112]. - Total assets increased by $4.0 million to $282.7 million as of March 31, 2025, driven by an increase in cash and cash equivalents [128]. - Total deposits increased by $3.5 million to $193.7 million at March 31, 2025, largely due to a single large deposit of $3.0 million [135]. - Noninterest-bearing liabilities increased to $19,386,000 in Q1 2025 from $17,159,000 in Q1 2024, reflecting changes in funding structure [112]. Loan Performance - The average yield on loans increased to 5.38% in Q1 2025 from 4.71% in Q1 2024, reflecting improved loan performance [112]. - The average outstanding balance of loans increased by $8.6 million to $133.9 million for the quarter ended March 31, 2025, with an average yield of 5.38%, up 67 basis points [117]. - Non-accrual loans amounted to $263,000 as of March 31, 2025, representing 0.20% of total loans outstanding [139]. - The allowance for credit losses on loans totaled $1.2 million as of March 31, 2025, a decrease of $45,000 from December 31, 2024 [134]. Capital and Equity - Total equity increased by $1.0 million to $77.5 million at March 31, 2025, primarily due to a decrease in unrealized losses on the securities available-for-sale portfolio [136]. - As of March 31, 2025, the company had a Tier 1 capital to average assets ratio of 23.11%, indicating a strong capital position [147]. Cash Flow and Liquidity - Net cash used in operating activities for the three months ended March 31, 2025, was $(2.7) million, compared to $92,000 for the same period in 2024 [145]. - Net cash provided by financing activities was $4.2 million for the three months ended March 31, 2025, down from $9.9 million in 2024 [145]. - Cash flows from investing activities were $2.4 million for the three months ended March 31, 2025, compared to $(5.0) million in 2024, reflecting a decrease in the loan portfolio [145]. - The company is committed to maintaining a strong liquidity position and monitors it daily [146]. Operational Overview - The company operates primarily in Lake County, Illinois, with a focus on residential mortgage loans and has expanded its loan production offices to enhance market reach [105]. - The company had $65.2 million in time deposits scheduled to mature within one year as of March 31, 2025, with expectations to retain a significant portion [146]. - The company had $1.7 million in outstanding commitments to originate loans as of March 31, 2025 [148]. - Total commitments, including unused lines of credit, amounted to $11.1 million as of March 31, 2025 [149]. - The company had the capacity to borrow approximately $74.1 million from the FHLB of Chicago as of March 31, 2025 [143]. - The company had no outstanding balance under its $10.0 million federal funds line of credit with BMO Harris Bank [143].