NSTS Bancorp, Inc. (NSTS): History, Ownership, Mission, How It Works & Makes Money

With total assets of $269.8 million as of September 30, 2025, how exactly does NSTS Bancorp, Inc., a community bank established way back in 1921, manage to navigate the current high-rate financial environment?

This Waukegan, Illinois-based holding company sticks to its traditional savings institution roots, with its primary focus on attracting deposits to fund its net loan portfolio, which now stands at $132.9 million, mostly in residential mortgage loans.

The recent Q3 2025 net income of $65,000-a definite swing from a net loss a year prior-suggests their community banking model and an improved net interest margin of 3.08% are working, but what does their balance sheet really tell us about their long-term viability and growth strategy?

NSTS Bancorp, Inc. (NSTS) History

You're looking at NSTS Bancorp, Inc. and its century-long story, which is really a tale of two eras: a community-focused mutual association and a modern, publicly-traded stock holding company. The transition in 2022 was the single most important financial event, providing the capital to navigate today's challenging rate environment. You need to understand this history to grasp the current balance sheet focus.

Given Company's Founding Timeline

Year established

The institution began in 1921 as North Shore Building and Loan Association, making it one of the longest-serving community banks in Illinois.

Original location

The original operations were based in North Chicago's 10th Street Business District, Waukegan, Illinois, operating initially from the front porch of one of the founding families.

Founding team members

The bank was founded not by a few wealthy individuals, but by a collective of 'community members' and 'residents of North Chicago's 10th Street Business District' who pooled their resources to help neighbors achieve home ownership. It was a true mutual effort.

Initial capital/funding

The initial capital for the original 1921 institution came from neighbors pooling their savings to make loans. The capital for the modern holding company, NSTS Bancorp, Inc., was raised through its January 2022 mutual-to-stock conversion, which sold 5,290,000 shares at $10.00 per share, generating gross proceeds of approximately $53.0 million.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The most defintely transformative moment was the January 2022 mutual-to-stock conversion (a 'second-step conversion'). This move fundamentally changed the company's structure from a mutually-owned entity to a publicly-held stock corporation, which is how it raised $53.0 million in new capital. Here's the quick math: that capital infusion was critical, as the bank's total assets stood at only about $259 million just prior to the conversion.

• Capital Infusion: The conversion provided the capital necessary for growth initiatives and technology investments, moving beyond reliance solely on retained earnings.
• Financial Strength: As of September 30, 2025, the company reported total assets of $269.8 million and stockholders' equity of $78.9 million, showing a strong capital base post-conversion.
• Strategic Focus: The December 2023 Balance Sheet Repositioning, followed by the Q3 2025 net income of $65,000, shows management actively working to improve net interest margin in a rising rate environment.

The company is still a community bank at its core, generating revenue primarily through interest income from its loan portfolio, which was $132.9 million net as of Q3 2025. The conversion gave them the financial flexibility to compete in the modern banking landscape. If you want to dive deeper into the current financial performance, you can check out Breaking Down NSTS Bancorp, Inc. (NSTS) Financial Health: Key Insights for Investors.

Next step: Finance should analyze the Q3 2025 loan growth against the cost of deposits to project Q4 net interest margin by next Tuesday.

NSTS Bancorp, Inc. (NSTS) Ownership Structure

NSTS Bancorp, Inc.'s ownership structure is a mix of institutional, retail, and employee interests, which is common for a community bank holding company that recently completed its conversion from a mutual to a stock form of organization (demutualization). The company's control is largely distributed among retail investors, though the Employee Stock Ownership Plan (ESOP) and the Board/Executive team hold significant, concentrated blocks that influence governance.

NSTS Bancorp, Inc.'s Current Status

NSTS Bancorp, Inc. is a publicly traded company, listed on The Nasdaq Capital Market under the ticker symbol NSTS. It completed its initial public offering (IPO) in January 2022, transitioning from a mutual holding company structure to a stock holding company for its subsidiary, North Shore Trust and Savings. As a public entity, the company is subject to the comprehensive regulation and disclosure requirements of the SEC and the Federal Reserve Board, the latter being its primary regulator as a savings and loan holding company. As of November 6, 2025, the company had 5,239,038 shares of common stock outstanding. This transparency allows you to track ownership changes and strategic moves, like the non-binding stockholder proposal presented at the May 2025 Annual Meeting to explore a potential merger or sale.

NSTS Bancorp, Inc.'s Ownership Breakdown

The ownership breakdown reflects the company's status as a former mutual institution, where a large portion of shares is held by individual investors, with a substantial block reserved for the employee plan. Here's the quick math on who holds the equity, based on the most recent 2025 fiscal year data.

The concentration of ownership is relatively low, which means strategic decisions often require broad shareholder support. You should defintely pay attention to the ESOP and Insider group, as their combined 14.4% stake can be a powerful voting bloc in a low-float stock.

NSTS Bancorp, Inc.'s Leadership

The organization is steered by a seasoned management team and a Board of Directors with deep roots in community banking and local commerce, primarily operating out of Waukegan, Illinois. The Board is responsible for governance and risk oversight, a structure that was formally separated in July 2022 to enhance checks and balances.

The key executive and board leaders as of November 2025 include:

• Stephen G. Lear: Chairman of the Board and Chief Executive Officer of NSTS Bancorp, Inc.
• Nathan E. Walker: Executive Vice President of NSTS Bancorp, Inc., and also serves as President and Chief Executive Officer of the subsidiary, North Shore Trust and Savings.
• Carissa H. Schoolcraft: Chief Financial Officer for both NSTS Bancorp, Inc. and North Shore Trust and Savings.
• John S. Pucin: Director, appointed in June 2025, bringing over 30 years of creditor's rights and legal experience to the board.

For a full understanding of the company's long-term direction, you should review their Mission Statement, Vision, & Core Values of NSTS Bancorp, Inc. (NSTS).

NSTS Bancorp, Inc. (NSTS) Mission and Values

NSTS Bancorp, Inc.'s core purpose centers on its role as a traditional savings institution for its local community, driving stability through residential mortgage lending and a strong capital base, which hit a 24.11% Tier 1 leverage ratio in Q3 2025. This community-first approach is defintely the cultural DNA that guides their operations, not just their balance sheet.

NSTS Bancorp, Inc.'s Core Purpose

The company's mission is fundamentally tied to its century-long history of serving the Illinois communities where it operates. This focus means their operations are designed to align with local economic dynamics, ensuring financial accessibility for households and businesses in the Lake County area.

Official mission statement

While NSTS Bancorp, Inc. does not publish a single, formal mission statement, its operational mandate, as detailed in its regulatory filings, is clear: to operate as a traditional savings institution focused primarily on serving the banking needs of customers in its market area of Lake County, Illinois and adjacent communities.

• Attract deposits from the general public.
• Originate one- to four-family residential mortgage loans.
• Maintain a network for consistent customer service.

Here's the quick math: the company's net loan portfolio was $132.9 million as of September 30, 2025, with a primary emphasis on residential mortgages, showing a clear dedication to this core lending activity.

Vision statement

The company's forward-looking vision is one of balanced growth and modernization, aiming to remain a reliable community-based institution while adapting to the evolving financial services sector. They are focused on enhancing services while safeguarding institutional integrity.

• Balance conventional banking with modern digital offerings.
• Maintain holdings of commercial real estate and multi-family loans.
• Support sustainable growth through well-managed portfolios.

This strategic balance helped them post a net income of $65,000 for the third quarter of 2025, a sign that their measured approach to growth is starting to pay off. For a deeper dive into their non-financial goals, you can check out the Mission Statement, Vision, & Core Values of NSTS Bancorp, Inc. (NSTS).

Given Company slogan/tagline

NSTS Bancorp, Inc. does not publicly use a formal, distinct slogan or tagline in its investor or regulatory communications; its brand identity is instead communicated through its subsidiary's long-standing reputation for quality products and services since 1921. Their core values speak louder than any slogan.

The company's workplace culture provides a set of core values that underpin every customer and employee interaction:

• A concern for others.
• Trust and respect.
• Hard work.
• Dedication to customers.

NSTS Bancorp, Inc. (NSTS) How It Works

NSTS Bancorp, Inc. operates as a traditional, community-focused savings and loan holding company, primarily serving the Lake County, Illinois, area by taking local deposits and channeling those funds into residential real estate mortgages. It makes money primarily by earning interest income on its loan and investment portfolio, a classic spread-based model, plus fee income from mortgage sales and services.

Here's the quick math: as of September 30, 2025, the company held total assets of $269.8 million, with net loans of $132.9 million, funded largely by $186.1 million in customer deposits. That's a very straightforward balance sheet.

NSTS Bancorp's Product/Service Portfolio

NSTS Bancorp's Operational Framework

The company's operational model is built on a 'borrow short, lend long' structure, but with a strong emphasis on relationship banking and local knowledge. It's defintely not a high-volume, national player; it's a community bank.

• Deposit Gathering: Attracts deposits through three full-service branch offices in Lake County, Illinois, plus online and mobile banking platforms, offering competitive rates on interest-bearing and noninterest-bearing accounts.
• Lending and Underwriting: The core process is originating one- to four-family residential mortgage loans, which constituted the vast majority of its loan portfolio. Underwriting is centralized at its banking offices, relying on local market expertise to assess risk. Nonperforming assets remain low, totaling only $285,000 in Q3 2025.
• Revenue Generation: The primary income source is the net interest margin (NIM)-the difference between interest earned on loans/investments and interest paid on deposits. NIM for Q3 2025 was 3.08%, a slight improvement year-over-year. Noninterest income, mainly from gains on mortgage loan sales, also contributed $393,000 in Q3 2025.
• Liquidity Management: The firm maintains strong liquidity, evidenced by the repayment of all $5.0 million in Federal Home Loan Bank (FHLB) borrowings in Q3 2025.

NSTS Bancorp's Strategic Advantages

In a crowded financial market, a community bank's edge always comes down to capital strength and deep local roots. NSTS Bancorp has both, which provides resilience against near-term economic risks.

• Capital Strength: The company is categorized as 'well capitalized' under regulatory standards, boasting a Tier 1 capital ratio of 24.11% as of September 30, 2025, which is far above the regulatory minimum of 9%. This provides a substantial cushion against credit losses.
• Hyper-Local Focus: Operating in the same market area of Lake County, Illinois, since its establishment in 1921, the company has developed multi-generational customer relationships and a deep understanding of the local real estate market.
• Low-Risk Asset Concentration: The heavy concentration in one- to four-family residential loans ($119.4 million as of year-end 2024) within its local market insulates it somewhat from the volatility of national commercial real estate markets.

To dive deeper into the financial metrics that support this operational model, you should read Breaking Down NSTS Bancorp, Inc. (NSTS) Financial Health: Key Insights for Investors.

NSTS Bancorp, Inc. (NSTS) How It Makes Money

NSTS Bancorp, Inc. primarily makes money the way most community banks do: by borrowing short and lending long, which creates a positive spread known as net interest income. The company's subsidiary, North Shore Trust and Savings, attracts customer deposits and uses those funds to originate loans, mainly one- to four-family residential mortgages, plus it generates significant noninterest income from selling those mortgages on the secondary market.

NSTS Bancorp, Inc.'s Revenue Breakdown

For the nine months ended September 30, 2025, NSTS Bancorp's total operating revenue (Net Interest Income plus Noninterest Income) was approximately $\mathbf{\$7.218 \text{ million}}$. The clear majority of this revenue comes from the core banking function of lending. Here's the quick math on the two main streams:

Business Economics

The economic engine of NSTS Bancorp is straightforward: manage the spread between the interest earned on assets (loans and securities) and the interest paid on liabilities (deposits and borrowings). This is the Net Interest Margin (NIM), and for the third quarter of 2025, it improved to $\mathbf{3.08\%}$, up from $2.96\%$ a year prior. That's a defintely positive sign.

The rising interest rate environment is a double-edged sword. On one side, the average yield on the loan portfolio rose to $\mathbf{5.68\%}$ in Q3 2025, which is great for interest income. But on the other, the cost of deposits increased to $\mathbf{1.99\%}$ as the bank has to pay more to keep its customers' money, which squeezes the NIM. The bank successfully reduced its reliance on higher-cost wholesale funding by repaying a $\mathbf{\$5.0 \text{ million}}$ Federal Home Loan Bank (FHLB) advance, which helps keep interest expense down.

• Primary Pricing Strategy: Charge a loan rate (e.g., $\mathbf{5.68\%}$ average yield) that is significantly higher than the deposit rate (e.g., $\mathbf{1.99\%}$ average cost) to maintain a healthy NIM.
• Key Noninterest Driver: The biggest component of noninterest income is the $\mathbf{\$1.089 \text{ million}}$ gain on the sale of mortgage loans for the nine months ended September 30, 2025. This shows a strong mortgage banking operation, which generates fee income without keeping the long-term credit risk on the balance sheet.
• Other Fee Income: Service charges on deposits brought in $\mathbf{\$189,000}$ year-to-date, a stable, albeit minor, revenue stream.

NSTS Bancorp, Inc.'s Financial Performance

As of September 30, 2025, the company reported total assets of $\mathbf{\$269.8 \text{ million}}$, with total deposits standing at $\mathbf{\$186.1 \text{ million}}$. The core lending activity is reflected in the net loan portfolio, which increased to $\mathbf{\$132.9 \text{ million}}$. This is a small, well-capitalized institution.

While the bank posted a modest net income of $\mathbf{\$65,000}$ for the third quarter of 2025, the year-to-date performance still shows a net loss of $\mathbf{\$521,000}$. The good news is this loss is an improvement from the $\mathbf{\$743,000}$ net loss reported for the same nine-month period in 2024. The bank is moving in the right direction, but profitability is still a challenge.

• Capital Strength: The bank's regulatory capital is robust; the Tier 1 leverage ratio was a very strong $\mathbf{24.11\%}$ as of September 30, 2025, which is far above the well-capitalized threshold.
• Credit Quality: Credit risk remains contained, with nonaccrual loans (loans where the borrower is significantly behind on payments) totaling only $\mathbf{\$285,000}$, representing $\mathbf{0.21\%}$ of total loans.
• Actionable Insight: Focus on the bank's strategy to sustain its net interest margin and grow its noninterest income, which is detailed in its Mission Statement, Vision, & Core Values of NSTS Bancorp, Inc. (NSTS).

NSTS Bancorp, Inc. (NSTS) Market Position & Future Outlook

NSTS Bancorp, Inc. is positioned as a small, well-capitalized community bank with a deep, century-long focus on its local Lake County, Illinois market, but it faces significant pressure from larger, more aggressive regional players and credit unions.

The company's near-term outlook is a tight balancing act: successfully executing its residential mortgage growth strategy while navigating the market risks from rising interest rate costs and the potential for a non-binding stockholder proposal for a merger or sale to gain traction. You can check out Breaking Down NSTS Bancorp, Inc. (NSTS) Financial Health: Key Insights for Investors for a closer look at the numbers.

Competitive Landscape

NSTS Bancorp's competition is fierce, mainly coming from much larger regional banks and credit unions that operate on a different scale. While the company's total assets of $269.8 million as of September 30, 2025, place it near the median size for a community bank in Illinois, this is tiny compared to its larger rivals.

Here's the quick math on how NSTS Bancorp stacks up against two relevant competitors-one similarly-situated community bank and a large, aggressive credit union that recently acquired a local rival.

Opportunities & Challenges

The company has clear opportunities to improve its bottom line, but it must defintely manage the structural risks inherent to its size and market. The shift to a positive net income of $65,000 in Q3 2025, up from a net loss a year prior, shows progress, but the margin remains thin.

Industry Position

NSTS Bancorp's industry standing is defined by its financial strength and hyper-local niche, but it is constantly under threat from economies of scale. The bank is a small-cap institution with a market capitalization of around $57.7 million as of November 2025, and it operates with a community-first model.

• Maintain a 'well capitalized' status with a Tier 1 capital ratio of 24.11%, significantly above the regulatory threshold.
• Focus almost exclusively on one-to-four-family residential mortgage lending, which is a stable but low-growth segment.
• Low nonperforming assets at just $285,000 (0.11% of total assets) as of Q3 2025, reflecting conservative underwriting.
• Competition from larger regional banks and credit unions with access to cheaper capital and more extensive branch networks is the primary headwind.

The high capital ratio gives the company a strong shield against credit losses, plus it offers flexibility to pursue strategic acquisitions or, conversely, makes it an attractive target for a larger buyer.