NSTS Bancorp, Inc. reported its financial results for the three and nine months ended September 30, 2024, showing notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the third quarter of 2024, NSTS Bancorp recorded a net loss of $171,000, an improvement from a net loss of $232,000 in the same quarter of 2023. However, for the nine months ended September 30, 2024, the net loss increased to $743,000 from $188,000 in the prior year. The loss per common share for the third quarter was $(0.03), compared to $(0.05) in the previous year, while for the nine months, it was $(0.15) versus $(0.04).

Interest income for the third quarter rose to $2.66 million, up from $1.94 million in Q3 2023, driven by an increase in the average outstanding balance of loans, which reached $135.3 million, compared to $106.2 million a year earlier. The average yield on loans also improved to 5.31%, a 125 basis point increase from the previous year. Net interest income for the quarter was $1.83 million, up from $1.52 million in Q3 2023, reflecting a net interest margin of 2.96%, compared to 2.59% in the prior year.

Noninterest income saw a significant increase, reaching $423,000 in Q3 2024, compared to $150,000 in Q3 2023. This growth was primarily attributed to a gain on the sale of mortgage loans, which totaled $695,000 for the nine months ended September 30, 2024, compared to just $13,000 in the same period of 2023.

Total assets increased to $268.4 million as of September 30, 2024, up from $256.8 million at the end of 2023. Total deposits also rose by $11.1 million to $179.9 million, with a notable increase in time deposit accounts attributed to a competitive CD special. The company’s total stockholders' equity increased to $78.4 million, primarily due to a decrease in unrealized losses on securities available-for-sale.

On the operational front, NSTS Bancorp has expanded its loan production offices and increased its workforce, with the average number of employees rising to 49 from 37 in the previous year. Noninterest expenses increased significantly, driven by higher salaries and marketing costs associated with expanding lending operations in new areas.

The allowance for credit losses totaled $1.3 million as of September 30, 2024, reflecting a slight increase from the previous year. The company has maintained a well-capitalized status under regulatory standards, with a Tier 1 capital to average assets ratio of 23.96%.

Overall, NSTS Bancorp's financial performance for the third quarter and nine months ended September 30, 2024, indicates a strategic focus on growth through increased lending and operational expansion, despite facing challenges in profitability.