NSTS Bancorp NSTS

NSTS Bancorp, Inc. is a savings and loan holding company that owns North Shore Trust and Savings, a federally chartered stock savings institution. The Bank was established in 1921 as North Shore Building and Loan and has operated continuously as a community bank focused on serving the financial needs of individuals and businesses in Lake County, Illinois and surrounding areas. Its headquarters and main banking office are located in Waukegan, Illinois, with two additional full service branches in Waukegan and Lindenhurst and three loan production offices in Chicago, Aurora and Plainfield. The Bank is a member of the Federal Home Loan Bank of Chicago and holds $605,000 in capital stock of that institution. The Bank’s primary business activity consists of attracting deposits from the public and using those funds to originate loans and purchase investments, with a strong emphasis on residential mortgage lending.

The Bank generates revenue chiefly from interest earned on its loan portfolio and investment securities. As of December 31, 2025, its loan portfolio totaled $128.6 million net, with $118.2 million, or 91.3%, in one to four family residential mortgages, $3.2 million in multi family loans, $3.8 million in commercial real estate loans, $3.9 million in construction loans, and $0.3 million in consumer loans. Interest income is supplemented by gains from selling loans that meet secondary market standards into the secondary market and by fees collected for loan origination, deposit services and other related activities. The Bank’s investment securities available for sale totaled $78.7 million, consisting of $27.2 million in collateralized mortgage obligations, $23.8 million in mortgage backed pass through securities, $8.5 million in U. S. government and federal agency obligations, $12.1 million in municipal bonds, and $7.1 million in short term U. S. Treasuries. The holding company’s cash flow derives from the return on its own investments and from dividends received from the Bank, which are subject to regulatory limits on the amount that may be distributed.

North Shore Trust and Savings operates in a competitive market that includes credit unions, commercial banks, other savings associations and mortgage banking companies, many of which possess greater financial resources than the Bank. Despite this, the Bank differentiates itself through its longstanding community relationships, a history spanning more than a century, and its consistent focus on residential mortgage lending. The Bank has received an Outstanding rating under the Community Reinvestment Act, reflecting its commitment to meeting the credit needs of its local area. From a capital perspective, the Bank’s community bank leverage ratio stood at 24.32% at year end 2025, well above regulatory requirements, indicating a strong loss absorbing capacity and a solid foundation for growth. The Bank is considered well capitalized under the prompt corrective action framework, which supports its ability to absorb losses and continue lending operations.

The Bank’s deposit base consists primarily of core deposits, which represented 50.7% of total deposits as of December 31, 2025, with the remainder in time deposits across various interest rate bands. Core deposits include noninterest bearing checking, interest bearing checking, savings and money market accounts. Its depositors are mainly individuals, families and small to mid sized businesses that reside or operate in Lake County, Cook County, Will County in Illinois and Kenosha County in Wisconsin. The Bank also serves commercial borrowers through its loan products for multi family, commercial real estate and construction projects, thereby supporting local real estate development and business activity. Additionally, the Bank provides online banking services and maintains a website at www.northshoretrust.com for customer convenience.