Breaking Down NSTS Bancorp, Inc. (NSTS) Financial Health: Key Insights for Investors

Are you looking for a detailed analysis of NSTS Bancorp, Inc.'s (NSTS) financial standing? Wondering how their strategic moves have influenced their balance sheet? In 2024, NSTS Bancorp faced a net loss of $789,000, a notable improvement from the $4.0 million loss in the previous year, driven by increased net interest income and gains on loan sales. Total assets grew to $278.7 million, up from $256.8 million in 2023, fueled by a rise in net loans to $130.4 million. Curious to know how these figures stack up and what they mean for investors? Keep reading to discover key insights into NSTS Bancorp's financial health.

NSTS Bancorp, Inc. (NSTS) Revenue Analysis

Understanding NSTS Bancorp, Inc.'s revenue streams is crucial for investors seeking to assess the financial health and growth potential of the company. A detailed breakdown of revenue sources, growth rates, and segment contributions provides valuable insights into NSTS's business model and performance.

NSTS Bancorp, Inc. operates primarily as a financial institution, generating revenue through various banking activities. These include:

• Interest Income: Revenue earned from loans, mortgages, and other interest-bearing assets.
• Service Fees: Income derived from account services, transaction fees, and other customer-related charges.
• Investment Income: Earnings from investment portfolios, including securities and other financial instruments.

Analyzing the year-over-year revenue growth rate provides a clear picture of NSTS Bancorp, Inc.'s recent performance. While specific percentage increases or decreases are dependent on the most current financial data, examining historical trends can reveal patterns of growth, stability, or decline. Factors influencing these trends include economic conditions, market competition, and strategic initiatives undertaken by NSTS.

To fully understand NSTS Bancorp, Inc.'s revenue generation, it's important to consider the contribution of different business segments. These segments may include retail banking, commercial banking, wealth management, and other specialized services. By assessing the revenue generated by each segment, investors can identify areas of strength and potential opportunities for growth. Here is an example of how revenue might be broken down (Note: this is an example and not actual NSTS data):

Significant changes in revenue streams may indicate shifts in NSTS Bancorp, Inc.'s business strategy, market focus, or competitive landscape. Investors should carefully analyze any such changes to understand their potential impact on the company's future performance. For example, a decrease in interest income may signal a change in lending practices or a response to interest rate fluctuations. Conversely, an increase in service fees could reflect new service offerings or adjustments to pricing strategies.

For further insights into NSTS Bancorp, Inc.'s values and long-term objectives, review the Mission Statement, Vision, & Core Values of NSTS Bancorp, Inc. (NSTS).

NSTS Bancorp, Inc. (NSTS) Profitability Metrics

Analyzing NSTS Bancorp, Inc.'s (NSTS) profitability involves examining several key metrics to understand its financial health and operational efficiency. Here's an overview based on the available information for the fiscal year 2024:

• Mission Statement, Vision, & Core Values of NSTS Bancorp, Inc. (NSTS).

Gross Profit: While specific gross profit figures aren't directly available in the provided search results, it can be derived from available data. For the year 2024, NSTS Bancorp Inc. had total revenue of $12.245 million and a cost of revenue of $3.0 million. Therefore, the gross profit can be estimated as:

Gross Profit = Total Revenue - Cost of Revenue

Gross Profit = $12.245 million - $3.0 million = $9.245 million

Operating Profit: NSTS Bancorp, Inc. experienced an operating loss for the year 2024. The operating income was reported as -$546,000. This indicates that the company's operating expenses exceeded its gross profit.

Net Profit Margin: For the year ended December 31, 2024, NSTS Bancorp reported a net loss of $789,000. Comparing this to the total revenue of $12.245 million, the net profit margin can be calculated as follows:

Net Profit Margin = (Net Income / Total Revenue) 100

Net Profit Margin = (-$789,000 / $12.245 million) 100 = -6.44%

This negative net profit margin indicates that NSTS Bancorp, Inc. incurred a loss for the year, with expenses surpassing revenue.

Trends in Profitability Over Time:

NSTS Bancorp, Inc. has shown some fluctuations in its profitability over the past few years.

• 2024: Net Loss of $789,000
• 2023: Net Loss of $4.0 million

The decrease in net loss from 2023 to 2024 indicates an improvement in financial performance, primarily due to increased net interest income and gains on loan sales.

Comparison of Profitability Ratios with Industry Averages:

A detailed comparison with industry averages isn't available within the provided search results. However, it's useful to consider some general benchmarks for banks:

• Net Interest Margin: NSTS Bancorp Inc.'s net interest margin improved to 2.86% in 2024 from 2.64%.
• Return on Assets (ROA): The ROA for NSTS Bancorp is -1.73%.
• Return on Equity (ROE): The ROE is -5.80%.

These figures suggest areas needing improvement compared to more profitable industry peers.

Analysis of Operational Efficiency:

Operational efficiency can be assessed by examining cost management and gross margin trends.

• Cost Management: Noninterest expenses increased by $1.8 million to $9.7 million in 2024, driven by higher salaries, employee benefits, data processing, and advertising costs. Efficient cost management is crucial to improve profitability.
• Gross Margin Trends: The gross margin, calculated from the available data, is approximately 75.5% ($9.245 million / $12.245 million).

Key factors affecting NSTS Bancorp, Inc.'s financial performance in 2024:

• Net Interest Income: Increased to $7.1 million from $6.2 million.
• Noninterest Income: Rose to $1.9 million from a loss of $1.2 million, mainly due to gains on mortgage loan sales.
• Total Assets: Increased to $278.7 million as of December 31, 2024, from $256.8 million at the end of 2023.
• Total Deposits: Grew to $190.2 million from $168.8 million.

The following table summarizes key financial data for NSTS Bancorp, Inc. for the year 2024:

In conclusion, while NSTS Bancorp, Inc. has made strides in increasing its revenue and reducing its net loss, it still faces challenges in achieving consistent profitability. Effective cost management and strategic initiatives to boost revenue will be critical for future financial success.

NSTS Bancorp, Inc. (NSTS) Debt vs. Equity Structure

Understanding how NSTS Bancorp, Inc. (NSTS) finances its operations is crucial for investors. This involves looking at the levels of debt the company holds, comparing it to industry standards, and assessing how it balances debt and equity.

Here's an overview of NSTS Bancorp, Inc.'s debt levels:

• As of December 31, 2024, NSTS Bancorp Inc. reported total assets of $278.7 million, a rise from $256.8 million at the close of 2023.
• The increase was primarily due to net loans, which increased from $120.6 million to $130.4 million.

The debt-to-equity ratio is a key metric to evaluate a company's financial leverage. As of December 30, 2024, NSTS Bancorp Inc.'s debt/equity ratio was 6.5%.

Recent activity concerning NSTS Bancorp, Inc.'s debt includes:

• In December 2023, NSTS Bancorp announced a balance sheet repositioning strategy involving the sale of $30.5 million in book value of available-for-sale investment securities.
• The after-tax loss was approximately $1.8 million.
• Proceeds were used to repay approximately $10.0 million in existing debt at a rate of 5.31%.

NSTS Bancorp, Inc. focuses on expanding its loan portfolio and maintaining strong asset quality. At the end of the year, no loans were classified as substandard or doubtful.

Here's a summary of key financial data for NSTS Bancorp, Inc. as of December 31, 2024:

For more insights into NSTS Bancorp, Inc.'s mission, vision, and core values, you can check Mission Statement, Vision, & Core Values of NSTS Bancorp, Inc. (NSTS).

NSTS Bancorp, Inc. (NSTS) Liquidity and Solvency

When evaluating NSTS Bancorp, Inc. (NSTS)'s financial health, understanding its liquidity and solvency is crucial. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term obligations. Let's delve into key aspects of NSTS Bancorp, Inc. (NSTS)'s liquidity:

Current and Quick Ratios: These ratios provide insights into NSTS Bancorp, Inc. (NSTS)'s ability to cover its short-term liabilities with its short-term assets. A higher ratio generally indicates better liquidity.

Based on the data from December 31, 2023:

• The current ratio was 0.72.
• The quick ratio was 0.72.

These ratios suggest that NSTS Bancorp, Inc. (NSTS) has the equivalent of approximately $0.72 of current assets for each $1 of current liabilities. The stability between the current and quick ratios implies that inventory is not a significant factor in NSTS Bancorp, Inc. (NSTS)'s short-term assets.

Analysis of Working Capital Trends: Monitoring the trend of NSTS Bancorp, Inc. (NSTS)'s working capital (current assets minus current liabilities) can reveal whether the company's short-term financial health is improving or deteriorating. As of December 31, 2023, NSTS Bancorp, Inc. (NSTS) reported total current assets of $208,868,000 and total current liabilities of $291,598,000, resulting in a working capital deficit of $82,730,000.

Cash Flow Statements Overview: Analyzing NSTS Bancorp, Inc. (NSTS)'s cash flow statements provides a clear picture of how the company generates and uses cash. It's essential to examine cash flow from operating, investing, and financing activities.

Here's a snapshot of NSTS Bancorp, Inc. (NSTS)'s cash flow activities as of December 31, 2023:

• Net cash from operating activities: $19,486,000
• Net cash from investing activities: -$3,355,000
• Net cash from financing activities: -$11,788,000

NSTS Bancorp, Inc. (NSTS) demonstrates positive cash flow from operating activities, indicating it's generating cash from its core business operations. However, it is using cash for investing and financing activities.

Potential Liquidity Concerns or Strengths: Based on available data, NSTS Bancorp, Inc. (NSTS) exhibits both strengths and areas of concern regarding its liquidity position.

On the positive side:

• Positive cash flow from operations suggests the company can generate cash from its core business activities.

However, there are also potential concerns:

• A working capital deficit indicates that NSTS Bancorp, Inc. (NSTS) may face challenges in meeting its short-term obligations.
• Both current and quick ratios are below 1, signaling potential liquidity issues.
• Negative cash flow from investing and financing activities could strain NSTS Bancorp, Inc. (NSTS)'s cash reserves.

For a deeper dive into who is investing in NSTS Bancorp, Inc. (NSTS) and why, check out: Exploring NSTS Bancorp, Inc. (NSTS) Investor Profile: Who’s Buying and Why?

NSTS Bancorp, Inc. (NSTS) Valuation Analysis

Assessing whether NSTS Bancorp, Inc. (NSTS) is overvalued or undervalued involves analyzing several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, dividend yield and payout ratios (if applicable), and analyst consensus.

Currently, up-to-date, specific real-time data for these metrics as of April 2025 for NSTS Bancorp, Inc. (NSTS) is not available. To provide a comprehensive analysis, I will guide you on how to find this information and interpret it using recent examples and general financial principles.

Here's how to approach the valuation:

• Price-to-Earnings (P/E) Ratio:

The P/E ratio is calculated by dividing the current stock price by the earnings per share (EPS). A high P/E ratio could indicate that a stock is overvalued because investors are paying more for each dollar of earnings. Conversely, a low P/E ratio might suggest undervaluation. Comparing NSTS Bancorp, Inc.'s P/E ratio to its industry peers and its own historical P/E ratio can provide valuable insights.

• Price-to-Book (P/B) Ratio:

The P/B ratio is the stock price divided by the book value per share. It reflects what investors are willing to pay for each dollar of the company's net assets. A lower P/B ratio may indicate that the stock is undervalued. You should compare NSTS Bancorp, Inc.'s P/B ratio with the industry average to gauge its relative valuation.

• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio:

The EV/EBITDA ratio compares the company's enterprise value (market capitalization plus total debt minus cash) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It is used to assess the overall value of the company relative to its operational cash flow. A lower EV/EBITDA ratio might suggest undervaluation compared to its peers.

• Stock Price Trends:

Analyzing the stock price trends over the last 12 months or longer can reveal important information about market sentiment and company performance. Look for consistent growth, declines, or volatility. For example, if the stock price has steadily increased, it may reflect positive investor sentiment and strong company performance.

• Dividend Yield and Payout Ratios:

If NSTS Bancorp, Inc. pays dividends, the dividend yield (annual dividend per share divided by the stock price) indicates the return on investment from dividends alone. The payout ratio (dividends paid as a percentage of earnings) shows the sustainability of the dividend payments. A high dividend yield with a sustainable payout ratio can be attractive to investors.

• Analyst Consensus:

Check what analysts are recommending for NSTS Bancorp, Inc.'s stock. Consensus ratings like buy, hold, or sell can provide a snapshot of professional opinions on the stock's potential.

To gather the necessary data, consult financial websites such as Yahoo Finance, Google Finance, Bloomberg, and reputable brokerage platforms. These resources provide real-time stock quotes, historical data, financial ratios, and analyst reports.

Without specific real-time data as of April 2025, a definitive conclusion on whether NSTS Bancorp, Inc. (NSTS) is overvalued or undervalued cannot be made here. A thorough analysis using current data is essential for making an informed investment decision. For more insights, consider reading: Breaking Down NSTS Bancorp, Inc. (NSTS) Financial Health: Key Insights for Investors

NSTS Bancorp, Inc. (NSTS) Risk Factors

NSTS Bancorp, Inc. (NSTS) faces a variety of internal and external risks that could impact its financial health. These risks span industry competition, regulatory changes, market conditions, and cybersecurity threats. Understanding these factors is crucial for investors assessing the company's stability and future prospects. A comprehensive overview of these challenges is available in NSTS Bancorp's 2024 10-K report.

Overview of Key Risks

• Industry Competition: NSTS Bancorp faces significant competition in originating loans and attracting deposits, primarily from larger financial institutions with greater resources. This competition could impact the company's ability to maintain its market share and profitability.
• Regulatory Changes: Regulatory changes, particularly those affecting financial institutions, could impact the company's operations and financial performance.
• Market Conditions: NSTS Bancorp's reliance on the economic stability of its market area, including Lake County, Cook County, and Will County in Illinois, and Kenosha County in Wisconsin, presents a risk if there are adverse changes in these local economies. The company is subject to various risks, including general economic conditions that could differ from expectations, changes in loan delinquencies and charge-offs, and fluctuations in real estate values.

Operational, Financial, and Strategic Risks

Recent earnings reports and filings highlight several operational, financial, and strategic risks:

• Interest Rate Risk: NSTS Bancorp is exposed to interest rate risk, which could affect the fair value of financial instruments and the origination levels in its lending business. Inflation and changes in the interest rate environment could increase the level of defaults, losses, and prepayments on loans, adversely affecting financial results.
• Credit Risk: The company must manage credit risk in the current economic conditions to ensure financial stability.
• Cybersecurity Risk: NSTS Bancorp relies extensively on information systems, making it a high-value target for cyber threats. Any compromise of these systems could have a material adverse effect on the company's business, results of operations, and financial condition.
• Strategic Risks: Management has identified the need to enhance products and services, focusing on one- to four-family residential first mortgage loans, to maintain competitiveness. The company is expanding its loan origination capabilities by establishing new loan production offices, which could help mitigate some competitive pressures. However, the success of these initiatives is uncertain and could be more difficult or expensive than expected.

Financial Performance Highlights (2024)

Understanding NSTS Bancorp's financial performance provides context for assessing its risk exposure:

• Net Loss: The company reported a net loss of $789,000 for the year ended December 31, 2024.
• Net Interest Income: Net interest income was $7.1 million.
• Noninterest Expense: Noninterest expenses increased by $1.8 million to $9.7 million, driven by higher salaries and employee benefits, as well as increased marketing and advertising costs.
• Total Assets: Total assets were $278.7 million as of December 31, 2024, an increase from $256.8 million at the end of 2023.
• Net Loans: Net loans rose to $130.4 million from $120.6 million in the previous year.
• Total Deposits: Total deposits grew to $190.2 million from $168.8 million.

Mitigation Strategies and Plans

NSTS Bancorp has implemented several strategies to mitigate these risks:

• Cybersecurity Measures: The company has devoted significant resources to assessing, identifying, and managing risks associated with cybersecurity threats. These measures include regular assessments of information systems, continuous monitoring tools, due diligence with respect to third-party service providers, and periodic cybersecurity training for the workforce.
• Capital Management: NSTS Bancorp maintains a strong capital position, with a Tier 1 capital to average assets ratio of 23.53% as of December 31, 2024. The company also implemented a share repurchase program, authorizing the repurchase of up to 265,763 shares, or 5% of its outstanding common stock, which was in effect until December 31, 2024.
• Branch and Office Expansion: North Shore Trust and Savings operates from its headquarters in Waukegan, Illinois, with additional branch offices and loan production offices. In 2023, two new loan production offices were established to expand loan originations within the Chicagoland area.

Detailed Risk Factors

The following table summarizes key risk factors and their potential impact on NSTS Bancorp:

For more insights into NSTS Bancorp, Inc. (NSTS) financial health, check out: Breaking Down NSTS Bancorp, Inc. (NSTS) Financial Health: Key Insights for Investors

NSTS Bancorp, Inc. (NSTS) Growth Opportunities

NSTS Bancorp, Inc. (NSTS) demonstrates promising future growth prospects driven by several key factors. These include strategic initiatives, market expansion, and a focus on innovation.

Analyzing NSTS Bancorp, Inc.'s potential growth involves considering several elements:

• Key Growth Drivers: NSTS Bancorp, Inc. can leverage product innovations, strategic acquisitions, and market expansions to drive growth.
• Revenue and Earnings Projections: Investors should pay close attention to future revenue growth projections and earnings estimates, which provide insight into the company’s financial trajectory.
• Strategic Initiatives and Partnerships: NSTS Bancorp, Inc.’s strategic initiatives, such as new partnerships or technological upgrades, can significantly influence its growth trajectory.
• Competitive Advantages: Identifying and capitalizing on NSTS Bancorp, Inc.’s competitive advantages is crucial for sustained growth in a dynamic market.

To better illustrate NSTS Bancorp, Inc.'s financial standing and future potential, consider the following hypothetical financial data based on a projection for the fiscal year 2024:

These projections are based on the assumption that NSTS Bancorp, Inc. will effectively execute its strategic initiatives and capitalize on market opportunities. For example, a projected revenue growth rate of 8% - 12% indicates strong market performance, while an EPS growth of 10% - 15% suggests improved profitability. Investment in technology totaling $5 million suggests a commitment to innovation and efficiency.

Furthermore, NSTS Bancorp, Inc. could benefit from:

• Expanding its digital banking services to attract a younger demographic.
• Strategic partnerships with local businesses to increase its market presence.
• Acquiring smaller regional banks to expand its footprint.

These strategic moves, combined with a focus on customer satisfaction and innovative product offerings, could position NSTS Bancorp, Inc. for sustained growth and success in the competitive financial landscape.

Understanding NSTS Bancorp, Inc.'s mission, vision, and core values provides additional context for assessing its long-term growth strategy: Mission Statement, Vision, & Core Values of NSTS Bancorp, Inc. (NSTS).