NSTS Bancorp, Inc. Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

Note 2 - Securities

Note 2 - Securities

12 Months Ended

Dec. 31, 2025

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note 2: Securities

The amortized cost and estimated fair value of debt securities at December 31, 2025 and 2024, by contractual maturity, are shown below. Maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be called or repaid without any penalties, therefore, these securities have been included in 1 to 5 years based on average remaining life.

December 31, 2025	U.S. Treasuries			U.S. government agency obligations			Municipal obligations			Mortgage-backed residential obligations			Collateralized mortgage obligations			Total available-for-sale
				(Dollars in thousands)
1 year or less	$	—		$	—		$	198		$	—		$	1,412		$	1,610
1 to 5 years		7,085			7,208			1,202			8,860			17,757			42,112
5 to 10 years		—			1,326			3,642			14,336			5,918			25,222
After 10 years		—			—			7,104			573			2,098			9,775
Fair value	$	7,085		$	8,534		$	12,146		$	23,769		$	27,185		$	78,719
Gross unrealized gains		4			—			—			—			1			5
Gross unrealized losses		(7	)		(685	)		(1,829	)		(2,990	)		(2,552	)		(8,063	)
Amortized cost	$	7,088		$	9,219		$	13,975		$	26,759		$	29,736		$	86,777

December 31, 2024	*U.S. Treasuries*		*U.S. government agency obligations*			*Municipal obligations*			*Mortgage-backed residential obligations*			*Collateralized mortgage obligations*			*Total available-for-sale*
			(Dollars in thousands)
1 year or less	$	—	$	1,000		$	—		$	—		$	—		$	1,000
1 to 5 years		—		3,047			1,452			8,971			15,086			28,556
5 to 10 years		—		4,610			2,401			15,794			7,786			30,591
After 10 years		—		—			7,883			1,150			2,069			11,102
Fair value	$	—	$	8,657		$	11,736		$	25,915		$	24,941		$	71,249
Gross unrealized gains		—		—			—			—			—			—
Gross unrealized losses		—		(1,062	)		(2,367	)		(4,766	)		(3,842	)		(12,037	)
Amortized cost	$	—	$	9,719		$	14,103		$	30,681		$	28,783		$	83,286

As of December 31, 2025 and 2024, no securities were pledged to secure public deposits or for other purposes as required or permitted by law. At December 31, 2025 and 2024, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of equity.

Information pertaining to securities with gross unrealized losses at December 31, 2025 and 2024, aggregated by investment category and length of time that individual securities have been in a continuous loss position, is as follows:

	*Less than 12 Months*				*12 Months or Longer*				*Total*
	*Fair*		*Unrealized*		*Fair*		*Unrealized*		*Fair*		*Unrealized*
December 31, 2025	*Value*		*Losses*		*Value*		*Losses*		*Value*		*Losses*
		(Dollars in thousands)
U.S. Treasuries	$	2,990	$	7	$	—	$	—	$	2,990	$	7
U.S. government agency obligations		1,000		1		7,534		684		8,534		685
Municipal obligations		—		—		12,146		1,829		12,146		1,829
Mortgage-backed residential obligations		—		—		23,769		2,990		23,769		2,990
Collateralized mortgage obligations		1,530		24		24,654		2,528		26,184		2,552
Total	$	5,520	$	32	$	68,103	$	8,031	$	73,623	$	8,063
December 31, 2024
U.S. government agency obligations	$	—	$	—	$	8,657	$	1,062	$	8,657	$	1,062
Municipal obligations		467		28		11,269		2,339		11,736		2,367
Mortgage-backed residential obligations		—		—		25,915		4,766		25,915		4,766
Collateralized mortgage obligations		—		—		24,941		3,842		24,941		3,842
Total	$	467	$	28	$	70,782	$	12,009	$	71,249	$	12,037

At December 31, 2025 and 2024, certain investment securities were in unrealized loss positions. There were no securities with identified credit losses at December 31, 2025 and 2024. Unrealized losses have not been recognized into income because, based on management's evaluation, the decline in fair value is largely due to increased market rates, temporary market conditions and trading spreads, and, as such, are considered to be temporary by the Bank. In addition, management has the intent and ability to hold the securities until they mature or they recover their carrying values.

All U.S. government agency obligations, mortgage-based residential obligations and collateralized mortgage obligations are agency-issued or government-sponsored enterprise issued. Agency-issued securities are generally guaranteed by a U.S. government agency, such as the Government National Mortgage Association. Government-sponsored enterprises, such as the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, or the Small Business Administration, have either a direct or implied guarantee by the U.S. government.

The Bank holds two classifications of municipal bonds, general obligation bonds and revenue bonds. General obligation bonds are backed by the general revenue of the issuing municipality, while revenue bonds are supported by a specific revenue source. All general obligation and revenue bonds have a bond rating of investment grade by Standard and Poor's or Moody's Investor Services or are not rated. There have been no declines in investment grade ratings on bonds in a loss position and as of December 31, 2025, all municipal bonds are paying as agreed.

There were no sales of securities for the years ended December 31, 2025 and 2024.