NSTS Bancorp, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Note 3 - Loans

Note 3 - Loans

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

Note 3: Loans

A summary of loans by major category as of December 31, 2022 and 2021 is as follows:

	*2022*			*2021*
		(Dollars in thousands)
First mortgage loans
1-4 family residential	$	95,584		$	88,028
Multi-family		3,237			3,497
Commercial		3,921			4,604
Total first mortgage loans		102,742			96,129
Consumer loans		249			372
Total loans		102,991			96,501
Net deferred loan costs		992			812
Allowance for loan losses		(624	)		(779	)
Total loans, net	$	103,359		$	96,534

First mortgage loans serviced for others are not included in the accompanying balance sheets. The unpaid principal balance of these loans totaled $13.7 million and $15.8 million at December 31, 2022 and 2021, respectively. Custodial escrow balances maintained in connection with the foregoing loan servicing were $231,000 and $270,000 at December 31, 2022 and 2021, respectively.

In the normal course of business, loans are made by the Bank to directors and officers of the Company and the Bank (related parties). The terms of these loans, including interest rate and collateral, are similar to those prevailing for comparable transactions with other customers and do not involve more than a normal risk of collectability. At December 31, 2022 and 2021, such borrowers were indebted to the Bank in the aggregate amount of $597,000 and $556,000, respectively.