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

Annual report pursuant to Section 13 and 15(d)

Note 8 - Other Borrowings

Note 8 - Other Borrowings

12 Months Ended

Dec. 31, 2023

Federal Home Loan Bank Advances, Disclosure [Text Block]

Note 8: Other Borrowings

During the year ended December 31, 2023, the Company borrowed $5.0 million from the FHLB Chicago at a rate of 4.78% for 24 months, payable on June 20, 2025. The advance is collateralized by loans pledged to the FHLB and is payable at maturity, with a prepayment penalty if repayment is made prior to the maturity date.

Additionally, during the fourth quarter of 2023, the Company borrowed $10.0 million from the Federal Reserve Bank of Chicago as part of the Bank Term Funding Program, at a rate of 5.31% for 12 months, payable in November 2024. The borrowing was repaid in December 2023. The borrowing was collateralized by securities pledged to the FRB and was payable at maturity with no prepayment penalty.

The following table shows certain information regarding our borrowings at or for the dates indicated:

	At or For the Year Ended December 31,
	2023			2022
	(Dollars in thousands)
FHLB of Chicago advances and other borrowings:
Average balance outstanding	$	3,461		$	1,945
Maximum amount outstanding at any month-end during the period		15,000			5,000
Balance outstanding at end of period		5,000			—
Average interest rate during the period		5.0	%		0.0	%
Weighted average interest rate at end of period		4.8	%		0.0	%

The following table shows the outstanding advances, additional borrowing capacity and total borrowing capacity from the FHLB Chicago at the dates presented.

	December 31, 2023		December 31, 2022
	(Dollars in thousands)
Outstanding advances	$	5,000	$	—
Additional borrowing capacity		72,200		68,586
Total borrowing capacity	$	77,200	$	68,586

The eligible borrowings are collateralized by $102.6 million and $86.6 million of first mortgage loans under a blanket lien arrangement at December 31, 2023 and 2022 , respectively. Additionally, at December 31, 2023 and 2022 we had a $10.0 million federal funds line of credit with the BMO Harris Bank, none of which was drawn at December 31, 2023 and 2022.