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, 2023

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, 2023 and 2022 is as follows:

	*December 31, 2023*			*December 31, 2022*
		(Dollars in thousands)
First mortgage loans
1-4 family residential	$	111,081		$	95,584
Multi-family		3,111			3,237
Commercial		3,835			3,921
Construction		2,508			—
Total first mortgage loans		120,535			102,742
Consumer loans		248			249
Total loans		120,783			102,991
Net deferred loan costs		1,016			992
Allowance for credit losses on loans		(1,176	)		(624	)
Total loans, net	$	120,623		$	103,359

First mortgage loans serviced for others are not included in the accompanying Consolidated Balance Sheets. The unpaid principal balance of these loans totaled $13.2 million and $13.7 million at December 31, 2023 and 2022, respectively. Custodial escrow balances maintained in connection with the foregoing loan servicing were $231,000at December 31, 2023 and 2022.

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, 2023 and 2022, such borrowers were indebted to the Bank in the aggregate amount of $550,000 and $597,000, respectively.