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, 2021

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, 2021 and 2020 is as follows:

	*2021*			*2020*
		(Dollars in thousands)
First mortgage loans
1-4 family residential	$	88,028		$	87,198
Multi-family		3,497			5,736
Commercial		4,604			5,340
Total first mortgage loans		96,129			98,274
Consumer loans		372			385
Total loans		96,501			98,659
Net deferred loan costs		812			666
Allowance for loan losses		(779	)		(870	)
Total loans, net	$	96,534		$	98,455

First mortgage loans serviced for others are not included in the accompanying balance sheets. The unpaid principal balance of these loans totaled $15.8 million and $16.0 million at December 31, 2021 and 2020, respectively. Custodial escrow balances maintained in connection with the foregoing loan servicing were $270,000 and $268,000 at December 31, 2021 and 2020, respectively.

In the normal course of business, loans are made to directors and officers of 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, 2021 and 2020, such borrowers were indebted to the Bank in the aggregate amount of $556,000 and $928,000, respectively.