Here are 1-2 brief analogies for NSTS Bancorp:

• NSTS Bancorp is like a local, community-focused version of PNC Bank, serving individuals and businesses primarily in northeastern Pennsylvania.
• Think of NSTS Bancorp as a 'neighborhood bank' equivalent to a larger institution like Bank of America, concentrating its services within specific Pennsylvania communities.

• Deposit Accounts: Services for individuals and businesses to save and manage their money, including checking, savings, money market, and certificates of deposit.
• Commercial Real Estate Loans: Financing provided to businesses for the acquisition, development, or refinancing of income-producing properties.
• Residential Mortgage Loans: Loans extended to individuals for the purchase or refinancing of homes.
• Commercial & Industrial Loans: Funding offered to businesses for various purposes such as working capital, equipment purchases, and operational expansion.
• Consumer Loans: Credit products provided to individuals for personal use, including personal loans, auto loans, and home equity lines of credit.

NSTS Bancorp (symbol: NSTS) is a bank holding company for Northfield Savings Bank. As a financial institution, it does not have "major customers" in the traditional sense of a company selling products to a few large corporate buyers. Instead, it serves a broad base of individuals and businesses within its operating communities.

The company primarily sells its financial products and services to individuals and businesses, which can be categorized as follows:

• Individual Consumers: This category includes individuals and families who utilize a range of personal banking services such as checking accounts, savings accounts, certificates of deposit, residential mortgage loans, home equity loans, and other consumer lending products.

• Small to Medium-sized Businesses: Businesses, often local to its operating regions, constitute a significant customer segment. These customers use commercial deposit accounts, business loans, lines of credit, commercial real estate loans, and treasury management services.

• Wealth Management and Trust Clients: Through its wealth management division, the company serves individuals, families, and non-profit organizations seeking investment management, financial planning, and trust administration services.

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Stephen G. Lear Chairman of the Board and Chief Executive Officer

Mr. Lear has served as the Chairman of the Board of Directors of North Shore MHC and North Shore Trust and Savings since 2012, and as a director since 2003. He served as the Chief Executive Officer of North Shore Trust and Savings from 1998 to 2022 and has held various capacities with North Shore Trust and Savings since 1979. Mr. Lear holds a degree in Finance/Business Administration from the University of Illinois at Urbana-Champaign and an MBA from The Lake Forest Graduate School of Management. He previously served on the Board of Directors and as Chairman of The Illinois League of Financial Institutions.

Nathan E. Walker Executive Vice President, NSTS Bancorp, Inc. and President and Chief Executive Officer, North Shore Trust and Savings

Mr. Walker has served as the President and Chief Executive Officer of North Shore Trust and Savings since July 2022. Prior to this, he was President and Chief Operating Officer since November 2020, and Chief Operating Officer since November 2019. Mr. Walker joined North Shore Trust and Savings in 1996 and previously held the role of Senior Vice President of Retail Banking from 2010 to 2020. He earned a Bachelor's of Science degree in Finance from the University of Wisconsin-Parkside, a Master's degree in Business Administration from Cardinal Stritch University, and an advanced degree from the Graduate School of Banking at the University of Wisconsin Madison. Mr. Walker serves on the board of directors of Siena Catholic Schools of Racine, Wisconsin.

Carissa H. Schoolcraft Chief Financial Officer

Ms. Schoolcraft has served as the Chief Financial Officer of North Shore Trust and Savings since April 2021. She previously held the position of Controller of North Shore Trust and Savings from April 2020 to April 2021. Before joining North Shore Trust and Savings, Ms. Schoolcraft worked as a Staff Auditor (Manager) at KPMG, LLP from 2013 to 2020. She serves on the audit committee of Cunningham Children's Home and received a Bachelor's and Master's Degree in Accounting from Truman State University.

Amy L. Avakian Vice President and Chief Lending Officer

Ms. Avakian has served as the Vice President and Chief Lending Officer of North Shore Trust and Savings since 2019. She started her career at North Shore Trust and Savings in 1983 and has held various roles within the lending function, and is a member of the loan committee. Ms. Avakian received her Bachelor's in Communication from St. Norbert College and is a member of the Lake County Property Investor's Association.

Christine Stickler Corporate Secretary

Ms. Stickler serves as the Corporate Secretary for NSTS Bancorp, Inc.

1. Credit Risk (Loan Portfolio and Economic Conditions)

NSTS Bancorp is significantly exposed to credit risk, particularly arising from its commercial real estate and multi-family residential lending activities. These types of loans often involve larger amounts and their repayment is highly dependent on the successful operation of the underlying projects or the financial health of the borrowers' businesses. The bank's credit risk exposure is further amplified by its sensitivity to changes in the economic conditions within its primary market area, located in the northern suburbs of Chicago, Illinois, which can directly impact the performance of its loan portfolio.

2. Interest Rate Risk

As a banking institution, NSTS Bancorp is inherently susceptible to interest rate risk. Fluctuations in general interest rate levels can lead to changes in the fair value of its financial instruments and can favorably or unfavorably impact its future earnings. Although management endeavors to minimize this risk by matching the maturities of assets and liabilities, variations in interest rates remain a key concern, especially as borrowers with fixed-rate obligations may be less inclined to prepay their loans in an environment of rising rates.

3. Intense Competition

NSTS Bancorp operates in a highly competitive landscape for both originating loans and attracting deposits. The company competes with numerous financial service providers, including credit unions, commercial banks, other savings banks, savings associations, and mortgage-banking companies. Many of these competitors are considerably larger and possess superior financial resources. Furthermore, the bank faces additional competition for deposits from a wide array of non-depository financial institutions and investment vehicles, such as short-term money market funds, other corporate and government securities funds, mutual funds, brokerage firms, and insurance companies.

NSTS Bancorp faces clear emerging threats from the acceleration of digitalization in financial services. Specifically, the rise of digital-only banks (neobanks) and fintech companies offering streamlined, technology-driven banking services with often lower fees and superior user experiences directly challenges traditional banks for deposits, loans, and other financial products. Furthermore, large technology companies ("Big Tech") are increasingly entering the financial services sector, leveraging their extensive customer bases, data analytics, and brand loyalty to offer banking-like products and payment solutions. These trends are driving evolving customer expectations for mobile-centric, highly personalized, and instant financial services, which traditional community banks must continuously adapt to or risk losing market share.

NSTS Bancorp (NASDAQ: NSTS) operates primarily as a community-based banking institution, serving Lake County, Illinois, and surrounding communities. The company's main products and services encompass a range of personal and commercial banking products, as well as various lending services.

The addressable markets for NSTS Bancorp's main products and services, primarily within the U.S., are as follows:

• Community Banking: The U.S. community banking market was valued at approximately $6.35 billion in 2024. This market is projected to grow to $26.98 billion by 2029, with a compound annual growth rate (CAGR) of 8.6%. North America, which includes the U.S., held a dominant share of the global community banking market in 2024.
• Residential Mortgage Lending: The U.S. home mortgage market size was around $180.91 billion in 2023 and is projected to reach approximately $501.67 billion by 2032, exhibiting a CAGR of roughly 12.00% between 2024 and 2032. Separately, the U.S. home loan market was valued at $2.29 trillion in 2025 and is forecasted to increase to $3.02 trillion by 2030. The outstanding balances of residential mortgages in the U.S. reached $12,846,142.10 in 2023.
• Commercial Real Estate Lending: In 2024, the total commercial real estate (CRE) mortgage borrowing and lending in the U.S. was estimated to be $498 billion. The broader CRE mortgage market for income-producing properties in the U.S. is approximately $4.5 trillion. Furthermore, the total commercial and multifamily mortgage debt outstanding in the U.S. increased to $4.79 trillion in the fourth quarter of 2024.

It is important to note that while these market sizes are provided at the U.S. national level, NSTS Bancorp primarily operates in a more localized market within Illinois.

Here are 3-5 expected drivers of future revenue growth for NSTS Bancorp (NSTS) over the next 2-3 years:

1. Growth in Loan Portfolio: A primary driver of revenue growth for NSTS Bancorp is the expansion of its loan portfolio. The company has demonstrated growth in net loans, which directly contributes to its interest income. Its offerings include one- to four-family residential mortgages, multi-family and commercial real estate mortgages, construction loans, and consumer loans. The company's focus on expanding its mortgage lending department further underscores this growth strategy.
2. Deposit Growth and Net Interest Income Optimization: Expanding the deposit base, particularly through competitive rates for products like time deposits, allows NSTS Bancorp to fund its lending activities and enhance its net interest income. The company reported an increase in total deposits to $190.2 million from $168.8 million in 2024, contributing to a rise in net interest income.
3. Generation of Non-Interest Income: Gains from activities such as the sale of mortgage loans are expected to contribute to non-interest income. In 2024, noninterest income significantly increased, primarily due to a $1.2 million gain on the sale of mortgage loans.
4. Digital Banking and Service Enhancements: NSTS Bancorp's strategy includes the adoption of technology to improve efficiency and accessibility. Investments in secure digital transaction systems, online account management, and mobile service enhancements are aimed at meeting evolving customer demands, which can support customer acquisition and retention, thereby indirectly driving revenue growth.
5. Potential Strategic Acquisitions: As a holding company, NSTS Bancorp, Inc. is authorized to explore and potentially execute acquisitions of other banking and financial services companies. While there are no current agreements, this remains a potential avenue for future revenue growth and market expansion.

Share Repurchases

• NSTS Bancorp announced a stock repurchase program on December 21, 2023.
• As of December 31, 2023, the company completed a repurchase program, acquiring 269,898 shares for a total value of $2.4 million.
• A second share repurchase program was authorized in December 2023, set to expire on December 31, 2024.

Share Issuance

• NSTS Bancorp completed its initial public offering (IPO) on January 18, 2022, in connection with its conversion to a stock form of organization.
• The company sold 5,290,000 shares of common stock at $10.00 per share in its subscription offering, generating gross proceeds of approximately $52.9 million.
• In connection with the conversion, 107,959 shares of common stock and $150,000 in cash were issued to the NSTS Charitable Foundation, Inc.

Inbound Investments

• No specific large inbound investments by third-parties, such as strategic partners or private equity firms, were identified within the last 3-5 years, beyond the capital raised through the initial public offering.

Outbound Investments

• No specific instances where NSTS Bancorp made a strategic investment in another company were identified within the last 3-5 years. The company is authorized to pursue acquisitions of banking and financial services companies but currently has no agreements to do so.

Capital Expenditures

• NSTS Bancorp's capital expenditures forecast for the next fiscal year is $494.45 thousand.
• In the third quarter of 2023, the company established two additional loan production offices in Aurora and Plainfield, Illinois, to expand its loan originations within the Chicagoland area, complementing an existing office in Chicago.