A smaller, regional Bank of America, focused on specific communities in northern Illinois.

Like a community-oriented Wells Fargo, serving towns such as Waukegan and Lindenhurst, Illinois.

• Deposit Accounts: NSTS Bancorp offers various types of accounts for customers to deposit and save money, including checking, money market, savings, and time deposit accounts.
• Lending Services: The company provides a range of loans to individuals and businesses, such as one- to four-family residential mortgage, multi-family and commercial real estate, construction, home equity, and consumer loans.

NSTS Bancorp (NSTS)

• Individual Consumers and Households

  This category includes individuals and families who utilize the company's retail banking services, such as checking, money market, savings, and time deposit accounts. It also encompasses customers who obtain personal loans, including one-to-four family residential mortgages, home equity loans, and other consumer loans.

• Businesses and Commercial Real Estate Investors/Developers

  This category comprises businesses, real estate investors, and developers primarily within Illinois, who obtain multi-family and commercial real estate loans, as well as construction loans. These customers leverage the company's lending products to finance their commercial properties, projects, and business operations.

Stephen G. Lear, Chairman, President and Chief Executive Officer, NSTS Bancorp, Inc.

Stephen G. 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 was the Chief Executive Officer of North Shore Trust and Savings from 1998 to 2022. Mr. Lear has held various roles with North Shore Trust and Savings since 1979. He earned 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. Mr. Lear 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.; President and Chief Executive Officer, North Shore Trust and Savings

Nathan E. Walker has served as the President and Chief Executive Officer of North Shore Trust and Savings since July 2022, President and Chief Operating Officer since November 2020, and Chief Operating Officer since November 2019. He joined North Shore Trust and Savings in 1996, previously holding the role of Senior Vice President of Retail Banking from 2010 to 2020. Mr. Walker holds 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. He also serves on the board of directors of Siena Catholic Schools of Racine, Wisconsin.

Carissa H. Schoolcraft, Chief Financial Officer, NSTS Bancorp, Inc. and North Shore Trust and Savings

Carissa H. Schoolcraft has served as the Chief Financial Officer of North Shore Trust and Savings since April 2021. Prior to this, she was the Controller of North Shore Trust and Savings from April 2020 to April 2021. Before joining North Shore Trust and Savings, Ms. Schoolcraft was a Staff Auditor (Manager) at KPMG, LLP from 2013 to 2020. She serves on the audit committee of Cunningham Children's Home and holds Bachelor's and Master's Degrees in Accounting from Truman State University.

Amy L. Avakian, Vice President and Chief Lending Officer, North Shore Trust and Savings

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

The key risks to NSTS Bancorp, Inc. (NSTS) are primarily related to its lending activities, the broader economic environment affecting interest rates and liquidity, and the extensive regulatory framework governing financial institutions.

1. Credit Risk in Loan Portfolio: A significant portion of NSTS Bancorp's business involves originating one- to four-family residential mortgage, multi-family and commercial real estate, construction, home equity, and consumer loans. Commercial real estate and multi-family residential lending, in particular, carries a higher degree of risk compared to one- to four-family residential lending due to larger loan amounts and reliance on the successful operation of the underlying projects or businesses. The bank's exposure to credit risk is also significantly influenced by changes in the economic conditions within its market area, Lake County, Illinois, and adjacent communities. Industry-wide, there has been an accumulation of risk in loan portfolios due to eased underwriting, risk layering, and increasing credit concentrations in the pursuit of higher yields.
2. Interest Rate and Liquidity Risk: NSTS Bancorp's earnings are susceptible to fluctuations in interest rates, which can impact the profitability of its loan and deposit products. Changes in depositor behavior, such as a shift in deposit preferences or withdrawals, can also affect the company's liquidity and funding stability. The company's cash flow depends on earnings from the investment of stock offering proceeds and dividends received from its subsidiary, North Shore Trust and Savings, which is subject to regulatory limitations on dividend payments. Furthermore, unrealized losses on debt securities can occur due to increased market rates and temporary market conditions.
3. Regulatory and Compliance Risk: As a savings and loan holding company, NSTS Bancorp, Inc. and its subsidiary, North Shore Trust and Savings, are subject to comprehensive regulation and examination by various federal agencies, including the Office of the Comptroller of the Currency (OCC), the Federal Reserve Board, and the Securities and Exchange Commission (SEC). Any changes in applicable laws or regulations could materially and adversely affect their operations and financial performance. High compliance risk persists, particularly concerning Bank Secrecy Act/Anti-Money Laundering (BSA/AML), Office of Foreign Assets Control (OFAC), and consumer compliance requirements, driven by the increasing sophistication of illicit financial activities. A less than satisfactory regulatory rating could also hinder the company's ability to access capital markets, pay dividends, or expand through acquisitions.

The increasing competition from digital-only banks and non-bank fintech lenders poses a clear emerging threat to NSTS Bancorp.

These competitors operate with significantly lower overhead costs due to the absence of a physical branch network, enabling them to offer more competitive interest rates on deposits and loans. Furthermore, they often provide superior, highly convenient, and technology-driven user experiences that appeal to a broad range of customers, especially those who prioritize digital access and seamless online banking over traditional branch visits.

This trend directly threatens NSTS Bancorp's core business by potentially eroding its deposit base and market share in key lending areas such as consumer and residential mortgages within its local Illinois markets, where its traditional branch-based model may struggle to compete effectively against more agile and digitally-focused alternatives.

The addressable markets for NSTS Bancorp's main products and services within Illinois are as follows:

• Bank Deposits: The total deposits held by banks and thrifts in Illinois amounted to approximately $667.06 billion as of June 30, 2023.
• Commercial Banking Industry (including consumer, commercial, and industrial loans, and deposits): The market size for the Commercial Banking industry in Illinois is projected to be $70.8 billion in 2026.
• Real Estate Loans & Collateralized Debt (including residential mortgage, multi-family and commercial real estate, and construction loans): The market size for the Real Estate Loans & Collateralized Debt industry in Illinois is estimated at $21.3 billion in 2026.

• Growth in Lending Activities: The company's primary business activity is attracting deposits and using those funds to originate various types of loans, including one-to-four-family residential mortgage, multi-family and commercial real estate, construction, home equity, and consumer loans. An increase in the volume and value of these loan originations would directly contribute to higher interest income, a significant component of revenue. The expansion of its mortgage lending department further supports this driver.
• Capitalizing on Interest Income Opportunities: Despite overall financial challenges, NSTS Bancorp has demonstrated a significant increase in interest income, with a 34.64% rise for the quarter ending June 2025, suggesting an effective capitalization on its lending activities. Sustaining or improving this ability to generate interest income from its loan portfolio will be crucial for revenue growth.
• Expansion of Market Presence and Customer Base: While operating primarily in Lake County, Illinois, and adjacent communities, NSTS Bancorp also has loan production offices in Chicago, Plainfield, and Aurora, Illinois. The company's ability to successfully enter new markets and capitalize on growth opportunities is identified as a factor for future performance, implying potential for expanding its customer base beyond its traditional footprint.
• Strategic Balance Sheet Management: The company has engaged in balance sheet repositioning, including the sale of available-for-sale investment securities, with proceeds intended for debt repayment, liquidity management, and funding for residential loan growth. Such strategic financial management can optimize the allocation of capital to revenue-generating assets and improve overall profitability.

Share Repurchases

• NSTS Bancorp announced the authorization of a stock repurchase program on December 21, 2023.
• On March 31, 2023, the company authorized a program to buy back up to 269,898 shares, representing approximately 5% of its outstanding common stock.
• As of October 5, 2023, NSTS Bancorp had repurchased 152,681 shares at an average price of $8.88 per share, with an additional 117,217 shares authorized under an extended program valid until September 30, 2024.

Share Issuance

• NSTS Bancorp completed its stock offering in connection with its conversion on January 18, 2022.
• 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.
• As part of the conversion, NSTS Bancorp issued 107,959 shares of common stock and $150,000 in cash to the NSTS Charitable Foundation, Inc.

Outbound Investments

• As of March 28, 2025, the company had no agreements to acquire other financial institutions or financial services companies.
• North Shore Trust and Savings, the banking subsidiary, invests in bank owned life insurance (BOLI) to provide a funding source for its benefit plan obligations.

Capital Expenditures

• NSTS Bancorp does not own or lease any property directly, but pays North Shore Trust and Savings for the use of its premises, furniture, and equipment.
• The company's primary business involves attracting deposits and originating loans, suggesting that significant capital is allocated to these lending activities rather than large physical capital expenditures.
• "Equipment and occupancy expense" is noted as a significant expense for the company.