The bank continues to struggle with profitability, reporting a net loss of $39,000 in 2026Q1 alongside a compressed net interest margin of only 0.7%.
| Net Interest Income | 7.49M | 7.46M | 7.06M | 6.22M | 5.58M | 4.1M | 4.54M | 5.29M |
| NII Growth % | 16.93% | 5.69% | 13.52% | 11.39% | 36.26% | -9.64% | -14.2% | - |
| Net Interest Margin % | 2.77% | 2.8% | 2.53% | 2.42% | 2.11% | 1.2% | 1.87% | 2.24% |
| Interest Income | 10.83M | 10.99M | 10.3M | 7.73M | 6.35M | 5.04M | 6.01M | 7.01M |
| Interest Expense | 3.34M | 3.53M | 3.24M | 1.51M | 764K | 940K | 1.49M | 1.73M |
| Loan Loss Provision | -181K | -192K | 71K | 176K | -230K | -23K | 464.26K | 96.95K |
| Non-Interest Income | 2.45M | 2.27M | 1.73M | -1.27M | 1.15M | 1.08M | 1.46M | 766.09K |
| Non-Interest Income % | 18.43% | 17.13% | 14.37% | -19.61% | 15.34% | 17.65% | 19.57% | 9.85% |
| Total Revenue | 13.27M | 13.27M | 12.03M | 6.46M | 7.5M | 6.12M | 7.47M | 7.78M |
| Revenue Growth % | 31.12% | 10.24% | 86.24% | -13.83% | 22.56% | -18.13% | -3.92% | - |
| Non-Interest Expense | 10.21M | 10.31M | 9.51M | 7.74M | 6.79M | 5.47M | 6.14M | 5.63M |
| Efficiency Ratio | 76.94% | 77.75% | 79.02% | 119.72% | 90.57% | 89.41% | 82.11% | 72.35% |
| Operating Income | -97K | -386K | -789K | -2.96M | 173K | -269K | -615K | 328.07K |
| Operating Margin % | -0.73% | -2.91% | -6.56% | -45.78% | 2.31% | -4.4% | -8.23% | 4.22% |
| Operating Income Growth % | - | 51.08% | 73.33% | -1809.83% | 164.31% | 56.26% | -287.46% | - |
| Pretax Income | -97K | -386K | -789K | -2.96M | 173K | -269K | -615K | 328.07K |
| Pretax Margin % | -0.73% | -2.91% | -6.56% | -45.78% | 2.31% | -4.4% | -8.23% | 4.22% |
| Income Tax | 0 | 0 | 0 | 999K | 146K | -214K | -503K | -85.74K |
| Effective Tax Rate % | 0% | 0% | 0% | -33.77% | 84.39% | 79.55% | 81.79% | -26.13% |
| Net Income | -97K | -386K | -789K | -3.96M | 27K | -55K | -112K | 413.81K |
| Net Margin % | -0.73% | -2.91% | -6.56% | -61.24% | 0.36% | -0.9% | -1.5% | 5.32% |
| Net Income Growth % | 88.86% | 51.08% | 80.06% | -14755.56% | 149.09% | 50.89% | -127.07% | - |
| Net Income (Continuing) | -97K | -386K | -789K | -3.96M | 27K | -55K | -112K | 413.81K |
| EPS (Diluted) | -0.02 | -0.08 | -0.16 | -0.79 | 0.01 | -0.01 | -0.02 | 0.08 |
| EPS Growth % | 88.97% | 50.63% | 79.75% | -8000% | 198.04% | 50.72% | -126.99% | - |
| EPS (Basic) | - | -0.08 | -0.16 | -0.79 | 0.01 | -0.01 | -0.02 | 0.08 |
| Diluted Shares Outstanding | 4.92M | 4.89M | 4.91M | 5M | 4.73M | 5.4M | 5.4M | 5.4M |
Persistent Operating Margin Deficit
According to recent financial disclosures, NSTS has struggled to expand its net interest income, which remained flat at $1.9 million in 2026Q1, reflecting the challenges of scaling a residential mortgage-heavy portfolio within a competitive interest rate environment that limits meaningful net interest income expansion.
The bank's reliance on a fixed-rate residential mortgage book appears to hinder its ability to capture upside from rate fluctuations. Investors should monitor whether the bank can pivot toward higher-yielding commercial assets to improve its interest income trajectory.
As reported in quarterly filings, the bank's net interest margin has remained stubbornly low at 0.7% throughout early 2026, suggesting that the cost of funding in the Chicago MSA continues to exert significant pressure on the bank's core earning power and asset yields.
This narrow margin profile indicates that the bank is struggling to optimize its spread between interest-earning assets and deposit costs. The lack of expansion in NIM suggests that the current funding structure may be too expensive relative to the yields generated by the existing loan portfolio.
Based on the reported efficiency ratio of 79.5% in 2026Q1, NSTS continues to grapple with a high fixed-cost structure that consumes the majority of its revenue, indicating that the bank has yet to achieve the necessary operational leverage to reach consistent profitability.
The high efficiency ratio reflects the burden of maintaining a public-company cost structure on a relatively small revenue base. Without a significant increase in earning assets, the bank may continue to face difficulty in converting its top-line revenue into positive operating income.
Data from the past ten quarters reveals a recurring pattern of negative operating income, with the bank reporting a loss of $39,000 in 2026Q1, which warrants further investigation into whether the current business model can ever achieve sustainable profitability without a strategic consolidation.
The persistent inability to maintain positive net income suggests that the bank's current scale is insufficient to cover its overhead. Investors should consider the risk that the bank remains a 'zombie' institution, well-capitalized but unable to generate a return on equity that justifies its standalone existence.
Quick answers to the most common questions about buying NSTS stock.
NSTS Bancorp, Inc. (NSTS) reported a net loss of $0.4M for the fiscal year ending 2025.
NSTS Bancorp, Inc. (NSTS) reported an operating income of $-0.4M, resulting in an operating profit margin of -2.9%. This margin reflects the operational efficiency of the business before interest and taxes.
NSTS Bancorp, Inc. (NSTS) generated $9.9M in gross profit for the year, representing a gross profit margin of 74.8%. This demonstrates the company's core pricing power and production efficiency.