NSTS Bancorp, Inc.

Previous wording

This section is intended to assist in the understanding of our financial performance through a discussion of our financial condition as of March 31, 2025 and as compared to our financial condition as of December 31, 2024, and our results of operations for the three months ended March 31, 2025 and 2024. This section should be read in conjunction with the unaudited interim consolidated financial statements and notes thereto appearing in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Current wording

This section is intended to assist in the understanding of our financial performance through a discussion of our financial condition as of June 30, 2025 and as compared to our financial condition as of December 31, 2024, and our results of operations for the three and six months ended June 30, 2025 and 2024. This section should be read in conjunction with the unaudited interim consolidated financial statements and notes thereto appearing in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Previous wording

Our discussion and analysis of our financial condition and results of operations is based upon our condensed consolidated unaudited interim financial statements for the three months ended March 31, 2025 and 2024, which have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires us to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting periods. On an ongoing basis, we evaluate our estimates and assumptions. Our actual results could differ from these estimates.

Current wording

Our discussion and analysis of our financial condition and results of operations is based upon our condensed consolidated unaudited interim financial statements for the three and six months ended June 30, 2025 and 2024, which have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires us to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting periods. On an ongoing basis, we evaluate our estimates and assumptions. Our actual results could differ from these estimates.

Previous wording

COMPARISON OF OPERATING RESULTS FOR THE three months ended March 31, 2025 and 2024

Current wording

COMPARISON OF OPERATING RESULTS FOR THE three and six months ended June 30, 2025 and 2024

Previous wording

General. For the quarter ended March 31, 2025, we had a net loss of $328,000, compared to a net loss of $246,000 for the quarter ended March 31, 2024. The increase in net loss for the quarter ended March 31, 2025 is due an increase in noninterest expenses, partially offset by an increase in net interest income.

Current wording

General. For the quarter ended June 30, 2025, we had a net loss of $258,000, compared to a net loss of $326,000 for the quarter ended June 30, 2024. The decrease in net loss for the quarter ended June 30, 2025 is due an increase in interest and noninterest income, partially offset by an increase in interest expense and noninterest expenses. For the six months ended June 30, 2025, we had a net loss of $586,000, compared to a net loss of $572,000 for the six months ended June 30, 2024. The increase in interest and noninterest income was offset by the increase in interest expense and noninterest expenses.

Previous wording

***Net Interest Income.***Net interest income increased $126,000, to $1.9 million for quarter ended March 31, 2025 compared to $1.7 million for the quarter ended March 31, 2024. Our interest rate spread decreased to 2.23% for the quarter ended March 31, 2025 from 2.31% for the quarter ended March 31, 2024. Our net interest margin remained at 2.82% for the quarters ended March 31, 2025 and 2024. The decrease in interest rate spread is driven by an increased average balance of higher earning interest-bearing liabilities, specifically interest-bearing deposits, as a percentage of total assets.

Current wording

***Net Interest Income.***Net interest income increased $20,000, to $1.8 million for quarter ended June 30, 2025. Our interest rate spread decreased to 2.19% for the quarter ended June 30, 2025 from 2.36% for the quarter ended June 30, 2024. Our net interest margin decreased to 2.77% for the quarter ended June 30, 2025 compared to 2.92% for the quarter ended June 30, 2024. The decrease in interest rate spread and margin is driven by an increased average balance of higher earning interest-bearing liabilities, specifically interest-bearing deposits, as a percentage of total assets.

Previous wording

Average interest-earning assets of $259.9 million for the quarter ended March 31, 2025 increased $18.2 million compared to $241.7 million for the quarter ended March 31, 2024. The increase in average earning assets was driven by an increase in loans and interest-bearing deposits at other banks, funded by an increase in average deposit balances during the period and reduction in investment securities. The average outstanding balance of loans, net increased to $133.9 million for the quarter ended March 31, 2025, an increase of $8.6 million from $125.3 million for the quarter ended March 31, 2024. Additionally, the average yield earned on those loans outstanding increased 67 basis points to 5.38% for the quarter ended March 31, 2025. This increase is a result of an overall increase in market rates on mortgage loans originated during 2024 and still in our portfolio, as well as an increased loan demand for specialty portfolio products which are originated at higher interest rates and with additional origination fees.

Current wording

Average interest-earning assets of $260.7 million for the quarter ended June 30, 2025 increased $15.6 million compared to $245.1 million for the quarter ended June 30, 2024. The increase in average earning assets was driven by an increase in interest-bearing deposits at other banks, funded by an increase in average deposit balances during the period and reduction in investment securities. The average outstanding balance of loans, net increased slightly to $134.9 million for the quarter ended June 30, 2025, an increase of $200,000 from $134.7 million for the quarter ended June 30, 2024. Additionally, the average yield earned on those loans outstanding increased 21 basis points to 5.32% for the quarter ended June 30, 2025. This increase is a result of an overall increase in market rates on mortgage loans originated during 2024 and the first half of 2025, and still in our portfolio, as well as an increased loan demand for specialty portfolio products which are originated at higher interest rates and with additional origination fees.

Previous wording

The cost of interest-bearing liabilities increased 33 basis points for the quarter ended March 31, 2025 compared to the quarter ended March 31, 2024. The net increase in our funding costs was primarily due to an increase in rates earned on time deposit accounts to remain competitive with the local market. The average yield on time deposits for the quarter ended March 31, 2025 was 3.48%. Over the next 12 months $52.2 million of time deposits with rates greater than 3.0% are scheduled to mature.

Current wording

The cost of interest-bearing liabilities increased 19 basis points for the quarter ended June 30, 2025 compared to the quarter ended June 30, 2024. The net increase in our funding costs was primarily due to an increase in rates earned on time deposit accounts to remain competitive with the local market. The average yield on time deposits for the quarter ended June 30, 2025 was 3.51%.

Previous wording

Provision for Credit Losses. During the quarter ended March 31, 2025, we recorded a reversal of provision for credit losses of $37,000, comprised of $45,000 reversal of provision for credit losses on loans and $8,000 provision for credit losses related to unfunded commitments.

Current wording

Provision for Credit Losses. During the quarter ended June 30, 2025, we recorded a provision for credit losses of $57,000, comprised of $44,000 provision for credit losses on loans and $13,000 provision for credit losses related to unfunded commitments. During the three months ended June 30, 2024, we recorded a provision for credit losses of $123,000, comprised of $90,000 in provision for credit losses to loans and $33,000 in provision for credit losses related to unfunded commitments, including loans committed for origination. During the six months ended June 30, 2025, we recorded a provision for credit losses of $20,000, comprised of $1,000 reversal of provision for credit losses on loans and $21,000 provision for credit losses related to unfunded commitments. During the six months ended June 30, 2024, we recorded a provision for credit losses of $122,000, comprised of $91,000 provision for credit losses on loans and $31,000 provision for credit losses related to unfunded commitments.

Previous wording

For the quarter ended March 31, 2025 compared to the same period ended March 31, 2024, noninterest income increased $22,000 to $334,000. The increase was driven by an increase in the gain on sale of mortgage loans during the quarter ended March 31, 2025. Gain on sale of mortgage loans increased $33,000, from $156,000 to $189,000 for the quarter ended March 31, 2025 compared to the quarter ended March 31, 2024. The increase in gain on sale of mortgages was primarily the result of an overall increase in total mortgage loans originated during the period. During the quarter ended March 31, 2025, we sold 31 loans totaling $9.9 million for a gain on sale of $189,000. During the quarter ended March 31, 2024, we sold 26 loans totaling $6.3 million for a gain on sale of $156,000. Management continues to look for opportunities and markets to sell loans as we continue to see increased loan production compared to prior years.

Current wording

For the quarter ended June 30, 2025 compared to the same period ended June 30, 2024, noninterest income increased $234,000 to $735,000. Noninterest income increased $256,000 for the six months ended June 30, 2025 to $1.1 million compared to $813,000 for the six months ended June 30, 2024. The increases were driven by an increase in the gain on sale of mortgage loans during the quarter and six months ended June 30, 2025. The increase in gain on sale of mortgages was primarily the result of an overall increase in total mortgage loans originated during the periods. During the quarter ended June 30, 2025, we sold 102 loans totaling $28.0 million for a gain on sale of $507,000. During the quarter ended June 30, 2024, we sold 46 loans totaling $13.2 million for a gain on sale of $271,000. During the six months ended June 30, 2025, we sold 135 loans totaling $37.9 million for a gain on sale of $696,000. During the six months ended June 30, 2024, we sold 72 loans totaling $19.5 million for a gain on sale of $427,000. Management continues to look for opportunities and markets to sell loans as we continue to see increased loan production compared to prior years.

Previous wording

Noninterest expenses increased $266,000 for the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024. The increase in noninterest expenses was primarily driven by increases in salaries and employee benefits and loan expenses. The average number of employees increased to 52 for the quarter ended March 31, 2025 compared to 46 for the quarter ended March 31, 2024. The increase in headcount is based on additional hires during 2024 to supplement the lending team as operations continue to expand. Loan expenses increased as a result of an increase in loan originations during the periods. Additionally, the Bank recorded a provision for recourse reserve related to the loans sold into the secondary market due to an increase in the volume of loans sold over the past 4 quarters.

Current wording

Noninterest expenses increased $252,000 for the quarter ended June 30, 2025, compared to the quarter ended June 30, 2024. The increase in noninterest expenses was primarily driven by increases in salaries and employee benefits and deposit expenses. The increase in noninterest expenses was partially offset by a reduction in advertising expenses. The average number of employees increased to 52 for the quarter ended June 30, 2025 compared to 50 for the quarter ended June 30, 2024. The increase in headcount is based on additional loan officers brought in during 2025. Deposit expenses increased as a result of ATM losses totaling $40,000 due to an ATM robbery. Noninterest expenses increased $518,000 for the six months ended June 30, 2025, compared to the same period ended June 30, 2024. The increase in noninterest expenses was primarily driven by increases in salaries and employee benefits, loan expenses and deposit expenses. The average number of employees increased to 52 for the six months ended June 30, 2025 compared to 48 for the six months ended June 30, 2024. The increase in headcount is based on additional loan officers brought in during 2024 and 2025. Loan expenses increased as a result of an increase in loan originations during the periods. Deposit expenses increased as a result of ATM losses totaling $40,000 due to an ATM robbery. Additionally, the Bank recorded a provision for recourse reserve related to the loans sold into the secondary market due to an increase in the volume of loans sold over the past 4 quarters.

Previous wording

***Provision for Income Tax Expense (Benefit).***There was no provision for income tax expense recorded during the three months ended March 31, 2025 and 2024. Management estimates a taxable net loss for the year ended December 31, 2025 due to non-taxable income, such as income on tax exempt municipal securities and BOLI.

Current wording

***Provision for Income Tax Expense.***There was no provision for income tax expense recorded during the three and six months ended June 30, 2025 and 2024. Management estimates a taxable net loss for the year ended December 31, 2025 due to non-taxable income, such as income on tax exempt municipal securities and BOLI.

Previous wording

Cash and cash equivalents. Cash and cash equivalents increased $4.0 million to $57.5 million as of March 31, 2025, from $53.5 million at December 31, 2024. The increase in cash was driven by an increase in the demand and NOW checking accounts. During the quarter ended March 31, 2025, the Bank received a large deposit into a customer account that is expected to be partially withdrawn prior to the end of the year. Currently, the Bank holds a majority of the cash on hand at the Federal Reserve Bank of Chicago, earning 4.40%, to keep the funds available for increasing loan demand. Management continues to actively monitor our liquidity position on a daily basis and maintain levels of liquid assets deemed adequate.

Current wording

Cash and cash equivalents. Cash and cash equivalents decreased $6.0 million to $47.5 million as of June 30, 2025, from $53.5 million at December 31, 2024. The decrease was driven by the paydown of the FHLB Advance in June 2025 of $5.0 million. Currently, the Bank holds a majority of the cash on hand at the Federal Reserve Bank of Chicago, earning 4.40%, to keep the funds available for increasing loan demand. Management continues to actively monitor our liquidity position on a daily basis and maintain levels of liquid assets deemed adequate.

Previous wording

Securities Available for Sale. Securities available-for-sale decreased to $70.3 million as of March 31, 2025, compared to $71.2 million at December 31, 2024. There were no purchases or sales of securities available-for-sale during the quarter ended March 31, 2025. During the quarter ended March 31, 2025, the Bank received principal payments of $1.3 million, had maturities of $1.0 million, had net premium amortization and discount accretion of $121,000 and had a decrease in the unrealized loss on the portfolio of $1.5 million.

Current wording

Securities Available for Sale. Securities available-for-sale decreased to $69.6 million as of June 30, 2025, compared to $71.2 million at December 31, 2024. There were no purchases or sales of securities available-for-sale during the six months ended June 30, 2025. During the six months ended June 30, 2025, the Bank received principal payments of $2.5 million, had maturities of $1.1 million, had net premium amortization and discount accretion of $242,000 and had a decrease in the unrealized loss on the portfolio of $2.2 million.

Previous wording

As of March 31, 2025, the securities available for sale portfolio included an unrealized loss position of $10.5 million, or 13.0% of the total book value of the portfolio. Management monitors the portfolio for credit losses and believes that the decline in value does not presently represent realized losses and is due to market volatility and increased market interest rates. While the Bank does not currently intend to sell securities in a loss position, management may consider the opportunity to reposition the investment securities portfolio in the future.

Current wording

As of June 30, 2025, the securities available for sale portfolio included an unrealized loss position of $9.8 million, or 12.4% of the total book value of the portfolio. Management monitors the portfolio for credit losses and believes that the decline in value does not presently represent realized losses and is due to market volatility and increased market interest rates. While the Bank does not currently intend to sell securities in a loss position, management may consider the opportunity to reposition the investment securities portfolio in the future.

Previous wording

***Loans held for sale.***Our loans held for sale increased $1.4 million to $2.6 million at March 31, 2025 compared to $1.2 million at December 31, 2024. The increase was primarily due to timing of originations and sales. The Bank originated $1.2 million of loans held for sale on March 31, 2025, which were subsequently sold on April 8, 2025. During the quarter ended March 31, 2025, the Bank originated $11.3 million in loans held for sale.

Current wording

***Loans held for sale.***Our loans held for sale increased $3.2 million to $4.4 million at June 30, 2025 compared to $1.2 million at December 31, 2024. The increase was primarily due an overall increase in the level of loans originated for sale during the second quarter of 2025. During the six months ended June 30, 2025, the Bank originated $38.4 million in loans held for sale.

Previous wording

Loans, net. Our loans, net, decreased by $116,000 to $130.2 million at March 31, 2025 compared to $130.4 million at December 31, 2024. The Bank originated $6.0 million in loans to be held in the portfolio during the quarter ended March 31, 2025 and had loan principal payments and payoffs of $6.0 million. In an effort to continue to grow loan originations, the Bank hired one additional mortgage loan originator during the quarter ended March 31, 2025 and has hired another mortgage loan originator that started in April 2025.

Current wording

Loans, net. Our loans, net, increased by $2.5 million to $132.8 million at June 30, 2025 compared to $130.4 million at December 31, 2024. The Bank originated $18.2 million in loans to be held in the portfolio during the six months ended June 30, 2025 and had loan principal payments and payoffs of $15.8 million. In an effort to continue to grow loan originations, the Bank hired two additional mortgage loan originators during the six months ended June 30, 2025 and continues to look to hire additional loan officers.

Previous wording

As of March 31, 2025, the allowance for credit losses on loans (“ACL”) totaled $1.2 million, a decrease of $45,000 compared to December 31, 2024. The decrease in the ACL is driven by a reduction in proxy rates and positive economic factors such as a lower inflation rate and stable unemployment rates. As of March 31, 2025, there were two loans individually assessed, of which neither had credit losses identified. As of March 31, 2025, the Bank had one non-accrual loan and three loans past due greater than 30 days. The Bank actively monitors the loan portfolio for signs of weakening credit quality, noting as of March 31, 2025 the portfolio remains of high quality with limited credit concerns.

Current wording

As of June 30, 2025, the allowance for credit losses on loans (“ACL”) totaled $1.2 million, with a net change of approximately $1,000 during the six months ended June 30, 2025. While the balance of the ACL remained steady, the ACL as a percentage of the loans, net of unearned income decreased, driven by a reduction in peer group proxy rates. As of June 30, 2025, there were two loans individually assessed, of which neither had expected credit losses identified. The Bank actively monitors the loan portfolio for signs of weakening credit quality, noting as of June 30, 2025 the portfolio remains of high quality with limited credit concerns.

Previous wording

Deposits. Total deposits increased $3.5 million to $193.7 million at March 31, 2025 compared to $190.2 million at December 31, 2024. As mentioned earlier, the increase in deposits was driven by one large deposit into a customer account, totaling $3.0 million. The Bank is actively working with the customer to retain the funds. Management continues to actively monitor the deposit balances and interest rates offered to maintain an adequate level of liquidity.

Current wording

Deposits. Total deposits increased $2.8 million to $193.0 million at June 30, 2025 compared to $190.2 million at December 31, 2024. The increase primarily came in Time Deposits with customers entering the CD Special offered during the six months ended June 30, 2025. Additionally, there was a shift in funds from money market accounts to savings. Management continues to actively monitor the deposit balances and interest rates offered to maintain an adequate level of liquidity.

Previous wording

Total Equity. Total equity increased $1.0 million to $77.5 million at March 31, 2025. The increase is primarily due to a decrease in the unrealized loss position on the securities available-for-sale portfolio during the quarter ended March 31, 2025 and partially offset by the net loss.

Current wording

Total Equity. Total equity increased $1.3 million to $77.8 million at June 30, 2025. The increase is primarily due to a decrease in the unrealized loss position on the securities available-for-sale portfolio during the six months ended June 30, 2025, partially offset by net losses of $586,000.

Previous wording

The following table sets forth certain information with respect to our nonperforming assets. The increase in non-accrual loans from December 31, 2024 to March 31, 2025 was the result of one loan moving to non-accrual during the period.

Current wording

The following table sets forth certain information with respect to our nonperforming assets. The increase in non-accrual loans from December 31, 2024 to June 30, 2025 was the result of two loans moving to non-accrual during the period.

Previous wording

The allowance for credit losses on loans as a percentage of total loans was 0.88% and 0.92% as of March 31, 2025 and December 31, 2024, respectively.

Current wording

The allowance for credit losses on loans as a percentage of total loans was 0.90% and 0.92% as of June 30, 2025 and December 31, 2024, respectively.

Previous wording

Liquidity describes our ability to meet the financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. Our primary sources of funds are deposits, principal and interest payments on loans and securities, and proceeds from maturities of securities. We also have the ability to borrow from the FHLB of Chicago and a $10.0 million unsecured Fed Funds line of credit with BMO Harris Bank. At March 31, 2025, we had one outstanding advance from the FHLB of Chicago totaling $5.0 million and had the capacity to borrow approximately $74.1 million additional from the FHLB of Chicago. Additionally, we had no outstanding balance under our $10.0 million federal funds line of credit with BMO Harris Bank.

Current wording

Liquidity describes our ability to meet the financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. Our primary sources of funds are deposits, principal and interest payments on loans and securities, and proceeds from maturities of securities. We also have the ability to borrow from the FHLB of Chicago and a $10.0 million unsecured Fed Funds line of credit with BMO Harris Bank. At June 30, 2025, we had the capacity to borrow approximately $81.5 million from the FHLB of Chicago. At June 30, 2025, we had no outstanding borrowings.

Previous wording

Our cash flows are comprised of three primary classifications: cash flows from operating activities, investing activities, and financing activities. Net cash (used in) provided by operating activities was $(2.7) million and $92,000 for the three months ended March 31, 2025 and 2024, respectively. Net cash provided by (used in) investing activities, which consists primarily of net change in loans receivable and net change in investment securities, was $2.4 million and $(5.0) million for the three months ended March 31, 2025 and 2024, respectively, with the decrease in cash used in 2025 driven by a decrease in the the loan portfolio. Net cash provided by financing activities, consisting primarily of the activity in deposit accounts was $4.2 million and $9.9 million for the three months ended March 31, 2025 and 2024, respectively.

Current wording

Our cash flows are comprised of three primary classifications: cash flows from operating activities, investing activities, and financing activities. Net cash used in operating activities was $2.0 million and $1.5 million for the six months ended June 30, 2025 and 2024, respectively. Net cash used in investing activities, which consists primarily of net change in loans receivable and net change in investment securities, was $1.7 million and $6.6 million for the six months ended June 30, 2025 and 2024, respectively, with the decrease in cash used in 2025 driven by a decrease in the cash used for the loan portfolio. Net cash (used in) provided by financing activities, consisting primarily of the activity in deposit accounts was ($2.3) million and $9.2 million for the six months ended June 30, 2025 and 2024, respectively. During the six months ended June 30, 2025, the Bank repaid the $5.0 million FHLB Advance, resulting in additional cash used in financing activities compared to the prior year.

Previous wording

We are committed to maintaining a strong liquidity position. We monitor our liquidity position on a daily basis. We anticipate that we will have sufficient funds to meet our current funding commitments. Time deposits that are scheduled to mature in less than one year from March 31, 2025, totaled $65.2 million. Based on our deposit retention experience and current pricing strategy we anticipate that a significant portion of maturing time deposits will be retained. However, if a substantial portion of these deposits is not retained, we may utilize FHLB of Chicago advances or raise interest rates on deposits to attract new accounts, which may result in higher levels of interest expense.

Current wording

We are committed to maintaining a strong liquidity position. We monitor our liquidity position on a daily basis. We anticipate that we will have sufficient funds to meet our current funding commitments. Time deposits that are scheduled to mature in less than one year from June 30, 2025, totaled $69.6 million. Based on our deposit retention experience and current pricing strategy we anticipate that a significant portion of maturing time deposits will be retained. However, if a substantial portion of these deposits is not retained, we may utilize FHLB of Chicago advances or raise interest rates on deposits to attract new accounts, which may result in higher levels of interest expense.

Previous wording

As of March 31, 2025, the Bank was well capitalized under the regulatory framework for prompt corrective action. During the year ended December 31, 2020, the Bank elected to begin using the CBLR. Under CBLR, if a qualifying depository institution or depository institution holding company elects to use such measure, such institution or holding company will be considered well capitalized if its ratio of Tier 1 capital to average total consolidated assets (i.e., leverage ratio) exceeds 9%, subject to a limited two quarter grace period, during which the leverage ratio cannot go 100 basis points below the then applicable threshold, and will not be required to calculate and report risk-based capital ratios. North Shore Trust and Savings’ Tier 1 capital to Average Assets was 23.11% and 23.53% at March 31, 2025 and December 31, 2024, respectively.

Current wording

As of June 30, 2025, the Bank was well capitalized under the regulatory framework for prompt corrective action. During the year ended December 31, 2020, the Bank elected to begin using the CBLR. Under CBLR, if a qualifying depository institution or depository institution holding company elects to use such measure, such institution or holding company will be considered well capitalized if its ratio of Tier 1 capital to average total consolidated assets (i.e., leverage ratio) exceeds 9%, subject to a limited two quarter grace period, during which the leverage ratio cannot go 100 basis points below the then applicable threshold, and will not be required to calculate and report risk-based capital ratios. North Shore Trust and Savings’ Tier 1 capital to Average Assets was 23.20% and 23.53% at June 30, 2025 and December 31, 2024, respectively.

Previous wording

Commitments. At March 31, 2025, we had $1.7 million of outstanding commitments to originate loans. Our total letters and lines of credit and unused lines of credit totaled $9.5 million at March 31, 2025. The following table summarizes our outstanding commitments to originate loans and to advance additional amounts pursuant to outstanding letters of credit, lines of credit and undisbursed construction loans at March 31, 2025.

Current wording

Commitments. At June 30, 2025, we had $2.2 million of outstanding commitments to originate loans. Our total letters and lines of credit and unused lines of credit totaled $11.2 million at June 30, 2025. The following table summarizes our outstanding commitments to originate loans and to advance additional amounts pursuant to outstanding letters of credit, lines of credit and undisbursed construction loans at June 30, 2025.