NSTS Bancorp, Inc.

Acquirer of NSTS — pending Q4 2026 close; private company not publicly traded; no ticker available; provides forward view of NSTS's assets post-merger integration

U.S. Bancorp

NYSE:USB

Large-cap proxy for U.S. regional banking sector; while far larger than NSTS (~$270M vs ~$680B assets), USB provides comparable dynamics in net interest income sensitivity, mortgage banking, and regulatory exposure

BMO Financial Group (Bank of Montreal)

NYSE:BMO

Parent of BMO Harris Bank — NSTS's correspondent banking line of credit provider; BMO's U.S. banking segment is a direct proxy for the competitive and regulatory landscape NSTS operates in

First Northern Community Bancorp

OTCQX:FNRN

Small-cap community bank proxy (~$700M assets); similar business model of relationship-based lending, deposit gathering, and secondary market mortgage sales in a single-state geography

Geographic

Region-level exposures that can distort the supply network.

Geographic

United States – Lake County, Illinois (Waukegan, Lindenhurst, surrounding areas)

United States – Secondary Mortgage Market (National)

Retail Deposit Customers (Lake County, IL)

Residential Mortgage Borrowers (Lake County, IL)

Fannie Mae

Freddie Mac

United States – Lake County, Illinois (Waukegan, Lindenhurst, surrounding areas)

Single-county branch network with 3 physical locations; all lending and deposit operations concentrated in northeast Illinois

Retail Deposit Customers (Lake County, IL)Core depositors providing funding base

Residential Mortgage Borrowers (Lake County, IL)Primary loan originations concentrated locally

United States – Secondary Mortgage Market (National)

Loans sold to Fannie Mae/Freddie Mac via national secondary market; securities portfolio includes nationwide agency MBS

Fannie MaeOTCQB:FNMAGSE mortgage loan purchaser and MBS issuer

Freddie MacOTCQB:FMCCGSE mortgage loan purchaser and MBS issuer

Concentration

Customer, supplier, or partner concentration exposures that can distort the supply network.

Other

Critical

Extreme geographic concentration — 100% of deposits and lending operations in Lake County, Illinois; single local economy exposure

Other

High

Business model concentration as a traditional thrift — 91.2% of loans in one-to-four family residential mortgages; highly sensitive to interest rates and housing market cycles

Other

Medium

Core funding concentration — time deposits (CDs) represent nearly half of deposits; may reprice rapidly in rising rate environments and increase funding costs

Other

High

Merger execution risk — pending acquisition by Brookfield Bancshares (~$14.28/share all-cash); subject to regulatory and stockholder approvals; material non-ordinary course business

Other

High

Core processor vendor concentration — the bank relies on a single core banking processing vendor (name undisclosed in filings) for all deposit, loan, and general ledger operations; switching costs are prohibitive

Revenue mix

How the target's revenue mix translates into supply-chain leverage and dependency.

Net Interest Income – Residential Mortgage Loans

52.0%

91.2% of the loan portfolio is one-to-four family residential mortgages; drives demand for core banking/loan origination systems, credit reporting, appraisal, and mortgage insurance vendors

Net Interest Income – Investment Securities (GSE MBS)

25.0%

Portfolio heavily weighted in Fannie Mae, Freddie Mac, and Ginnie Mae MBS; drives demand for securities clearing/custody providers and market data services

Net Interest Income – Commercial Real Estate & Consumer Loans

8.0%

Smaller segments; drives demand for commercial loan origination and servicing platforms

Noninterest Income – Gain on Sale of Mortgage Loans (Secondary Market)

9.0%

Loans sold into secondary market to GSEs/investors; relies on mortgage servicing systems and secondary market delivery infrastructure

Noninterest Income – Deposit Service Charges & Other Fees

6.0%

Drives demand for core deposit processing, online banking platforms, and ATM/debit card network services

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NSTS Bancorp, Inc.

Supply Chain of NSTS

Upstream

Core Banking Processor (Likely Fiserv, Jack Henry, or FIS)

BMO Harris Bank (BMO Financial Group)

Federal Home Loan Bank of Chicago

Federal Deposit Insurance Corporation (FDIC)

Board of Governors of the Federal Reserve System

Office of the Comptroller of the Currency (OCC)

Zelle Network (Early Warning Services, LLC)

Olsen Palmer LLC

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Downstream

Retail Deposit Customers (Lake County, IL residents and businesses)

Residential Mortgage Borrowers (One-to-Four Family)

Commercial Real Estate Borrowers

Fannie Mae (Federal National Mortgage Association)

Freddie Mac (Federal Home Loan Mortgage Corporation)

Ginnie Mae (Government National Mortgage Association)

Unidentified National Mortgage Lender (Buyer of Oak Leaf Community Mortgage)

Brookfield Bancshares, Inc. / First National Bank of Brookfield

Proxies

Brookfield Bancshares, Inc. (via First National Bank of Brookfield)

U.S. Bancorp

BMO Financial Group (Bank of Montreal)

First Northern Community Bancorp

Geographic

United States – Lake County, Illinois (Waukegan, Lindenhurst, surrounding areas)

United States – Secondary Mortgage Market (National)

Supply Chain of NSTS

Upstream

Core Banking Processor (Likely Fiserv, Jack Henry, or FIS)

BMO Harris Bank (BMO Financial Group)

Federal Home Loan Bank of Chicago

Federal Deposit Insurance Corporation (FDIC)

Board of Governors of the Federal Reserve System

Office of the Comptroller of the Currency (OCC)

Zelle Network (Early Warning Services, LLC)

Olsen Palmer LLC

View More

Downstream

Retail Deposit Customers (Lake County, IL residents and businesses)

Residential Mortgage Borrowers (One-to-Four Family)

Commercial Real Estate Borrowers

Fannie Mae (Federal National Mortgage Association)

Freddie Mac (Federal Home Loan Mortgage Corporation)

Ginnie Mae (Government National Mortgage Association)

Unidentified National Mortgage Lender (Buyer of Oak Leaf Community Mortgage)

Brookfield Bancshares, Inc. / First National Bank of Brookfield

Proxies

Brookfield Bancshares, Inc. (via First National Bank of Brookfield)

U.S. Bancorp

BMO Financial Group (Bank of Montreal)

First Northern Community Bancorp

Geographic

United States – Lake County, Illinois (Waukegan, Lindenhurst, surrounding areas)

United States – Secondary Mortgage Market (National)