NSTS Bancorp Faces Compliance Challenge After Director’s Passing

NSTS Bancorp, Inc. recently found itself confronting a compliance issue following the unexpected passing of one of its directors, Mr. Thaddeus M. Bond, Jr. The company, a Delaware corporation with its principal executive offices in Waukegan, Illinois, promptly informed The Nasdaq Stock Market about the unfortunate event.

As per a Form 8-K filing with the Securities and Exchange Commission on February 7, 2025, NSTS Bancorp highlighted that Mr. Bond was not only a director of the company but also chaired its Nominating and Corporate Governance Committee and Compensation Committee. This development left the company with a Board of Directors comprising six members, three of whom met the criteria of being “independent directors” as defined by Rule 5605(a)(2) of the Nasdaq listing standards, falling short of the majority requirement as per Rule 5605(b)(1).

On February 7, 2025, NSTS Bancorp received communication from Nasdaq confirming that, due to the untimely demise of Mr. Bond, the company no longer complied with the provisions of Rule 5605(b)(1) of the Nasdaq listing standards.

In response to this compliance gap, NSTS Bancorp now has until the earlier of the next annual stockholders’ meeting or December 21, 2025, to rectify the situation. If the annual meeting occurs before June 19, 2025, compliance must be demonstrated by that date. To fulfill this requirement, the company’s Board of Directors plans to fill the vacant position with an individual meeting the stipulations outlined in Rule 5605(b)(1) of the Nasdaq listing standards.

Despite this challenge, the company, represented by its President and Chief Executive Officer, Stephen G. Lear, aims to navigate this period of adjustment and ensure compliance with Nasdaq’s regulations within the stipulated timeframe. This proactive approach underscores NSTS Bancorp’s commitment to maintaining transparency and good corporate governance practices.

This disclosure marks a pivotal moment for NSTS Bancorp as it navigates the evolving landscape in the aftermath of the loss of a key member of its leadership team. The company’s forthcoming actions will be closely monitored as it endeavors to uphold its commitment to regulatory standards and shareholders alike.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read NSTS Bancorp’s 8K filing here.

About NSTS Bancorp

NSTS Bancorp, Inc operates as a savings and loan holding company for North Shore Trust and Savings that provides banking products and services in Illinois. The company offers interest-bearing and noninterest-bearing checking, money market, savings, and time deposit accounts; and one- to four-family residential mortgage, multi-family and commercial real estate mortgage, construction, home equity, and consumer loans.