NSTS Bancorp, Inc. Annual report [Section 13 and 15(d), not S-K Item 405]

Note 8 - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

		*Year Ended December 31,*
	*2025*			*2024*
		(Dollars in thousands)
Loss from continuing operations before income tax expense (benefit) ⁽¹⁾	$	(386	)	$	(789	)
Income tax expense (benefit) from continuing operations
Current expense
Federal	$	—		$	—
State		—			—
Total current expense		—			—

Deferred (benefit) expense
Federal	$	(147	)	$	(406	)
State		(49	)		17
Change in valuation allowance		196			389
Total deferred expense		—			—
Total income tax expense	$	—		$	—

	*Year Ended December 31,*
	*2025*					*2024*
	(Dollars in thousands)
Tax benefit at statutory federal rate of 21% applied to income before income tax benefit	$	81		21.0	%	$	166		21.0	%
State income tax benefit, net of federal effect		29		7.5	%		59		7.5	%
Tax-exempt security and loan income, net of TEFRA adjustments		45		11.6	%		45		5.7	%
BOLI		49		12.7	%		46		5.9	%
Change in valuation allowance		(196	)	(50.8	)%		(389	)	(49.3	)%
Other		(8	)	(2.0	)%		73		9.3	%
Effective tax rate	$	—		0.0	%	$	—		0.0	%

	*Year Ended December 31,*
	*2025*			*2024*
	(Dollars in thousands)
Deferred tax assets
Allowance for credit losses	$	345		$	364
Deferred compensation		572			635
Retirement plans		258			162
Premises held for sale impairment		101			101
Unrealized loss on securities available-for-sale		2,297			3,431
Federal net operating loss carryforwards		1,564			1,405
Other		—			7
State net operating loss carryforwards		564			515
Gross deferred tax assets		5,701			6,620
Valuation allowance		(3,246	)		(3,050	)
Net deferred tax assets		2,455			3,570
Deferred tax liabilities
FHLB stock dividends		(101	)		(101	)
Accumulated depreciation		(57	)		(38	)
Deferred tax liabilities		(158	)		(139	)
Net deferred tax asset	$	2,297		$	3,431