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, 2024

		*Year Ended December 31,*
	*2024*			*2023*
		(Dollars in thousands)
Current expense
Federal	$	—		$	9
State		—			—
Total current expense		—			9

Deferred benefit		(389	)		(1,150	)
Change in valuation allowance		389			2,140
Total deferred expense		—			990
Total income tax expense	$	—		$	999

	*Year Ended December 31,*
	*2024*			*2023*
	(Dollars in thousands)
Loss before income tax expense	$	(789	)	$	(2,958	)
Tax benefit at statutory federal rate of 21% applied to income before income tax benefit		166			621
State income tax benefit, net of federal effect		59			222
Tax-exempt security and loan income, net of TEFRA adjustments		45			77
BOLI		46			40
Change in valuation allowance		(389	)		(2,140	)
Other		73			181
Total income tax expense	$	—		$	(999	)
Effective tax rate		—	%		(33.8	)%

	*Year Ended December 31,*
	*2024*			*2023*
	(Dollars in thousands)
Deferred tax assets
Allowance for credit losses	$	364		$	339
Deferred compensation		635			556
Retirement plans		162			181
Premises held for sale impairment		101			101
Unrealized loss on securities available-for-sale		3,431			3,279
Federal net operating loss carryforwards		1,405			1,042
Other		7			15
State net operating loss carryforwards		515			532
Gross deferred tax assets		6,620			6,045
Valuation allowance		(3,050	)		(2,661	)
Net deferred tax assets		3,570			3,384
Deferred tax liabilities
FHLB stock dividends		(101	)		(101	)
Accumulated depreciation		(38	)		(4	)
Deferred tax liabilities		(139	)		(105	)
Net deferred tax asset	$	3,431		$	3,279