Company: NSTS
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001437749-25-009831
Chunk: 743

Company: NSTS Bancorp, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 3
Chunk 743
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 Deferred benefit   (389)  (1,150)
 Change in valuation allowance   389   2,140 
 Total deferred expense   —   990 
 Total income tax expense  $—  $999 

   The difference between the income tax expense shown on the statements of income and the amounts computed by applying the statutory federal income tax rate to income before income taxes is primarily due to tax-exempt income, the change in valuation allowance, and the adjustment of deferred taxes for enacted changes in tax laws. The provision for income taxes differs from that computed are as follows:

       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)%

       69

   The tax effects of existing temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at  December 31, 2024 and 2023, are as follows:

      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)