Company: NSTS
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001437749-25-009831
Chunk: 438

Company: NSTS Bancorp, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 438
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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)
 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 

   The Bank does not expect the total amount of unrecognized tax benefits to change significantly in the next twelve months. Gross Federal net operating losses (NOL) as of  December 31, 2024 and 2023 are $6.7 million, and $5.0 million, respectively. A portion of the Federal NOL, related to charitable contributions, totaling $1.3 million, as of  December 31,