First Seacoast Bancorp, Inc. Income Taxes Disclosure

The calculation of the Company’s charitable contribution carryforward deferred tax asset is based upon a carryforward of approximately $208,000 of charitable contributions at December 31, 2025 and 2024. During 2024, $100,000 of the carryforward was utilized and $346,000 expired unused. Of the remaining carryforward, $187,000 expires in 2027 and $21,000 expires in 2028. As of December 31, 2025 and 2024, it has been determined that it is more likely than not that the benefit from this charitable contribution carryforward will not be realized prior to expiration. As a result, a valuation allowance of $56,000 has been provided on this deferred tax asset for the years ended December 31, 2025 and 2024. The ultimate realization of this deferred tax asset is dependent upon the generation of future taxable income. The Internal Revenue Federal Tax Code (the “Code”) limits the charitable contribution deduction in any one year to 10% of taxable income, computed without regard to charitable contributions, certain special deductions, net operating loss carry backs and capital loss carry backs. However, the Code allows a corporation to carry forward the excess charitable contributions to each of the five immediately succeeding years, subject to a 10% limitation in each of those years. Thus, the Company would have six years in which to utilize the charitable contribution carryforward. The valuation allowance for this net deferred tax asset may be adjusted in the future if estimates of taxable income during the carryforward period are increased.

As of December 31, 2025, the Company has a Federal and New Hampshire net operating loss carryforward of $10.0 million and $12.3 million, respectively. The Federal net operating loss carryforward can be carried forward indefinitely but is limited to 80% of each subsequent year’s taxable income. The New Hampshire net operating loss carryforward expires in 2032 through 2035 and is also limited to 80% of each subsequent year’s taxable income. Additionally, as of December 31, 2025, the Company has a New Hampshire Business Enterprise Tax credit carry forward of $404,000 that expires in 2029 through 2035. As of December 31, 2025, it has been determined that it is more likely than not that the benefit from these net operating loss and state tax credit carryforwards will not be realized. As a result, a valuation allowance of $2.1 million for the Federal net operating loss carryforward, $729,000 for the New Hampshire net operating loss carryforward and $404,000 for the New Hampshire Business Enterprise Tax credit carry forward has been provided on these deferred tax assets for the year ended December 31, 2025. All other deferred tax assets as of December 31, 2025 have also been reduced by a valuation allowance of $3.6 million because management believes that it is more likely than not that the benefit of these deferred tax assets will not be realized. The ultimate realization of these deferred tax assets is dependent upon the generation of future taxable income. The valuation allowance for these net deferred tax assets may be adjusted in the future if estimates of taxable income during the carryforward period are increased.

The tax reserve for credit losses at the Company’s base year amounted to approximately $2.3 million. If any portion of the reserve is used for purposes other than to absorb credit losses, approximately 150% of the amount actually used (limited to the amount of the reserve) would be subject to taxation in the year in which used. As the Company intends to use the reserve to only absorb credit losses, a deferred tax liability of approximately $630,000 has not been provided.

The Company does not have any uncertain tax positions at December 31, 2025 or 2024 which require accrual or disclosure. The Company records interest and penalties as part of income tax expense. No material interest or penalties were recorded for the years ended December 31, 2025 and 2024.

The Company’s income tax returns are subject to review and examination by federal and state taxing authorities. The Company is currently open to audit under the applicable statutes of limitations by the Internal Revenue Service for the years ended December 31, 2022 through 2025. The years open to examination by state taxing authorities vary by jurisdiction; no years prior to 2022 are open.