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INCOME TAXES | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES: Income tax expense from continuing operations consisted of the following:
| Years Ended December 31,
(in thousands) | 2021 |  | 2020 |  | 2019
Current expense |  |  |  |  |
Federal | $ | 20,074 |  |  | $ | 27,166 |  |  | $ | 32,738 |
State and local | 3,191 |  |  | 4,804 |  |  | 5,153 |
Deferred (benefit) expense |  |  |  |  |
Federal | 4,325 |  |  | (11,076) |  |  | (28,313) |
State and local | 511 |  |  | (1,596) |  |  | (4,292) |
Tax credit investment amortization | 3,166 |  |  | 2,606 |  |  | 2,702 |
Total | $ | 31,267 |  |  | $ | 21,904 |  |  | $ | 7,988 |
Income tax expense from continuing operations differed from amounts computed at the federal income tax statutory rate as follows:
| Years Ended December 31,
| 2021 |  | 2020 |  | 2019
(in thousands, except rate) | Rate |  | Amount |  | Rate |  | Amount |  | Rate |  | Amount
Income before taxes |  |  | $ | 146,689 |  |  |  |  | $ | 101,894 |  |  |  |  | $ | 48,708 |
Federal tax statutory rate | 21.00 | % |  | 30,805 |  |  | 21.00 | % |  | 21,398 |  |  | 21.00 | % |  | 10,229 |
State tax - net of federal tax benefit | 2.20 | % |  | 3,220 |  |  | 2.54 | % |  | 2,587 |  |  | (0.45) | % |  | (217) |
Tax-exempt interest benefit | (1.40) | % |  | (2,049) |  |  | (1.81) | % |  | (1,849) |  |  | (2.85) | % |  | (1,388) |
Stock-based compensation expense | (0.77) | % |  | (1,132) |  |  | (0.16) | % |  | (159) |  |  | (0.25) | % |  | (123) |
Other | 0.29 | % |  | 423 |  |  | (0.07) | % |  | (73) |  |  | (1.05) | % |  | (513) |
Total | 21.32 | % |  | $ | 31,267 |  |  | 21.50 | % |  | $ | 21,904 |  |  | 16.40 | % |  | $ | 7,988 |
The following is a summary of the Company's deferred tax assets and liabilities:
| At December 31,
(in thousands) | 2021 |  | 2020
Deferred taxes assets |  |  |
Provision for credit losses | $ | 11,477 |  |  | $ | 15,957 |
Federal and state net operating loss carryforwards | 628 |  |  | 849 |
Accrued liabilities | 2,268 |  |  | 2,152 |
Other investments | 471 |  |  | 451 |
Lease liabilities | 12,028 |  |  | 15,290 |
Nonaccrual interest | 213 |  |  | 497 |
Stock options | 969 |  |  | 820 |
Loan valuation | 289 |  |  | 454 |
Other | 1,744 |  |  | 2,262 |
Total | 30,087 |  |  | 38,732 |
Deferred taxes liabilities |  |  |
Mortgage servicing rights | (22,221) |  |  | (18,663) |
Deferred loan fees and costs | (7,336) |  |  | (10,972) |
Lease right-of-use assets | (8,572) |  |  | (10,435) |
Unrealized gain on investment AFS securities | (5,630) |  |  | (9,409) |
Premises and equipment | (1,843) |  |  | (3,620) |
Intangibles | (742) |  |  | (829) |
Other | (54) |  |  | (171) |
Total | (46,398) |  |  | (54,099) |
Net deferred tax liability | $ | (16,311) |  |  | $ | (15,367) |
Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets. As of December 31, 2021, management determined that sufficient evidence exists to support the future utilization of all of the Company's deferred tax assets. Utilization of the federal and state net operating loss and tax credit carryforwards may be subject to an annual limitation due to the "change in ownership" provisions of the Internal Revenue Code of 1986, as amended. At December 31, 2020, the Company had federal net operating loss carryforwards of $1.0 million. The Company also has state net operating loss carryforwards of $12.1 million as of both December 31, 2021 and 2020 that will expire at various dates from 2022 to 2038. Retained earnings at December 31, 2021 and 2020 include approximately $12.7 million in tax basis bad debt reserves for which no income tax liability has been recorded. This represents the balance of bad debt reserves created for tax purposes as of December 31, 1987. These amounts are subject to recapture (i.e., included in taxable income) if certain events occur, such as in the event HomeStreet Bank ceases to be a bank. In the event of recapture, the Company will incur both federal and state tax liabilities on this pre-1988 bad debt reserve balance at the then prevailing corporate tax rates. The Company had no recorded unrecognized tax position as of December 31, 2021, 2020 or 2019. We are currently under examination, or subject to examination, by various U.S. federal and state taxing authorities. The Company is no longer subject to federal income tax examinations for tax years prior to 2015 or state income tax examination for tax years prior to 2017, generally.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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