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INCOME TAXES
 12 Months Ended
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)202120202019
Current expense
Federal$20,074 $27,166 $32,738 
State and local3,191 4,804 5,153 
Deferred (benefit) expense
Federal4,325 (11,076)(28,313)
State and local511 (1,596)(4,292)
Tax credit investment amortization3,166 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,
202120202019
(in thousands, except rate)RateAmountRateAmountRateAmount
Income before taxes$146,689 $101,894 $48,708 
Federal tax statutory rate21.00 %30,805 21.00 %21,398 21.00 %10,229 
State tax - net of federal tax benefit2.20 %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)
Other0.29 %423 (0.07)%(73)(1.05)%(513)
Total21.32 %$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)20212020
Deferred taxes assets
Provision for credit losses$11,477 $15,957 
Federal and state net operating loss carryforwards628 849 
Accrued liabilities2,268 2,152 
Other investments471 451 
Lease liabilities12,028 15,290 
Nonaccrual interest213 497 
Stock options969 820 
Loan valuation289 454 
Other1,744 2,262 
   Total30,087 38,732 
Deferred taxes liabilities
Mortgage servicing rights(22,221)(18,663)
Deferred loan fees and costs(7,336)(10,972)
Lease right-of-use assets(8,572)(10,435)
Unrealized gain on investment AFS securities(5,630)(9,409)
Premises and equipment(1,843)(3,620)
Intangibles(742)(829)
Other(54)(171)
   Total(46,398)(54,099)
Net deferred tax liability$(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.