XML 33 R20.htm IDEA: XBRL DOCUMENT
v3.24.0.1

INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2023
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES: Income tax (benefit) expense consisted of the following:
| Years Ended December 31,
(in thousands) | 2023 |  | 2022 |  | 2021
Current expense |  |  |  |  |
Federal | $ | 2,900 |  |  | $ | 7,638 |  |  | $ | 23,240 |
State and local | 980 |  |  | 1,633 |  |  | 3,191 |
Deferred (benefit) expense |  |  |  |  |
Federal | (7,407) |  |  | 7,304 |  |  | 4,325 |
State and local | (1,722) |  |  | 1,545 |  |  | 511 |
Total | $ | (5,249) |  |  | $ | 18,120 |  |  | $ | 31,267 |
Income tax (benefit) expense differed from amounts computed at the federal income tax statutory rate as follows:
| Years Ended December 31,
| 2023 |  | 2022 |  | 2021
(in thousands, except rate) | Rate |  | Amount |  | Rate |  | Amount |  | Rate |  | Amount
Income (loss) before income taxes |  |  | $ | (32,757) |  |  |  |  | $ | 84,660 |  |  |  |  | $ | 146,689 |
Federal tax statutory rate | 21.00 | % |  | (6,879) |  |  | 21.00 | % |  | 17,779 |  |  | 21.00 | % |  | 30,805 |
State tax - net of federal tax benefit | 4.12 | % |  | (1,351) |  |  | 2.92 | % |  | 2,473 |  |  | 2.11 | % |  | 3,090 |
Tax-exempt investments | 3.86 | % |  | (1,266) |  |  | (2.72) | % |  | (2,300) |  |  | (1.68) | % |  | (2,461) |
Low income housing tax benefits | 3.20 | % |  | (1,047) |  |  | 0.16 | % |  | 133 |  |  | (0.36) | % |  | (532) |
Stock-based compensation expense | (1.28) | % |  | 421 |  |  | 0.14 | % |  | 121 |  |  | (0.88) | % |  | (1,287) |
Goodwill | (14.13) | % |  | 4,627 |  |  | 0.17 | % |  | 145 |  |  | — | % |  | — |
Other | (0.75) | % |  | 246 |  |  | (0.27) | % |  | (231) |  |  | 1.13 | % |  | 1,652 |
Total | 16.02 | % |  | $ | (5,249) |  |  | 21.40 | % |  | $ | 18,120 |  |  | 21.32 | % |  | $ | 31,267 |
The following is a summary of the Company's deferred tax assets and liabilities:
| At December 31,
(in thousands) | 2023 |  | 2022
Deferred tax assets |  |  |
Provision for credit losses | $ | 10,977 |  |  | $ | 10,501 |
Unrealized loss on investments AFS | 28,571 |  |  | 31,431 |
Net operating loss carryforwards | 370 |  |  | 628 |
Accrued liabilities | 1,917 |  |  | 2,536 |
Other investments | 463 |  |  | 572 |
Lease liabilities | 9,019 |  |  | 10,877 |
Nonaccrual interest | 1,112 |  |  | 513 |
Intangibles | 4,725 |  |  | — |
Stock based compensation | 782 |  |  | 737 |
Loan valuation | 274 |  |  | 311 |
Other | 401 |  |  | 694 |
Total | 58,611 |  |  | 58,800 |
Deferred tax liabilities |  |  |
Mortgage servicing rights | (24,204) |  |  | (25,725) |
Deferred loan fees and costs | (8,967) |  |  | (9,565) |
Lease right-of-use assets | (6,906) |  |  | (8,415) |
Premises and equipment | (364) |  |  | (2,486) |
Intangibles | — |  |  | (694) |
Other | — |  |  | (14) |
Total | (40,441) |  |  | (46,899) |
Net deferred tax asset (liability) | $ | 18,170 |  |  | $ | 11,901 |
Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to fully utilize the existing deferred tax assets. As of December 31, 2023, management determined that sufficient evidence exists to support the future utilization of all of the Company's deferred tax assets. The Company has state net operating loss carryforwards of $4.4 million and $7.5 million as of December 31, 2023 and 2022, respectively, that will expire at various dates from 2024 to 2036. Utilization of net operating loss carryforwards is subject to an annual limitation due to the "change in ownership" provisions of the Internal Revenue Code of 1986, as amended. Retained earnings at December 31, 2023 and 2022 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, 2023 or 2022. 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 2020 or state income tax examination for tax years prior to 2019, generally.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration