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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)202320222021
Current expense
Federal$2,900 $7,638 $23,240 
State and local980 1,633 3,191 
Deferred (benefit) expense
Federal(7,407)7,304 4,325 
State and local(1,722)1,545 511 
Total$(5,249)$18,120 $31,267 
Income tax (benefit) expense differed from amounts computed at the federal income tax statutory rate as follows: 
 Years Ended December 31,
202320222021
(in thousands, except rate)RateAmountRateAmountRateAmount
Income (loss) before income taxes$(32,757)$84,660 $146,689 
Federal tax statutory rate21.00 %(6,879)21.00 %17,779 21.00 %30,805 
State tax - net of federal tax benefit4.12 %(1,351)2.92 %2,473 2.11 %3,090 
Tax-exempt investments3.86 %(1,266)(2.72)%(2,300)(1.68)%(2,461)
Low income housing tax benefits
3.20 %(1,047)0.16 %133 (0.36)%(532)
Stock-based compensation expense(1.28)%421 0.14 %121 (0.88)%(1,287)
Goodwill(14.13)%4,627 0.17 %145 — %— 
Other(0.75)%246 (0.27)%(231)1.13 %1,652 
Total16.02 %$(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)20232022
Deferred tax assets
Provision for credit losses$10,977 $10,501 
Unrealized loss on investments AFS28,571 31,431 
Net operating loss carryforwards
370 628 
Accrued liabilities1,917 2,536 
Other investments463 572 
Lease liabilities9,019 10,877 
Nonaccrual interest1,112 513 
Intangibles4,725 — 
Stock based compensation782 737 
Loan valuation274 311 
Other401 694 
   Total58,611 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.