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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Components of the provision for income taxes are as follows:
(In Thousands) | Current Tax Expense (Benefit) |  | Deferred Expense (Benefit) |  | Total Expense
2021: |  |  |  |  |
Federal | $5,090 |  |  | ($869) |  |  | $4,221 |
State | 3,182 |  |  | (429) |  |  | 2,753 |
Amortization of investment in low income housing tax credit partnerships | 3,502 |  |  | — |  |  | 3,502 |
Total | $11,774 |  |  | ($1,298) |  |  | $10,476 |
2020: |  |  |  |  |
Federal | $3,607 |  |  | $371 |  |  | $3,978 |
State | 1,891 |  |  | 184 |  |  | 2,075 |
Amortization of investment in low income housing tax credit partnerships | 3,506 |  |  | — |  |  | 3,506 |
Total | $9,004 |  |  | $555 |  |  | $9,559 |
2019: |  |  |  |  |
Federal | $1,078 |  |  | $476 |  |  | $1,554 |
State | 977 |  |  | 235 |  |  | 1,212 |
Amortization of investment in low income housing tax credit partnerships | 2,668 |  |  | — |  |  | 2,668 |
Total | $4,723 |  |  | $711 |  |  | $5,434 |
The actual expense for 2021, 2020, and 2019, differs from the “expected” tax expense (computed by applying the U.S. Federal Statutory Tax Rate of 21% for the years ended December 31, 2021, 2020 and 2019) as follows:
(In Thousands) | 2021 |  | 2020 |  | 2019
Computed “expected” income tax expense | $10,079 |  |  | $8,914 |  |  | $5,486 |
State income taxes, net | 2,175 |  |  | 1,639 |  |  | 957 |
Tax-exempt interest on investment securities and loans | (238) |  |  | (256) |  |  | (300) |
Amortization of investment in low income housing tax credit partnerships, net | 3,163 |  |  | 2,712 |  |  | 2,316 |
Low income housing credits | (3,694) |  |  | (3,168) |  |  | (2,721) |
Other | (1,009) |  |  | (282) |  |  | (304) |
Total | $10,476 |  |  | $9,559 |  |  | $5,434 |
The components of the net deferred tax asset are as follows:
(In Thousands) | 2021 |  | 2020 |  | 2019
Deferred Tax Asset: |  |  |  |  |
Allowance for loan losses | $3,126 |  |  | $5,772 |  |  | $5,190 |
Loan fees, net of costs | 1,956 |  |  | (635) |  |  | 741 |
Interest income, nonaccrual loans | 482 |  |  | 419 |  |  | 609 |
Deferred compensation | 1,344 |  |  | 1,130 |  |  | 1,224 |
Equity compensation | 406 |  |  | 481 |  |  | 429 |
Operating lease liabilities | 3,117 |  |  | 3,519 |  |  | 4,045 |
Accrued liabilities | 1,826 |  |  | 1,391 |  |  | 1,173 |
Unrealized gain on available for sale investment securities | 1,270 |  |  | 54 |  |  | 27 |
Other | 837 |  |  | 1,258 |  |  | 537 |
Total Deferred Tax Asset | $14,364 |  |  | $13,389 |  |  | $13,975 |
Deferred Tax Liability: |  |  |  |  |
Intangible amortization | ($1,453) |  |  | ($1,022) |  |  | ($587) |
Mortgage servicing rights | (4,172) |  |  | (3,530) |  |  | (3,767) |
Depreciation and amortization | (1,515) |  |  | (2,066) |  |  | (1,848) |
Operating lease right-of-use assets | (3,128) |  |  | (3,537) |  |  | (4,067) |
Unrealized loss on available for sale investment securities | (189) |  |  | (554) |  |  | (411) |
Unrealized loss on marketable equity securities, net | (159) |  |  | (187) |  |  | (169) |
Other | (470) |  |  | (513) |  |  | (591) |
Total Deferred Tax Liability | ($11,086) |  |  | ($11,409) |  |  | ($11,440) |
Net Deferred Tax Asset | $3,278 |  |  | $1,980 |  |  | $2,535 |
A valuation allowance is provided when it is more likely than not that some portion of the deferred tax asset will not be realized. The primary source of recovery of the deferred tax asset will be future taxable income. Management believes it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax asset. The deferred tax asset is included in "Other assets" in the Consolidated Balance Sheets. As of December 31, 2021, the Company had no unrecognized tax benefits. In 2020 the Company reversed an accrual of $454,000 for a potential increase in tax expense that was recorded in 2019 related to an audit that was performed in 2018 by the State of Alaska for tax years 2014-2016. The Company appealed the initial audit decision and the appeal was ruled in the Company's favor in the first quarter of 2021. In 2019 the Company reversed an accrual of $250,000 related to interest and penalties that was recognized in 2018. The tax years subject to examination by federal taxing authorities are the years ending December 31, 2021, 2020, 2019, and 2018. The tax years subject to examination by the State of Alaska are the years ending December 31, 2021, 2020, 2019, 2018, 2017 and 2016.

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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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