INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of income tax expense (benefit)

Income tax expense (benefit) for the years ended December 31, 2021 and 2020, consists of the following:


	Current			Deferred			Total
		(In thousands)
December 31, 2021
Federal		$	140		$	5,810		$	5,950
State		—			3,668			3,668
		$	140		$	9,478		$	9,618

December 31, 2020
Federal		$	(1,582)		$	(3,570)		$	(5,152)
State		161			(2,875)			(2,714)
		$	(1,421)		$	(6,445)		$	(7,866)

Schedule of effective income tax rate reconciliation

A reconciliation between the actual income tax expense and the expected federal income tax expense (computed by multiplying income before income tax expense times the applicable statutory federal income tax rate) for the years ended December 31, 2021 and 2020, is as follows:


	2021			2020
	(In thousands)
Income (loss) before income tax (benefit) expense	$	(26,724)		$	(39,372)
Applicable statutory federal income tax rate	21.00		%	21.00		%
Computed “expected” federal income tax (benefit) expense	$	(5,612)		$	(8,268)
Increase (decrease) in federal income tax expense resulting from:
State income taxes, net of federal benefit	(1,614)			(2,143)
Valuation Allowance	16,719			—
Tax-exempt income	(108)			(132)
Impairment of Goodwill	—			3,247
CARES Act – Carryback expense (benefit)	247			(568)
Other	(14)			(2)
Total	$	9,618		$	(7,866)

Schedule of deferred tax assets and liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2021 and 2020, are as follows:



	2021			2020
Deferred tax assets:		(In Thousands)
Allowance for loan losses and REO		$	4,617		$	5,136
Allowance for losses premises and equipment		—			3,915

Net unrealized losses on derivatives		69			1,559
Accrued postretirement benefits		1,217			1,077
Accrued interest receivable		179			108
Accrued bonus		506			112

Finance Lease Liability		7,504			7,178
Charitable contribution carryover		2,709			—
Funded status of benefit plans		342			490
Federal net operating loss carryforward		6,648			—
State net operating loss carryforward		2,392			553
Other		37			49
Total gross deferred tax assets		26,220			20,177

Valuation allowance		(16,868)			(72)
Gross deferred tax assets after valuation allowance		9,352			20,105

Deferred tax liabilities:
Net unrealized gains on securities available for sale		327			1,509
Deferred loan fees, net		1,198			1,472

Premises and equipment		489			—
Finance Lease ROU Asset		7,156			6,993
Other		182			114
Total gross deferred tax liabilities		9,352			10,088
Net deferred tax asset		$	—		$	10,017