Income Taxes

6 Months Ended

Jun. 30, 2022

Income Taxes [Abstract]

Income Taxes

4. INCOME TAXES 

The Company’s provision for income taxes is presented in the following table for the dates indicated (in thousands):

The actual income tax expense for the six months ended June 30, 2022 and 2021 differs from the statutory tax expense

for the year (computed by applying the U.S. federal corporate tax rate of

21

% for 2022 and 2021 to income before provision

for income taxes) as follows (in thousands):

The Company’s deferred tax assets and deferred tax liabilities as of the dates indicated were (in thousands):

June 30, 2022

December 31, 2021

Deferred tax assets:

Net operating loss

$

25,768

$

28,819

Allowance for credit losses

4,001

3,816

Lease liability

3,440

3,595

Unrealized losses on available for sale securities

12,514

817

Deferred loan fees

-

400

Depreciable property

134

361

Stock option compensation

298

241

Accruals

447

600

Other, net

144

2

Deferred tax assets:

46,746

38,651

Deferred tax liability:

Deferred loan cost

(85)

-

Lease right of use asset

(3,440)

(3,595)

Deferred expenses

(162)

(127)

Deferred tax liability

(3,687)

(3,722)

Net deferred tax assets

$

43,059

$

34,929

The Company has approximately $

97.8

 million of federal and $

120.5

 million of state net operating loss carryforwards

expiring in various amounts between 2031 and 2036 and are limited to future taxable earnings of the Company.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some

portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent

upon the generation of future taxable income during the periods in which those temporary differences become deductible.

Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning

strategies in making this assessment.

The major tax jurisdictions where the Company files income tax returns are the U.S. federal jurisdiction and the state of

Florida. With few exceptions, the Company is no longer subject to U.S. federal and state income tax examinations by tax

authorities for years before 2018.

For the three months ended June 30, 2022 and 2021, the Company did

no

t have any unrecognized tax benefits as a

result of tax positions taken during a prior period or during the current period. Additionally,

no

 interest or penalties were

recorded as a result of tax uncertainties.

Six Months Ended June 30,

2022

2021

Current:

Federal

$

-

$

-

State

-

-

Total current

-

-

Deferred:

Federal

2,778

2,268

State

788

493

Total deferred

3,566

2,761

Total tax expense

$

3,566

$

2,761

Six Months Ended June 30,

2022

2021

Federal taxes at statutory rate

$

2,880

$

2,435

State income taxes, net of federal tax benefit

596

406

Bank owned life insurance

(134)

(82)

Other, net

224

2

Total tax expense

$

3,566

$

2,761