Income Taxes (Tables)

9 Months Ended

Sep. 30, 2020

Summary of Components of Deferred and Other Tax Assets and Liabilities

The following table sets forth the significant components of our deferred and other tax assets and liabilities as of September 30, 2020 and December 31, 2019.

(Dollars in thousands)	September 30, 2020			December 31, 2019
Goodwill and other intangibles	$	(45,302	)	$	(45,595	)
Provision for loan losses		28,636			19,198
Net operating loss carryforwards⁽¹⁾		26,469			22,607
Accrued expenses, compensation, and other assets		997			1,701
Unrealized gains on other investments		(8,690	)		(6,790	)
Total deferred tax asset (liability)		2,110			(8,879	)
Valuation allowance		(462	)		(462	)
Deferred tax asset (liability), net		1,648			(9,341	)
Taxes receivable		1,639			1,516
Net deferred and other tax assets (liabilities)	$	3,287		$	(7,825	)

(1)	As of September 30, 2020, the Company and its subsidiaries had an estimated $101,627 of net operating loss carryforwards, $1,712 of which expire at various dates between December 31, 2026 and December 31, 2035, which had a net carrying value of $26,007 as of September 30, 2020.

Summary of Components of Tax (Provision) Benefit

The components of our tax (provision) benefit for the three and nine months ended September 30, 2020 and 2019 were as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2020			2019			2020			2019
Current
Federal	$	—		$	(230	)	$	—		$	(1,099	)
State		(83	)		(661	)		(306	)		(1,620	)
Deferred
Federal		5,940			(887	)		9,239			1,311
State		2,524			1,613			3,550			3,334
Net (provision) benefit for income taxes	$	8,381		$	(165	)	$	12,483		$	1,926

Summary of Reconciliation of Statutory Federal Income Tax (Provision) Benefit to Consolidated Actual Income Tax (Provision) Benefit

The following table presents a reconciliation of statutory federal income tax (provision) benefit to consolidated actual income tax (provision) benefit for the three and nine months ended September 30, 2020 and 2019.

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2020			2019			2020			2019
Statutory Federal income tax (provision) benefit at 21%	$	5,967		$	(1,616	)	$	10,034		$	(332	)
State and local income taxes, net of federal income tax benefit		1,201			(547	)		1,961			(113	)
Revaluation of net operating losses		—			876			—			380
Change in state income tax accruals		—			—			—			600
Change in effective state income tax rate		(939	)		608			(790	)		916
Income attributable to non-controlling interest		522			451			356			451
Non deductible expenses		(211	)		—			(1,000	)		—
Other		1,841			63			1,922			24
Total income tax (provision) benefit	$	8,381		$	(165	)	$	12,483		$	1,926