INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the expected income tax expense (benefit) at the statutory federal income tax rate of 35% to the Company’s actual provision for income taxes and the effective tax rate for the years ended December 31, 2016 and 2015, respectively, is as follows (amounts in thousands):



	2016					2015
	Amount			%		Amount			%
Computed Tax Benefit at Federal Statutory Rate of 35%	$	(2,701	)	35.0	%	$	(5,003	)	35.0	%

Permanent Differences:
State Taxes, Net of Federal Benefit	(254		)	3.3	%	(475		)	3.3	%
Change in Valuation Allowance	2,846			(36.8	)%	5,358			(37.5	)%
Other Permanent Differences	109			(1.5	)%	283			(1.9	)%
Provision (Benefit) for Income Taxes	$	—		—	%	$	163		(1.1	)%

Schedule of Deferred Tax Assets and Liabilities

The significant components of deferred tax assets and liabilities in the consolidated balance sheets as of December 31, 2016 and 2015, respectively, were as follows (in thousands):



Deferred Tax Assets	2016			2015
Loss Carryforward	$	160,673		$	171,314
Allowance for Credit Loss	3,894			3,624
Impairment of Real Estate Owned	4,744			3,227
Reserve against Judgment	10,415			8,590
Capitalized Real Estate Costs	7,440			6,542
Accrued Expenses	476			379
Stock Based Compensation	725			504
Fixed Assets and Other	(1,837		)	(415		)
Total Deferred Tax Assets Before Valuation Allowance	186,530			193,765
Valuation Allowance	(186,530		)	(193,765		)
Total Deferred Tax Assets Net of Valuation Allowance	$	—		$	—