Income Taxes (Tables)

6 Months Ended

Jun. 30, 2021

Income Taxes [Abstract]

Income Tax Expense (Benefit)

The components of the Company’s income tax expense (benefit) are as follows for the periods indicated below (dollars in thousands):

	Six Months Ended June 30,
	2021			2020
Current federal income tax benefit	$	(128	)	$	-
Deferred federal income tax expense (benefit)		1,595			(14,302	)
Deferred state income tax expense (benefit)		166			(1,130	)
Provision for (benefit from) Corporate Business Taxes	$	1,633		$	(15,432	)

Reconciliation of Statutory Federal Rate to Effective Rate

The following is a reconciliation of the statutory federal rate to the effective rate, for the periods indicated below (dollars in thousands):

	Six Months Ended June 30,
	2021					2020
Computed income tax expense (benefit) at federal rate	$	2,361		21.0	%	$	(16,160	)	21.0	%
State tax expense (benefit), net of federal tax, if applicable		159		1.4	%		(1,130	)	1.5	%
Permanent differences in taxable income from GAAP pre-tax income		66		0.5	%		-		-
REIT income not subject to tax (benefit)		(953	)	(8.5	)%		1,858		(2.4	)%
Provision for (benefit from) Corporate Business Taxes/Effective Tax Rate(A)	$	1,633		14.4	%	$	(15,432	)	20.1	%

(A) The provision for income taxes is recorded at the TRS level.

Income Taxes Recoverable and Deferred Tax Assets

The Company’s consolidated balance sheets, at June 30, 2021 and December 31, 2020, contain the following income taxes recoverable and deferred tax assets, which are recorded at the TRS level (dollars in thousands):

	June 30, 2021		December 31, 2020
Income taxes recoverable
Federal income taxes recoverable	$	128	$	-
Income taxes recoverable	$	128	$	-

	June 30, 2021		December 31, 2020
Deferred tax assets
Deferred tax - mortgage servicing rights	$	11,791	$	15,176
Deferred tax - net operating loss		7,971		6,347
Total net deferred tax assets	$	19,762	$	21,523