Income Taxes (Tables)

9 Months Ended

Sep. 30, 2024

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):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2024			2023		2024		2023
Current federal income tax benefit	$	(85	)	$	-	$	-	$	-
Current state income tax expense (benefit)		(11	)		-		-		-
Deferred federal income tax expense		339			1,108		1,459		1,080
Deferred state income tax expense		42			168		193		164
Provision for Corporate Business Taxes	$	285		$	1,276	$	1,652	$	1,244

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):

	Three Months Ended September 30,										Nine Months Ended September 30,
	2024					2023					2024					2023
Computed income tax expense (benefit) at federal rate	$	(2,554	)	21.0	%	$	3,605		21.0	%	$	430		21.0	%	$	(118	)	21.0	%
State tax expense, net of federal tax, if applicable		27		(0.2	)%		133		0.8	%		153		7.5	%		130		(22.9	)%
Provision to return adjustment		(5	)	0.0	%		(7	)	0.0	%		(5	)	(0.2	)%		(7	)	1.2	%
REIT income not subject to tax expense (benefit)		2,817		(23.1	)%		(2,455	)	(14.3	)%		1,074		52.4	%		1,239		(218.5	)%
Provision for Corporate Business Taxes/Effective Tax Rate(A)	$	285		(2.3	)%	$	1,276		7.5	%	$	1,652		80.7	%	$	1,244		(219.2	)%

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

Deferred Tax Assets and Liabilities

The Company’s consolidated balance sheets contain the following deferred tax assets and liabilities, which are recorded at the TRS level (dollars in thousands):

	September 30, 2024			December 31, 2023
Deferred tax assets (liabilities)
Deferred tax - mortgage servicing rights	$	(3,674	)	$	(1,789	)
Deferred tax - net operating loss		17,044			16,811
Total net deferred tax assets	$	13,370		$	15,022