Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Summary of Company’s Income Tax Expense (Benefit)

The following table details the Company’s income tax expense (benefit) (in thousands):

	December 31,
	2023		2022			2021
Current tax expense (benefit):
Federal	$	13,631	$	(90	)	$	15,042
State		2,509		552			5,477
Total current tax expense	$	16,140	$	462		$	20,519
Deferred tax expense (benefit):
Federal	$	1,654	$	8,553		$	(7,362	)
State		1,040		3,018			(2,588	)
Total deferred tax expense (benefit)	$	2,694	$	11,571		$	(9,950	)
Total income tax expense	$	18,834	$	12,033		$	10,569

Summary of Company's Reconciliation of the Company's Provision for Income Taxes at Federal Statutory Tax Rate

The following table contains a reconciliation of the Company’s provision for income taxes at the federal statutory tax rate to the provision for income taxes at the effective tax rate as of December 31, 2023, 2022, and 2021:

	December 31,
	2023				2022				2021
Federal income tax provision at statutory rate		21.0		%		21.0		%		21.0		%
State income taxes, net of federal tax benefit		6.2				6.3				5.6
Permanent items		0.6				0.2				0.1
Federal true-ups		0.1				—				—
Tax credits		(0.3	)			(0.3	)			(0.2	)
Change in unrecognized tax benefit		(2.3	)			—				—
Other		(0.1	)			—				0.1
Effective tax rate		25.2		%		27.2		%		26.6		%

Summary of Tax Effects of Temporary Differences That Give Rise to Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities as of December 31, 2023 and 2022 are presented below (in thousands):

	December 31,
	2023			2022
Deferred tax assets:
Net operating loss	$	—		$	8,451
Mark-to-market on loans		—			355
Lease liability		780			783
Stock compensation		1,779			1,485
Accrued vacation		386			283
Intangibles		3			5
REO		160			—
Deferred state taxes		374			696
Research and experimental expenditures capitalization		1,721			—
MSR Valuation Allowance		53			—
Derivative - OCI		427			—
ERC Refund		1,038			—
Other		—			154
Gross deferred tax assets		6,721			12,212
Deferred tax liabilities:
REMIC book-tax basis difference		(2,522	)		(4,941	)
Mark-to-market on loans		(36	)
Right-of-use assets		(735	)		(717	)
Deferred origination costs		(63	)		(138	)
Property and equipment		(332	)		(595	)
REO		—			(30	)
MSR valuation		—			(758	)
Other		(694	)		—
Gross deferred tax liabilities		(4,382	)		(7,179	)
Total net deferred tax asset	$	2,339		$	5,033

Summary of Reconciliation of the Company's Gross Unrecognized Tax Benefits

Detailed below is a reconciliation of the Company's gross unrecognized tax benefits for the years ended December 31, 2023 and 2022, respectively (in thousands):

	December 31,
	2023			2022			2021
Beginning balance	$	1,940		$	1,911		$	1,860
Changes related to current year tax positions		93			68			49
Changes related to prior year tax positions		25			19			2
Decreases due to lapsed statutes of limitations		(1,668	)		(58	)		—
Ending balance	$	390		$	1,940		$	1,911