Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Components of Net Deferred Tax Assets

Components of our net deferred tax assets at December 31, 2020 and December 31, 2019 are presented in the following table.

Table 22.1 – Deferred Tax Assets (Liabilities)

(In Thousands)	December 31, 2020		December 31, 2019
Deferred Tax Assets
Net operating loss carryforward – state	$	103,334	$	98,554
Net capital loss carryforward – state	23,487		—
Net operating loss carryforward – federal	82		82
Real estate assets	2,948		676
Allowances and accruals	3,324		1,930
Goodwill and intangible assets	23,231		2,739
Other	1,914		1,749
Tax effect of unrealized (gains) / losses - OCI	124		—
Total Deferred Tax Assets	158,444		105,730
Deferred Tax Liabilities
Mortgage Servicing Rights	(2,458)		(13,783)
Interest rate agreements	(3,867)		(42)
Total Deferred Tax Liabilities	(6,325)		(13,825)
Valuation allowance	(151,248)		(97,057)
Total Deferred Tax Asset (Liability), net of Valuation Allowance	$	871	$	(5,152)

Provision for Income Taxes

The following table summarizes the provision for income taxes for the years ended December 31, 2020, 2019, and 2018.

Table 22.2 – Provision for Income Taxes

	Years Ended December 31,
(In Thousands)	2020		2019		2018
Current Provision for Income Taxes
Federal	$	1,598	$	12,036	$	11,387
State	(182)		897		820
Total Current Provision for Income Taxes	1,416		12,933		12,207
Deferred (Benefit) Provision for Income Taxes
Federal	(6,024)		(3,976)		(1,419)
State	—		(1,517)		300
Total Deferred (Benefit) Provision for Income Taxes	(6,024)		(5,493)		(1,119)
Total (Benefit From) Provision for Income Taxes	$	(4,608)	$	7,440	$	11,088

Reconciliation of Statutory Tax Rate to Effective Tax Rate

The following is a reconciliation of the statutory federal and state tax rates to our effective tax rate at December 31, 2020, 2019, and 2018.

Table 22.3 – Reconciliation of Statutory Tax Rate to Effective Tax Rate

	December 31, 2020		December 31, 2019		December 31, 2018
Federal statutory rate	21.0	%	21.0	%	21.0	%
State statutory rate, net of Federal tax effect	8.6	%	8.6	%	8.6	%
Differences in taxable (loss) income from GAAP income	(19.6)	%	(2.1)	%	(1.7)	%
Change in valuation allowance	(9.2)	%	(2.2)	%	1.9	%
Dividends paid deduction (1)	—	%	(21.1)	%	(21.3)	%
Federal statutory rate change	—	%	—	%	—	%
Effective Tax Rate	0.8	%	4.2	%	8.5	%

(1)The dividends paid deduction in the effective tax rate reconciliation is generally representative of the amount of distributions to shareholders that reduce REIT taxable income. For the year ended December 31, 2020, the dividends paid deduction is 0% due to our REIT incurring a taxable loss during the period; therefore, there was no REIT taxable income available to apply against the dividends paid.