| Summary of Income Tax Provision |
The income tax provision for the years ended December 31, 2025, 2024 and 2023, respectively, is comprised of the following components (dollar amounts in thousands): | | | | | | | | | | | | | | | | | | | For the Years Ended December 31, | | 2025 | | 2024 | | 2023 | | Current income tax provision | | | | | | | Federal | $ | 6 | | | $ | 35 | | | $ | 23 | | | State | 236 | | | 86 | | | 273 | | | Total current income tax provision | 242 | | | 121 | | | 296 | | Deferred income tax (benefit) provision | | | | | | | Federal | (86) | | | 866 | | | (136) | | | State | (11) | | | 49 | | | (85) | | Total deferred income tax (benefit) provision | (97) | | | 915 | | | (221) | | | Total income tax provision | $ | 145 | | | $ | 1,036 | | | $ | 75 | |
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| Schedule of Effective Income Tax Rate Reconciliation |
A reconciliation of the statutory income tax provision to the effective income tax provision for the years ended December 31, 2025, 2024 and 2023, respectively, are as follows (dollar amounts in thousands). | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the Years Ended December 31, | | 2025 | | 2024 | | 2023 | Provision (benefit) at statutory rate | $ | 31,331 | | | 21.0 | % | | $ | (12,808) | | | 21.0 | % | | $ | (10,204) | | | 21.0 | % | Non-taxable REIT (income) loss | (31,998) | | | (21.4) | | | 13,007 | | | (21.3) | | | 6,901 | | | (14.2) | | State and local tax provision (1) | 217 | | | 0.1 | | | 91 | | | (0.1) | | | 296 | | | (0.6) | | | Other | 825 | | | 0.6 | | | (462) | | | 0.8 | | | (3,366) | | | 6.9 | | Changes in valuation allowance | (230) | | | (0.2) | | | 1,208 | | | (2.0) | | | 6,448 | | | (13.3) | | | Total provision | $ | 145 | | | 0.1 | % | | $ | 1,036 | | | (1.6) | % | | $ | 75 | | | (0.2) | % |
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| Schedule of Cash Flow, Supplemental Disclosures |
The following table details the amounts of income taxes paid (net of refunds received) to each jurisdiction for the years ended December 31, 2025, 2024 and 2023, respectively (dollar amounts in thousands):
| | | | | | | | | | | | | | | | | | | For the Years Ended December 31, | | 2025 | | 2024 | | 2023 | | Federal | $ | 296 | | | $ | 38 | | | $ | 74 | | | States | (78) | | | (70) | | | 151 | | | Cash paid (refunds received) for income taxes | $ | 218 | | | $ | (32) | | | $ | 225 | |
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| Schedule of Deferred Tax Assets and Liabilities |
The major sources of temporary differences included in the deferred tax assets (liabilities) and their deferred tax effect as of December 31, 2025 and 2024, respectively, are as follows (dollar amounts in thousands): | | | | | | | | | | | | | December 31, 2025 | | December 31, 2024 | | Deferred tax assets | | | | | Net operating loss carryforward | $ | 11,252 | | | $ | 9,671 | | | Capital loss carryover | 21,676 | | | 16,259 | | GAAP/Tax differences | | | | Residential loans | 3,651 | | | 4,101 | | Interest expense limitation carryforward | 3,998 | | | 1,218 | | Investment securities | — | | | 5,997 | | Other | 46 | | | 30 | | Total GAAP/Tax differences | 7,695 | | | 11,346 | | Deferred tax assets | 40,623 | | | 37,276 | | Less: Valuation allowance | (26,182) | | | (26,412) | | Net deferred tax assets (1) | 14,441 | | | 10,864 | | | Deferred tax liabilities | | | | GAAP/Tax differences | | | | Investment securities available for sale | 369 | | | — | | Goodwill and intangible assets | 7,701 | | | 1,575 | | Mortgage servicing rights | 2,981 | | | 2,578 | | Derivatives | 1,710 | | | 5,129 | | Total GAAP/Tax differences | 12,761 | | | 9,282 | | Deferred tax liabilities (2) | 12,761 | | | 9,282 | | Total net deferred tax asset | $ | 1,680 | | | $ | 1,582 | |
(1)Included in other assets in the accompanying consolidated balance sheets. (2)Included in other liabilities in the accompanying consolidated balance sheets.
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