Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

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,
	2022			2021			2020
Current tax expense (benefit):
Federal	$	(90	)	$	15,042		$	4,454
State		552			5,477			(769	)
Total current tax expense	$	462		$	20,519		$	3,685
Deferred tax expense (benefit):
Federal	$	8,553		$	(7,362	)	$	564
State		3,018			(2,588	)		1,103
Total deferred tax expense (benefit)	$	11,571		$	(9,950	)	$	1,667
Total income tax expense	$	12,033		$	10,569		$	5,352

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, 2022, 2021, and 2020:

	December 31,
	2022				2021				2020
Federal income tax provision at statutory rate		21.0		%		21.0		%		21.0		%
State income taxes, net of federal tax benefit		6.3				5.6				8.6
Permanent items		0.2				0.1				0.1
Federal true-ups		—				—				0.5
Tax credits		(0.3	)			(0.2	)			(0.4	)
Change in unrecognized tax benefit		—				—				(7.9	)
Other		—				0.1				1.2
Effective tax rate		27.2		%		26.6		%		23.1		%

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, 2022 and 2021 are presented below (in thousands):

	December 31,
	2022			2021
Deferred tax assets:
REMIC book-tax basis difference	$	—		$	10,433
Net operating loss		8,451			—
Mark-to-market on loans		355			7,066
Lease liability		783			1,151
Stock compensation		1,485			888
Accrued vacation		283			226
Intangibles		5			7
REO		—			225
Deferred state taxes		696			—
Other		154			82
Gross deferred tax assets		12,212			20,078
Deferred tax liabilities:
REMIC book-tax basis difference		(4,941	)		—
Right-of-use assets		(717	)		(1,064	)
Deferred origination costs		(138	)		(1,306	)
Property and equipment		(595	)		(710	)
REO		(30	)		—
Deferred state taxes		—			(394	)
MSR valuation		(758	)		—
Gross deferred tax liabilities		(7,179	)		(3,474	)
Total net deferred tax asset	$	5,033		$	16,604

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, 2022 and 2021, respectively (in thousands):

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