Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes [Abstract]

Summary of reconciliation of net income to REIT taxable income

The following reconciles net income (loss) to REIT taxable income (loss):

	Years Ended December 31,
	2012		2011		2010
	(In thousands)
Net income (loss)	$	(2,179)	$	3,647	$	4,297
Book/tax differences:
Gains related to real estate		-		(235)		387
Strategic alternatives		(678)		678		-
Impairment losses		300		804		317
Severance accrual (payments)		1,777		(100)		(33)
Amortization and accretion		(188)		(68)		(102)
Loan valuation		1,403		184		(241)
Other, net		157		8		(174)
Subtotal		592		4,918		4,451
Adjustment for TRS net loss (income), net of tax		(840)		(131)		340
Dividend distribution from TRS		-		1,000		300
REIT taxable income (loss)	$	(248)	$	5,787	$	5,091
Distributions declared	$	6,353	$	6,767	$	6,757
Basic weighted average common shares outstanding		10,585		10,570		10,554

Dividends per share

Dividends per share for dividend reporting purposes were as follows:

	Years Ended December 31,
	2012				2011				2010
	Amount Per Share		Percent		Amount Per Share		Percent		Amount Per Share		Percent
Non-qualified dividends	$	-		-	$	0.477		74.53%	$	0.568		88.75%
Qualified dividends		-		-		0.095		14.78%		0.028		4.37%
Non-taxable return of capital		0.600		100.00%		0.068		10.69%		0.044		6.88%
	$	0.600		100.00%	$	0.640		100.00%	$	0.640		100.00%

Income tax provision (benefit)

Income tax provision (benefit) related to the TRS’s consisted of the following:

	Years Ended December 31,
	2012		2011		2010
	(In thousands)
Federal:
Current provision	$	821	$	483	$	514
Deferred benefit		(256)		(369)		(645)
Income tax provision (benefit)	$	565	$	114	$	(131)

Reconciliation of TRS income tax attributable to net income (loss)

	Years Ended December 31,
	2012		2011		2010
	(In thousands)
Income (loss) from continuing operations before income taxes for TRS’s	$	1,628	$	245	$	(471)
Expected Federal income tax provision (benefit)	$	553	$	83	$	(160)
Preferred dividend of subsidiary		31		31		31
Other adjustments		(19)		-		(2)
Income tax provision (benefit)	$	565	$	114	$	(131)

Components of net deferred tax asset

The components of our net deferred tax asset were as follows:

	December 31,
	2012		2011
	(In thousands)
Deferred tax assets:
Secured borrowings - government guaranteed loans	$	1,054	$	814
Retained interests in transferred assets		387		364
Servicing asset		268		225
Net operating losses		25		25
Other		69		38
Total gross deferred tax assets		1,803		1,466
Deferred tax liabilities:
Loans receivable		177		56
Discount on debentures payable		-		1
Total gross deferred tax liabilities		177		57
Deferred tax asset, net	$	1,626	$	1,409