Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Provision (Benefit)
The following table summarizes the tax provision (benefit) recorded primarily at the taxable subsidiary level for the years ended December 31, 2025, 2024 and 2023:
Year Ended
December 31,
(in thousands) 2025 2024 2023
Current tax provision (benefit):
Federal $ 17,554  $ 9,541  $ 3,498 
State (395) 3,351  4,976 
Total current tax provision (benefit)
17,159  12,892  8,474 
Deferred tax provision (benefit):
Federal (5,213) 26,892  16,602 
State (3,074) 6,802  (2,098)
Total deferred tax provision
(8,287) 33,694  14,504 
Total provision for income taxes
 $ 8,872  $ 46,586  $ 22,978 
Schedule of Effective Income Tax Rate Reconciliation
The following tables present a reconciliation of the statutory federal rate to the effective rates for the years ended December 31, 2025, 2024 and 2023:
Year Ended
December 31, 2025
(dollars in thousands) Amount Percent
Benefit from income taxes at statutory federal tax rate
 $ (93,540) 21.0  %
State and local taxes, net of federal benefit, if applicable(1)
(2,741) 0.6  %
Nondeductible compensation expenses
 5,469  (1.2) %
Other nondeductible expenses
 900  (0.2) %
Other permanent differences in taxable income from net income for U.S. GAAP purposes(2)
(1,417) 0.3  %
REIT loss not subject to corporate income tax
 100,201  (22.5) %
Provision for income taxes/ effective tax rate(3)
$ 8,872  (2.0) %
____________________
(1)For the year ended December 31, 2025, state and local taxes in New York State and New York City made up the majority (greater than 50%) of the tax effect in this category.
(2)For the year ended December 31, 2025, other permanent differences in taxable income from net income (loss) for U.S. GAAP purposes included amortization of goodwill for tax purposes and dividends paid on unvested and outstanding equity incentive awards, as applicable.
(3)The provision for income taxes is primarily recorded at the taxable subsidiary level.
Year Ended
December 31,
2024 2023
(dollars in thousands) Amount Percent Amount Percent
Provision for (benefit from) income taxes at statutory federal tax rate
 $ 72,398  21.0  % $ (17,513) 21.0  %
State and local taxes, net of federal benefit, if applicable
 8,027  2.3  % 2,358  (2.8) %
Permanent differences in taxable income from net income for U.S. GAAP purposes(1)
21,794  6.3  % 65,670  (78.8) %
REIT income not subject to corporate income tax
 (55,633) (16.1) % (27,537) 33.0  %
Provision for income taxes/ effective tax rate(2)
$ 46,586  13.5  % $ 22,978  (27.6) %
____________________
(1)For the years ended December 31, 2024 and 2023, permanent differences in taxable income from net income (loss) for U.S. GAAP purposes included dividends paid from the Company’s TRSs to the REIT, the dividends paid deduction for tax purposes, amortization of goodwill for tax purposes, and a difference in compensation expense related to the officer’s compensation limitation, dividends paid on unvested and outstanding equity incentive awards, as applicable, and non-cash equity compensation expense for tax purposes.
(2)The provision for income taxes is primarily recorded at the taxable subsidiary level.
Schedule of Current and Deferred Tax Assets and Liabilities
The Company’s consolidated balance sheets as of December 31, 2025 and December 31, 2024 contain the following current and deferred tax liabilities and assets, which are included in other assets and other liabilities, and are recorded at the taxable subsidiary level:
(in thousands) December 31,
2025		 December 31,
2024
Income taxes receivable (payable):
Federal income taxes receivable (payable)
 $ 2,457  $ (3,440)
State and local income taxes receivable (payable)
 786  (777)
Income taxes receivable (payable), net
 3,243  (4,217)
Deferred tax assets (liabilities):
Deferred tax asset 5,276  4,751 
Deferred tax liability (92,470) (100,231)
Total net deferred tax assets (liabilities) (87,194) (95,480)
Total tax assets (liabilities), net $ (83,951) $ (99,697)
Schedule of Deferred Tax Assets and Liabilities Components of the Company’s net deferred tax liabilities and assets as of December 31, 2025 and December 31, 2024 were as follows:
(in thousands) December 31,
2025		 December 31,
2024
Mortgage servicing rights $ (91,564) $ (99,980)
Net operating loss carryforward 2,351  2,444 
Other 2,019  2,056 
Total deferred tax assets (liabilities) (87,194) (95,480)
Valuation allowance —  — 
Total net deferred tax assets (liabilities) $ (87,194) $ (95,480)