v3.25.2
Income Taxes
 6 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company incurs income tax expense related to its Taxable Subsidiaries. The components of income tax expense were as follows during the quarter and six months ended June 30, 2025 and 2024 (in thousands):
Quarter Ended June 30,Six Months Ended June 30,
2025202420252024
Current tax expense (benefit)
$30 $(5)$47 $(5)
Deferred tax expense3,640 496 5,013 1,267 
Total income tax expense $3,670 $491 $5,060 $1,262 
The effective tax rate for the six months ended June 30, 2025 and 2024 was 7.3% and 2.7%, respectively. The primary items giving rise to the difference between the 21.0% federal statutory rate applicable to corporations and the effective tax rates are due to state taxes and the benefits of the partnership structure.
Significant components of the Company’s deferred tax assets and liabilities as of June 30, 2025 and December 31, 2024 were as follows (in thousands):
June 30, 2025December 31, 2024
Deferred tax assets:
Carryforwards of net operating loss$3,764 $1,818 
Other65 45 
Valuation allowance(224)(383)
Total deferred tax assets3,605 1,480 
Deferred tax liabilities:
Unrealized appreciation on investments(18,462)(11,324)
Total deferred tax liabilities(18,462)(11,324)
Deferred tax liabilities, net$(14,857)$(9,844)