Income Taxes |
9 Months Ended |
|---|---|
Sep. 30, 2026 | |
| Income Taxes [Abstract] | |
| Income Taxes | Note 13– Income Taxes
Due to our cumulative losses over the last three years, ASC 740-10-30-5(e) requires us to evaluate available positive and negative evidence in determining whether deferred tax assets are expected to be realized. As of September 30, 2026, the Company considered, among other factors, its recent operating results, cumulative losses in recent periods, forecasts of future taxable income, and tax planning strategies. During 2025 and 2026, the Company incurred significant losses associated with the credit quality, the sale of certain loans at a loss and the fair value adjustment of loans transferred to held for sale. Based on management assessment performed in September 2026, it was determined that a full valuation allowance was appropriate against the Company’s deferred tax assets. For the nine months ended September 30, 2026 the Company recorded income tax expense of $21.7 million for the initial recognition of the full valuation allowance. Once the Company begins generating profits, we will re-evaluate whether a full valuation allowance remains appropriate or if the allowance should be reduced.
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