Company: COHN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001437749-25-033482
Chunk: 281

Company: Cohen & Co Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 8
Chunk 281
---
C: ZCAR) 

     (147
     )

     (2,634
     )

     2,487

      Other 

     (242
     )

     (139
     )

     (103
     )

      Total 
      
     $
     (10,829
     )
      
     $
     22,710

     $
     (33,539
     )

       70

Income Tax Expense / (Benefit) 

﻿

Income tax expense / (benefit) increased by $1,208 to $1,643 for the nine months ended September 30, 2025, as compared to $435 for the nine months ended September 30, 2024. 

      For the Nine Months Ended September 30, 

      2025 

      2024 

      Change 

      Current 
      
     $
     724

     $
     540

     $
     (184
     )

      Deferred 

     919

     (105
     )

     (1,024
     )

      Total 
      
     $
     1,643

     $
     435

     $
     (1,208
     )

Our provision for income taxes fluctuates due to several factors mostly attributable to our legal structure, which are summarized as follows.

Cohen & Company Inc. is treated as a “C” corporation for United States federal income tax purposes. A U.S. C corporation is subject to a federal tax rate of 21%.  Our effective tax rate is significantly different than this rate for the following reasons.

1. Cohen & Company Inc. consolidates the Operating LLC but only owns a minority economic interest in the Operating LLC.  For the nine months ended September 30, 2025, Cohen & Company Inc. owned 29.5% of the economic interests of the Operating LLC (on average) and was allocated the same percentage of income/(loss) generated by the Operating LLC.  To the extent Cohen & Company Inc. incurs tax obligations on this amount, the related tax expense is recognized in our consolidated financial statements.  The remaining 70.5% of income/(loss) generated by the Operating LLC was allocated to the non-controlling members of the Operating LLC and is subject to taxation on such members' individual tax returns.  

2. The Operating LLC itself consolidates certain pass-through