Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Components of Federal Corporate Income Tax Expense

The components of the federal corporate income tax expense for the years ended December 31, 2020, 2019, and 2018 were as follows:

Table 10.1


	For the Year Ended December 31,
	2020		2019		2018
	(in thousands)
Current income tax expense	$	30,634	$	28,316	$	25,317
Deferred income tax expense	(1,849)		789		2,625
Income tax expense	$	28,785	$	29,105	$	27,942

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of income tax at the statutory federal corporate income tax rate to the income tax expense for the years ended December 31, 2020, 2019, and 2018 is as follows:

Table 10.2


	For the Year Ended December 31,
	2020			2019			2018
	(dollars in thousands)
Tax expense at statutory rate	$	28,861		$	29,117		$	28,564
Excess tax benefits related to stock-based awards	(9)			(449)			(946)
Valuation allowance	—			49			—
Other	(67)			388			324
Income tax expense	$	28,785		$	29,105		$	27,942
Statutory tax rate	21.0		%	21.0		%	21.0		%

Components of Deferred Tax Assets and Liabilities

The components of the deferred tax assets and liabilities as of December 31, 2020 and 2019 were as follows:

Table 10.3


	As of December 31,
	2020		2019
	(in thousands)
Deferred tax assets:
Basis differences related to financial derivatives	$	100,099	$	51,177

Unrealized losses on securities	—		2,805
Allowance for losses	3,690		2,650
Unrealized losses on cash flow hedges	6,065		1,491
Compensation and benefits	1,020		819
Stock-based compensation	1,027		571
Capital loss carryforwards and other-than-temporary impairment	86		86
Valuation allowance	(86)		(86)
Other	341		88
Total deferred tax assets	112,242		59,601
Deferred tax liability:
Basis differences related to hedged items	91,460		42,940
Unrealized gains on securities	2,364		—

Other	97		151
Total deferred tax liability	93,921		43,091
Net deferred tax asset	$	18,321	$	16,510