Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Components of Federal Corporate Income Tax Expense

The components of the federal corporate income tax expense for the years ended December 31, 2021, 2020, and 2019 were as follows:

Table 10.1


	For the Year Ended December 31,
	2021		2020		2019
	(in thousands)
Current income tax expense	$	37,314	$	30,634	$	28,316
Deferred income tax expense	(1,961)		(1,849)		789
Income tax expense	$	35,353	$	28,785	$	29,105

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, 2021, 2020, and 2019 is as follows:

Table 10.2


	For the Year Ended December 31,
	2021			2020			2019
	(dollars in thousands)
Tax expense at statutory rate	$	35,198		$	28,861		$	29,117
Excess tax benefits related to stock-based awards	(300)			(9)			(449)
Valuation allowance	—			—			49
Other	455			(67)			388
Income tax expense	$	35,353		$	28,785		$	29,105
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, 2021 and 2020 were as follows:

Table 10.3


	As of December 31,
	2021		2020
	(in thousands)
Deferred tax assets:
Basis differences related to financial derivatives	$	63,982	$	100,099


Allowance for losses	3,452		3,690
Unrealized losses on cash flow hedges	1,427		6,065
Compensation and Benefits	1,281		1,020
Stock-based compensation	1,462		1,027
Capital loss carryforwards	32		86
Valuation allowance	(32)		(86)
Other	394		341
Total deferred tax assets	71,998		112,242
Deferred tax liability:
Basis differences related to hedged items	53,945		91,460
Unrealized gains on available-for-sale securities	2,451		2,364

Other	44		97
Total deferred tax liability	56,440		93,921
Net deferred tax asset	$	15,558	$	18,321