Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Components of Federal Corporate Income Tax Expense

The components of the federal corporate income tax expense for the years ended December 31, 2022, 2021, and 2020 were as follows:

Table 10.1


	For the Year Ended December 31,
	2022		2021		2020
	(in thousands)
Current income tax expense	$	35,609	$	38,645	$	32,796
Deferred income tax expense	11,926		(2,273)		(2,489)
Income tax expense	$	47,535	$	36,372	$	30,307

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, 2022, 2021, and 2020 is as follows:

Table 10.2


	For the Year Ended December 31,
	2022			2021			2020
	(dollars in thousands)
Tax expense at statutory rate	$	47,393		$	36,217		$	30,383
Excess tax benefits related to stock-based awards	(401)			(300)			(9)

Other	543			455			(67)
Income tax expense	$	47,535		$	36,372		$	30,307
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, 2022 and 2021 were as follows:

Table 10.3


	As of December 31,
	2022		2021
	(in thousands)
Deferred tax assets:
Basis difference related to hedge items	$	53,360	$	—
Unrealized losses on available-for-sale securities	26,371		—
Allowance for losses	3,603		3,452
Compensation and Benefits	1,639		1,281
Stock-based compensation	1,755		1,462
Basis differences related to financial derivatives	—		64,795
Unrealized losses on cash flow hedges	—		1,427
Basis difference related to structured securitizations	—		35
Capital loss carryforwards	32		32
Valuation allowance	(32)		(32)
Other	1,444		358
Total deferred tax assets	$	88,172	$	72,810
Deferred tax liability:
Basis differences related to financial derivatives	$	49,526	$	—
Unrealized gains on cash flow hedges	12,855		—
Basis difference related to structured securitizations	7,782		—
Basis differences related to hedged items	—		54,446
Unrealized gains on available-for-sale securities	—		2,451
Other	5		44
Total deferred tax liability	$	70,168	$	56,941
Net deferred tax asset	$	18,004	$	15,869