INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

Components of Federal Corporate Income Tax Expense

The components of the federal corporate income tax expense for the years ended December 31, 2023, 2022, and 2021 were as follows:

Table 10.1


	For the Year Ended December 31,
	2023		2022		2021
	(in thousands)
Current income tax expense	$	46,712	$	35,609	$	38,645
Deferred income tax expense	6,386		11,926		(2,273)
Income tax expense	$	53,098	$	47,535	$	36,372

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, 2023, 2022, and 2021 is as follows:

Table 10.2


	For the Year Ended December 31,
	2023			2022			2021
	(dollars in thousands)
Tax expense at statutory rate	$	53,151		$	47,393		$	36,217
Excess tax benefits related to stock-based awards	(924)			(401)			(300)

Other	871			543			455
Income tax expense	$	53,098		$	47,535		$	36,372
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, 2023 and 2022 were as follows:

Table 10.3


	As of December 31,
	2023		2022
	(in thousands)
Deferred tax assets:
Basis difference related to hedge items	$	84,922	$	53,360
Unrealized losses on available-for-sale securities	20,514		26,371
Allowance for losses	3,842		3,603
Compensation and Benefits	2,127		1,639
Stock-based compensation	2,481		1,755



Capital loss carryforwards	35		32
Valuation allowance	(35)		(32)
Other	2,051		1,444
Total deferred tax assets	$	115,937	$	88,172
Deferred tax liability:
Basis differences related to financial derivatives	$	80,887	$	49,526
Unrealized gains on cash flow hedges	9,843		12,855
Basis difference related to structured securitizations	16,647		7,782


Other	90		5
Total deferred tax liability	$	107,467	$	70,168
Net deferred tax asset	$	8,470	$	18,004