INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2024

Components of Federal Corporate Income Tax Expense

The components of the federal corporate income tax expense for the years ended December 31, 2024, 2023, and 2022 were as follows:

Table 10.1


	For the Year Ended December 31,
	2024		2023		2022
	(in thousands)
Current income tax expense	$	54,687	$	46,712	$	35,609
Deferred income tax expense	(3,777)		6,386		11,926
Income tax expense	$	50,910	$	53,098	$	47,535

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, 2024, 2023, and 2022 is as follows:

Table 10.2


	For the Year Ended December 31,
	2024			2023			2022
	(dollars in thousands)
Tax expense at statutory rate	$	54,201		$	53,151		$	47,393
Excess tax benefits related to stock-based awards	(1,755)			(924)			(401)
Tax credits	(3,260)			—			—
Other	1,724			871			543
Income tax expense	$	50,910		$	53,098		$	47,535
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, 2024 and 2023 were as follows:

Table 10.3


	As of December 31,
	2024		2023
	(in thousands)
Deferred tax assets:
Basis difference related to hedge items	$	136,589	$	84,922
Unrealized losses on available-for-sale securities	12,441		20,514
Allowance for losses	5,310		3,842
Compensation and Benefits	1,779		2,127
Stock-based compensation	3,014		2,481
Capital loss carryforwards	—		35
Valuation allowance	—		(35)
Other	5,887		2,051
Total deferred tax assets	$	165,020	$	115,937
Deferred tax liability:
Basis differences related to financial derivatives	$	135,528	$	80,887
Unrealized gains on cash flow hedges	9,212		9,843
Basis difference related to structured securitizations	18,726		16,647

Other	10		90
Total deferred tax liability	$	163,476	$	107,467
Net deferred tax asset	$	1,544	$	8,470