INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

Components of Federal Corporate Income Tax Expense

The components of the federal corporate income tax expense for the years ended December 31, 2025, 2024, and 2023 were as follows:

Table 9.1


	For the Year Ended December 31,
	2025		2024		2023
	(in thousands)
Current income tax expense	$	59,371	$	54,687	$	46,712
Deferred income tax expense	(11,075)		(3,777)		6,386
Income tax expense	$	48,296	$	50,910	$	53,098

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, 2025, 2024, and 2023 is as follows:

Table 9.2


	For the Year Ended December 31,
	2025				2024				2023
	Amount		Percent		Amount		Percent		Amount		Percent
	(dollars in thousands)
U.S. Federal Statutory Tax Rate	$	53,699	21.0	%	$	54,201	21.0	%	$	53,151	21.0	%
Tax Credits
Renewable Energy Investment Tax Credits	(4,791)		(1.9)	%	(2,627)		(1.0)	%	—		—	%
Other Tax Credits	(869)		(0.3)	%	(633)		(0.3)	%	(305)		(0.1)	%
Nontaxable or Nondeductible Items	257		0.1	%	(31)		—	%	252		0.1	%
Income tax expense	$	48,296	18.9	%	$	50,910	19.7	%	$	53,098	21.0	%

Components of Deferred Tax Assets and Liabilities

The components of the deferred tax assets and liabilities as of December 31, 2025 and 2024 were as follows:

Table 9.3


	As of December 31,
	2025		2024
	(in thousands)
Deferred tax assets:
Basis difference related to hedge items	$	120,907	$	136,589
Unrealized losses on available-for-sale securities	1,711		12,441
Allowance for losses	8,331		5,310
Compensation and Benefits	2,506		1,779
Stock-based compensation	3,261		3,014


Other	5,789		5,887
Total deferred tax assets	$	142,505	$	165,020
Deferred tax liability:
Basis differences related to financial derivatives	$	120,446	$	135,528
Unrealized gains on cash flow hedges	5,268		9,212
Basis difference related to structured securitizations	16,420		18,726

Other	198		10
Total deferred tax liability	$	142,332	$	163,476
Net deferred tax asset	$	173	$	1,544