Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Taxes [Abstract]

Provision for Income Taxes

The provision for income taxes for the years ended December 31, 2020 and 2019 consisted of the following (in thousands):

	2020		2019
Federal:
Current	$	16,338	$	26,369
Deferred		5,763		(4,350	)
State and local:
Current		749		5,149
Deferred		2,141		(427	)
Total	$	24,991	$	26,741

Reconciliation of Federal Statutory Income Tax Rate to Effective Tax Rate

A reconciliation of the Federal statutory income tax rate to the effective tax rate is set forth below:

	2020			2019
Statutory Federal income tax rate		21.0	%		21.0	%
State income tax, net of Federal benefit		2.7			4.0
Section 162(m) limitation		6.2			0.4
Other		-			(0.8	)
Effective income tax rate		29.9	%		24.6	%

Components of Deferred Tax Assets and Liabilities

Significant components of the deferred tax assets and liabilities are as follows (in thousands):

	2020			2019
Deferred tax assets:
Investments in securities	$	5,655		$	3,536
Stock compensation expense		2,030			1,026
Deferred compensation		400			11,069
Capital lease obligation		661			655
Other		-			224
Total deferred tax assets		8,746			16,510
Deferred tax liabilities:
Intangible asset amortization		(353	)		(394	)
Contingent deferred sales commissions		(85	)		(154	)
Other		(267	)		(17	)
Total deferred tax liabilities		(705	)		(565	)
Net deferred tax assets	$	8,041		$	15,945

Gross Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits related to uncertain tax positions is as follows (in millions):

Balance at December 31, 2018	$	14.2
Additions based on tax positions related to the current year		1.5
Additions for tax positions of prior years		1.4
Reductions for tax positions of prior years		(0.8	)
Balance at December 31, 2019		16.3
Additions based on tax positions related to the current year		0.5
Additions for tax positions of prior years		-
Reductions for tax positions of prior years		(1.5	)
Balance at December 31, 2020	$	15.3