Income Taxes (Tables)

12 Months Ended

Mar. 31, 2021

Income tax expense (benefit) from continuing operations consists of:


	Current		Deferred	Total
Year ended March 31, 2021
Continuing Operations- Federal	$	16,443,592	4,077,609	20,521,201
Continuing Operations- State and local	1,025,645		1,573,753	2,599,398

	$	17,469,237	5,651,362	23,120,599

Year ended March 31, 2020
Continuing Operations- Federal	$	3,307,872	(224,604)	3,083,268
Continuing Operations- State and local	2,871,179		797,518	3,668,697

	$	6,179,051	572,914	6,751,965

Year ended March 31, 2019
Continuing Operations- Federal	$	20,508,247	(1,833,943)	18,674,304
Continuing Operations- State and local	(871,439)		(1,821,808)	(2,693,247)

	$	19,636,808	(3,655,751)	15,981,057

Income tax expense reconciliation to U.S federal income tax rate to pretax income

The differences between income taxes expected at the U.S. federal statutory income tax rate of 21% and the reported income tax expense from continuing operations for March 31, 2021, 2020 and 2019 are summarized as follows:


	2021		2020	2019
Expected income tax	$	23,394,720	7,330,983	18,874,500
Increase (reduction) in income taxes resulting from:
State tax (excluding state tax credits), net of federal benefit	2,053,524		3,398,271	1,576,915
Federal tax credits (net)	(1,173,435)		(7,616,236)	—
State tax credits	—		(500,000)	(3,704,580)
Revalue deferred tax assets and liabilities	—		—	(852,523)
Uncertain tax positions	(2,107,263)		(167,455)	(183,929)
Nondeductible penalties	8,274		4,562,830	2,210
Executive compensation limitation under Section 162(m)	1,203,203		1,305,975	37,457
Excess tax benefits related to equity compensation	(996,769)		(612,987)	(287,703)
Prior year adjustments	(30,953)		(672,358)	106,075

Other, net	769,298		(277,058)	412,635
	$	23,120,599	6,751,965	15,981,057

The differences between income taxes expected at the U.S. federal statutory income tax rate of 21% and the reported income tax expense from discontinued operations for March 31, 2021, 2020 and 2019 are summarized as follows:


	2021		2020	2019
Expected income tax	$	—	—	491,783
Increase (reduction) in income taxes resulting from:





Foreign income adjustments	—		—	187,974
Other, net	—		—	(53,174)
	$	—	—	626,583

Tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities

The tax effects of temporary differences from continuing operations that give rise to significant portions of the deferred tax assets and deferred tax liabilities at March 31, 2021 and 2020 are presented below:


	2021		2020
Deferred tax assets:
Allowance for credit losses	$	22,908,670	23,900,236
Unearned insurance commissions	10,080,766		9,964,655
Accrued expenses primarily related to employee benefits	13,676,701		12,730,245
Reserve for uncollectible interest	645,113		1,205,082
Lease liability	22,231,591		25,309,841
Foreign tax credit carryforward	3,254,926		3,254,926
Capital loss carryforward	7,928,184		7,784,059
State net operating loss carryforwards	78,358		387,558

Gross deferred tax assets	80,804,309		84,536,602
Less valuation allowance	(11,184,384)		(11,040,259)
Net deferred tax assets	69,619,925		73,496,343

Deferred tax liabilities:
Fair value adjustment for loans receivable	(12,362,590)		(14,065,135)
Property and equipment	(5,902,421)		(5,097,147)
Intangible assets	(243,574)		(925,319)
Deferred net loan origination costs	(1,268,653)		(1,664,486)
Prepaid expenses	(1,412,337)		(1,185,759)
Right-of-use asset	(21,826,178)		(25,045,690)
Other	(1,611,430)		(2,254,822)
Gross deferred tax liabilities	(44,627,183)		(50,238,358)

Deferred income taxes, net	$	24,992,742	23,257,985

Reconciliation of the beginning and ending amount of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits at March 31, 2021, 2020, and 2019 are presented below:


	2021		2020	2019
Unrecognized tax benefit balance beginning of year	$	4,351,811	4,043,623	6,946,229
Gross increases for tax positions of current year	36,541		246,725	54,025
Gross increases (decreases) for tax positions of prior years	—		786,674	(138,405)
Settlements with tax authorities	(1,968,702)		—	(1,356,714)
Lapse of statute of limitations	(608,406)		(725,211)	(1,461,512)
Unrecognized tax benefit balance end of year	$	1,811,244	4,351,811	4,043,623