Income Taxes (Tables)

12 Months Ended

Mar. 31, 2023

Income tax expense (benefit) consists of:


	Current		Deferred	Total
Year ended March 31, 2023
Federal	$	7,135,030	(1,430,623)	5,704,407
State and local	880,838		(671,462)	209,376

	$	8,015,868	(2,102,085)	5,913,783

Year ended March 31, 2022
Federal	$	22,262,110	(11,892,354)	10,369,756
State and local	4,206,087		(2,916,361)	1,289,726

	$	26,468,197	(14,808,715)	11,659,482

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

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

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 for March 31, 2023, 2022 and 2021 are summarized as follows:


	2023		2022		2021
Expected income tax	$	5,700,613	$	13,771,657	$	23,394,720
Increase (reduction) in income taxes resulting from:
State tax (excluding state tax credits), net of federal benefit	328,026		1,489,800		2,053,524
Federal tax credits, net	(200,203)		(1,193,021)		(1,173,435)
State tax credits	(162,619)		(470,916)		—
Uncertain tax positions	(1,151,234)		(555,252)		(2,107,263)

Executive compensation limitation under Section 162(m)	732,504		1,918,618		1,203,203
Excess tax benefits related to equity compensation	(73,644)		(3,237,682)		(996,769)


Other, net	740,340		(63,722)		746,619
	$	5,913,783	$	11,659,482	$	23,120,599

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 that give rise to significant portions of the deferred tax assets and deferred tax liabilities at March 31, 2023 and 2022 are presented below:


	2023		2022
Deferred tax assets:
Allowance for credit losses	$	31,239,616	$	33,481,188
Unearned insurance commissions	14,589,099		15,453,501
Accrued expenses primarily related to employee benefits	12,444,567		12,549,474
Reserve for uncollectible interest	1,124,879		1,261,035
Lease liability	20,675,974		21,575,596
Intangible assets	660,312		254,986
Foreign tax credit carryforward	3,254,926		3,254,926
Capital loss carryforward	7,966,326		7,966,326
State net operating loss carryforwards	4,851,747		3,849,158

Gross deferred tax assets	96,807,446		99,646,190
Less valuation allowance	(15,209,271)		(14,723,244)
Net deferred tax assets	81,598,175		84,922,946

Deferred tax liabilities:
Fair value adjustment for loans receivable	(11,371,461)		(13,896,840)
Property and equipment	(4,611,006)		(4,875,859)

Deferred loan origination costs	(1,212,809)		(1,708,369)
Prepaid expenses	(1,766,564)		(1,785,906)
Right-of-use asset	(20,072,506)		(21,273,281)
Other	(841,468)		(1,581,234)
Gross deferred tax liabilities	(39,875,814)		(45,121,489)

Deferred income taxes, net	$	41,722,361	$	39,801,457

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, 2023, 2022, and 2021 are presented below:


	2023		2022		2021
Unrecognized tax benefit balance beginning of year	$	1,616,116	$	1,811,244	$	4,351,811
Gross increases for tax positions of current year	129,146		153,754		36,541

Settlements with tax authorities	—		—		(1,968,702)
Lapse of statute of limitations	(927,037)		(348,882)		(608,406)
Unrecognized tax benefit balance end of year	$	818,225	$	1,616,116	$	1,811,244