Income Taxes (Tables)

12 Months Ended

Mar. 31, 2024

Income tax expense (benefit) consists of:


	Current		Deferred		Total
Year ended March 31, 2024
Federal	$	9,592,743	$	8,325,695	$	17,918,438
State and local	1,732,162		2,411,909		4,144,071

	$	11,324,905	$	10,737,604	$	22,062,509

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

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, 2024, 2023 and 2022 are summarized as follows:


	2024		2023		2022
Expected income tax	$	20,875,624	$	5,700,613	$	13,771,657
Increase (reduction) in income taxes resulting from:
State tax (excluding state tax credits), net of federal benefit	3,513,226		328,026		1,489,800
Federal tax credits, net	(1,034,091)		(200,203)		(1,193,021)
State tax credits	(239,410)		(162,619)		(470,916)
Uncertain tax positions	(16,802)		(1,151,234)		(555,252)
Expiration of capital loss carryforward	7,773,559		—		—

Executive compensation limitation under Section 162(m)	62,686		732,504		1,918,618
Excess tax benefits related to equity compensation	(347,806)		(73,644)		(3,237,682)
Decrease in valuation allowance related to capital loss carryforward	(7,773,559)		—		—
Prior year adjustments	(1,135,270)		238,187		(51,728)

Other, net	384,352		502,153		(11,994)
	$	22,062,509	$	5,913,783	$	11,659,482

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, 2024 and 2023 are presented below:


	2024		2023
Deferred tax assets:
Allowance for credit losses	$	25,538,524	$	31,239,616
Unearned insurance commissions	10,944,327		14,589,099
Accrued expenses primarily related to employee benefits	10,234,369		12,444,567
Reserve for uncollectible interest	990,192		1,124,879
Lease liability	20,217,720		20,675,974
Intangible assets	1,701,995		660,312
Foreign tax credit carryforward	3,254,926		3,254,926
Capital loss carryforward	192,767		7,966,326
State net operating loss carryforwards	5,481,746		4,851,747

Gross deferred tax assets	78,556,566		96,807,446
Less valuation allowance	(8,094,712)		(15,209,271)
Net deferred tax assets	70,461,854		81,598,175

Deferred tax liabilities:
Fair value adjustment for loans receivable	(12,357,392)		(11,371,461)
Property and equipment	(3,912,030)		(4,611,006)

Deferred loan origination costs	(1,239,726)		(1,212,809)
Prepaid expenses	(1,662,717)		(1,766,564)
ROU assets	(19,619,875)		(20,072,506)
Other	(727,270)		(841,468)
Gross deferred tax liabilities	(39,519,010)		(39,875,814)

Deferred income taxes, net	$	30,942,844	$	41,722,361

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, 2024, 2023, and 2022 are presented below:


	2024		2023		2022
Unrecognized tax benefit balance beginning of year	$	818,225	$	1,616,116	$	1,811,244
Gross increases for tax positions of current year	105,531		129,146		153,754


Lapse of statute of limitations	(175,467)		(927,037)		(348,882)
Unrecognized tax benefit balance end of year	$	748,289	$	818,225	$	1,616,116