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Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income tax benefit consisted of the following for the periods shown below:
Year Ended December 31,202120202019
Current:
Federal$— $(1)$(141)
State3,541 (78)(60)
Total current tax expense (benefit)$3,541 $(79)$(201)
Deferred:
Federal$(2,066)$— $— 
State(1,611)— — 
Total deferred benefit$(3,677)$— $— 
Income tax benefit$(136)$(79)$(201)

Income tax benefit for the year ended December 31, 2021 was primarily related to a tax benefit associated with the Acquisition, partially offset by income tax expense for state jurisdictions that limit net operating loss utilization. Income tax benefit for the year ended December 31, 2020 was primarily attributable to current state income taxes. Income tax benefit for the year ended December 31, 2019 was primarily attributable to the tax effects of unrealized gains recorded to other comprehensive income associated with the Company’s available for sale portfolio.

A reconciliation of the income taxes expected at the statutory federal income tax rate and income tax benefit is as follows:
Year Ended December 31,202120202019
Tax at federal statutory rate$3,873 $(39,399)$(6,499)
State tax, net of federal tax benefit1,524 (81)(60)
Stock-based compensation expense(11,839)8,044 4,773 
Research and development tax credits(4,354)(994)(2,336)
Change in valuation allowance7,867 29,728 (802)
Change in unrecognized tax benefit2,177 497 1,168 
Non-deductible expenses742 2,278 3,250 
Other(126)(152)305 
Income tax benefit$(136)$(79)$(201)
The significant components of the Company’s deferred tax assets and liabilities were:
December 31,20212020
Deferred tax assets:
Net operating loss (NOL) carryforwards$144,510 $163,381 
Allowance for loan and lease losses41,170 — 
Stock-based compensation11,721 10,218 
Reserves and accruals13,051 15,652 
Operating lease liabilities25,807 28,032 
Goodwill14,737 17,375 
Intangible assets— 3,151 
Tax credit carryforwards19,339 18,215 
Other3,492 868 
Total deferred tax assets273,827 256,892 
Valuation allowance(223,367)(211,228)
Deferred tax assets – net of valuation allowance$50,460 $45,664 
Deferred tax liabilities:
Internally developed software$(17,431)$(16,956)
Servicing fees(2,452)(2,780)
Operating lease assets(21,614)(22,048)
Leases(6,961)— 
Intangible assets(440)— 
Change in tax method— (1,769)
Other(1,562)(2,111)
Total deferred tax liabilities$(50,460)$(45,664)
Deferred tax asset (liability) – net$— $— 

The Company continues to recognize a full valuation allowance against net deferred tax assets. This determination was based on the assessment of the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets. As of December 31, 2021 and 2020, the valuation allowance was $223.4 million and $211.2 million, respectively.

As of December 31, 2021, the Company had federal and state NOL carryforwards (prior to the application of statutory tax rates) of approximately $464.8 million and $620.0 million. Federal and state NOLs of approximately $211.6 million and $36.8 million carry forward indefinitely and the remainder start expiring in 2026 and 2025, respectively. Additionally, as of December 31, 2021, the Company had federal and state research and development credit carryforwards of $21.7 million and $15.8 million, respectively. The federal research credit carryforwards will expire beginning in 2026 and the state research credits may be carried forward indefinitely.

In general, a corporation’s ability to utilize its NOL and research and development credit carryforwards may be substantially limited due to the ownership change limitations as required by Section 382 and 383 of the Internal Revenue Code of 1986, as amended, as well as similar state provisions. The federal and state Section 382 and 383 limitations may limit the use of a portion of the Company’s domestic NOL and tax credit carryforwards. Further, a portion of the carryforwards may expire before being applied to reduce future income tax liabilities.
A reconciliation of the beginning and ending balance of total unrecognized tax benefits is as follows:
Year Ended December 31,202120202019
Beginning balance$17,626 $15,998 $13,377 
Gross increase for tax positions related to prior years1,272 — — 
Gross increase for tax positions related to the current year3,614 1,628 2,621 
Ending balance$22,512 $17,626 $15,998 

If the unrecognized tax benefit as of December 31, 2021 is recognized, there will be no effect on the Company’s effective tax rate as the tax benefit would increase a deferred tax asset, which is currently offset with a full valuation allowance. As of December 31, 2021, the Company had no accrued interest and penalties related to unrecognized tax benefits. The Company does not expect any significant increases or decreases to its unrecognized benefits within the next twelve months.

The Company files income tax returns in the United States and various state jurisdictions. As of December 31, 2021, the Company’s federal tax returns for 2017 and earlier, and the state tax returns for 2016 and earlier were no longer subject to examination by the taxing authorities. However, tax periods closed in a prior period may be subject to audit and re-examination by tax authorities for which tax carryforwards are utilized in subsequent years.