Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Components of Income Tax Expense (Benefit)

Income tax benefit (expense) consisted of the following:


Year Ended December 31,	2023		2022		2021
Current:
Federal	$	(3,180)	$	—	$	—
State	5,060		(20,812)		(3,541)
Total current tax benefit (expense)	$	1,880	$	(20,812)	$	(3,541)

Deferred:
Federal	$	(11,427)	$	121,520	$	2,066
State	(6,131)		35,940		1,611
Total deferred benefit (expense)	$	(17,558)	$	157,460	$	3,677
Income tax benefit (expense)	$	(15,678)	$	136,648	$	136

Schedule of Effective Income Tax Rate Reconciliation

The table below presents a reconciliation of the income tax benefit (expense) at the statutory federal income tax rate to the income tax benefit (expense) at the effective income tax rate:


Year Ended December 31,	2023		2022		2021
Statutory federal tax expense	$	(11,470)	$	(32,140)	$	(3,873)
State tax, net of federal tax benefit	(903)		11,951		(1,524)
Stock-based compensation tax benefit (expense)	(4,392)		271		11,839
Research and development tax credits	4,600		10,907		4,354
Change in valuation allowance	—		154,081		(7,867)
Change in unrecognized tax benefit	(1,380)		(3,438)		(2,177)

Non-deductible expenses	(2,351)		(4,737)		(742)
Other	218		(247)		126
Income tax benefit (expense)	$	(15,678)	$	136,648	$	136

Deferred Tax Assets and Liabilities

The significant components of the Company’s net deferred tax asset were as follows:


December 31,	2023		2022
Deferred tax assets:
Net operating loss carryforwards	$	60,432	$	64,288
Allowance for loan and lease losses	84,119		89,718
Stock-based compensation	7,399		10,121
Unrealized loss on AFS securities	12,484		17,214
Deferred compensation	6,574		12,690
Reserves and accruals	12,651		13,474
Operating lease liabilities	10,185		20,999
Goodwill	10,203		12,267

Tax credit carryforwards	27,924		26,913
Other	3,926		4,249
Gross deferred tax assets	235,897		271,933
Valuation allowance	(46,108)		(47,721)
Total deferred tax assets	$	189,789	$	224,212

Deferred tax liabilities:
Internally developed software	$	(9,934)	$	(11,687)
Servicing assets	(2,171)		(2,634)

Operating lease assets	(7,157)		(17,353)
Leases	(13,121)		(15,694)


Other	(5,995)		(3,157)
Total deferred tax liabilities	$	(38,378)	$	(50,525)
Deferred tax assets, net	$	151,411	$	173,687

Changes in Unrecognized Tax Benefit

A reconciliation of the beginning and ending balance of total unrecognized tax benefits was as follows:


Year Ended December 31,	2023		2022		2021
Beginning balance	$	27,850	$	22,512	$	17,626
Gross increase for tax positions related to prior years	(161)		2,488		1,272
Gross increase for tax positions related to the current year	2,373		2,850		3,614
Ending balance	$	30,062	$	27,850	$	22,512