Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Components of Federal Corporate Income Tax Expense

The components of the federal corporate income tax expense for the years ended December 31, 2019, 2018, and 2017 were as follows:

Table 10.1


	For the Year Ended December 31,
	2019		2018		2017
	(in thousands)
Current income tax expense	$	28,316	$	25,317	$	43,148
Deferred income tax expense	789		2,625		3,221
Income tax expense	$	29,105	$	27,942	$	46,369

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of income tax at the statutory federal corporate income tax rate to the income tax expense for the years ended December 31, 2019, 2018, and 2017 is as follows:

Table 10.2


	For the Year Ended December 31,
	2019			2018			2017
	(dollars in thousands)
Tax expense at statutory rate	$	29,117		$	28,564		$	45,740
Re-measurement of net deferred tax asset due to enactment of new tax legislation	—			—			1,365
Excess tax benefits related to stock-based awards	(449)			(946)			(860)
Valuation allowance	49			—			4
Other	388			324			120
Income tax expense	$	29,105		$	27,942		$	46,369
Statutory tax rate	21.0		%	21.0		%	35.0		%

Components of Deferred Tax Assets and Liabilities

The components of the deferred tax assets and liabilities as of December 31, 2019 and 2018 were as follows:

Table 10.3


	As of December 31,
	2019		2018
	(in thousands)
Deferred tax assets:
Basis differences related to financial derivatives	$	51,177	$	7,614
Basis differences related to hedged items	—		1,810
Unrealized losses on securities	2,805		—
Allowance for losses	2,650		1,929
Unrealized losses on cash flow hedges	1,491		—
Compensation and benefits	819		967
Stock-based compensation	571		623
Capital loss carryforwards and other-than-temporary impairment	86		36
Valuation allowance	(86)		(36)
Other	88		121
Total deferred tax assets	59,601		13,064
Deferred tax liability:
Basis differences related to hedged items	42,940		—
Unrealized gains on securities	—		4,807
Unrealized gains on cash flow hedges	—		1,827
Other	151		61
Total deferred tax liability	43,091		6,695
Net deferred tax asset	$	16,510	$	6,369