Guild Holdings Company Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Components of Income Tax Expense

The components of income tax expense were as follows for the years ended December 31, 2020 and 2019:

	2020		2019
Current tax expense:
Federal	$	98,187	$	21,252
State		22,214		4,977
	$	120,401	$	26,229
Deferred tax expense (benefit):
Federal	$	2,190	$	(19,952	)
State		902		(6,024	)
		3,092		(25,976	)
Income tax expense	$	123,493	$	253

Schedule of Reconciliation of Recorded Income Tax Expense of Continuing Operations

The following table presents a reconciliation of the recorded income tax expense of continuing operations to the amount of taxes computed by applying the applicable statutory federal income tax rate of 21.0% to income from continuing operations before income taxes, as of December 31, 2020 and 2019, respectively:

	2020						2019
	Amount			Percent			Amount			Percent
Income tax expense at federal statutory rate	$	103,755			21.0	%	$	1,225			21.0	%
State income taxes, net of federal tax benefit		19,904			4.0	%		267			4.6	%
Nondeductible deferred compensation		7,115			1.4	%		—			—	%
Permanent items		1,887			0.4	%		(863	)		(14.8	)%
Federal and state tax credits, net of federal tax benefit		(536	)		(0.1	)%		(386	)		(6.6	)%
Deferred compensation adjustment		(8,834	)		(1.8	)%		—			—	%
Other, net		202			0.0	%		10			0.1	%
	$	123,493			25.0	%	$	253			4.3	%

Schedule of Tax Effects of Significant Temporary Differences to Deferred Tax Assets and Liabilities

The tax effects of significant temporary differences which gave rise to the Company’s deferred tax assets and liabilities are as follows at December 31, 2020 and 2019:

	2020			2019
Deferred tax assets:
Mortgage loans held for sale	$	7,955		$	6,969
Intangible assets		7,494			1,130
Accrued compensation and benefits		3,705			2,060
Deferred compensation		13,277			1,464
Lease liability		23,440			—
Other accrued liabilities		1,240			916
Total deferred tax assets	$	57,111		$	12,539
Deferred tax liabilities:
Mortgage servicing rights	$	(98,660	)	$	(94,094	)
Trading securities		(19	)		(23	)
Derivatives		(22,743	)		(3,518	)
Right-of-use assets		(23,127	)		—
Property and equipment		(1,932	)		(1,182	)
Total deferred tax liabilities		(146,481	)		(98,817	)
Net deferred tax liabilities	$	(89,370	)	$	(86,278	)