Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.22.4
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense
The components of income tax expense were as follows for the years ended December 31, 2022 and 2021:
2022 2021
Current tax expense (benefit):
Federal $ (199) $ 48,368 
State 870  13,346 
$ 671  $ 61,714 
Deferred tax expense:
Federal $ 72,764  $ 31,568 
State 17,954  9,867 
90,718  41,435 
Income tax expense $ 91,389  $ 103,149 
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 federal statutory tax rate of 21.0% to income from continuing operations before income taxes, as of December 31, 2022 and 2021, respectively:
2022 2021
Amount Percent Amount Percent
Income tax expense at federal statutory rate $ 88,204  21.0  % $ 81,254  21.0  %
State income taxes, net of federal tax benefit 16,297  3.9  % 19,449  5.0  %
Contingent consideration (9,480) (2.3) % —  —  %
Nondeductible compensation (876) (0.2) % 2,092  0.5  %
Permanent items (2,150) (0.5) % 789  0.2  %
Federal and state tax credits, net of federal tax benefit (520) (0.1) % (648) (0.2) %
Other, net (86) 0.0  % 213  0.2  %
$ 91,389  21.8  % $ 103,149  26.7  %
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, 2022 and 2021:
2022 2021
Deferred tax assets:
Investor reserves $ 8,304  $ 8,979 
Accrued compensation and benefits 3,695  3,249 
Derivatives, net 515  — 
Deferred compensation 16,519  16,522 
Lease liability 21,551  24,727 
Other accrued liabilities —  195 
R&D credit carryforwards 836  — 
Net operating loss carryforwards 12,313  — 
Capitalized research and experimental expenditures 4,259  — 
Charitable contributions 135  — 
Total deferred tax assets $ 68,127  $ 53,672 
Deferred tax liabilities:
Mortgage servicing rights $ (273,101) $ (160,966)
Intangible assets (1,017) (3,537)
Trading securities (24) (27)
Derivatives, net —  (6,542)
Other accrued liabilities (5,957) — 
Right-of-use assets (19,424) (22,642)
Property and equipment (1,567) (2,203)
Total deferred tax liabilities (301,090) (195,917)
Net deferred tax liabilities $ (232,963) $ (142,245)