Income Taxes

12 Months Ended

Dec. 31, 2019

Income tax expense/(benefit) consists of the following:



	Year ended December 31,
(in thousands)	2019		2018			2017
Current:
Federal	$	69,427	$	82,556		$	94,112
State	4,072		3,808			3,257
Total	73,499		86,364			97,369
Deferred:
Federal	10,796		(6,400		)	31,276
State	—		—			—
Total	10,796		(6,400		)	31,276
Total expense:
Federal	80,223		76,156			125,388
State	4,072		3,808			3,257
Total	$	84,295	$	79,964		$	128,645

The reconciliation of our effective income tax rate to the U.S. federal statutory tax rate is as follows:



	Year ended December 31,
	2019		2018		2017
U.S. statutory rate	21	%	21	%	35	%
State taxes	1	%	1	%	1	%
Non-deductible expenses	1	%	1	%	1	%
Deferred tax asset remeasurement write-off	—	%	—	%	5	%
Non-taxable income	(1	)%	(1	)%	(1	)%
Other	(1	)%	(1	)%	(1	)%
Effective tax rate	21	%	21	%	40	%

The tax effect of unrealized gains and losses on available-for-sale debt securities is recorded to other comprehensive income and is not a component of income tax expense/(benefit).

We are no longer subject to U.S. federal income tax examinations for years before 2016 or state and local income tax examinations for years before 2015.

The table below summarizes significant components of our deferred tax assets and liabilities utilizing the federal corporate income tax rate of 21%. Management believes it is more likely than not that all of the deferred tax assets will be realized. Our net deferred tax assets are included in other assets in the consolidated balance sheets.



	December 31,
(in thousands)	2019			2018
Deferred tax assets:
Allowance for credit losses	$	44,383		$	44,224
Operating lease liabilities	20,894			—
Loan origination fees	10,638			11,328
Stock compensation	3,605			3,363
Non-accrual interest	2,351			1,724
Non-qualified deferred compensation	4,027			2,211
Other	2,544			2,517
Total deferred tax assets	88,442			65,367
Deferred tax liabilities:
Loan origination costs	(2,686		)	(2,049		)
Leases	(7,912		)	(9,000		)
Operating lease ROU assets	(19,644		)	—
MSRs	(13,818		)	(9,184		)
Depreciation	(17,602		)	(8,233		)
Unrealized gain on securities	(2,379		)	(138		)
Other	(3,337		)	(2,662		)
Total deferred tax liabilities	(67,378		)	(31,266		)
Net deferred tax asset	$	21,064		$	34,101