INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018


	For the year ended December 31,
Components of Income Tax Expense (in thousands)	2018		2017		2016
Current
Federal	$	26,850	$	45,726	$	28,699
State		7,575		7,062		5,176
Total current expense	$	34,425	$	52,788	$	33,875

Deferred
Federal	$	13,964	$	25,055	$	32,159
State		3,519		2,297		5,436
Revaluation of deferred tax liabilities, net		—		(58,313)		—
Total deferred expense (benefit)	$	17,483	$	(30,961)	$	37,595
Total income tax expense	$	51,908	$	21,827	$	71,470

Schedule of Reconciliation of the Statutory Federal Tax Provision to Income Tax Provision


	For the year ended December 31,
(in thousands)	2018		2017		2016
Statutory federal expense (1)	$	44,699	$	81,781	$	65,023
Statutory state income tax expense, net of federal tax benefit		8,744		7,594		6,714
Revaluation of deferred tax liabilities, net		-		(58,313)		—
Other		(1,535)		(9,235)		(267)
Income tax expense	$	51,908	$	21,827	$	71,470

(1)

The statutory federal rate was 21% for the year ended December 31, 2018 and 35% for the years ended December 31, 2017 and 2016.

Schedule of Deferred Tax Assets and Liabilities


	As of December 31,
Components of Deferred Tax Liabilities, Net (in thousands)	2018		2017
Deferred Tax Assets
Compensation related	$	16,753	$	14,320
Credit losses		1,202		959
Other		—		149
Valuation allowance		(2,838)		—
Total deferred tax assets	$	15,117	$	15,428

Deferred Tax Liabilities
Mark-to-market of derivatives and loans held for sale	$	(8,582)	$	(4,389)
Mortgage servicing rights related		(125,084)		(115,239)
Acquisition related (1)		(4,396)		(2,323)
Depreciation		(2,005)		(1,536)
Other		(592)		—
Total deferred tax liabilities	$	(140,659)	$	(123,487)
Deferred tax liabilities, net	$	(125,542)	$	(108,059)

(1)

Acquisition-related deferred tax liabilities consist of book-to-tax differences associated with basis step ups related to the amortization of goodwill recorded from acquisitions, acquisition-related costs capitalized for tax purposes, and book-to-tax differences in intangible asset amortization.