INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

INCOME TAXES

Summary of Provision for Income Taxes

	For the year ended December 31,
Components of Income Tax Expense (in thousands)	2019		2018		2017
Current
Federal	$	28,150	$	26,850	$	45,726
State		6,959		7,575		7,062
Total current expense	$	35,109	$	34,425	$	52,788
Deferred
Federal	$	17,484	$	13,964	$	25,055
State		4,528		3,519		2,297
Revaluation of deferred tax liabilities, net		—		—		(58,313)
Total deferred expense (benefit)	$	22,012	$	17,483	$	(30,961)
Total income tax expense	$	57,121	$	51,908	$	21,827

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

	For the year ended December 31,
(in thousands)	2019		2018		2017
Statutory federal expense (1)	$	48,374	$	44,699	$	81,781
Statutory state income tax expense, net of federal tax benefit		9,281		8,744		7,594
Revaluation of deferred tax liabilities, net		—		—		(58,313)
Other		(534)		(1,535)		(9,235)
Income tax expense	$	57,121	$	51,908	$	21,827

(1) The statutory federal rate was 21% for the year ended December 31, 2019 and 2018 and 35% for the year ended December 31, 2017.

Schedule of Deferred Tax Assets and Liabilities

	As of December 31,
Components of Deferred Tax Liabilities, Net (in thousands)	2019		2018
Deferred Tax Assets
Compensation related	$	8,227	$	16,753
Credit losses		3,133		1,202
Valuation allowance		(1,049)		(2,838)
Total deferred tax assets	$	10,311	$	15,117
Deferred Tax Liabilities
Mark-to-market of derivatives and loans held for sale	$	(5,396)	$	(8,582)
Mortgage servicing rights related		(139,115)		(125,084)
Acquisition related (1)		(7,292)		(4,396)
Depreciation		(1,812)		(2,005)
Other		(3,507)		(592)
Total deferred tax liabilities	$	(157,122)	$	(140,659)
Deferred tax liabilities, net	$	(146,811)	$	(125,542)

(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.