Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Taxes

Schedule of the Company's income tax expense (benefit)

	Year ended December 31,
	2018		2017		2016
	(in thousands)
Current expense:
Federal	$	12	$	(81)	$	(1,622)
State		274		56		(244)
Total current expense		286		(25)		(1,866)
Deferred expense:
Federal		23,395		14,674		38,082
State		(427)		9,738		9,887
Total deferred expense		22,968		24,412		47,969
Total provision for income taxes	$	23,254	$	24,387	$	46,103

Schedule of reconciliation of the Company's provision for income taxes at statutory rates to the provision for income taxes at the Company's effective tax rate

	Year ended December 31,
	2018		2017		2016
Federal income tax statutory rate	21.0	%	35.0	%	35.0	%
Less: Income attributable to noncontrolling interest	(12.3)	%	(22.0)	%	(24.8)	%
State income taxes, net of federal benefit	2.3	%	2.2	%	1.6	%
Tax rate revaluation	(2.2)	%	(8.0)	%	0.0	%
Other	(0.1)	%	0.1	%	0.2	%
Effective tax rate	8.7	%	7.3	%	12.0	%

Schedule of components of the Company's provision for deferred income taxes

	Year ended December 31,
	2018		2017		2016
	(in thousands)
Mortgage servicing rights	$	46,064	$	—	$	—
Investment in PennyMac		—		34,011		40,493
Net operating loss		(14,902)		(9,675)		8,110
Compensation accruals		(3,596)		—		—
Reserves and losses		(1,848)		—		—
Additional tax basis in partnership from exchanges of partnership units into the Company's common stock		(1,391)		—		—
Other		(1,302)		—		—
Tax credits		(57)		76		(634)
Total provision for deferred income taxes	$	22,968	$	24,412	$	47,969

Schedule of components of income taxes payable, net

	December 31,
	2018		2017
	(in thousands)
Taxes currently payable (receivable)	$	218	$	(2,126)
Deferred income tax liability, net		400,328		54,286
Income taxes payable	$	400,546	$	52,160

Schedule of tax effects of temporary differences that gave rise to deferred income tax assets and liabilities

	December 31,
	2018		2017
	(in thousands)
Deferred income tax assets:
Additional tax basis in partnership from exchanges of partnership units into the Company's common stock	$	44,165	$	—
Compensation accruals		28,752		—
Reserves and losses		26,589		—
Net operating loss carryforward		25,104		10,202
Tax credits carryforward		616		558
Gross deferred tax assets		125,226		10,760
Deferred income tax liabilities:
Mortgage servicing rights		517,042		—
Investment in PennyMac		—		65,046
Other		8,512		—
Gross deferred tax liabilities		525,554		65,046
Net deferred income tax liability	$	400,328	$	54,286