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Income Taxes
12 Months Ended
Dec. 31, 2017
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
The components of income tax expense for the years ended December 31 are as follows: 
 
2017
 
2016
 
2015
Current income tax (benefit) expense:

 


 
 
  Federal
$
(15,424
)
 
$
6,487

 
$
11,387

  State
1,162

 
1,244

 
1,472

Total current tax (benefit) expense
(14,262
)

7,731

 
12,859

Deferred income tax (benefit) expense:

 


 
 
  Federal
8,389

 
(3,848
)
 
992

  State
3,628

 
(440
)
 
(56
)
Total deferred tax (benefit) expense
12,017


(4,288
)
 
936

Income tax (benefit) expense, as reported
$
(2,245
)

$
3,443

 
$
13,795


Reported income tax expense differed from the amounts computed by applying the U.S. federal statutory income tax rate of 35% to income before income taxes for the years ended December 31, 2017, 2016 and 2015 as follows:
 
2017
 
2016
 
2015
Income tax expense computed at the statutory rate
$
34,389

 
$
6,023

 
$
12,039

 
 
 
 
 
 
State income tax, net of federal benefit
3,114

 
523

 
920

Stock-based compensation expense
(380
)
 
768

 
423

Change in U.S. tax rate
(18,921
)
 

 

Other
62

 
525

 
413

Decrease in taxes due to investment tax credit
(20,509
)
 
(4,396
)
 

Total income tax expense
$
(2,245
)
 
$
3,443

 
$
13,795


On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cut and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code that affects 2017, including, but not limited to, accelerated depreciation that will allow for full expensing of qualified property. The Tax Act also establishes new tax laws that will affect 2018 and after, including a reduction in the U.S. federal corporate income tax rate from 35% to 21%. The 21% tax rate positively impacted 2017 due to the revaluation of the Company’s deferred tax assets and liabilities. As such, the Company recorded a provisional net tax benefit of $18.9 million.
On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Act.  SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740, Income Taxes.  In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete.  To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. The Company has recorded a provisional amount in the consolidated financial statements and expects the accounting to be completed during the fourth quarter of 2018. The final amount may differ from the provisional amount due to additional analysis, regulatory guidance that may be issued or changes in interpretation.
Components of deferred tax assets and liabilities are as follows:
 
2017
 
2016
 
2015
Deferred tax assets:
 
 
 
 
 
Tax credit carryforwards
$
20,272

 
$

 
$

Allowance for loan and lease losses
5,806

 
6,828

 
2,780

Mark to market on loans held for sale
5,751

 

 

Stock-based compensation expense
1,872

 
3,877

 

Goodwill and intangibles
1,259

 

 

Accrued expenses
375

 
725

 
505

Other
1,062

 
1,395

 
734

Total deferred tax assets
36,397

 
12,825

 
4,019

 
 
 
 
 
 
Deferred tax liabilities:
 
 
 
 
 
Investment in joint venture
16,320

 

 

Unguaranteed loan discount
6,615

 
4,644

 
4,083

Premises and equipment
24,112

 
7,193

 
3,952

Deferred loan fees and costs, net
1,139

 
1,321

 
892

Other
323

 

 

Total deferred tax liabilities
48,509

 
13,158

 
8,927

Net deferred tax liability
$
12,112

 
$
333

 
$
4,908


The Company has recorded a deferred tax asset of $20.3 million related to tax credit carryforwards which will expire in 2037.
The Company does not have any material uncertain tax positions and does not have any interest and penalties recorded in the income statement for the years ended December 31, 2017, 2016 and 2015. The Company files a consolidated income tax return in the U.S. federal tax jurisdiction.