INCOME TAXES (Tables)
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12 Months Ended |
Dec. 31, 2017 |
Income Tax Disclosure [Abstract] |
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Schedule of Components of Income Tax Expense (Benefit) |
The following table presents the components of the provision for income taxes included in the Consolidated Statements of Operations for the years ended December 31, 2017, 2016 and 2015 (in thousands): | | | | | | | | | | | | | | Years Ended December 31 | | 2017 |
| | 2016 |
| | 2015 |
| Current | | | | | | Federal | $ | 30,961 |
| | $ | 29,787 |
| | $ | 24,683 |
| State | 3,085 |
| | 2,477 |
| | 1,399 |
| Total Current | 34,046 |
| | 32,264 |
| | 26,082 |
| | | | | | | Deferred | | | | | | Federal | 58,646 |
| | 9,908 |
| | (3,310 | ) | State | (2,204 | ) | | 2,083 |
| | (23 | ) | Total Deferred | 56,442 |
| | 11,991 |
| | (3,333 | ) | | | | | | | Provision for income taxes | $ | 90,488 |
| | $ | 44,255 |
| | $ | 22,749 |
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Schedule of Effective Income Tax Rate Reconciliation |
The following table presents the reconciliation of the federal statutory rate to the actual effective rate for the years ended December 31, 2017, 2016 and 2015: | | | | | | | | | | | Years Ended December 31 | | 2017 |
| | 2016 |
| | 2015 |
| Federal income tax statutory rate | 35.0 | % | | 35.0 | % | | 35.0 | % | Increase (decrease) in tax rate due to: | | | | | | Tax-exempt interest | (2.6 | ) | | (2.6 | ) | | (3.9 | ) | Investment in life insurance | (1.1 | ) | | (1.2 | ) | | (1.3 | ) | State income taxes, net of federal tax offset | 2.0 |
| | 2.2 |
| | 1.1 |
| Tax credits | (0.6 | ) | | (0.8 | ) | | (1.6 | ) | Merger and acquisition costs | — |
| | — |
| | 1.9 |
| Federal law change | 28.2 |
| | — |
| | — |
| Other | (1.1 | ) | | 1.5 |
| | 2.3 |
| Effective income tax rate | 59.8 | % | | 34.1 | % | | 33.5 | % |
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Schedule of Net Deferred Tax Asset |
The following table reflects the effect of temporary differences that gave rise to the components of the net deferred tax asset as of December 31, 2017 and 2016 (in thousands): | | | | | | | | | | December 31 | | 2017 |
| | 2016 |
| Deferred tax assets: | | | | Loan loss and REO | $ | 22,294 |
| | $ | 36,719 |
| Deferred compensation | 13,045 |
| | 23,189 |
| Net operating loss carryforward | 43,721 |
| | 82,714 |
| Federal and state tax credits | 7,614 |
| | 7,711 |
| State net operating losses | 6,706 |
| | 7,396 |
| Loan discount | 4,736 |
| | 9,696 |
| Other | 4,326 |
| | 6,217 |
| Total deferred tax assets | 102,442 |
| | 173,642 |
| Deferred tax liabilities: | | | | Depreciation | (1,343 | ) | | (2,218 | ) | Deferred loan fees, servicing rights and loan origination costs | (9,564 | ) | | (13,291 | ) | Intangibles | (5,690 | ) | | (11,178 | ) | Financial instruments accounted for under fair value accounting | (9,702 | ) | | (16,186 | ) | Other | (325 | ) | | (880 | ) | Total deferred tax liabilities | (26,624 | ) | | (43,753 | ) | Deferred income tax asset | 75,818 |
| | 129,889 |
| Valuation allowance | (4,391 | ) | | (2,195 | ) | Deferred tax asset, net | $ | 71,427 |
| | $ | 127,694 |
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Schedule of Affordable Housing Tax Credit Information |
The following table presents the balances of the Company's tax credit investments and related unfunded commitments at December 31, 2017 and 2016 (in thousands):
| | | | | | | | | | December 31, 2017 | | December 31, 2016 | Tax credit investments | $ | 7,311 |
| | $ | 4,654 |
| Unfunded commitments—tax credit investments | 4,417 |
| | 665 |
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The following table presents other information related to the Company's tax credit investments for the years ended December 31, 2017 and 2016 (in thousands):
| | | | | | | | | | For the year ended December 31, | | 2017 |
| | 2016 |
| Tax credits and other tax benefits recognized | $ | 1,140 |
| | $ | 1,136 |
| Tax credit amortization expense included in provision for income taxes | 1,144 |
| | 672 |
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