Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2018 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Components of Income Tax Expense (Benefit) |
The following table summarizes the tax (benefit) provision from continuing operations recorded at the taxable subsidiary level for the years ended December 31, 2018, 2017 and 2016:
|
|
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|
|
|
|
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|
|
|
|
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|
Year Ended |
|
December 31, |
(in thousands) |
2018 |
|
2017 |
|
2016 |
Current tax (benefit) provision: |
|
|
|
|
|
Federal |
$ |
52 |
|
|
$ |
492 |
|
|
$ |
(1,616 |
) |
State |
1 |
|
|
57 |
|
|
164 |
|
Total current tax (benefit) provision |
53 |
|
|
549 |
|
|
(1,452 |
) |
Deferred tax (benefit) provision |
41,770 |
|
|
(11,031 |
) |
|
13,766 |
|
Total (benefit from) provision for income taxes |
$ |
41,823 |
|
|
$ |
(10,482 |
) |
|
$ |
12,314 |
|
|
| Schedule of Effective Income Tax Rate Reconciliation |
The following is a reconciliation of the statutory federal and state rates to the effective rates, for the years ended December 31, 2018, 2017 and 2016:
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|
Year Ended |
|
December 31, |
|
2018 |
|
2017 |
|
2016 |
(dollars in thousands) |
Amount |
|
Percent |
|
Amount |
|
Percent |
|
Amount |
|
Percent |
Computed income tax expense at federal rate |
$ |
(518 |
) |
|
21 |
% |
|
$ |
104,215 |
|
|
35 |
% |
|
$ |
127,957 |
|
|
35 |
% |
State taxes, net of federal benefit, if applicable |
1 |
|
|
— |
% |
|
37 |
|
|
— |
% |
|
106 |
|
|
— |
% |
Permanent differences in taxable income from GAAP net income (1)
|
28,414 |
|
|
(1,152 |
)% |
|
1,208 |
|
|
— |
% |
|
401 |
|
|
— |
% |
Dividends paid deduction |
13,926 |
|
|
(565 |
)% |
|
(115,942 |
) |
|
(39 |
)% |
|
(116,150 |
) |
|
(32 |
)% |
(Benefit from) provision for income taxes/ Effective Tax Rate(2)
|
$ |
41,823 |
|
|
(1,696 |
)% |
|
$ |
(10,482 |
) |
|
(4 |
)% |
|
$ |
12,314 |
|
|
3 |
% |
____________________
|
|
(1) |
For the year ended December 31, 2018, permanent differences include a provision of 17.8 million related to the write-down of the net deferred tax assets resulting from the deemed liquidation of three of the Company’s TRSs due to their election revocation, offset by the reversal of the valuation allowance upon TRS revocation. For the year ended December 31, 2017, permanent differences include a provision of $17.5 million related to the effect of the federal tax reform statutory rate change from 35% to 21%.
|
(2) The provision for (benefit from) income taxes is recorded at the taxable subsidiary level.
|
| Schedule Of Current And Deferred Tax Assets And Liabilities |
The Company’s consolidated balance sheets, as of December 31, 2018 and December 31, 2017 contain the following current and deferred tax liabilities and assets, which are included in other assets, and are recorded at the taxable subsidiary level:
|
|
|
|
|
|
|
|
|
(in thousands) |
December 31,
2018 |
|
December 31,
2017 |
Income taxes receivable |
|
|
|
Federal income taxes receivable |
$ |
690 |
|
|
$ |
130 |
|
State and local income taxes receivable |
— |
|
|
— |
|
Income taxes receivable, net |
690 |
|
|
130 |
|
Deferred tax assets (liabilities) |
|
|
|
Deferred tax asset |
17,196 |
|
|
50,419 |
|
Deferred tax liability |
(18,333 |
) |
|
(24,463 |
) |
Total net deferred tax (liabilities) assets |
(1,137 |
) |
|
25,956 |
|
Total tax assets (liabilities), net |
$ |
(447 |
) |
|
$ |
26,086 |
|
|
| Schedule of Deferred Tax Assets and Liabilities |
Components of the Company’s deferred tax liabilities and assets as of December 31, 2018 and December 31, 2017 were as follows:
|
|
|
|
|
|
|
|
|
(in thousands) |
December 31,
2018 |
|
December 31,
2017 |
Available-for-sale securities |
$ |
19 |
|
|
$ |
(11,917 |
) |
Mortgage servicing rights |
(18,333 |
) |
|
(9,054 |
) |
Derivative assets and liabilities |
33 |
|
|
4,870 |
|
Other assets |
9 |
|
|
139 |
|
Other liabilities |
652 |
|
|
545 |
|
Intangibles |
101 |
|
|
108 |
|
Alternative minimum tax credit |
— |
|
|
2,386 |
|
Net operating loss carryforward |
16,354 |
|
|
21,853 |
|
Capital loss carryforward |
28 |
|
|
19,766 |
|
Total deferred tax (liabilities) assets |
(1,137 |
) |
|
28,696 |
|
Valuation allowance |
— |
|
|
(2,740 |
) |
Total net deferred tax (liabilities) assets |
$ |
(1,137 |
) |
|
$ |
25,956 |
|
|