INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Components of Income Tax Expense (Benefit)

The following table presents the components of income tax expense (benefit) of continuing operations for the periods indicated:



	Year Ended December 31,
($ in thousands)	2017			2016			2015
Current income taxes:
Federal	$	(2,215	)	$	(3,044	)	$	16,681
State	6,006			11,180			4,088
Total current income tax expense	3,791			8,136			20,769
Deferred income taxes:
Federal	(25,938		)	6,699			4,754
State	(4,434		)	(1,086		)	2,525
Total deferred income tax expense	(30,372		)	5,613			7,279
Change in valuation allowance	—			—			—
Income tax expense (benefit)	$	(26,581	)	$	13,749		$	28,048

Schedule of Effective Income Tax Rate Reconciliation

The following table presents a reconciliation of the recorded income tax expense (benefit) of continuing operations to the amount of taxes computed by applying the applicable statutory Federal income tax rate of 35.0 percent to earnings or loss before income taxes of continuing operations for the years ended December 31, 2017, 2016, and 2015:



	Year Ended December 31,
	2017		2016		2015
Computed expected income tax expense (benefit) at Federal statutory rate	35.0	%	35.0	%	35.0	%
Increase (decrease) resulting from:
Proportional amortization	5.1	%	0.4	%	1.1	%
Other permanent book-tax differences	(2.1	)%	0.2	%	(0.1	)%
State tax expense, net of federal benefit	3.7	%	6.4	%	5.9	%
Income tax credits	(149.5	)%	(33.9	)%	(0.9	)%
Initial book-tax difference on investments in alternative energy partnership	24.9	%	5.8	%	—	%
Write-off of Goodwill for discontinued operations	2.7	%	—	%	—	%
Bank owned life insurance policies	(3.0	)%	(0.8	)%	(0.5	)%
Equity compensation windfall tax benefits	(7.0	)%	—	%	—	%
Remeasurement from the Tax Cuts and Jobs Act	(7.8	)%	—	%	—	%
Reserve for uncertain tax positions	1.9	%	—	%	—	%
Other, net	(2.7	)%	0.6	%	0.1	%
Effective tax rates	(98.8	)%	13.7	%	40.6	%

Schedule of Deferred Tax Assets and Liabilities

The following table presents the Company's deferred tax assets and deferred tax liabilities as of the dates indicated:



	December 31,
($ in thousands)	2017			2016
Deferred tax assets:
Allowance for loan and lease losses	$	15,178		$	18,921
Stock-based compensation expense	2,899			6,118
Accrued expenses	1,465			10,209
Reserve for loss on repurchased loans	2,031			3,426
Federal net operating losses	571			1,162
State net operating losses	871			810
Federal income tax credits	27,550			—
Unrealized loss on securities available-for-sale	—			6,438
Amortization of intangible assets	732			—
Prior year state tax deduction	1,527			5,555
Other deferred tax assets	3,468			3,617
Total deferred tax assets	56,292			56,256
Deferred tax liabilities:
Derivative instruments adjustment	—			(6,559		)
Investments in partnerships	(237		)	(1,945		)
Mortgage servicing rights	(9,337		)	(31,658		)
Amortization of intangible assets	—			(30		)
Deferred loan fees and costs	(7,005		)	(2,760		)
Depreciation on premises and equipment	(3,797		)	(129		)
Unrealized gain on securities available-for-sale	(2,368		)	—
Other deferred tax liabilities	(2,474		)	(3,186		)
Total deferred tax liabilities	(25,218		)	(46,267		)
Valuation allowance	—			—
Net deferred tax assets	$	31,074		$	9,989

Schedule of Unrecognized Tax Benefits Roll Forward

The table below summarizes the activity related to the Company's unrecognized tax benefits for the periods indicated:



	Year Ended December 31,
($ in thousands)	2017		2016		2015
Beginning balance	$	—	$	—	$	5,421
(Decrease) increase related to prior year tax positions	867		—		(5,421		)
Increase in current year tax positions	180		—		—
Ending balance	$	1,047	$	—	$	—