Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v2.4.0.6
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2012
Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

 

     Year Ended December 31,  
     2012     2011     2010  
     (In Thousands)  

Unrecognized Tax Benefits at Beginning of Year

   $ 1,281      $ 940      $ 1,988   

Gross Increases for Tax Positions of Prior Years

     14        515        157   

Gross Decreases for Tax Positions of Prior Years

     —        —        —   

Increase in Tax Positions for Current Year

     —        —        —   

Decrease Due to FTB Audit Result

     —        —        (673 ) 

Transfer to Current State Tax Reserve

     —        —        (358 ) 

Lapse in Statute of Limitations

     (41 )      (174 )      (174 ) 
  

 

 

   

 

 

   

 

 

 

Unrecognized Tax Benefits at End of Year

   $ 1,254      $ 1,281      $ 940   
  

 

 

   

 

 

   

 

 

 
Summary of Provision (Benefit) for Income Taxes

A summary of the provision (benefit) for income taxes was as follows:

 

     Year Ended December 31,  
     2012     2011      2010  
     (In Thousands)  

Current Expense:

       

Federal

   $ 4,993      $ 704       $ (3,224 ) 

State

     (19 )      29         (349 ) 
  

 

 

   

 

 

    

 

 

 

Total Current Expense (Benefit)

     4,974        733         (3,573 ) 

Deferred Expense:

       

Federal

     (25,836 )      —         3,561   

State

     (26,506 )      —         —   
  

 

 

   

 

 

    

 

 

 

Total Deferred (Benefit) Expense

     (52,342 )      —         3,561   
  

 

 

   

 

 

    

 

 

 

Provision (Benefit) for Income Taxes

   $ (47,368 )    $ 733       $ (12 ) 
  

 

 

   

 

 

    

 

 

 

 

Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities were as follows:

 

     As of December 31,  
     2012     2011     2010  
     (In Thousands)  

Deferred Tax Assets:

      

Credit Loss Provision

   $ 29,995      $ 42,712      $ 69,532   

Depreciation

     1,253        1,240        1,203   

Net Operating Loss Carryforward

     33,875        50,255        39,994   

Unrealized Loss on Securities Available for Sale, Interest-Only Strips

     —        —        988   

Tax Credit

     5,426        5,803        4,059   

State Taxes

     —        91        90   

Other

     3,766        3,517        4,259   
  

 

 

   

 

 

   

 

 

 

Total Deferred Tax Assets

     74,315        103,618        120,125   
  

 

 

   

 

 

   

 

 

 

Deferred Tax Liabilities:

      

Mark to Market

     (5,562 )      (14,820 )      (21,696 ) 

Purchase Accounting

     (3,217 )      (3,119 )      (3,747 ) 

Unrealized Gain on Securities Available for Sale, Interest-Only Strips

     (3,096 )      (1,752 )      —   

State Taxes

     (9,429 )      —        —   

Other

     (2,013 )      (1,658 )      (2,003 ) 
  

 

 

   

 

 

   

 

 

 

Total Deferred Tax Liabilities

     (23,317 )      (21,349 )      (27,446 ) 
  

 

 

   

 

 

   

 

 

 

Valuation Allowance

     —        (82,269 )      (92,679 ) 
  

 

 

   

 

 

   

 

 

 

Net Deferred Tax Assets

   $ 50,998      $ —      $ —   
  

 

 

   

 

 

   

 

 

 
Reconciliation Between Federal Statutory Income Tax Rate and Effective Tax Rate

Reconciliation between the federal statutory income tax rate and the effective tax rate is shown in the following table:

 

     Year Ended December 31,  
     2012     2011     2010  

Federal Statutory Income Tax Rate

     35.00 %      35.00 %      35.00 % 

State Taxes, Net of Federal Tax Benefits

     0.03 %      0.00 %      -0.10 % 

Tax-Exempt Municipal Securities

     -0.32 %      -0.26 %      0.10 % 

Tax Credit – Federal

     -2.10 %      -2.97 %      1.50 % 

Other

     -2.16 %      -0.80 %      1.60 % 

Valuation Allowance

     -140.59 %      -28.50 %      -38.00 % 
  

 

 

   

 

 

   

 

 

 

Effective Tax Rate

     -110.14 %      2.47 %      -0.10 %