| Reconciliation of Unrecognized Tax Benefits |
A reconciliation of the
beginning and ending amount of unrecognized tax benefits is as
follows:
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Year Ended December 31, |
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2012 |
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2011 |
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2010 |
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(In Thousands) |
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Unrecognized Tax Benefits at
Beginning of Year
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$ |
1,281 |
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$ |
940 |
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$ |
1,988 |
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Gross Increases for Tax Positions of
Prior Years
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14 |
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515 |
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157 |
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Gross Decreases for Tax Positions of
Prior Years
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— |
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— |
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— |
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Increase in Tax Positions for Current
Year
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— |
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— |
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— |
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Decrease Due to FTB Audit
Result
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— |
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— |
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(673 |
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Transfer to Current State Tax
Reserve
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— |
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— |
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(358 |
) |
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Lapse in Statute of
Limitations
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(41 |
) |
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(174 |
) |
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(174 |
) |
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Unrecognized Tax Benefits at End
of Year
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$ |
1,254 |
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$ |
1,281 |
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$ |
940 |
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| Summary of Provision (Benefit) for Income Taxes |
A summary of the
provision (benefit) for income taxes was as follows:
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Year Ended December 31, |
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2012 |
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2011 |
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2010 |
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(In Thousands) |
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Current Expense:
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Federal
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$ |
4,993 |
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$ |
704 |
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$ |
(3,224 |
) |
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State
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(19 |
) |
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29 |
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(349 |
) |
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Total Current Expense
(Benefit)
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4,974 |
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|
733 |
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(3,573 |
) |
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Deferred Expense:
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Federal
|
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(25,836 |
) |
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— |
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3,561 |
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State
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(26,506 |
) |
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— |
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— |
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Total Deferred (Benefit)
Expense
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(52,342 |
) |
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— |
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3,561 |
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Provision (Benefit) for Income
Taxes
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$ |
(47,368 |
) |
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$ |
733 |
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$ |
(12 |
) |
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| Deferred Tax Assets and Liabilities |
Deferred tax assets and
liabilities were as follows:
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As of December 31, |
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2012 |
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2011 |
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2010 |
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(In Thousands) |
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Deferred Tax Assets:
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Credit Loss Provision
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$ |
29,995 |
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$ |
42,712 |
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$ |
69,532 |
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Depreciation
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1,253 |
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1,240 |
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1,203 |
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Net Operating Loss
Carryforward
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33,875 |
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50,255 |
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39,994 |
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Unrealized Loss on Securities
Available for Sale, Interest-Only Strips
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— |
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— |
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|
988 |
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Tax Credit
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5,426 |
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5,803 |
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4,059 |
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State Taxes
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— |
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91 |
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90 |
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Other
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3,766 |
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3,517 |
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4,259 |
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Total Deferred Tax Assets
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74,315 |
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103,618 |
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120,125 |
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Deferred Tax Liabilities:
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Mark to Market
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(5,562 |
) |
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(14,820 |
) |
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(21,696 |
) |
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Purchase Accounting
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(3,217 |
) |
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(3,119 |
) |
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(3,747 |
) |
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Unrealized Gain on Securities
Available for Sale, Interest-Only Strips
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(3,096 |
) |
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(1,752 |
) |
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— |
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State Taxes
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(9,429 |
) |
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— |
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— |
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Other
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(2,013 |
) |
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(1,658 |
) |
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(2,003 |
) |
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Total Deferred Tax
Liabilities
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(23,317 |
) |
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(21,349 |
) |
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(27,446 |
) |
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Valuation Allowance
|
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|
— |
|
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(82,269 |
) |
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(92,679 |
) |
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Net Deferred Tax
Assets
|
|
$ |
50,998 |
|
|
$ |
— |
|
|
$ |
— |
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