NOTE 15—INCOME TAXES

The following table presents the components of income tax expense for the years indicated:

	Year Ended December 31,

	2013			2012			2011
	(In thousands)
Current Income Tax (Expense) Benefit:
Federal	$	(29,591	)	$	(24,177	)	$	(15,129	)
State		(7,667	)		(1,825	)		(9,562	)


Total current income tax expense		(37,258	)		(26,002	)		(24,691	)


Deferred Income Tax (Expense) Benefit:
Federal		9,099			(2,550	)		(11,726	)
State		(1,586	)		(8,143	)		(383	)


Total deferred income tax benefit (expense)		7,513			(10,693	)		(12,109	)


Total income tax expense	$	(29,745	)	$	(36,695	)	$	(36,800	)

The following table presents a reconciliation of the recorded income tax expense to the amount of taxes computed by applying the applicable federal statutory income tax rate of 35% to earnings or loss before income taxes:

	Year Ended December 31,

	2013			2012			2011
	(In thousands)
Computed expected income tax expense at federal statutory rate	$	(26,201	)	$	(32,724	)	$	(30,626	)
State tax expense, net of federal tax benefit		(6,014	)		(6,479	)		(6,464	)
Tax-exempt interest benefit		3,979			1,847			406
Increase in cash surrender value of life insurance		407			442			504
Tax credits		2,480			1,313			556
Nondeductible employee compensation		(4,730	)		(322	)		(572	)
Nondeductible acquisition-related expense		(1,196	)		(532	)		—
Acquisition-related securities gain		1,828			—			—
Other, net		(298	)		(240	)		(604	)


Recorded income tax expense	$	(29,745	)	$	(36,695	)	$	(36,800	)

The Company had net income taxes receivable of $39.6 million and $30.0 million at December 31, 2013 and 2012, respectively, included in other assets on its consolidated balance sheets.

The Company had available at December 31, 2013, approximately $34,000 of unused federal net operating loss carryforwards that may be applied against future taxable income through 2022. The Company had available at December 31, 2013, approximately $658,000 of unused state net operating loss carryforwards that may be applied against future taxable income through 2033. Utilization of the net operating loss and other carryforwards are subject to annual limitations set forth in Section 382 of the Internal Revenue Code.

NOTE 15—INCOME TAXES (Continued)

The following table presents the tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities as of the dates indicated:

	December 31,

	2013		2012
	(In thousands)
Deferred Tax Assets:
Book allowance for loan losses in excess of tax specific charge-offs	$	45,840	$	31,602
Interest on nonaccrual loans		444		473
Deferred compensation		4,541		3,727
Premises and equipment, principally due to differences in depreciation		3,643		2,457
OREO valuation allowance		9,784		7,398
Assets acquired in FDIC-assisted acquisition		16,375		19,170
State tax benefit		2,368		247
Accrued liabilities		16,629		10,126
Other		7,846		10,934
Goodwill		6,595		3,846
Deferred loan fees and costs		378		—
Unrealized loss on securities available-for-sale		2,424		—


Gross deferred tax assets		116,867		89,980


Deferred Tax Liabilities:
Core deposit and customer relationship intangibles		6,022		5,004
Deferred loan fees and costs		—		296
Unrealized gain on securities available-for-sale		—		23,824
FHLB stock and dividends		7,123		7,557
Unrealized income from FDIC-assisted acquisition		24,086		23,614


Gross deferred tax liabilities		37,231		60,295


Total net deferred tax asset	$	79,636	$	29,685

Based upon our taxpaying history and estimates of taxable income over the years in which the items giving rise to the deferred tax assets are deductible, management believes it is more likely than not the Company will realize the benefits of these deductible differences.

Our evaluation of tax positions was performed for those tax years that remain open to audit. As of December 31, 2013, all the federal returns filed since 2008 and state returns filed since 2008 are subject to adjustment upon audit.

We had no unrecognized net tax benefit positions at December 31, 2013, 2012 and 2011, respectively. While the amount of unrecognized tax benefits may change in the next twelve months, the Company does not expect this change to have a material impact on the results of operations or the financial position of the Company. We may from time to time be assessed interest or penalties by taxing authorities, although any such assessments historically have been minimal and immaterial to our financial results. In the event we are assessed for interest and/or penalties, such amounts will be classified in the financial statements as income tax expense.