Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Aggregate Amount of Income Taxes Included in the Consolidated Statements of Operations and in the Consolidated Statements of Changes in Equity and Comprehensive Income (Loss)

The aggregate amount of income taxes included in the consolidated statements of operations and in the consolidated statements of changes in equity and comprehensive income (loss) for the years ended December 31, 2011, 2010, and 2009, is presented below.



(in thousands)	2011		2010		2009
Consolidated Statements of Operations
Income tax expense (benefit) related to continuing operations	$	1,312	(15,151	)	(171,977	)
Income tax expense related to discontinued operations	—		27,479		3,137
Consolidated Statements of Changes in Equity and Comprehensive Income (Loss)
Income tax expense (benefit) related to:
Post-retirement unfunded health benefit obligation	—		950		14
Unrealized gains (losses) on investment securities available for sale, net	—		(2	)	(14,374	)
Unrealized gains (losses) on cash flow hedges, net	—		(9	)	(12,404	)
Share-based compensation	—		(16	)	2,770
Total income tax expense (benefit)	$	1,312	13,251		(192,834	)

Schedule of Components of Income Tax Expense (Benefit)

For the years ended December 31, 2011, 2010, and 2009, income tax expense (benefit) consists of:



(in thousands)	2011			2010		2009
Current
Federal	$	(99	)	(20,185	)	(337,421	)
State	1,768			(4,181	)	(9,749	)
	1,669			(24,366	)	(347,170	)
Deferred
Federal	535			(4,834	)	161,838
State	(892		)	14,049		13,355
	(357		)	9,215		175,193
Total income tax expense (benefit)	$	1,312		(15,151	)	(171,977	)

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense (benefit) as shown in the consolidated statements of operations differed from the amounts computed by applying the U.S. federal income tax rate of 35% to loss from continuing operations before income taxes as a result of the following presented below.



(dollars in thousands)	2011			2010		2009
Taxes at statutory federal income tax rate	$	(20,836	)	(297,210	)	(562,069	)
Tax-exempt income	(2,316		)	(2,678	)	(3,257	)
State income tax benefit, net of federal income tax benefit, before valuation allowance	(3,084		)	(30,598	)	(50,947	)
Tax credits	(1,461		)	(1,576	)	(1,555	)
Goodwill impairment	—			—		5,282
Cash surrender value of life insurance	(2,911		)	(2,888	)	(2,534	)
Other, net	76			(578	)	4,839
Sub-total income tax benefit before valuation allowance	(30,532		)	(335,528	)	(610,241	)
Change in valuation allowance for deferred tax assets	31,844			320,377		438,264
Total income tax expense (benefit)	$	1,312		(15,151	)	(171,977	)
Effective income tax rate before valuation allowance	51.29		%	39.51	%	38.00	%
Effective income tax rate after valuation allowance	(2.20		)%	1.78	%	10.71	%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that gave rise to significant portions of the deferred income tax assets and liabilities at December 31, 2011 and 2010 are presented below.



(in thousands)	2011			2010
Deferred income tax assets
Net operating loss carryforward	$	514,275		446,017
Provision for loan losses	268,406			330,468
Tax credit carryforward	44,170			43,081
Finance lease transactions	4,901			23,311
Net unrealized loss on cash flow hedges	243			—
Other	46,779			34,126
Total gross deferred income tax assets	878,774			877,003
Less valuation allowance	(821,429		)	(774,961	)
Total deferred income tax assets	57,345			102,042
Deferred income tax liabilities
Excess tax over financial statement depreciation	(16,371		)	(43,993	)
Net unrealized gain on investment securities available for sale	(29,390		)	(39,312	)
Net unrealized gain on cash flow hedges	—			(4,036	)
Other	(9,446		)	(12,921	)
Total gross deferred income tax liabilities	(55,207		)	(100,262	)
Net deferred income tax assets	$	2,138		1,780

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized income tax benefits is as follows (unrecognized state income tax benefits are not adjusted for the federal income tax impact).



	Years Ended December 31,
(in thousands)	2011			2010
Balance at January 1,	$	6,315		7,274
Additions based on income tax positions related to current year	275			176
Additions for income tax positions of prior years	—			—
Deductions for income tax positions of prior years	(605		)	(1,060	)
Settlements	—			(75	)
Balance at December 31,	$	5,985		6,315