Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax (benefit) expense from continuing operations for the years ended December 31, 2012, 2011, and 2010 are presented below:



(in thousands)	2012			2011		2010
Current
Federal	$	2,831		(99	)	(20,185	)
State	(6,885		)	1,768		(4,181	)
Total current income tax (benefit) expense	(4,054		)	1,669		(24,366	)
Deferred
Federal	(666,242		)	535		(4,834	)
State	(128,436		)	(892	)	14,049
Total deferred income tax (benefit) expense	(794,678		)	(357	)	9,215
Total income tax (benefit) expense	$	(798,732	)	1,312		(15,151	)

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the differences for the years ended December 31, 2012, 2011 and 2010 is shown below:



	Years Ended December 31,
(in thousands)	2012			2011		2010
Income tax expense (benefit) at statutory federal income tax rate	$	11,017		(20,836	)	(297,210	)
Increase (decrease) in taxes resulting from:
State income tax benefit, net of federal income tax effect	(3,935		)	(3,084	)	(30,598	)
Tax-exempt income	(2,026		)	(2,316	)	(2,678	)
Tax credits	(1,558		)	(1,461	)	(1,576	)
Cash surrender value of life insurance	(2,907		)	(2,911	)	(2,888	)
Change in valuation allowance, federal and state	(802,771		)	31,844		320,377
Other, net	3,448			76		(578	)
Total income tax (benefit) expense	$	(798,732	)	1,312		(15,151	)

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and liabilities at December 31, 2012 and 2011 are presented below.



(in thousands)	2012			2011
Deferred tax assets
Net operating loss carryforwards	$	590,938		514,275
Allowance for loan losses	179,916			268,406
Tax credit carryforwards	44,563			44,170
Finance lease transactions	6,236			4,901
Net unrealized loss on cash flow hedges	774			243
Other	46,536			46,779
Total gross deferred tax assets	868,963			878,774
Less valuation allowance	(18,658		)	(821,429	)
Total deferred tax assets	850,305			57,345
Deferred tax liabilities
Excess tax over financial statement depreciation	(13,945		)	(16,371	)
Net unrealized gains on investment securities available for sale	(19,051		)	(29,390	)
Other	(10,903		)	(9,446	)
Total gross deferred tax liabilities	(43,899		)	(55,207	)
Net deferred tax asset	$	806,406		2,138

Schedule of Net Operating Loss and Tax Credit Carryforward

Federal and state NOL and tax credit carryforwards as of December 31, 2012 are summarized in the following table.



Tax Carryforwards	As of December 31, 2012
(in thousands)	Expiration Dates	Deferred Tax Asset Balance		Valuation Allowance		Net Deferred Tax Asset Balance
Net operating losses - federal	2028-2032	$	519,755	—		519,755
General business credits - federal	2028-2032	7,799		—		7,799
Net operating losses - states	2013-2017	47		—		47
Net operating losses - states	2018-2022	1,828		—		1,828
Net operating losses - states	2023-2027	5,296		(3,785	)	1,511
Net operating losses - states	2028-2032	64,012		—		64,012
Other credits - states	2013-2017	17,565		(14,782	)	2,783
Other credits - states	2018-2022	136		(91	)	45
Alternative minimum tax credits - federal	None	$	19,063	—		19,063

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)	2012			2011
Balance at January 1,	$	5,985		6,315
Additions based on income tax positions related to current year	227			275
Additions for income tax positions of prior years	175			—
Deductions for income tax positions of prior years	(2,774		)	(605	)
Statute of limitation expirations	(1,068		)	—
Settlements	(1,425		)	—
Balance at December 31,	$	1,120		5,985