INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

Operating Loss Carryforwards [Line Items]

Schedule of Components of Income Tax Expense (Benefit)

The (benefit) provision for income taxes from continuing operations for the years ended December 31, 2013, 2012 and 2011 consists of the following:

	2013			2012		2011
	(dollars expressed in thousands)
Current (benefit) provision for income taxes:
Federal	$	3		—		902
State	(244		)	(32	)	(721	)
	(241		)	(32	)	181
Deferred benefit for income taxes:
Federal	44,068			6,766		(15,104	)
State	(1,275		)	1,253		(7,187	)
	42,793			8,019		(22,291	)
(Decrease) increase in deferred tax asset valuation allowance	(331,053		)	(8,126	)	11,456
Total	$	(288,501	)	(139	)	(10,654	)

Schedule of Effective Income Tax Rate Reconciliation

The effective rates of federal income taxes for the years ended December 31, 2013, 2012 and 2011 differ from the federal statutory rates of taxation as follows:

	Years Ended December 31,
	2013					2012					2011
	Amount			Percent		Amount			Percent		Amount			Percent
	(dollars expressed in thousands)
Income (loss) from continuing operations before benefit for income taxes and net income (loss) attributable to noncontrolling interest in subsidiary	$	(67,801	)			$	34,663				$	(45,360	)
Provision (benefit) for income taxes calculated at federal statutory income tax rates	$	(23,730	)	35.0	%	$	12,132		35.0	%	$	(15,876	)	35.0	%
Effects of differences in tax reporting:
Tax-exempt interest income, net of tax preference adjustment	(117		)	0.2		(135		)	(0.4	)	(203		)	0.4
State income taxes	(1,098		)	1.6		795			2.3		(4,667		)	10.3
Bank owned life insurance, net of premium	516			(0.8	)	11			—		10			—
Noncontrolling investment in flow-through entity	(63		)	0.1		104			0.3		1,033			(2.3	)
Goodwill impairment and amortization of intangibles	37,544			(55.4	)	—			—		175			(0.3	)
(Decrease) increase in deferred tax asset valuation allowance, net of federal benefit	(311,537		)	459.5		(13,112		)	(37.9	)	19,456			(42.9	)
Reclassification of deferred tax asset valuation allowance from accumulated other comprehensive income to provision for income taxes	10,547			(15.6	)	—			—		(10,466		)	23.1
Expiration of net operating loss carryforwards	3			—		643			1.9		34			—
Other, net	(566		)	0.9		(577		)	(1.6	)	(150		)	0.2
Benefit for income taxes	$	(288,501	)	425.5	%	$	(139	)	(0.4	)%	$	(10,654	)	23.5	%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2013 and 2012 were as follows:

	December 31,
	2013			2012
	(dollars expressed in thousands)
Deferred tax assets:
Federal net operating loss carryforwards	$	200,139		209,190
State net operating loss carryforwards	66,578			65,882
Allowance for loan losses	35,354			37,825
Loans held for sale	2,341			2,032
Alternative minimum and general business tax credits	20,830			19,146
Interest on nonaccrual loans	9,078			12,551
Deferred compensation	4,070			3,573
Core deposit intangibles	2,493			2,706
Partnership and corporate investments	5,945			7,908
Deferred loan charge-offs and other fraud losses	1,426			4,341
Other real estate and repossessed assets	15,893			22,666
Accrued contingent liabilities	1,908			2,870
Depreciation on bank premises and equipment	—			1,202
State taxes	(19,325		)	682
Other	12,531			12,692
Gross deferred tax assets	359,261			405,266
Valuation allowance	(43,380		)	(376,224	)
Deferred tax assets, net of valuation allowance	315,881			29,042
Deferred tax liabilities:
Servicing rights	4,655			2,632
Net fair value adjustment for available-for-sale investment securities	1,055			21,214
Deferred gain on reclassification of investment securities from available for sale to held to maturity	4,988			4,265
Equity investments	5,683			5,364
Thrift base year tax bad debt reserve	10,605			—
Net deferred loan fees	1,870			1,903
Depreciation on bank premises and equipment	(1,561		)	—
Other	1,102			804
Deferred tax liabilities	28,397			36,182
Net deferred tax assets (liabilities)	$	287,484		(7,140	)

Deferred Tax Asset Valuation Allowance Rollforward

Changes in the deferred tax asset valuation allowance for the years ended December 31, 2013, 2012 and 2011 were as follows:

	2013			2012		2011
	(dollars expressed in thousands)
Balance, beginning of year	$	376,224		391,629		370,125
Reversal of deferred tax asset valuation allowance to provision for income taxes	(319,142		)	(643	)	(115	)
(Decrease) increase in deferred tax asset valuation allowance to provision for income taxes	(27,319		)	(468	)	31,621
Increase (decrease) in deferred tax asset valuation allowance to accumulated other comprehensive income	13,617			(14,294	)	(10,002	)
Balance, end of year	$	43,380		376,224		391,629

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending balance of these unrecognized tax benefits for the years ended December 31, 2013 and 2012 is as follows:

	2013			2012
	(dollars expressed in thousands)
Balance, beginning of year	$	1,126		1,194
Additions:
Tax positions taken during the current year	90			217
Tax positions taken during the prior year	—			—
Reductions:
Tax positions taken during the prior year	(335		)	(14	)
Lapse of statute of limitations	—			(271	)
Balance, end of year	$	881		1,126

Federal - Domestic Tax Authority [Member]

Operating Loss Carryforwards [Line Items]

Summary of Net Operating Loss Carryforwards

At December 31, 2013, the Company’s federal net operating loss carryforwards expire as follows:

	(dollars expressed in thousands)
Year ending December 31:
2021	$	2,919
2022	2,386
2023 – 2026	17,814
2027 – 2032	548,707
Total	$	571,826

State and Local Jurisdiction [Member]

Operating Loss Carryforwards [Line Items]

Summary of Net Operating Loss Carryforwards

At December 31, 2013, the Company’s state net operating loss carryforwards expire as follows:

	State Net Operating Losses (Footprint States)		State Net Operating Losses (Other States)	State Net Operating Losses
	(dollars expressed in thousands)
Year ending December 31:
2014	$	—	154	154
2015	16,822		291	17,113
2016	13,028		252	13,280
2017	1,372		272	1,644
2018	549		261	810
2019 – 2026	175,144		3,320	178,464
2027 – 2032	570,594		3,301	573,895
Total	$	777,509	7,851	785,360