INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2014

Operating Loss Carryforwards [Line Items]

Schedule of Components of Income Tax Expense (Benefit)

The provision (benefit) for income taxes from continuing operations for the years ended December 31, 2014, 2013 and 2012 consists of the following:

(dollars in thousands)	2014			2013		2012
Current provision (benefit) for income taxes:
Federal	$	102		3		—
State	(6		)	(244	)	(32	)
	96			(241	)	(32	)
Deferred provision (benefit) for income taxes:
Federal	9,663			44,068		6,766
State	10,239			(1,275	)	1,253
	19,902			42,793		8,019
Decrease in deferred tax asset valuation allowance	(7,839		)	(331,053	)	(8,126	)
Total	$	12,159		(288,501	)	(139	)

Schedule of Effective Income Tax Rate Reconciliation

The effective rates of federal income taxes for the years ended December 31, 2014, 2013 and 2012 differ from the federal statutory rates of taxation as follows:

	Years Ended December 31,
	2014					2013					2012
(dollars in thousands)	Amount			Percent		Amount			Percent		Amount			Percent
Income (loss) from continuing operations before provision (benefit) for income taxes and net (loss) income attributable to noncontrolling interest in subsidiary	$	33,738				$	(67,801	)			$	34,663
Provision (benefit) for income taxes calculated at federal statutory income tax rates	$	11,808		35.0	%	$	(23,730	)	35.0	%	$	12,132		35.0	%
Effects of differences in tax reporting:
Tax-exempt interest income, net of tax preference adjustment	(78		)	(0.2	)	(117		)	0.2		(135		)	(0.4	)
State income taxes	6,656			19.6		(1,098		)	1.6		795			2.3
Bank owned life insurance, net of premium	11			—		516			(0.8	)	11			—
Noncontrolling investment in flow-through entity	27			0.1		(63		)	0.1		104			0.3
Goodwill impairment and amortization of intangibles	—			—		37,544			(55.4	)	—			—
(Decrease) increase in deferred tax asset valuation allowance, net of federal benefit	(5,071		)	(15.0	)	(311,537		)	459.5		(13,112		)	(37.9	)
Reclassification of deferred tax asset valuation allowance from accumulated other comprehensive income to provision for income taxes	—			—		10,547			(15.6	)	—			—
Expiration of net operating loss carryforwards	—			—		3			—		643			1.9
Other, net	(1,194		)	(3.5	)	(566		)	0.9		(577		)	(1.6	)
Provision (benefit) for income taxes	$	12,159		36.0	%	$	(288,501	)	425.5	%	$	(139	)	(0.4	)%

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, 2014 and 2013 were as follows:

	December 31,
(dollars in thousands)	2014			2013
Deferred tax assets:
Federal net operating loss carryforwards	$	185,247		200,139
State net operating loss carryforwards	57,843			66,578
Allowance for loan losses	29,102			35,354
Loans held for sale	1,088			2,341
Alternative minimum and general business tax credits	21,186			20,830
Interest on nonaccrual loans	8,620			9,078
Deferred compensation	4,591			4,070
Core deposit intangibles	2,135			2,493
Partnership and corporate investments	4,520			5,945
Deferred loan charge-offs and other fraud losses	3,847			1,426
Other real estate	13,734			15,893
Accrued contingent liabilities	2,414			1,908
Depreciation on bank premises and equipment	1,796			—
State taxes	—			(19,325	)
Other	11,993			12,531
Gross deferred tax assets	348,116			359,261
Valuation allowance	(35,541		)	(43,380	)
Deferred tax assets, net of valuation allowance	312,575			315,881
Deferred tax liabilities:
State taxes	17,799			—
Servicing rights	4,653			4,655
Net fair value adjustment for available-for-sale investment securities	5,270			1,055
Deferred gain on reclassification of investment securities from available for sale to held to maturity	4,211			4,988
Equity investments	5,681			5,683
Thrift base year tax bad debt reserve	—			10,605
Net deferred loan fees	1,860			1,870
Depreciation on bank premises and equipment	—			(1,561	)
Other	1,254			1,102
Deferred tax liabilities	40,728			28,397
Net deferred tax assets	$	271,847		287,484

Deferred Tax Asset Valuation Allowance Rollforward

Changes in the deferred tax asset valuation allowance for the years ended December 31, 2014, 2013 and 2012 were as follows:

(dollars in thousands)	2014			2013		2012
Balance, beginning of year	$	43,380		376,224		391,629
Reversal of deferred tax asset valuation allowance to provision for income taxes	(7,957		)	(319,142	)	(643	)
Increase (decrease) in deferred tax asset valuation allowance to provision for income taxes	118			(27,319	)	(468	)
Increase (decrease) in deferred tax asset valuation allowance to accumulated other comprehensive income	—			13,617		(14,294	)
Balance, end of year	$	35,541		43,380		376,224

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, 2014 and 2013 is as follows:

(dollars in thousands)	2014			2013
Balance, beginning of year	$	881		1,126
Additions:
Tax positions taken during the current year	—			90
Tax positions taken during the prior year	—			—
Reductions:
Tax positions taken during the prior year	(8		)	(335	)
Lapse of statute of limitations	—			—
Balance, end of year	$	873		881

Federal - Domestic Tax Authority [Member]

Operating Loss Carryforwards [Line Items]

Summary of Net Operating Loss Carryforwards

At December 31, 2014, the Company’s federal net operating loss carryforwards expire as follows:

(dollars in thousands)
Year ending December 31:
2021	$	2,177
2022	2,386
2023 – 2026	14,937
2027 – 2032	509,778
Total	$	529,278

State and Local Jurisdiction [Member]

Operating Loss Carryforwards [Line Items]

Summary of Net Operating Loss Carryforwards

At December 31, 2014, the Company’s state net operating loss carryforwards expire as follows:

(dollars in thousands)	State Net Operating Losses (Footprint States)		State Net Operating Losses (Other States)	State Net Operating Losses
Year ending December 31:
2015	$	—	249	249
2016	—		42	42
2017	16,822		7	16,829
2018	13,028		26	13,054
2019 – 2026	177,167		3,003	180,170
2027 – 2032	506,168		2,973	509,141
Total	$	713,185	6,300	719,485