INCOME TAXES

A summary of the Company’s deferred tax assets and deferred tax liabilities at September 30, 2015 and December 31, 2014 is as follows:



(dollars in thousands)	September 30, 2015			December 31, 2014
Gross deferred tax assets	$	335,229		348,116
Valuation allowance	(29,416		)	(35,541	)
Deferred tax assets, net of valuation allowance	305,813			312,575
Deferred tax liabilities	38,572			40,728
Net deferred tax assets	$	267,241		271,847

During the second quarter of 2015, the Company recorded adjustments to the valuation allowance against its net deferred tax assets, which were reflected as a benefit for income taxes in the consolidated statements of income. These adjustments primarily resulted from the generation of capital gains, changes in state tax rates and changes in estimates associated with certain federal and state tax attributes (net operating loss carryforwards, capital loss carryforwards, contributions, state rates and credits). Additionally, based upon forecasted pre-tax earnings, the Company determined that additional deferred tax assets will be utilized prior to their expiration and thus, additional federal and state valuation allowances were reversed and recorded as a benefit for income taxes in the consolidated statements of income. The adjustments to the valuation allowance against our net deferred tax assets for the nine months ended September 30, 2015 are reflected in the following table:



(dollars in thousands)	Federal			State		Total
Change in forecasted earnings	$	(2,134	)	(1,163	)	(3,297	)
Generation of capital gain on single issuer’s common stock sale	(2,943		)	(738	)	(3,681	)
Changes in estimates associated with certain federal & state tax attributes	342			511		853
Total decrease in deferred tax asset valuation allowance	$	(4,735	)	(1,390	)	(6,125	)

At September 30, 2015 and December 31, 2014, for federal income tax purposes, the Company had net operating loss carryforwards of approximately $535.1 million and $529.3 million, respectively. For state income tax purposes, the Company had net operating loss carryforwards of approximately $716.8 million and $719.5 million at September 30, 2015 and December 31, 2014, respectively, and a related deferred tax asset of $58.7 million.