Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

The components of income tax expense for the years ended December 31 are as follows:



(dollars in thousands)	2012			2011			2010
Current:
Federal	$	—		$	—		$	(105	)
State	—			—			(22		)
Total current taxes	—			—			(127		)
Deferred
Federal	(13,709		)	(43,001		)	(36,996		)
State	(2,721		)	(8,657		)	(7,544		)
Total deferred taxes	(16,430		)	(51,658		)	(44,540		)
Increase in valuation allowance	15,391			52,299			45,926
Total income tax (benefit)/expense - continuing operations	$	(1,039	)	$	641		$	1,259

Effective Income Tax Rate Reconciliation

A reconciliation of income tax expense computed at the statutory federal income tax rate to actual income tax expense is presented in the following table as of December 31:



(dollars in thousands)
	2012			2011			2010
Amount of tax computed using Federal statutory tax rate of 35% in all years	$	(14,365	)	$	(45,807	)	$	(38,589	)
Increases/(decreases) resulting from effects of:
Non-taxable income	(169		)	(196		)	(418		)
State income taxes, net of federal benefit	(1,768		)	(5,627		)	(4,919		)
Valuation allowance on deferred tax assets	15,391			52,299			45,926
Other	(128		)	(28		)	(741		)
Total income tax (benefit)/expense - continuing operations	$	(1,039	)	$	641		$	1,259

Components of Deferred Tax Assets and Liabilities

The components of deferred tax assets and liabilities and the tax effect of each are as follows:



(dollars in thousands)	December 31, 2012			December 31, 2011
Deferred tax assets:
Allowance for loan losses	$	11,754		$	17,395
Net operating loss	145,472			119,446
Compensation and benefit plans	805			2,098
Fair value basis on securities	1,199			1,392
Fair value basis of loans	9,742			12,099
Fair value basis on deposits	187			859
Pension and other post-retirement benefits	2,754			2,017
Other real estate owned	16,650			16,904
Gross unrealized securities losses	838			446
Interest on non-performing loans	1,382			1,382
Other	811			1,759
Subtotal deferred tax assets	191,594			175,797
Less: Valuation allowance	(182,402		)	(167,011		)
Total deferred tax assets	9,192			8,786
Deferred tax liabilities:
Core deposit intangible	2,673			3,229
Depreciable basis of premises and equipment	721			1,151
Net deferred loan fees and costs	1,010			871
Gross unrealized securities gains	3,220			631
SAB 109 valuation	2			6
Other	728			1,096
Total deferred tax liabilities	8,354			6,984
Net deferred tax assets	$	838		$	1,802