Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

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

(dollars in thousands)	2013			2012			2011
Current:
Federal	$	—		$	—		$	—
State	—			—			—
Total current taxes	—			—			—
Deferred
Federal	21,030			(13,709		)	(43,001		)
State	14,655			(2,722		)	(8,657		)
Total deferred taxes	35,685			(16,431		)	(51,658		)
Increase (decrease) in valuation allowance	(34,359		)	15,392			52,299
Total income tax (benefit) expense - continuing operations	$	1,326		$	(1,039	)	$	641

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)
	2013			2012			2011
Amount of tax computed using Federal statutory tax rate of 35% in all years	$	(55	)	$	(14,365	)	$	(45,807	)
Increases (decreases) resulting from effects of:
Non-taxable income	(88		)	(169		)	(196		)
State income taxes, net of federal benefit	9,526			(1,769		)	(5,627		)
Valuation allowance on deferred tax assets	(34,359		)	15,392			52,299
Reduction of deferred tax assets at Granite	28,293			—			—
Other	(1,991		)	(128		)	(28		)
Total income tax (benefit) expense - continuing operations	$	1,326		$	(1,039	)	$	641

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, 2013			December 31, 2012
Deferred tax assets:
Allowance for loan losses	$	10,364		$	11,754
Net operating loss	135,050			145,472
Compensation and benefit plans	995			805
Fair value basis on securities	918			1,199
Fair value basis of loans	(951		)	9,742
Fair value basis on deposits	—			187
Pension and other post-retirement benefits	1,080			2,754
Other real estate owned	4,091			16,649
Gross unrealized securities losses	10,215			838
Interest on nonperforming loans	1,339			1,382
Other	529			812
Subtotal deferred tax assets	163,630			191,594
Less: Valuation allowance	(148,043		)	(182,402		)
Total deferred tax assets	15,587			9,192
Deferred tax liabilities:
Core deposit intangible	2,051			2,673
Depreciable basis of premises and equipment	495			721
Net deferred loan fees and costs	1,077			1,010
Gross unrealized securities gains	1,249			3,220
SAB 109 valuation	—			2
Other	500			728
Total deferred tax liabilities	5,372			8,354
Net deferred tax assets	$	10,215		$	838