Note 12 - Income Taxes

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

12.     Income Taxes

     For the years ended December 31, 2015, 2014, and 2013, the current and deferred amounts of the income tax expense are summarized as follows:

	Year Ended December 31,
	2015			2014		2013
	(In thousands)
Current:
Federal	$	31,587		$	36,180	$	62,254
State		26,396			14,481		23,295
Total Current	$	57,983		$	50,661	$	85,549
Deferred:
Federal		3,738			23,783		(11,162	)
State		(1,734	)		7,521		(3,952	)
Total Deferred	$	2,004		$	31,304	$	(15,114	)
Total income tax expense	$	59,987		$	81,965	$	70,435

Temporary differences between the amounts reported in the financial statements and the tax basis of assets and liabilities give rise to deferred taxes. Net deferred tax assets at December 31, 2015, and at December 31, 2014, are included in other assets in the accompanying Consolidated Balance Sheets and are as follows:

	As of December 31,
	2015			2014
	(In thousands)
Deferred Tax Assets
Loan loss allowance, due to differences in computation of bad debts	$	59,639		$	66,999
Share-based compensation		7,513			12,808
Accrual for bonuses		4,984			4,585
Non-accrual interest		4,929			3,735
Accrual for litigation		3,209			2,918
Write-down on equity securities and venture capital investments		3,981			2,697
Write-down on other real estate owned		384			1,357
Depreciation and amortization		2,917			-
State tax		4,802			3,253
Unrealized loss on interest rate swaps		2,173			1,739
Unrealized loss on securities available-for-sale, net		3,940			2,301
Other, net		1,743			2,179
Gross deferred tax assets		100,214			104,571
Deferred Tax Liabilities
Investment in affordable housing partnerships		(1,444	)		(703	)
Basis difference in acquired assets		(4,947	)		(3,321	)
Dividends on Federal Home Loan Bank common stock		(1,322	)		(1,927	)
Other, net		(1,937	)		(2,372	)
Gross deferred tax liabilities		(9,650	)		(8,323	)
Net deferred tax assets	$	90,564		$	96,248

Amounts for the current year are based upon estimates and assumptions and could vary from amounts shown on the tax returns as filed.

In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent on the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not the Company will realize all benefits related to these deductible temporary differences.

The Company had income tax refunds receivables of $28.9 million at December 31, 2015, and $18.1 million at December 31, 2014. These income tax receivables are included in other assets in the accompanying Consolidated Balance Sheets. At December 31, 2015, the Company had Federal net operating loss carry forwards of approximately $0.3 million which expire through 2022. The Federal net operating loss carry-forwards were acquired in connection with the Company’s acquisition of United Heritage Bank.

At both December 31, 2015 and 2014, there were no unrecognized tax benefits. The Company’s tax returns are open for audits by the Internal Revenue Service back to 2012 and by the California Franchise Tax Board back to 2008. The Company is under audit by the California Franchise Tax Board for the years 2008 to 2011. As the Company is presently under audit by a number of tax authorities, it is reasonably possible that unrecognized tax benefits could change significantly over the next twelve months. The Company does not expect that any such changes would have a material impact on its annual effective tax rate.

      Income tax expense results in effective tax rates that differ from the statutory Federal income tax rate for the years indicated as follows:

	2015					2014					2013
	(In thousands)
Tax provision at Federal statutory rate	$	77,384		35.0	%	$	76,928		35.0	%	$	67,752		35.0	%
State income taxes, net of Federal income tax benefit		14,656		6.6			14,324		6.6			12,573		6.5
Interest on obligations of state and political subdivisions, which are exempt from Federal taxation		-		-			-		-			(348	)	(0.2	)
Low income housing and other tax credits		(30,986	)	(14.0	)		(10,014	)	(4.6	)		(10,056	)	(5.2	)
Other, net		(1,067	)	(0.5	)		727		0.3			514		0.3
Total income tax expense	$	59,987		27.1	%	$	81,965		37.3	%	$	70,435		36.4	%