INCOME TAXES AND DEFERRED TAXES (Tables)

9 Months Ended

Sep. 30, 2012

The following table reflects the effect of temporary differences that give rise to the components of the net deferred tax asset as of September 30, 2012 and December 31, 2011 (in thousands):



	September 30 2012			December 31 2011
Deferred tax assets:
REO and loan loss reserves	$	33,697		$	31,156
Deferred compensation	5,567			6,032
Net operating loss carryforward	25,538			27,992
Low income housing tax credits	6,481			7,202
Other	309			309
Total deferred tax assets	71,592			72,691
Deferred tax liabilities:
FHLB stock dividends	(6,137		)	(6,137		)
Depreciation	(2,854		)	(3,570		)
Deferred loan fees, servicing rights and loan origination costs	(5,042		)	(4,863		)
Intangibles	(1,455		)	(2,243		)
Financial instruments accounted for under fair value accounting	(10,294		)	(16,499		)
Total deferred tax liabilities	(25,782		)	(33,312		)
Deferred income tax asset	45,810			39,379
Unrealized gain on securities available-for-sale	(1,336		)	(1,151		)
Valuation allowance	(3,000		)	(38,228		)
Deferred tax asset, net	$	41,474		$	—