INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The following table presents the components of the provision for income tax (benefit) expense included in the Consolidated Statement of Operations for the years ended December 31, 2013, 2012 and 2011 (in thousands):

	Years Ended December 31
	2013		2012			2011
Current	$	12,121	$	10,759		$	—
Deferred	10,407		841			(3,322		)
Increase (decrease) in valuation allowance	—		(36,385		)	3,322
Provision for (benefit from) income taxes	$	22,528	$	(24,785	)	$	—

Schedule of Effective Income Tax Rate Reconciliation

The following tables present the reconciliation of the provision for income taxes computed at the federal statutory rate to the actual effective rate for the years ended December 31, 2013, 2012 and 2011 (dollars in thousands):

	Years Ended December 31
	2013			2012			2011
Provision for (benefit from) income taxes computed at federal statutory rate	$	24,179		$	14,034		$	1,910
Increase (decrease) in taxes due to:
Tax-exempt interest	(1,633		)	(1,710		)	(1,616		)
Investment in life insurance	(707		)	(894		)	(663		)
State income taxes (benefit), net of federal tax offset	824			539			(2,260		)
Tax credits	(636		)	(788		)	(840		)
Valuation allowance	—			(36,385		)	3,322
Other	501			419			147
Provision for (benefit from) income taxes	$	22,528		$	(24,785	)	$	—

	Years Ended December 31
	2013		2012		2011
Federal income tax statutory rate	35.0	%	35.0	%	35.0	%
Increase (decrease) in tax rate due to:
Tax-exempt interest	(2.4	)	(4.3	)	(29.6	)
Investment in life insurance	(1.0	)	(2.2	)	(12.1	)
State income taxes (benefit), net of federal tax offset	1.2		1.3		(41.5	)
Tax credits	(0.9	)	(2.0	)	(15.4	)
Valuation allowance	—		(90.7	)	60.9
Other	0.7		1.1		2.7
Effective income tax rate	32.6	%	(61.8	)%	—	%

Schedule of Net Deferred Tax Asset

The following table reflects the effect of temporary differences that gave rise to the components of the net deferred tax asset as of December 31, 2013 and 2012 (in thousands):

	December 31
	2013			2012
Deferred tax assets:
REO and loan loss reserves	$	17,326		$	24,615
Deferred compensation	7,305			6,122
Net operating loss carryforward	27,639			26,959
Low income housing tax credits	3,676			4,767
State net operating losses	957			1,081
Other	1,235			689
Total deferred tax assets	58,138			64,233
Deferred tax liabilities:
FHLB stock dividends	(5,875		)	(6,187		)
Depreciation	(4,074		)	(4,061		)
Deferred loan fees, servicing rights and loan origination costs	(6,444		)	(5,608		)
Intangibles	(833		)	(1,544		)
Financial instruments accounted for under fair value accounting	(15,118		)	(10,632		)
Total deferred tax liabilities	(32,344		)	(28,032		)
Deferred income tax asset	25,794			36,201
Unrealized loss (gain) on securities available-for-sale	1,685			(1,194		)
Deferred tax asset, net	$	27,479		$	35,007