Income Taxes Income Taxes (Tables)

12 Months Ended

Jun. 30, 2013

The provision for income taxes for the periods indicated consisted of the following:



(In Thousands)		Year Ended June 30,
(In Thousands)		2013		2012		2011

Current:
	Federal	$	9,585	$	4,984	$	4,484
	State	3,056		1,662		1,643
		12,641		6,646		6,127
Deferred:
	Federal	2,454		947		2,911
	State	1,821		335		1,011
		4,275		1,282		3,922
Provision for income taxes		$	16,916	$	7,928	$	10,049

Schedule of Effective Income Tax Rate Reconciliation

The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to net income (loss) before income taxes as a result of the following differences for the periods indicated:



		Year Ended June 30,
		2013					2012						2011
(In Thousands)		Amount			Tax Rate		Amount			Tax Rate			Amount			Tax Rate

Federal income tax at statutory rate		$	14,950		35.0	%	$	6,558			35.0	%	$	8,144			35.0	%
State income tax		3,002			7.0	%	1,300				6.9	%	1,638				7.0	%
Changes in taxes resulting from:
	Bank-owned life insurance	(64		)	(0.1	)%	(66		)		(0.4	)%	(70		)		(0.3	)%
	Non-deductible expenses	63			0.1	%	33				0.2	%	31				0.1	%
	Non-deductible stock-based compensation	82			0.2	%	110				0.6	%	172				0.8	%
	Release of FIN 48 tax liabilities	(825		)	(1.9	)%	—				—	%	—				—	%
	Other	(292		)	(0.7	)%	(7		)		—	%	134				0.6	%
Effective income tax		$	16,916		39.6	%	$	7,928			42.3	%	$	10,049			43.2	%

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets at June 30, 2013 and 2012 by jurisdiction were as follows:



(In Thousands)	June 30,
(In Thousands)	2013		2012

Deferred taxes - federal	$	3,465	$	5,873
Deferred taxes - state	960		2,775
Total net deferred tax assets	$	4,425	$	8,648

Net deferred tax assets at June 30, 2013 and 2012 were comprised of the following:



(In Thousands)		June 30,
		2013			2012

Loss reserves		$	9,341		$	13,858
Non-accrued interest		420			237
Deferred compensation		3,106			3,425
Accrued vacation		323			281
Depreciation		—			28
State taxes		924			181
Other		202			159
	Total deferred tax assets	14,316			18,169

FHLB - San Francisco stock dividends		(2,069		)	(3,015		)
Unrealized gain on derivative financial instruments, at fair value		(2,916		)	(1,238		)
Unrealized gain on loans held for sale, at fair value		(1,422		)	(2,133		)
Unrealized gain on investment securities		(360		)	(399		)
Unrealized gain on interest-only strips		(41		)	(53		)
Deferred loan costs		(2,577		)	(2,683		)
Depreciation		(506		)	—
	Total deferred tax liabilities	(9,891		)	(9,521		)
	Net deferred tax assets	$	4,425		$	8,648

Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended June 30, 2013, 2012, and 2011 is as follows:



(In Thousands)	2013		2012		2011
Balance of prior fiscal year end	$	1,961	$	1,961	$	1,961
Additions based on tax positions related to the current year	—		—		—
Addition for tax positions of prior years	—		—		—
Reduction for tax positions of prior years	—		—		—
Settlements	—		—		—
Balance at June 30	$	1,961	$	1,961	$	1,961