INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2011

INCOME TAXES

Components of provision (benefit) for income taxes

	Year Ended December 31,
	2011			2010			2009
	(Dollars in thousands)
Current income tax expense (benefit):
Federal	$	(86,157	)	$	9,942		$	(109,092	)
State		34,760			69,026			2,916
Foreign		—			—			1,758
Total current income tax expense (benefit)		(51,397	)		78,968			(104,418	)
Deferred income tax expense (benefit):
Federal		193,834			55,083			127,668
State		(7,706	)		(48,273	)		11,571
Foreign		3,369			5,567			(12,107	)
Total deferred income tax expense (benefit)		189,497			12,377			127,132
Provision (benefit) for income taxes	$	138,100		$	91,345		$	22,714

Difference between the effective tax rate implicit in the consolidated financial statements and the statutory federal income tax rate

	Year Ended December 31,
	2011			2010			2009
Federal income tax provision at statutory rate		35.0	%		35.0	%		35.0	%
State franchise taxes, net of federal tax effect		4.3			5.3			8.1
Tax credits		(2.7	)		(4.8	)		(6.9	)
Foreign subsidiaries acquisition		—			—			(14.4	)
Other, net		(0.6	)		0.2			(0.1	)
Effective income tax rate		36.0	%		35.7	%		21.7	%

Tax effects of temporary differences that give rise to significant portions of the deferred tax assets (liabilities)

	December 31,
	2011												2010
	Federal			State			Foreign			Total			Federal			State			Foreign			Total
	(In thousands)
Deferred tax liabilities:
Core deposit intangibles	$	(19,449	)	$	(5,537	)	$	133		$	(24,853	)	$	(26,574	)	$	(8,723	)	$	133		$	(35,164	)
Affordable housing partnerships		(15,091	)		(3,904	)		—			(18,995	)		(14,889	)		(4,489	)		—			(19,378	)
Fixed assets		(21,640	)		(6,305	)		—			(27,945	)		(27,053	)		(9,504	)		—			(36,557	)
FHLB stock		(24,088	)		(6,874	)		—			(30,962	)		(32,191	)		(10,202	)		—			(42,393	)
Deferred loan fees		(3,041	)		(844	)		—			(3,885	)		(3,854	)		(1,194	)		—			(5,048	)
Purchased loan discounts		(160	)		(44	)		—			(204	)		(199	)		(61	)		—			(260	)
State taxes		(10,749	)		—			—			(10,749	)		—			—			—			—
Mortgage servicing assets		(2,560	)		(711	)		—			(3,271	)		(3,227	)		(999	)		—			(4,226	)
Section 597 gain		(142,934	)		(3,588	)		—			(146,522	)		—			—			—			—
FDIC receivable		(371,049	)		(9,314	)		—			(380,363	)		(420,752	)		31,026			—			(389,726	)
Acquired debt		(10,812	)		(1,012	)		(300	)		(12,124	)		(51,070	)		(922	)		(300	)		(52,292	)
Other, net		(4,155	)		(986	)		—			(5,141	)		(2,531	)		(454	)		(600	)		(3,585	)
Total gross deferred tax (liabilities)		(625,728	)		(39,119	)		(167	)		(665,014	)		(582,340	)		(5,522	)		(767	)		(588,629	)
Deferred tax assets:
Allowance for loan losses and REO reserves		79,269			18,556			(5,220	)		92,605			84,337			21,896			(5,220	)		101,013
Deferred compensation		14,533			4,101			—			18,634			15,407			4,854			—			20,261
State taxes		—			—			—			—			2,734			—			—			2,734
Purchased loan premium		832			231			—			1,063			966			299			—			1,265
Unrealized loss on securities		69,239			20,267			—			89,506			77,760			24,336			—			102,096
Net operating loss carryforwards		1,052			34,395			—			35,447			3,057			34,813			2,041			39,911
Acquired loans and REOs		577,883			30,015			7,957			615,855			303,045			(7,298	)		11,926			307,673
Other, net		10,016			4,277			97			14,390			12,013			3,751			97			15,861
Total gross deferred tax assets		752,824			111,842			2,834			867,500			499,319			82,651			8,844			590,814
Valuation allowance		—			(603	)		—			(603	)		—			(624	)		(2,041	)		(2,665	)
Net deferred tax (liabilities) assets	$	127,096		$	72,120		$	2,667		$	201,883		$	(83,021	)	$	76,505		$	6,036		$	(480	)

Summary of the activity related to unrecognized tax benefits

	Year Ended December 31,
	2011			2010
	(Dollars in thousands)
Balance, beginning of year	$	4,952		$	5,763
Additions for tax positions of prior years		794			721
Reductions for tax positions of prior years		(3,208	)		(288	)
Additions for tax positions of current year		794			634
Settlements		—			(1,878	)
Balance, end of year	$	3,332		$	4,952