INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

INCOME TAXES

Components of provision (benefit) for income taxes

	Year Ended December 31,
	2012			2011			2010
	(Dollars in thousands)
Current income tax expense (benefit):
Federal	$	148,572		$	(86,157	)	$	9,942
State	2,316			34,760			69,026
Foreign	5,704			—			—
Total current income tax expense (benefit)	156,592			(51,397		)	78,968
Deferred income tax (benefit) expense:
Federal	(38,749		)	193,834			55,083
State	26,099			(7,706		)	(48,273		)
Foreign	—			3,369			5,567
Total deferred income tax (benefit) expense	(12,650		)	189,497			12,377
Provision for income taxes	$	143,942		$	138,100		$	91,345

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

	Year Ended December 31,
	2012		2011		2010
Federal income tax provision at statutory rate	35.0	%	35.0	%	35.0	%
State franchise taxes, net of federal tax effect	4.3		4.3		5.3
Tax credits	(5.3	)	(2.7	)	(4.8	)
Other, net	(0.2	)	(0.6	)	0.2
Effective income tax rate	33.8	%	36.0	%	35.7	%

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

	December 31,
	2012												2011
	Federal			State			Foreign			Total			Federal			State			Foreign			Total
	(In thousands)
Deferred tax liabilities:
Core deposit intangibles	$	(15,755	)	$	(4,635	)	$	133		$	(20,257	)	$	(19,449	)	$	(5,537	)	$	133		$	(24,853	)
Affordable housing partnerships and other investments	(16,221		)	(4,337		)	—			(20,558		)	(15,091		)	(3,904		)	—			(18,995		)
Fixed assets	(17,201		)	(4,289		)	—			(21,490		)	(21,640		)	(6,305		)	—			(27,945		)
FHLB stock	(17,670		)	(9,140		)	—			(26,810		)	(24,088		)	(6,874		)	—			(30,962		)
Deferred loan fees	(2,523		)	(719		)	—			(3,242		)	(3,041		)	(844		)	—			(3,885		)
Purchased loan discounts	(126		)	(36		)	—			(162		)	(160		)	(44		)	—			(204		)
State taxes	(7,894		)	—			—			(7,894		)	(10,749		)	—			—			(10,749		)
Mortgage servicing assets	(1,812		)	(517		)	—			(2,329		)	(2,560		)	(711		)	—			(3,271		)
Section 597 gain	(94,231		)	(2,684		)	—			(96,915		)	(142,934		)	(3,588		)	—			(146,522		)
FDIC receivable	(318,741		)	(9,405		)	—			(328,146		)	(371,049		)	(9,314		)	—			(380,363		)
Acquired debt	(10,812		)	(1,061		)	(300		)	(12,173		)	(10,812		)	(1,012		)	(300		)	(12,124		)
Other, net	(604		)	627			—			23			(4,155		)	(986		)	—			(5,141		)
Total gross deferred tax (liabilities)	(503,590		)	(36,196		)	(167		)	(539,953		)	(625,728		)	(39,119		)	(167		)	(665,014		)
Deferred tax assets:
Allowance for loan losses and REO reserves	93,924			23,281			(5,220		)	111,985			79,269			18,556			(5,220		)	92,605
Deferred compensation	18,213			5,262			—			23,475			14,533			4,101			—			18,634
Purchased loan premium	485			139			—			624			832			231			—			1,063
Unrealized loss on securities	47,567			12,816			—			60,383			69,239			20,267			—			89,506
Net operating loss carryforwards	—			698			—			698			1,052			34,395			—			35,447
Acquired loans and REOs	478,825			29,796			7,957			516,578			577,883			30,015			7,957			615,855
Other, net	9,021			3,177			97			12,295			10,016			4,277			97			14,390
Total gross deferred tax assets	648,035			75,169			2,834			726,038			752,824			111,842			2,834			867,500
Valuation allowance	—			(372		)	—			(372		)	—			(603		)	—			(603		)
Net deferred tax assets	$	144,445		$	38,601		$	2,667		$	185,713		$	127,096		$	72,120		$	2,667		$	201,883

Summary of the activity related to unrecognized tax benefits

	Year Ended December 31,
	2012			2011
	(Dollars in thousands)
Balance, beginning of year	$	3,332		$	4,952
Additions for tax positions of prior years	—			794
Reductions for tax positions of prior years	—			(3,208		)
Additions for tax positions of current year	1,060			794
Settlements	(935		)	—
Balance, end of year	$	3,457		$	3,332