INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

Components of provision for income taxes

	Year Ended December 31,
	2013		2012		2011
	(Dollars in thousands)
Current income tax expense (benefit):
Federal	$	131,236	$	148,572	$	(86,157)
State	44,389		2,316		34,760
Foreign	208		5,704		—
Total current income tax expense (benefit)	175,833		156,592		(51,397)
Deferred income tax (benefit) expense:
Federal	(32,963)		(38,749)		193,834
State	(13,677)		26,099		(7,706)
Foreign	1,612		—		3,369
Total deferred income tax (benefit) expense	(45,028)		(12,650)		189,497
Provision for income taxes	$	130,805	$	143,942	$	138,100

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

	Year Ended December 31,
	2013	2012	2011
Federal income tax provision at statutory rate	35.0%	35.0%	35.0%
State franchise taxes, net of federal tax effect	4.7	4.3	4.3
Tax credits	(8.4)	(5.3)	(2.7)
Other, net	(0.6)	(0.2)	(0.6)
Effective income tax rate	30.7%	33.8%	36.0%

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

	December 31,
	2013								2012
	Federal		State		Foreign		Total		Federal		State		Foreign		Total
	(In thousands)
Deferred tax liabilities:
Core deposit intangibles	$	(16,422)	$	(4,642)	$	—	$	(21,064)	$	(15,755)	$	(4,635)	$	133	$	(20,257)
Affordable housing partnerships and other investments	(14,158)		(1,730)		—		(15,888)		(16,221)		(4,337)		—		(20,558)
Fixed assets	(15,594)		(3,879)		—		(19,473)		(17,201)		(4,289)		—		(21,490)
FHLB stock	(11,337)		(3,224)		—		(14,561)		(17,670)		(9,140)		—		(26,810)
Deferred loan fees	(1,976)		(557)		—		(2,533)		(2,523)		(719)		—		(3,242)
Purchased loan discounts	(98)		(28)		—		(126)		(126)		(36)		—		(162)
State taxes	(1,079)		—		—		(1,079)		(7,894)		—		—		(7,894)
Mortgage servicing assets	—		—		—		—		(1,812)		(517)		—		(2,329)
Section 597 gain	(48,370)		(1,317)		—		(49,687)		(94,231)		(2,684)		—		(96,915)
FDIC receivable	(245,907)		(6,695)		—		(252,602)		(318,741)		(9,405)		—		(328,146)
Acquired debt	(10,812)		(1,042)		—		(11,854)		(10,812)		(1,061)		(300)		(12,173)
Other, net	(6,805)		923		—		(5,882)		(604)		627		—		23
Total gross deferred tax (liabilities)	(372,558)		(22,191)		—		(394,749)		(503,590)		(36,196)		(167)		(539,953)
Deferred tax assets:
Allowance for loan losses and REO reserves	93,018		23,046		—		116,064		93,924		23,281		(5,220)		111,985
Deferred compensation	13,322		3,824		—		17,146		18,213		5,262		—		23,475
Mortgage servicing assets	287		81		—		368		—		—		—		—
Purchased loan premium	424		120		—		544		485		139		—		624
Unrealized loss on securities	62,535		19,177		—		81,712		47,567		12,816		—		60,383
Net operating loss carryforwards	—		993		—		993		—		698		—		698
Acquired loans and REOs	366,290		26,959		959		394,208		478,825		29,796		7,957		516,578
Other, net	30,768		8,716		97		39,581		9,021		3,177		97		12,295
Total gross deferred tax assets	566,644		82,916		1,056		650,616		648,035		75,169		2,834		726,038
Valuation allowance	—		(337)		—		(337)		—		(372)		—		(372)
Net deferred tax assets	$	194,086	$	60,388	$	1,056	$	255,530	$	144,445	$	38,601	$	2,667	$	185,713

Summary of the activity related to unrecognized tax benefits

	Year Ended December 31,
	2013		2012
	(Dollars in thousands)
Balance, beginning of year	$	3,457	$	3,332
Additions for tax positions of prior years	232		—
Reductions for tax positions of prior years	—		—
Additions for tax positions of current year	988		1,060
Settlements	—		(935)
Balance, end of year	$	4,677	$	3,457

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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