Income Taxes (Tables)

12 Months Ended

Jun. 30, 2013

Components of Income Tax Expense (Benefit)

The following table reflects components of income tax expense (benefit) attributable to loss from continuing operations before income taxes:

	Fiscal years ended June 30,
	2013			2012			2011
	(dollars in thousands)
Current:
Federal	$	—		$	(5,527	)	$	—
State		1,968			(12,458	)		854
Total current tax expense (benefit)		1,968			(17,985	)		854
Deferred:
Federal		431			922			348
State		(103	)		(892	)		(994	)
Total deferred tax expense (benefit)		328			30			(646	)
Income tax expense (benefit) from continuing operations	$	2,296		$	(17,955	)	$	208

Reconciliation of Expected Federal Income Tax Expense (Benefit)

The following table reconciles the expected federal income tax expense (benefit) (computed by applying the federal statutory tax rate to income (loss) before taxes) from continuing operations to recorded income tax expense (benefit):

	Fiscal years ended June 30,
	2013			2012			2011
	(dollars in thousands)
Computed federal tax benefit	$	(16,765	)	$	(18,042	)	$	(29,325	)
State tax, net of federal benefit		1,212			(8,678	)		2,888
Federal valuation allowance		17,068			7,709			25,882
Non-deductible compensation		661			919			912
Other, net		120			137			(149	)
Income tax expense (benefit) from continuing operations	$	2,296		$	(17,955	)	$	208

Tax Effects of Temporary Differences to Significant Deferred Tax Assets and Deferred Tax Liabilities

The following table reflects the tax effects of temporary differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases that give rise to significant deferred tax assets and deferred tax liabilities:

	June 30,
	2013			2012
	(dollars in thousands)
Deferred tax assets:
Net operating loss carryforwards	$	44,970		$	28,008
Federal benefit of unrecognized tax benefits		8,833			8,149
Depreciation and amortization		4,440			5,778
Allowance for loan losses		5,631			4,591
Amortization of deferred costs		3,058			3,636
Other, net		7,435			6,772
Gross deferred tax assets		74,367			56,934
Valuation allowance		(66,363	)		(48,702	)
Total net deferred tax asset		8,004			8,232
Deferred tax liabilities:
Additional structural advisory fees		(833	)		(1,261	)
Residual fees		(5,230	)		(4,486	)
Other, net		(3,130	)		(3,346	)
Total deferred tax liability		(9,193	)		(9,093	)
Net deferred tax liability	$	(1,189	)	$	(861	)

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Fiscal years ended June 30,
	2013		2012			2011
	(dollars in thousands)
Beginning unrecognized tax benefits	$	19,630	$	30,936		$	30,936
Reduction as a result of ATB Order and expiration of statute of limitations		—		(11,306	)		—
Additional state tax liability recognized for the 2008 and 2009 tax years		822		—			—
Ending unrecognized tax benefits	$	20,452	$	19,630		$	30,936
Beginning accrued interest	$	3,451	$	8,375		$	5,771
Reduction as a result of ATB Order and expiration of statute of limitations		—		(6,281	)		—
Interest expense recognized		1,336		1,357			2,604
Ending accrued interest	$	4,787	$	3,451		$	8,375