19. Income Taxes

The income tax benefit on the income from operations for the years ended December 31, 2013, 2012, and 2011 was as follows (in thousands):


	2013			2012			2011
Current tax expense	$	186		$	—		$	—
Deferred tax benefit		(19,937	)		(7,565	)		(5,407	)

Total tax benefit	$	(19,751	)	$	(7,565	)	$	(5,407	)

The amount of taxes in the accompanying consolidated statements of income is different from the expected amount using statutory federal income tax rates primarily due to the effect of various tax credits.


	Year Ended December 31,
	2013			2012			2011
Federal tax expense at statutory rates	$	7,406		$	7,481		$	5,019
Tax credits		(28,421	)		(17,100	)		(13,142	)
Tax credit-basis reduction		2,019			2,767			3,112
Tax-exempt income		(832	)		(655	)		(509	)
Change in deferred rate		—			—			293
Disallowed interest expense		117			99			101
Other		(40	)		(157	)		(281	)

Income tax benefit	$	(19,751	)	$	(7,565	)	$	(5,407	)

As discussed in Note 12, the Company earns Federal NMTC, Historic, and Low-Income Housing tax credits, which reduce the Company’s federal income tax liability or creates a carryforward as applicable.

The components of the Company’s deferred tax assets and liabilities as of December 31 are presented below (in thousands):


	Year Ended December 31,
	2013		2012
Deferred tax assets:
Loan loss reserve	$	11,250	$	9,397
Tax credit carryforwards		65,216		37,353
NOL carryforward		7,317		4,030
Stock-based compensation		684		436
Deferred compensation		91		91
Securities available for sale		8,880		1,563
Other real estate		250		269
Basis difference in assumed liabilities		338		1,701
Other		373		355

Total deferred tax assets		94,399		55,195
Deferred tax liabilities:
Fixed assets		6,546		5,867
Deferred loan costs		5,157		4,414
Amortizable costs		1,477		1,697
State tax credits		1,155		669
Investments in tax credit entities		28,097		25,789
Other		776		170

Total deferred tax liabilities		43,208		38,606

Net deferred tax assets	$	51,191	$	16,589

In the opinion of management, no valuation allowance was required for the net deferred tax assets at December 31, 2013 as the amounts will more likely than not be realized as reductions of future taxable income.

As of December 31, 2013, the Company’s net operating loss (NOL) carryforwards were $20.9 million with an expiration date of December 2035.

As of December 31, 2013, the Company’s tax credit carryforwards were $65.2 million with expiration dates beginning December 2029 through December 2033.

The Company recognized $14.2 million, $11.4 million, and $7.9 million in Federal NMTC in its consolidated income tax provision for the years ended December 31, 2013, 2012, and 2011, respectively. The Company recognized $3.7 million, $2.5 million, and $2.8 million in Low-Income Housing Tax Credits in its consolidated income tax provision for the years ended December 31, 2013, 2012, and 2011, respectively. The Company recognized $10.5 million, $3.2 million and $2.2 million in Historic Tax Credits in its consolidated income tax provision for the years ended December 31, 2013, 2012, and 2011, respectively.