Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Summary of Income Tax Benefit on Income from Operations

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	)

Schedule of Income Taxes Reconciliation with Federal Statutory Rates

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	)

Summary of Significant Components of Deferred Tax Assets and Liabilities

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