Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Components of Provision for Income Taxes

The components of our provision for income taxes for 2012, 2011 and 2010 were as follows:

	Year ended December 31,
(Dollars in thousands)	2012			2011		2010
Current provision:
Federal	$	87,635		$	86,220	$	47,794
State	23,752			25,505		15,042
Deferred expense (benefit):
Federal	2,385			5,756		(1,157		)
State	(503		)	1,606		(277		)
Income tax expense	$	113,269		$	119,087	$	61,402

Reconciliation between Federal Statutory Income Tax Rate and Effective Income Tax Rate

The reconciliation between the federal statutory income tax rate and our effective income tax rate for 2012, 2011 and 2010, is as follows:

	December 31,
(Dollars in thousands)	2012		2011		2010
Federal statutory income tax rate	35.0	%	35.0	%	35.0	%
State income taxes, net of the federal tax effect	5.8		6.0		6.2
Meals and entertainment	0.5		0.5		0.7
Share-based compensation expense on incentive stock options and ESPP	0.4		0.3		1.2
Disallowed officer's compensation	0.1		0.1		0.3
Tax-exempt interest income	(0.4	)	(0.4	)	(0.9	)
Low-income housing tax credit	(1.2	)	(1.1	)	(2.4	)
Other, net	(0.9	)	0.5		(0.8	)
Effective income tax rate	39.3	%	40.9	%	39.3	%

Deferred Tax (Liabilities) Assets

Deferred tax assets and liabilities at December 31, 2012 and 2011, consisted of the following:

	December 31,
(Dollars in thousands)	2012			2011
Deferred tax assets:
Allowance for loan losses	$	53,953		$	45,521
Share-based compensation expense	11,478			9,786
Loan fee income	10,356			8,969
State income taxes	7,042			6,576
Net operating loss	8,175			6,089
Other accruals not currently deductible	2,205			6,010
Research and development credit	364			364
Other	16			16
Deferred tax assets	93,589			83,331
Valuation allowance	(8,539		)	(6,453		)
Net deferred tax assets after valuation allowance	85,050			76,878
Deferred tax liabilities:
Net unrealized gains on available-for-sale securities	(74,983		)	(59,180		)
Nonmarketable securities	(23,363		)	(14,478		)
Derivative equity warrant assets	(5,566		)	(5,428		)
Premises and equipment and other intangibles	(5,466		)	(4,515		)
FHLB stock dividend	(1,252		)	(1,252		)
Deferred tax liabilities	(110,630		)	(84,853		)
Net deferred tax liabilities	$	(25,580	)	$	(7,975	)

Changes in Unrecognized Tax Benefit (Including Interest and Penalties)

A summary of changes in our unrecognized tax benefit (including interest and penalties) in 2012 is as follows:

(Dollars in thousands)	Reconciliation of Unrecognized Tax Benefit			Interest & Penalties			Total
Balance at December 31, 2011	$	640		$	140		$	780
Additions for tax positions for prior years	284			63			347
Reduction for tax positions for prior years	—			(25		)	(25		)
Settlement with tax authorities	(640		)	(18		)	(658		)
Balance at December 31, 2012	$	284		$	160		$	444