Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

The components of income tax expense for the years ended December 31 are as follows:

(dollars in thousands)	2014			2013			2012
Current:
Federal	$	—		$	—		$	—
State	—			—			—
Total current taxes	—			—			—
Deferred
Federal	3,714			21,276			(13,709		)
State	537			14,628			(2,722		)
Total deferred taxes	4,251			35,904			(16,431		)
Increase (decrease) in valuation allowance	(146,743		)	(34,578		)	15,392
Total income tax (benefit) expense - continuing operations	$	(142,492	)	$	1,326		$	(1,039	)

Effective Income Tax Rate Reconciliation

A reconciliation of income tax expense computed at the statutory federal income tax rate to actual income tax expense is presented in the following table as of December 31:

(dollars in thousands)
	2014			2013			2012
Amount of tax computed using Federal statutory tax rate of 35% in all years	$	2,788		$	(55	)	$	(14,365	)
Increases (decreases) resulting from effects of:
Non-taxable income	(54		)	(88		)	(169		)
State income taxes, net of federal benefit	349			9,508			(1,769		)
Valuation allowance on deferred tax assets	(146,743		)	(34,578		)	15,392
Bank-owned life insurance	(403		)	(375		)	—
Reduction of deferred tax assets at Granite	—			28,293			—
Other	1,571			(1,379		)	(128		)
Total income tax (benefit) expense - continuing operations	$	(142,492	)	$	1,326		$	(1,039	)

Components of Deferred Tax Assets and Liabilities

The components of deferred tax assets and liabilities and the tax effect of each are as follows:

(dollars in thousands)	December 31, 2014			December 31, 2013
Deferred tax assets:
Allowance for loan losses	$	8,037		$	10,364
Net operating loss	137,412			135,050
Compensation and benefit plans	1,277			995
Fair value basis on securities	656			919
Pension and other post-retirement benefits	1,470			1,080
Other real estate owned	2,256			4,090
Gross unrealized securities losses	2,560			10,215
Interest on nonperforming loans	—			1,339
Other	851			529
Subtotal deferred tax assets	154,519			164,581
Less: Valuation allowance	(1,300		)	(148,043		)
Total deferred tax assets	153,219			16,538
Deferred tax liabilities:
Core deposit intangible	1,513			2,051
Depreciable basis of premises and equipment	563			495
Net deferred loan fees and costs	1,306			1,077
Gross unrealized securities gains	490			1,249
Fair value basis of loans	2,473			951
Other	441			500
Total deferred tax liabilities	6,786			6,323
Net deferred tax assets	$	146,433		$	10,215