Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) included in the consolidated statements of operations were as follows:

	Years Ended December 31,
	2013			2012			2011
	(in thousands)
Current income taxes:
Federal	$	(27	)	$	(163	)	$	(248	)
State	0			0			(27		)
Total current income taxes	(27		)	(163		)	(275		)
Deferred income taxes:
Federal	35,900			(269,968		)	248
State	1,994			(21,912		)	27
Total deferred income taxes	37,894			(291,880		)	275
Total income tax (benefit) expense	$	37,867		$	(292,043	)	$	0

Schedule of Deferred Tax Assets and Liabilities

The tax effects of the principal temporary differences giving rise to deferred tax assets and liabilities were as follows:

	December 31,
	2013			2012
	(in thousands)
Deferred tax assets:
NOL carryforwards - federal	$	206,841		$	242,318
NOL carryforwards - state	19,831			21,443
Tax credits - federal	13,172			7,671
Tax credits - state	2,421			2,594
Allowance for losses on loans	54,951			61,385
Deferred compensation	13,727			10,760
Bonus accrual	4,901			4,670
Intangibles	4,591			2,284
Unrealized losses on available-for-sale securities	1,368			0
Purchase accounting premiums and discounts	3,470			2,087
Nonaccrual loans	2,543			1,931
Deferred rent	1,309			1,119
Other	1,143			3,394
Total deferred tax assets	330,268			361,656
Deferred tax liabilities:
Mortgage servicing rights	19,851			11,869
FHLB Seattle dividends	15,451			16,325
Deferred loan fees	6,799			5,867
Prepaid expenses	1,955			2,151
Fair value - loans held for sale	389			8,966
Unrealized gains on available-for-sale securities	0			22,627
ASC 740 (FIN 48) - temporary differences	0			5
Total deferred tax liabilities	44,445			67,810
Valuation allowance	(1,764		)	(1,764		)
Net deferred tax asset	$	284,059		$	292,082

Schedule of Effective Income Tax Rate Reconciliation

The following table summarizes the calculation of Sterling's effective tax rates for the periods presented:

	Years Ended December 31,
	2013		2012		2011
Income tax provision at the federal statutory rate	35.0	%	35.0	%	35.0	%
Tax effect of:
Deferred tax valuation allowance	0.0	%	(347.8	)%	(25.0	)%
State taxes, net of federal benefit	3.5	%	3.8	%	0.0	%
Tax-exempt interest	(1.8	)%	(2.5	)%	(6.3	)%
Bank owned life insurance	(1.7	)%	(3.2	)%	(5.8	)%
Tax credits	(2.4	)%	0.0	%	(1.6	)%
Other, net	(3.7	)%	3.2	%	3.7	%
Effective tax rate	28.9	%	(311.5	)%	0.0	%

Summary of Income Tax Contingencies

The following is a reconciliation of the beginning and ending amount of unrecognized tax positions for the periods presented:

	2013			2012			2011
	(in thousands)
Balance at January 1	$	412		$	525		$	1,586
Additions - current year tax positions	70			70			75
Additions - prior year tax positions	0			0			0
Reductions - prior year tax positions	(55		)	(183		)	(1,136		)
Balance at December 31	427			412			525
Accrued interest and penalties, net of tax effect at December 31	63			100			103
Total liability for unrecognized tax positions at December 31	$	490		$	512		$	628