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Income Taxes | 12 Months Ended
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Dec. 31, 2013
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES At December 31, income tax expense consisted of the following:
| 2013 |  | 2012 |  | 2011
| (dollars in thousands)
Current tax expense |  |  |  |  |
Federal | $ | 41,996 |  |  | $ | 85,875 |  |  | $ | 108,639 |
State | 7,080 |  |  | 9,212 |  |  | 23,101 |
Total current tax expense | 49,076 |  |  | 95,087 |  |  | 131,740 |
Deferred tax expense (benefit) |  |  |  |  |
Federal | 38,974 |  |  | (27,344 | ) |  | (12,127 | )
State | 8,915 |  |  | (7,921 | ) |  | (4,510 | )
Total deferred tax expense (benefit) | 47,889 |  |  | (35,265 | ) |  | (16,637 | )
Total income tax expense | $ | 96,965 |  |  | $ | 59,822 |  |  | $ | 115,103 |
Income tax expense differed from the amounts computed by applying the federal income tax rate of 35 percent to pretax income as a result of the following:
| 2013 |  | 2012 |  | 2011
| (dollars in thousands)
Income taxes at statutory rates | $ | 92,633 |  |  | $ | 67,959 |  |  | $ | 108,546 |
Increase (reduction) in income taxes resulting from: |  |  |  |  |
Nontaxable income on loans, leases and investments, net of nondeductible expenses | (1,185 | ) |  | (1,309 | ) |  | (1,481 | )
State and local income taxes, including change in valuation allowance, net of federal income tax benefit | 10,397 |  |  | 839 |  |  | 12,084 |
Tax credits | (5,569 | ) |  | (7,279 | ) |  | (5,166 | )
Other, net | 689 |  |  | (388 | ) |  | 1,120 |
Total income tax expense | $ | 96,965 |  |  | $ | 59,822 |  |  | $ | 115,103 |
During the third quarter of 2013, BancShares adjusted its net deferred tax asset as a result of reductions in the North Carolina corporate income tax rate that were enacted July 23, 2013, and will become effective January 1, 2014, and January 1, 2015. The lower corporate income tax rate resulted in a reduction in the deferred tax asset and an increase in current period income tax expense. The lower effective tax rate for 2012 also reflects the impact of a $6.4 million credit to income tax expense resulting from the favorable outcome of state tax audits for the period 2008-2010, net of additional federal taxes. The net deferred tax asset included the following components at December 31:
| 2013 |  | 2012
| (dollars in thousands)
Allowance for loan and lease losses | $ | 90,790 |  |  | $ | 124,928 |
Pension liability | 2,593 |  |  | 46,178 |
Executive separation from service agreements | 9,940 |  |  | 10,123 |
State operating loss carryforward | 79 |  |  | 652 |
Unrealized loss on cash flow hedge | 2,786 |  |  | 4,106 |
Net unrealized loss on securities included in accumulated other comprehensive loss | 6,541 |  |  | — |
Other | 17,884 |  |  | 19,465 |
Deferred tax asset | 130,613 |  |  | 205,452 |
Accelerated depreciation | 6,226 |  |  | 12,465 |
Lease financing activities | 10,216 |  |  | 10,366 |
Net unrealized gains on securities included in accumulated other comprehensive loss | — |  |  | 13,292 |
Net deferred loan fees and costs | 4,115 |  |  | 3,714 |
Intangible asset | 11,929 |  |  | 11,897 |
Gain on FDIC-assisted transactions, deferred for tax purposes | 57,895 |  |  | 29,694 |
Other | 6,352 |  |  | 5,373 |
Deferred tax liability | 96,733 |  |  | 86,801 |
Net deferred tax asset | $ | 33,880 |  |  | $ | 118,651 |
No valuation allowance was necessary as of December 31, 2013, to reduce BancShares’ gross state deferred tax asset to the amount that is more likely than not to be realized. BancShares and its subsidiaries' federal income tax returns for 2010 through 2012 remain open for examination. Generally, the state jurisdictions in which BancShares files income tax returns are subject to examination for a period up to four years after returns are filed. Under GAAP, the benefit of a position taken or expected to be taken in a tax return should be recognized when it is more likely than not that the position will be sustained based on its technical merit. The liability for unrecognized tax benefits was not material at December 31, 2013, and 2012, and changes in the liability were not material during 2013, 2012 and 2011. BancShares does not expect the liability for unrecognized tax benefits to change significantly during 2014. BancShares recognizes interest and penalties, if any, related to income tax matters in income tax expense, and the amounts recognized during 2013, 2012 and 2011 were not material.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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