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Note 11 - Income Taxes | 12 Months Ended
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Dec. 31, 2017
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | 1 1 . Income Taxes For the years ended December 31, 2017, 2016, and 2015, the current and deferred amounts of the income tax expense are summarized as follows:
|  | Year Ended December 31 , |
|  | 201 7 |  |  | 201 6 |  |  | 201 5 |
|  | (In thousands ) |
Current : |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 59,433 |  |  | $ | 28,788 |  |  | $ | 31,587 |
State |  |  | 28,278 |  |  |  | 22,364 |  |  |  | 26,396 |
Total Current |  | $ | 87,711 |  |  | $ | 51,152 |  |  | $ | 57,983 |
Deferred : |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 31,818 |  |  |  | 11,775 |  |  | $ | 3,738 |
State |  |  | 2,736 |  |  |  | 4,174 |  |  |  | (1,734 | )
Total Deferred |  | $ | 34,554 |  |  | $ | 15,949 |  |  | $ | 2,004 |
Total income tax expense |  | $ | 122,265 |  |  | $ | 67,101 |  |  | $ | 59,987 |
Temporary differences between the amounts reported in the financial statements and the tax basis of assets and liabilities give rise to deferred taxes. Net deferred tax assets at December 31, 2017, and at December 31, 2016 , are included in other assets in the accompanying Consolidated Balance Sheets and are as follows:
|  | As of December 31 , |
|  | 201 7 |  |  | 201 6 |
|  | (In thousands ) |
Deferred Tax Asset s |  |  |  |  |  |  |  |
Loan loss allowance, due to differences in computation of bad debts |  | $ | 37,157 |  |  | $ | 51,192 |
Share-based compensation |  |  | 2,630 |  |  |  | 4,729 |
Accrual for bonuses |  |  | 630 |  |  |  | 6,095 |
Non-accrual interest |  |  | 2,100 |  |  |  | 4,246 |
Write-down on equity securities and venture capital investments |  |  | 2,561 |  |  |  | 4,437 |
Depreciation and amortization |  |  | 1,564 |  |  |  | 8,334 |
State tax |  |  | 6,783 |  |  |  | 6,426 |
Unrealized loss on interest rate swaps |  |  | 1,158 |  |  |  | 1,763 |
Unrealized loss on securities available-for-sale, net |  |  | - |  |  |  | 1,121 |
Investment in affordable housing partnerships |  |  | 580 |  |  |  | - |
Basis difference in acquired assets |  |  | 1,676 |  |  |  | - |
Tax credits carried forward |  |  | 9,278 |  |  |  | - |
Net operating loss carried forward |  |  | 18,375 |  |  |  | - |
Other, net |  |  | 3,279 |  |  |  | 3,598 |
Gross deferred tax assets |  |  | 87,771 |  |  |  | 91,941 |
Deferred Tax Liabilities |  |  |  |  |  |  |  |
Deferred loan costs |  |  | (7,655 | ) |  |  | (8,695 | )
Investment in affordable housing partnerships |  |  | - |  |  |  | (2,659 | )
Basis difference in acquired assets |  |  | - |  |  |  | (4,841 | )
Dividends on Federal Home Loan Bank common stock |  |  | (1,021 | ) |  |  | (1,322 | )
Other, net |  |  | (3,758 | ) |  |  | (3,228 | )
Gross deferred tax liabilities |  |  | (12,434 | ) |  |  | (20,745 | )
Net deferred tax assets |  | $ | 75,337 |  |  | $ | 71,196 |
Amounts for the current year are based upon estimates and assumptions and could vary from amounts shown on the tax return s as filed. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is depend ent on the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not the Company will realize all benefits related to these deductible temporary differences . T he Company had income tax refunds receivables of $7.2 million at December 31, 2017, and $14.6 million at December 31, 2016 . These income tax receivables are included in other assets in the accompanying Consolidated Balance Sheets. On D ecember 22, 2017, the Tax Cuts and Jobs Act, was enacted into law and as a result, during the fourth quarter of 2017, the Company recorded $23.4 million of additional income tax expense related to the revaluation of the Company’s deferred tax assets and a $2.6 million pretax write-down of low income housing tax credit investments . The Company ’s tax returns are open for audits by the Internal Revenue Service back to 2014 and by the California Franchise Tax Board back to 2013. It is reasonably possible that unrecognized tax benefits could change significantly over the next twelve months. The Company does not expect that any such changes would have a material impact on its annual effective tax rate. Income tax expense results in effective tax rates that differ from the statutory Federal income tax rate for the years indicated as follows:
|  | Year Ended December 31 , |
|  | 201 7 |  |  | 201 6 |  |  | 201 5 |
|  | (Dollars in thousands ) |
Tax provision at Federal statutory rate |  | $ | 104,407 |  |  |  | 35.0 | % |  | $ | 84,770 |  |  |  | 35.0 | % |  | $ | 77,384 |  |  |  | 35.0 | %
State income taxes, net of Federal income tax benefit |  |  | 20,616 |  |  |  | 6.9 |  |  |  | 17,250 |  |  |  | 7.1 |  |  |  | 14,656 |  |  |  | 6.6 |
Deferred taxes write-down due to Tax Cuts and Jobs Act |  |  | 23,365 |  |  |  | 7.8 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Excess deduction for stock option and RSUs |  |  | (3,146 | ) |  |  | (1.0 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Non-taxable bargain purchase gain |  |  | (1,970 | ) |  |  | (0.7 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Low income housing and other tax credits |  |  | (20,656 | ) |  |  | (6.9 | ) |  |  | (37,901 | ) |  |  | (15.6 | ) |  |  | (30,986 | ) |  |  | (14.0 | )
Non-deductible stock options expense |  |  | - |  |  |  | - |  |  |  | 3,469 |  |  |  | 1.4 |  |  |  | - |  |  |  | - |
Other, net |  |  | (351 | ) |  |  | (0.1 | ) |  |  | (487 | ) |  |  | (0.2 | ) |  |  | (1,067 | ) |  |  | (0.5 | )
Total income tax expense |  | $ | 122,265 |  |  |  | 41.0 | % |  | $ | 67,101 |  |  |  | 27.7 | % |  | $ | 59,987 |  |  |  | 27.1 | %

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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 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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