XML 113 R19.htm IDEA: XBRL DOCUMENT
v2.4.1.9

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2014
Income Tax Disclosure [Abstract] |
Income Taxes | 12. INCOME TAXES Income tax expense consists of the following:
|  | For the Year Ended December 31, |
|  | 2014 |  |  | 2013 |  |  | 2012 |
|  | (Dollars in thousands) |
Current provision: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 38,957 |  |  | $ | 38,881 |  |  | $ | 35,089 |
State |  |  | 15,968 |  |  |  | 13,996 |  |  |  | 15,910 |
|  |  | 54,925 |  |  |  | 52,877 |  |  |  | 50,999 |
Deferred provision (benefit): |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 2,534 |  |  |  | (3,260 | ) |  |  | (10,102 | )
State |  |  | 1,317 |  |  |  | (950 | ) |  |  | (3,484 | )
|  |  | 3,851 |  |  |  | (4,210 | ) |  |  | (13,586 | )
Total |  | $ | 58,776 |  |  | $ | 48,667 |  |  | $ | 37,413 |
Income tax asset consists of the following:
|  | As of December 31, |
|  | 2014 |  |  | 2013 |
|  | (Dollars in thousands) |
Current: |  |  |  |  |  |  |  |
Federal |  | $ | 4,522 |  |  | $ | 2,838 |
State |  |  | 4,437 |  |  |  | 1,337 |
|  |  | 8,959 |  |  |  | 4,175 |
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | 18,304 |  |  |  | 42,545 |
State |  |  | 4,198 |  |  |  | 13,066 |
|  |  | 22,502 |  |  |  | 55,611 |
Total |  | $ | 31,461 |  |  | $ | 59,786 |
The components of the net deferred tax asset are as follows:
|  | As of December 31, |
|  | 2014 |  |  | 2013 |
|  | (Dollars in thousands) |
Federal |  |  |  |  |  |  |  |
Deferred tax assets: |  |  |  |  |  |  |  |
Bad debt and credit loss deduction |  | $ | 23,805 |  |  | $ | 29,700 |
Net operating loss carryforward |  |  | 672 |  |  |  | 781 |
Deferred compensation |  |  | 3,300 |  |  |  | 3,024 |
Other intangibles |  |  | 5 |  |  |  | 8 |
PCI loans |  |  | 23,667 |  |  |  | 26,360 |
California franchise tax |  |  | 3,461 |  |  |  | 1,629 |
Unrealized loss on investment securities, net |  |  | — |  |  |  | 5,012 |
Other, net |  |  | 6,140 |  |  |  | 4,907 |
Gross deferred tax asset |  |  | 61,050 |  |  |  | 71,421 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Depreciation |  |  | 4,019 |  |  |  | 5,489 |
Intangibles — acquistions |  |  | 1,858 |  |  |  | 2,024 |
FDIC indemnification asset |  |  | 13,831 |  |  |  | 14,269 |
FHLB stock |  |  | 3,913 |  |  |  | 4,388 |
Deferred income |  |  | 2,430 |  |  |  | 2,706 |
Unrealized gain on investment securities, net |  |  | 16,695 |  |  |  | — |
Gross deferred tax liability |  |  | 42,746 |  |  |  | 28,876 |
Net deferred tax asset — federal |  | $ | 18,304 |  |  | $ | 42,545 |
State |  |  |  |  |  |  |  |
Deferred tax assets: |  |  |  |  |  |  |  |
Bad debt and credit loss deduction |  | $ | 6,014 |  |  | $ | 8,226 |
Net operating loss carryforward |  |  | 34 |  |  |  | 34 |
Deferred compensation |  |  | 1,030 |  |  |  | 942 |
Other intangibles |  |  | 668 |  |  |  | 620 |
FDIC indemnification asset |  |  | 6,498 |  |  |  | 6,363 |
Unrealized loss on investment securities, net |  |  | — |  |  |  | 1,744 |
Other, net |  |  | 1,911 |  |  |  | 1,554 |
Gross deferred tax asset |  |  | 16,155 |  |  |  | 19,483 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Depreciation |  |  | 589 |  |  |  | 1,058 |
PCI loans |  |  | 4,389 |  |  |  | 3,935 |
FHLB stock |  |  | 797 |  |  |  | 945 |
Deferred income |  |  | 374 |  |  |  | 479 |
Unrealized gain on investment securities, net |  |  | 5,808 |  |  |  | — |
Gross deferred tax liability |  |  | 11,957 |  |  |  | 6,417 |
Net deferred tax asset — state |  | $ | 4,198 |  |  | $ | 13,066 |
A reconciliation of the statutory income tax rate to the consolidated effective income tax rate follows:
|  | For the Year Ended December 31, |
|  | 2014 |  |  | 2013 |  |  | 2012 |
|  | Amount |  |  | Percent |  |  | Amount |  |  | Percent |  |  | Amount |  |  | Percent |
|  | (Dollars in thousands) |
Federal income tax at statutory rate |  | $ | 56,979 |  |  |  | 35.0 | % |  | $ | 50,496 |  |  |  | 35.0 | % |  | $ | 40,143 |  |  |  | 35.0 | %
State franchise taxes, net of federal benefit |  |  | 11,233 |  |  |  | 6.9 | % |  |  | 8,734 |  |  |  | 6.1 | % |  |  | 8,081 |  |  |  | 7.0 | %
Tax-exempt income |  |  | (8,622 | ) |  |  | (5.3 | %) |  |  | (10,189 | ) |  |  | (7.1 | %) |  |  | (10,654 | ) |  |  | (9.3 | %)
Tax credits |  |  | (1,014 | ) |  |  | (0.6 | %) |  |  | (940 | ) |  |  | (0.7 | %) |  |  | (1,279 | ) |  |  | (1.1 | %)
Other, net |  |  | 200 |  |  |  | 0.1 | % |  |  | 566 |  |  |  | 0.4 | % |  |  | 1,122 |  |  |  | 1.0 | %
Provision for income taxes |  | $ | 58,776 |  |  |  | 36.1 | % |  | $ | 48,667 |  |  |  | 33.7 | % |  | $ | 37,413 |  |  |  | 32.6 | %
The change in unrecognized tax benefits in 2014 and 2013 follows:
|  | For the Year Ended December 31, |
|  | 2014 |  |  | 2013 |
|  | ( Dollars in thousands ) |
Balance, beginning of period |  | $ | 3,016 |  |  | $ | 889 |
Additions for tax positions related to prior years |  |  | — |  |  |  | 1,603 |
Reductions due to lapse of statue of limitations |  |  | — |  |  |  | 524 |
Balance, end of period |  | $ | 3,016 |  |  | $ | 3,016 |
The total amount of unrecognized tax benefits at December 31, 2014, of $3.0 million would, if recognized, affect the effective tax rate. The amount accrued for payment of interest as of December 31, 2013 was $196,000. The Company records interest and penalties related to uncertain tax positions as part of other operating expense. We do not expect the total amount of unrecognized tax benefits to significantly increase or decrease within the next twelve months. The Company is subject to federal income tax and franchise tax of the state of California. Our federal income tax returns for the years ended December 31, 2008 through 2014 are open to audit by the federal authorities and our California state tax returns for the years ended December 31, 2006 through 2014 are open to audit by state authorities.

X
- Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration