XML 133 R27.htm IDEA: XBRL DOCUMENT
v2.4.0.8

INCOME AND FRANCHISE TAXES | 12 Months Ended
--- | ---
Dec. 31, 2013
INCOME AND FRANCHISE TAXES |
INCOME AND FRANCHISE TAXES | 19. INCOME AND FRANCHISE TAXES Components of income tax benefit for the years ended December 31, 2013, 2012 and 2011 were as follows:
|  | Current |  | Deferred |  | Total |
|  | (Dollars in thousands) |
Year ended December 31, 2013 |  |  |  |  |  |  |
Federal |  | $ | — |  | $ | (81,613 | ) | $ | (81,613 | )
State |  | 109 |  | (30,743 | ) | (30,634 | )
Total |  | $ | 109 |  | $ | (112,356 | ) | $ | (112,247 | )
Year ended December 31, 2012 |  |  |  |  |  |  |
Federal |  | $ | — |  | $ | — |  | $ | — |
State |  | — |  | — |  | — |
Total |  | $ | — |  | $ | — |  | $ | — |
Year ended December 31, 2011 |  |  |  |  |  |  |
Federal |  | $ | — |  | $ | — |  | $ | — |
State |  | — |  | — |  | — |
Total |  | $ | — |  | $ | — |  | $ | — |
Income tax expense for the periods presented differed from the “expected” tax expense (computed by applying the U.S. Federal corporate tax rate of 35% to income (loss) before income taxes) for the following reasons:
|  | Year Ended December 31, |
|  | 2013 |  | 2012 |  | 2011 |
|  | (Dollars in thousands) |
Computed “expected” tax expense (benefit) |  | $ | 20,940 |  | $ | 16,598 |  | $ | 12,802 |
Increase (decrease) in taxes resulting from: |  |  |  |  |  |  |
Tax-exempt interest |  | (1,431 | ) | (820 | ) | (273 | )
Other tax-exempt income |  | (810 | ) | (976 | ) | (1,441 | )
Low-income housing and energy tax credits |  | (1,557 | ) | (1,607 | ) | (1,678 | )
State income taxes, net of Federal income tax effect, excluding impact of deferred tax valuation allowance |  | 2,389 |  | 2,540 |  | 546 |
Change in the beginning-of-the-year balance of the valuation allowance for deferred tax assets allocated to income tax expense |  | (132,061 | ) | (15,862 | ) | (9,870 | )
Other |  | 283 |  | 127 |  | (86 | )
Total |  | $ | (112,247 | ) | $ | — |  | $ | — |
At December 31, 2013, current Federal income taxes receivable was $0.1 million, compared to a $9 thousand payable at December 31, 2012. Current state income taxes receivable was $1.8 million at December 31, 2013 and 2012. The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows:
|  | December 31, |
|  | 2013 |  | 2012 |
|  | (Dollars in thousands) |
Deferred tax assets |  |  |  |  |
Allowance for loan and lease losses |  | $ | 28,926 |  | $ | 33,418 |
Accrued expenses |  | 2,950 |  | 2,744 |
Employee retirement benefits |  | 8,762 |  | 15,773 |
Federal and state tax credit carryforwards |  | 37,449 |  | 35,305 |
Investment write-downs and write-offs |  | 3,051 |  | 3,051 |
Interest on nonaccrual loans |  | 1,962 |  | 4,047 |
Federal and state net operating loss carryforwards |  | 87,757 |  | 86,339 |
Other |  | 15,486 |  | 26,289 |
Total deferred tax assets |  | $ | 186,343 |  | $ | 206,966 |
Deferred tax liabilities |  |  |  |  |
Intangible assets |  | $ | 13,117 |  | $ | 14,962 |
FHLB stock dividends received |  | 11,848 |  | 12,345 |
Net unrealized gain on derivatives recognized through AOCI |  | — |  | 1,786 |
Leases |  | 2,755 |  | 3,599 |
Deferred gain on curtailed retirement plan |  | 3,339 |  | 3,339 |
Liability on utilization of state tax credits |  | 7,722 |  | 7,475 |
Other |  | 3,614 |  | 15,961 |
Total deferred tax liabilities |  | $ | 42,395 |  | $ | 59,467 |
Deferred tax valuation allowance |  | $ | 6,700 |  | $ | 147,499 |
Net deferred tax assets |  | $ | 137,248 |  | $ | — |
The valuation allowance for deferred tax assets as of December 31, 2013 and 2012 was $6.7 million and $147.5 million, respectively. The net change in the total valuation allowance was a decrease of $140.8 million and $14.8 million in 2013 and 2012, respectively. Of the total decrease in the valuation allowance in 2013, $132.1 million was recognized as income tax benefit and $8.7 million was a benefit to AOCI, compared to $15.9 million recognized as income tax benefit and a $1.1 million charged against AOCI in 2012. In assessing the realizability 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 dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected future taxable income and tax-planning strategies in making this assessment. In the first quarter of 2013, the Company reversed a significant portion of the valuation allowance that was established against our net DTA during the third quarter of 2009. The valuation allowance was established during 2009 due to uncertainty at the time regarding our ability to generate sufficient future taxable income to fully realize the benefit of our net DTA. The quarter ended March 31, 2013 marked our ninth consecutive quarter of profitability. Based on this earnings performance trend, improvements in our financial condition, asset quality and capital ratios, and the expectation of continued profitability, the Company determined that it was more likely than not that a significant portion of our net DTA would be realized. The net impact of reversing the valuation allowance and recording the provision for income tax expense was a net income tax benefit of $119.8 million in the first quarter of 2013. At December 31, 2013, the Company had net operating loss carryforwards for Federal income tax purposes of $206.5 million, which are available to offset future Federal taxable income, if any, through 2030. At December 31, 2013, the Company had net operating loss carryforwards for Hawaii and California state income tax purposes of $189.3 million and $40.6 million, respectively, which are available to offset future state taxable income through 2030 for Hawaii and 2031 for California. In addition, we have state tax credit carryforwards of $23.8 million that do not expire, and federal tax credit carryforwards of $13.6 million, of which $11.1 million expire in 20 years, and $2.5 million do not expire. As further described in Note 14, to help protect the Company’s tax benefits, the Company implemented the Tax Benefits Preservation Plan on November 23, 2011 and the Protective Charter Amendment on January 26, 2011. At December 31, 2013, we have no unrecognized tax benefits that, if recognized would favorably affect the effective income tax rate in future periods. We do not expect our unrecognized tax benefits to change significantly over the next 12 months. We are subject to U.S. Federal income tax as well as income tax of multiple state jurisdictions. Taxable years through 2009 are closed.

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