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INCOME AND FRANCHISE TAXES | 12 Months Ended
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Dec. 31, 2015
Income Tax Disclosure [Abstract] |
INCOME AND FRANCHISE TAXES | INCOME AND FRANCHISE TAXES Components of income tax expense (benefit) for the years ended December 31, 2015, 2014 and 2013 were as follows:
| Current |  | Deferred |  | Total
| (Dollars in thousands)
Year ended December 31, 2015 |  |  |  |  |  |  |  |
Federal | $ | 1,128 |  |  | $ | 20,061 |  |  | $ | 21,189 |
State | (119 | ) |  | 6,018 |  |  | 5,899 |
Total | $ | 1,009 |  |  | $ | 26,079 |  |  | $ | 27,088 |
Year ended December 31, 2014 |  |  |  |  |  |  |  |
Federal | $ | — |  |  | $ | 18,710 |  |  | $ | 18,710 |
State | (93 | ) |  | 1,772 |  |  | 1,679 |
Total | $ | (93 | ) |  | $ | 20,482 |  |  | $ | 20,389 |
Year ended December 31, 2013 |  |  |  |  |  |  |  |
Federal | $ | — |  |  | $ | (81,613 | ) |  | $ | (81,613 | )
State | (109 | ) |  | (30,525 | ) |  | (30,634 | )
Total | $ | (109 | ) |  | $ | (112,138 | ) |  | $ | (112,247 | )
Income tax expense (benefit) 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,
| 2015 |  | 2014 |  | 2013
| (Dollars in thousands)
Computed “expected” tax expense (benefit) | $ | 25,535 |  |  | $ | 21,295 |  |  | $ | 20,940 |
Increase (decrease) in taxes resulting from: |  |  |  |  |  |  |
Tax-exempt interest | (1,420 | ) |  | (1,412 | ) |  | (1,431 | )
Other tax-exempt income | (712 | ) |  | (1,023 | ) |  | (810 | )
Low-income housing and energy tax credits | (1,225 | ) |  | (2,088 | ) |  | (1,557 | )
State income taxes, net of Federal income tax effect, excluding impact of deferred tax valuation allowance | 3,958 |  |  | 2,638 |  |  | 2,389 |
Change in the beginning-of-the-year balance of the valuation allowance for deferred tax assets allocated to income tax expense | (44 | ) |  | (180 | ) |  | (129,806 | )
Other | 996 |  |  | 1,159 |  |  | (1,972 | )
Total | $ | 27,088 |  |  | $ | 20,389 |  |  | $ | (112,247 | )
At December 31, 2015, there was $0.6 million current Federal income taxes receivable, compared to no receivable at December 31, 2014. Current state income taxes receivable was $1.7 million at December 31, 2015 and 2014. 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,
| 2015 |  | 2014
| (Dollars in thousands)
Deferred tax assets |  |  |  |  |
Allowance for loan and lease losses | $ | 22,275 |  |  | $ | 26,052 |
Accrued expenses | 2,555 |  |  | 2,981 |
Employee retirement benefits | 6,921 |  |  | 11,023 |
Federal and state tax credit carryforwards | 34,821 |  |  | 30,593 |
Interest on nonaccrual loans | 606 |  |  | 1,600 |
Federal and state net operating loss carryforwards | 19,850 |  |  | 57,173 |
Restricted stock and nonqualified stock options | 1,049 |  |  | — |
Other | 9,227 |  |  | 13,357 |
Total deferred tax assets | $ | 97,304 |  |  | $ | 142,779 |
Deferred tax liabilities |  |  |  |
Intangible assets | $ | 10,006 |  |  | $ | 11,803 |
FHLB stock dividends received | — |  |  | 10,742 |
Leases | 423 |  |  | 1,203 |
Deferred gain on curtailed retirement plan | — |  |  | 3,315 |
Liability on utilization of state tax credits | — |  |  | 6,237 |
Other | 2,093 |  |  | 2,234 |
Total deferred tax liabilities | $ | 12,522 |  |  | $ | 35,534 |
Deferred tax valuation allowance | $ | 2,803 |  |  | $ | 2,847 |
Net deferred tax assets | $ | 81,979 |  |  | $ | 104,398 |
In assessing the realizability of our net deferred tax assets ("DTA"), management considers whether it is more likely than not that some portion or all of the DTA 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. As of December 31, 2015, the remaining valuation allowance on our net deferred tax assets totaled $2.8 million, which related to our California state income taxes as we do not expect to generate sufficient income in California to utilize the DTA. The net change in the valuation allowance was a decrease of $44.0 thousand and $3.9 million in 2015 and 2014, respectively. Net of this valuation allowance, the Company’s net DTA totaled $82.0 million as of December 31, 2015, compared to a net DTA of $104.4 million as of December 31, 2014. At December 31, 2015, the Company had net operating loss carryforwards for Federal income tax purposes of $48.8 million, which are available to offset future Federal taxable income, if any, through 2030. At December 31, 2015, the Company had net operating loss carryforwards for California state income tax purposes of $39.3 million, which are available to offset future state taxable income, if any, through 2030. The Company did not have any net operating loss carryforwards for Hawaii state income tax purposes. In addition, we have state tax credit carryforwards of $14.8 million that do not expire, and federal tax credit carryforwards of $18.3 million, of which $11.8 million will expire within 20 years, and $6.5 million do not expire. At December 31, 2015, 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 2011 are closed.

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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 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 2: 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 Reference 3: 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 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 + Details
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