Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v2.4.0.8
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2013
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]
The following table summarizes the tax provision (benefit) recorded at the taxable subsidiary level for the years ended December 31, 2013, 2012 and 2011:
 
Year Ended December 31,
(in thousands)
2013
 
2012
 
2011
Current tax provision (benefit):
 
 
 
 
 
Federal
$
808

 
$
(4,586
)
 
$
4,731

State
5

 
3

 
—

Total current tax provision (benefit)
813

 
(4,583
)
 
4,731

Deferred tax provision (benefit)
83,598

 
(37,636
)
 
(5,837
)
Total provision for (benefit from) income taxes
$
84,411

 
$
(42,219
)
 
$
(1,106
)
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]
The following is a reconciliation of the statutory federal and state rates to the effective rates, for the years ended December 31, 2013, 2012 and 2011:
 
Year Ended December 31,
 
2013
 
2012
 
2011
(dollars in thousands)
Amount
 
Percent
 
Amount
 
Percent
 
Amount
 
Percent
Computed income tax expense at federal rate
$
225,573

 
34
 %
 
$
84,894

 
34
 %
 
$
42,951

 
34
 %
State taxes, net of federal benefit, if applicable
4

 
—
 %
 
2

 
—
 %
 
—

 
—
 %
Permanent differences in taxable income from GAAP income
17,681

 
3
 %
 
118

 
—
 %
 
2,731

 
2
 %
Dividends paid deduction
(158,847
)
 
(24
)%
 
(127,233
)
 
(51
)%
 
(46,788
)
 
(37
)%
Provision for (benefit from) income taxes/Effective Tax Rate(1)
$
84,411

 
13
 %
 
$
(42,219
)
 
(17
)%
 
$
(1,106
)
 
(1
)%

____________________
(1)
The provision for (benefit from) income taxes is recorded at the taxable subsidiary level.

Schedule of Current and Deferred Tax Assets and Liabilities [Table Text Block]
The Company’s consolidated balance sheet, as of December 31, 2013 and December 31, 2012, contains the following current and deferred tax liabilities and assets, which are included in other liabilities and other assets, respectively, and are recorded at the taxable subsidiary level:
(in thousands)
December 31,
2013
 
December 31,
2012
Income taxes (payable) receivable
 
 
 
Federal income taxes (payable) receivable
$
(757
)
 
$
4,323

State and local income taxes (payable) receivable
—

 
—

Income taxes (payable) receivable, net
(757
)
 
4,323

Deferred tax (liabilities) assets
 
 
 
Deferred tax asset
14,927

 
46,727

Deferred tax liability
(54,341
)
 
(2,543
)
Total net deferred tax (liabilities) assets
(39,414
)
 
44,184

Total tax liabilities and assets, net
$
(40,171
)
 
$
48,507

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]
Components of the Company’s deferred tax assets and liabilities as of December 31, 2013 and December 31, 2012 are as follows:
(in thousands)
December 31,
2013
 
December 31,
2012
Derivative assets
$
(45,740
)
 
$
13,505

Trading securities
(1,380
)
 
(1,972
)
Mortgage servicing rights
(846
)
 
—

Capitalized start-up and organizational costs
515

 
148

Net operating loss carryforward
7,986

 
17,931

Capital loss carryforward
51

 
14,572

Total net deferred tax (liabilities) assets
$
(39,414
)
 
$
44,184