Income Taxes

12 Months Ended

Dec. 31, 2011

(9) Income Taxes

Allocation of federal and state income taxes (benefit) between current and deferred portions for the years ended December 31, 2011, 2010 and 2009 is as follows:


	Year Ended December 31,
	2011			2010			2009
Current:
Federal	$	21		$	—		$	—
State		4			—			—

Total current		25			—			—

Deferred:
Federal		(5,719	)		(9,875	)		(8,911	)
State		(979	)		(1,613	)		(1,525	)
Valuation allowance		5,983			35,171			—

Total deferred		(715	)		23,683			(10,436	)

Income tax expense (benefit)	$	(690	)	$	23,683		$	(10,436	)

The reasons for the difference between current and deferred portions for the years ended December 31, 2011, 2010 and 2009 are as follows:


	Year Ended December 31,
	2011						2010						2009
	Amount			% of Pretax Loss			Amount			% of Pretax Loss			Amount			% of Pretax Loss
Income taxes at statutory Federal income tax rate	$	(6,066	)		(34.00	)%	$	(10,489	)		(34.00	)%	$	(11,062	)		(34.0	)%
Increase (decrease) in taxes resulting from:
Goodwill impairment		—			—			—			—			1,600			4.9
State income taxes, net of Federal tax benefit		(657	)		(3.6	)		(1,064	)		(3.4	)		(1,004	)		(2.9	)
Change in valuation allowance		5,983			33.6			35,171			114.0			—			—
Other, net		50			0.1			65			0.2			30			—

Income tax expense (benefit)	$	(690	)		(3.9	)%	$	23,683			76.8	%	$	(10,436	)		(32.0	)%

The components of the deferred tax asset at December 31, 2011 and 2010 are as follows:


	At December 31,
	2011			2010
Deferred tax assets:
Allowance for loan losses	$	7,323		$	7,838
Stock based compensation		1,109			1,109
Fair value adjustments		—			1,759
Net operating loss carryforwards		29,402			23,718
Other loss carryforwards		972			—
Non performing assets		2,859			917
Premises and equipment		151			—
Other		53			109

Total deferred tax assets	$	41,869		$	35,450

Deferred tax liabilities:
Premises and equipment		—			(279	)
Unrealized gain on securities available for sale		(715	)		—

Total deferred tax liabilities		(715	)		(279	)

Deferred tax asset		41,154			35,171
Valuation allowance		(41,154	)		(35,171	)

Net deferred tax asset	$	—		$	—

ASC 740 "Accounting for Income Taxes" prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The evaluation of a tax position in accordance with FIN 48 is a two-step process. The Company must determine whether it is more-likely-than-not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation, based on the technical merits of the position. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, the Company should presume that the position will be examined by the appropriate taxing authority. A tax position that meets the more-likely-than-not threshold is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Based on the judgment of management and its tax advisors, all items included in the inventory of tax positions have been determined to meet the more-likely-than-not standard and have been included at full value in the financial statements of the Company as of December 31, 2011 and 2010.

ASC 740, "Accounting for Income Taxes," requires that a valuation allowance be established when it is more likely than not that all or a portion of a deferred tax asset 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 are deductible. In making this determination, management considers all available positive and negative evidence affecting specific deferred tax assets, including the Company's past and anticipated future performance, the reversal of deferred tax liabilities and the implementation of tax planning strategies. Objective positive evidence is necessary to support a conclusion that a valuation allowance is not needed for all or a portion of the deferred tax assets when significant negative evidence exists. In 2010, the Company determined that significant negative evidence existed and therefore placed a full valuation allowance on the deferred taxes. There has been no change in the Company's position for 2011, therefore a full valuation allowance on the deferred tax asset remains as of December 31, 2011.

At December 31, 2011, the Company had federal and state net operating loss carryforwards of $79.0 million expiring as follows: $3.6 million expiring in 2027, $9.5 million expiring in 2028, $22.1 million expiring in 2029, $29.8 million expiring in 2030 and $13.7 million expiring in 2031.

The Company files income tax returns in the U.S. and the State of Florida. The Company is no longer subject to U.S. federal or state and local income tax examinations by taxing authorities for years before 2008.

- 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 2

-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 109

-Paragraph 136, 172

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 109

-Paragraph 43, 44, 45, 46, 47, 48, 49

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 08

-Paragraph h

-Article 4

Reference 5: 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 6: 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 7: 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 8: 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=6881521&loc=d3e23780-122690

+ Details

Florida Bank Group, Inc. 10-K