INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

The components of the income tax provision consisted of the following for the years shown:

	At December 31,
	2012			2011		2010
	(dollars in thousands)
Current taxes:
Federal	$	12,976		$	5,052	$	644
State		2,683			1,622		245
Total current taxes		15,659			6,674		889
Deferred taxes (benefit):
Federal		(7,116	)		7,556		224
State		(2,382	)		2,680		(173	)
Total deferred taxes (benefit)		(9,498	)		10,236		51
Total income tax provision	$	6,161		$	16,910	$	940

Schedule of Income Tax Rate Reconciliation

A reconciliation of the amounts computed by applying the federal statutory rate of 35% for 2012 and 34% for 2011 and 2010 to the income before income tax provision and the effective tax rate are as follows:

	2012						2011						2010
	Amount			Rate			Amount			Rate			Amount			Rate
	(in thousands)

Tax provision at statutory rate	$	5,402			35.0	%	$	13,698			34.0	%	$	799			34.0	%
Increase (reduction) in taxes resulting from:
State taxes, net of federal tax benefit		925			6.0	%		2,740			6.8	%		35			1.5	%
Permanent differences		(414	)		-2.7	%		(197	)		-0.5	%		(124	)		-5.3	%
Other		248			1.6	%		669			1.7	%		230			9.8	%
	$	6,161			39.9	%	$	16,910			42.0	%	$	940			40.0	%

Schedule of Deferred Tax Assets and Liabilities

The major components of the net deferred tax assets (liabilities) at December 31, 2012 and 2011 are as follows:

	2012			2011
	(in thousands)
Deferred tax assets:
Unrealized loss on securities available-for-sale	$	234		$	1,054
Accrued expenses		1,279			1,280
Nonaccrual interest		629			200
Allowance for loan losses		7,677			7,111
Securities other-than-temporary impairment reserve		—			941
State taxes		945			515
Reserve for foreclosed asset losses		4,285			3,556
Other		1,353			1,143
Total deferred tax assets		16,402			15,800

Deferred tax liabilities:
Depreciation		(2,465	)		(3,071	)
FHLB stock dividend		(531	)		(382	)
Deferred income		(318	)		(471	)
Deferred loan costs		(2,234	)		(1,641	)
Core deposit intangibles		(917	)		(1,184	)
Trade name		(701	)		(869	)
Goodwill		(1,166	)		(868	)
Section 597 gain		(6,224	)		(14,061	)
Other		(477	)		(623	)
Total deferred tax liabilities		(15,033	)		(23,170	)
Net deferred tax asset (liability)	$	1,369		$	(7,370	)

First California Financial Group, Inc. 10-K