The Company's income tax expense was $11.8 million for the quarter as compared to $3.4 million in the prior quarter. The Company's 2012 year-to-date income tax expense of $13.4 million is based on a projected annual effective income tax rate plus discrete benefits recognized year to date. The Company's projected annual effective tax rate differs from the Federal statutory tax rate of 35% primarily due to state income taxes on income in Oregon, Hawaii and Idaho, tax exempt income and a $14.4 million tax benefit related to the reversal of the Company's beginning of year valuation allowance against deferred tax assets.
Regulatory capital ratios for the Bank are as follows:
|Sept. 30,||Jun. 30,||Sept. 30,||capitalized|
|Total risk-based capital (to risk-weighted assets)||17.9||%||17.0||%||9.8||%||10.0||%|
|Tier 1 risk-based capital (to risk-weighted assets)||16.6||%||15.8||%||8.5||%||6.0||%|
|Tier 1 leverage capital (to average assets)||10.8||%||10.1||%||5.6||%||5.0||%|