Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

The provision for income taxes for the years ended December 31, 2012, 2011 and 2010 consisted of the following:

A reconciliation of the Federal statutory income tax rate to the effective tax rate is set forth below:

	2012			2011			2010
Statutory Federal income tax rate		35.0	%		35.0	%		35.0	%
State income tax, net of Federal benefit		2.3			2.6			2.2
Other		(1.7	)		(0.7	)		(1.2	)
Effective income tax rate		35.6	%		36.9	%		36.0	%

Significant components of our deferred tax assets and liabilities are as follows:

	2012			2011
(In thousands)
Deferred tax assets:
Stock compensation expense	$	307		$	1,620
Deferred compensation		848			2,193
Intangible asset amortization		145			229
Capital lease obligation		768			718
Other		143			221
Total deferred tax assets		2,211			4,981
Deferred tax liabilities:
Investments in securities available for sale		(7,408	)		(5,166	)
Investments in securities and partnerships		(12,502	)		(6,213	)
Contingent deferred sales commissions		(496	)		(1,050	)
Total deferred tax liabilities		(20,406	)		(12,429	)
Net deferred tax assets (liabilities)	$	(18,195	)	$	(7,448	)

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:

	(in millions)
Balance at January 1, 2010	$	7.9
Additions based on tax positions related to the current year		1.4
Additions for tax positions of prior years		-
Reductions for tax positions of prior years		(0.4	)
Settlements		(0.1	)
Balance at December 31, 2010		8.8
Additions based on tax positions related to the current year		0.7
Additions for tax positions of prior years		-
Reductions for tax positions of prior years		(0.4	)
Settlements		-
Balance at December 31, 2011		9.1
Additions based on tax positions related to the current year		1.1
Additions for tax positions of prior years		0.5
Reductions for tax positions of prior years		-
Settlements		(0.1	)
Balance at December 31, 2012	$	10.6