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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2012
Income Taxes [Abstract]  
Income tax expense (benefit) attributable to continuing operations
Income tax expense (benefit) attributable to continuing operations for each of the years ended December 31 is as follows (in thousands):
 
 
2012
 
 
2011
 
 
2010
 
Current tax expense (benefit):
 
 
 
 
 
 
 
 
 
Federal
 
$
19,096
 
 
$
8,157
 
 
$
(13,412
)
State
 
 
-
 
 
 
-
 
 
 
-
 
Total current tax expense (benefit)
 
$
19,096
 
 
 
8,157
 
 
 
(13,412
)
Deferred tax expense (benefit):
 
 
 
 
 
 
 
 
 
 
 
 
Federal
 
 
485
 
 
 
(19,646
)
 
 
13,482
 
State
 
 
1,063
 
 
 
(3,749
)
 
 
4,340
 
Total deferred tax expense (benefit)
 
 
1,548
 
 
 
(23,395
)
 
 
17,822
 
        Total income tax expense (benefit)
 
$
20,644
 
 
$
(15,238
)
 
$
4,410
 

Income tax rate reconciliation
Pinnacle Financial's income tax expense (benefit) differs from the amounts computed by applying the Federal income tax statutory rates of 35% to income (loss) before income taxes. A reconciliation of the differences for each of the years in the three-year period ended December 31, 2012 is as follows (in thousands):

 
2012
 
 
2011
 
 
2010
 
 
 
 
 
 
 
 
 
 
Income tax expense (benefit) at statutory rate
 
$
21,885
 
 
$
9,975
 
 
$
(6,962
)
State excise tax expense (benefit), net of federal tax effect
 
 
1,063
 
 
 
(255
)
 
 
(2,305
)
Tax-exempt securities
 
 
(2,517
)
 
 
(2,655
)
 
 
(3,017
)
Federal tax credits
 
 
-
 
 
 
-
 
 
 
(360
)
Bank owned life insurance
 
 
(322
)
 
 
(406
)
 
 
(320
)
Insurance premiums
 
 
(243
)
 
 
(151
)
 
 
(301
)
Other items
 
 
778
 
 
 
734
 
 
 
600
 
Deferred tax valuation allowance
 
 
-
 
 
 
(22,480
)
 
 
17,075
 
Income tax expense (benefit)
 
$
20,644
 
 
$
(15,238
)
 
$
4,410
 

Components of deferred income taxes included in other assets
The components of deferred income taxes included in other assets in the accompanying consolidated balance sheets at December 31, 2012 and 2011 are as follows (in thousands):

 
2012
 
 
2011
 
Deferred tax assets:
 
 
 
 
 
 
Loan loss allowance
 
$
26,777
 
 
$
28,684
 
Loans
 
 
423
 
 
 
783
 
Insurance
 
 
691
 
 
 
664
 
Accrued liability for supplemental retirement agreements
 
 
510
 
 
 
476
 
Restricted stock and stock options
 
 
3,777
 
 
 
3,525
 
Net operating loss carryforward
 
 
3,593
 
 
 
4,753
 
Alternative minimum tax carryforward
 
 
-
 
 
 
3,341
 
Other real estate owned
 
 
3,222
 
 
 
2,076
 
Other deferred tax assets
 
 
1,430
 
 
 
1,152
 
Total deferred tax assets
 
 
40,423
 
 
 
45,454
 
 
 
 
 
 
 
 
 
Deferred tax liabilities:
 
 
 
 
 
 
 
 
Depreciation and amortization
 
 
7,110
 
 
 
7,522
 
Core deposit intangible asset
 
 
1,700
 
 
 
2,735
 
Securities
 
 
12,024
 
 
 
14,675
 
REIT dividends
 
 
371
 
 
 
1,179
 
FHLB related liabilities
 
 
1,724
 
 
 
3,016
 
Other deferred tax liabilities
 
 
554
 
 
 
489
 
Total deferred tax liabilities
 
 
23,483
 
 
 
29,616
 
Net deferred tax assets
 
$
16,940
 
 
$
15,838