Federal Income Taxes

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Federal Income Taxes

FEDERAL INCOME TAXES

The provision for federal income taxes was less than that computed by applying the federal statutory income tax rate of 35% to pre-tax income, primarily due to tax-exempt interest income on investment securities and loans and income tax credits during 2012, 2011 and 2010. The differences between the provision for federal income taxes computed at the federal statutory income tax rate and the amounts recorded in the consolidated financial statements were as follows:

	Years Ended December 31,
	2012			2011			2010
	(Dollars in thousands)
Tax at statutory rate	$	25,133		$	21,088		$	10,916
Changes resulting from:
Tax-exempt interest income	(2,524		)	(2,569		)	(2,169		)
Income tax credits	(1,561		)	(1,374		)	(1,232		)
Other, net	(248		)	55			585
Provision for federal income taxes	$	20,800		$	17,200		$	8,100
Effective federal income tax rate	29.0		%	28.5		%	26.0		%

The provision for federal income taxes consisted of the following:

	Years Ended December 31,
	2012		2011		2010
	(In thousands)
Current	$	8,132	$	10,787	$	4,661
Deferred	12,668		6,413		3,439
Total	$	20,800	$	17,200	$	8,100

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant temporary differences that comprise the deferred tax assets and liabilities of the Corporation were as follows:

	December 31,
	2012		2011
	(In thousands)
Deferred tax assets:
Allowance for loan losses	$	29,572	$	30,916
Acquisition-related fair value adjustments	9,498		13,373
Accrued expenses not currently deductible	4,518		3,924
Other real estate	3,244		3,407
Nonaccrual loan interest	2,564		1,495
Employee benefit plans	2,451		7,875
Share-based awards	1,783		1,452
Other	1,714		1,096
Total deferred tax assets	55,344		63,538
Deferred tax liabilities:
Goodwill	4,177		3,800
Loan fees	2,511		2,191
Investment securities available-for-sale	2,301		1,796
Core deposit intangible assets	1,202		1,468
Mortgage servicing rights	1,217		1,257
Prepaid expenses	941		888
Other	1,167		1,366
Total deferred tax liabilities	13,516		12,766
Net deferred tax assets	$	41,828	$	50,772

Management expects to realize the full benefits of the deferred tax assets recorded at December 31, 2012. The Corporation had no reserve for contingent income tax liabilities recorded at December 31, 2012 and 2011. The tax periods open to examination by the Internal Revenue Service include the years ended December 31, 2012, 2011, 2010 and 2009.