Federal Income Taxes

12 Months Ended

Dec. 31, 2014

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 2014, 2013 and 2012. 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,
	2014			2013			2012
	(Dollars in thousands)
Tax at statutory rate	$	31,367		$	28,388		$	25,133
Changes resulting from:
Tax-exempt interest income	(3,118		)	(2,746		)	(2,524		)
Income tax credits	(1,624		)	(1,615		)	(1,561		)
Other, net	875			273			(248		)
Provision for federal income taxes	$	27,500		$	24,300		$	20,800
Effective federal income tax rate	30.7		%	30.0		%	29.0		%

The provision for federal income taxes consisted of the following:

	Years Ended December 31,
	2014			2013		2012
	(In thousands)
Current	$	29,200		$	23,665	$	8,132
Deferred	(1,700		)	635		12,668
Total	$	27,500		$	24,300	$	20,800

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,
	2014		2013
	(In thousands)
Deferred tax assets:
Allowance for loan losses	$	26,489	$	27,675
Acquisition-related fair value adjustments	19,457		8,699
Accrued expenses not currently deductible	7,819		6,288
Nonaccrual loan interest	4,682		2,884
Other	12,729		8,779
Total deferred tax assets	71,176		54,325
Deferred tax liabilities:
Defined benefit pension plan	565		8,020
Goodwill	5,205		4,680
Mortgage servicing rights	4,276		1,197
Core deposit intangible assets	5,072		932
Other	3,319		4,011
Total deferred tax liabilities	18,437		18,840
Net deferred tax assets	$	52,739	$	35,485

Management expects to realize the full benefits of the deferred tax assets recorded at December 31, 2014. The Corporation had no reserve for contingent income tax liabilities recorded at December 31, 2014 and 2013. The tax periods open to examination by the Internal Revenue Service include the years ended December 31, 2014, 2013, 2012 and 2011.