Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Tax Expense

The Company files a consolidated federal income tax return. Income tax expense is comprised of the following:

	Year Ended December 31,
	2012		2011		2010
Current federal income tax	$	23,605	$	21,727	$	19,625
Current state income tax		13		84		51
Deferred federal income tax expense (benefit)		1,517		2,005		1,089
Income tax expense	$	25,135	$	23,816	$	20,765

Percentage of Pretax Earnings, Differs from the Statutory Federal Income Tax Rate

Income tax expense, as a percentage of pretax earnings, differs from the statutory federal income tax rate as follows:

	As a Percent of Pretax Earnings
	2012			2011			2010
Statutory federal income tax rate		35.0	%		35.0	%		35.0	%
Reductions in tax rate resulting from interest income exempt from federal income tax		(9.7	)		(9.3	)		(9.2	)
Effect of state income tax		0.1			0.1			0.1
ESOP tax credit		(0.3	)		(0.3	)		(0.3	)
Other		0.2			0.3			0.2
Effective income tax rate		25.3	%		25.8	%		25.8	%

Schedule of Deferred Tax Assets and Liabilities

The approximate effects of each type of difference that gave rise to the Company’s deferred tax assets and liabilities at December 31, 2012 and 2011 are as follows:

	2012			2011
Deferred tax assets:
Tax basis of loans in excess of financial statement basis	$	12,534		$	12,231
Minimum liability in defined benefit plan		4,502			3,954
Recognized for financial reporting purposes but not for tax purposes:
Deferred compensation		2,002			1,807
Write-downs and adjustments to other real estate owned and repossessed assets		148			538
Other deferred tax assets		255			306
Total deferred tax assets		19,441			18,836
Deferred tax liabilities:
Financial statement basis of fixed assets in excess of tax basis		5,678			5,204
Intangible asset amortization deductible for tax purposes, but not for financial reporting purposes		8,992			7,761
Recognized for financial reporting purposes but not for tax purposes:
Accretion on investment securities		1,563			2,129
Pension plan contributions		2,147			1,668
Net unrealized gain on investment securities Available-for-sale		32,130			29,383
Other deferred tax liabilities		389			433
Total deferred tax liabilities		50,899			46,578
Net deferred tax asset (liability)	$	(31,458	)	$	(27,742	)