INCOME TAXES (Tables)
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12 Months Ended |
Dec. 31, 2012
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INCOME TAXES [Abstract] |
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Income Tax Allocation |
Total income taxes for the years ended December 31, 2012, 2011 and 2010 were allocated as follows:
| | | | | | | | | | | | | | Income tax expense (benefit) | | $ | 33,252 | | | $ | 4,475 | | | $ | (8,705 | ) | Shareholders' equity for other comprehensive income | | | (3,943 | ) | | | 7,600 | | | | (3,763 | ) | Shareholders' equity for stock option plans | | | 32 | | | | (7 | ) | | | (44 | ) | | | $ | 29,341 | | | $ | 12,068 | | | $ | (12,512 | ) |
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Components of Income Tax (Benefit) Expense |
The components of income tax expense (benefit) attributable to operations were as follows for the years ended December 31, 2012, 2011 and 2010:
| | | | | | | | | | | | | | | | $ | 34,316 | | | $ | 5,643 | | | $ | 8,865 | | | | | 3,389 | | | | 5,400 | | | | (1,520 | ) | | | | | | | | | | | | | | | | | (4,964 | ) | | | (1,626 | ) | | | (13,848 | ) | | | | 511 | | | | (4,942 | ) | | | (2,202 | ) | | | $ | 33,252 | | | $ | 4,475 | | | $ | (8,705 | ) |
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Income Tax Reconciliation |
Income tax expense (benefit) differed from the amount computed by applying the U.S. federal income tax rate of 35% to income before income taxes resulting from the following:
| | | | | | | | | | | | | | Tax expense at statutory rates | | $ | 41,141 | | | $ | 14,715 | | | $ | 4,983 | | Increase (decrease) in taxes resulting from: | | | | | | | | | | | | | State income taxes, net of federal tax benefit | | | 2,453 | | | | 266 | | | | (2,419 | ) | Tax-exempt interest revenue | | | (7,789 | ) | | | (7,881 | ) | | | (6,605 | ) | Tax-exempt earnings on life insurance | | | (2,790 | ) | | | (2,647 | ) | | | (2,659 | ) | Deductible dividends paid on 401(k) plan | | | (100 | ) | | | (331 | ) | | | (1,972 | ) | | | | 337 | | | | 353 | | | | (33 | ) | | | $ | 33,252 | | | $ | 4,475 | | | $ | (8,705 | ) |
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Deferred Tax Assets and Deferred Tax Liabilities |
The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2012 and 2011 were as follows:
| | | | | | | | | | | Loans, principally due to allowance for credit losses | | $ | 62,206 | | | $ | 73,911 | | | | | 13,027 | | | | 10,429 | | Mark to market - securities | | | 4,160 | | | | 4,165 | | Accrued liabilities, principally due to compensation arrangements and vacation accruals | | | 19,564 | | | | 10,681 | | | | | 217 | | | | 312 | | Investments, principally due to interest income recognition | | | 516 | | | | - | | State tax credits (net of federal benefit) | | | 428 | | | | 1,040 | | Unrecognized pension expense | | | 31,374 | | | | 26,428 | | Total gross deferred tax assets | | | 131,492 | | | | 126,966 | | Less: valuation allowance | | | - | | | | - | | | | $ | 131,492 | | | $ | 126,966 | | Deferred tax liabilities: | | | | | | | | | | | $ | 34,532 | | | $ | 37,509 | | | | | 22,392 | | | | 26,991 | | Premises and equipment, principally due to differences in depreciation | | | 26,824 | | | | 27,221 | | Mortgage servicing rights | | | 14,313 | | | | 11,405 | | | | | 10,439 | | | | 10,336 | | Investments, principally due to interest income recognition | | | - | | | | 147 | | | | | 2,650 | | | | 2,656 | | Other assets, principally due to expense recognition | | | 767 | | | | 525 | | Unrealized net losses on available-for-sale securities | | | 26,066 | | | | 25,064 | | Total gross deferred tax liabilities | | | 137,983 | | | | 141,854 | | Net deferred tax liabilities | | $ | (6,491 | ) | | $ | (14,888 | ) |
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Activity in Unrecognized Tax Benefits |
The following table presents the activity in unrecognized tax benefits for 2012, 2011 and 2010:
| | | | | | | | | | | | | | Unrecognized tax benefit, January 1 | | $ | 1,102 | | | $ | 355 | | | $ | 355 | | Gross increases - tax positions in prior period | | | 199 | | | | 873 | | | | - | | Gross decreases - tax positions in prior period | | | - | | | | (355 | ) | | | - | | Gross increases - tax positions in current period | | | 270 | | | | 229 | | | | - | | | | | - | | | | - | | | | - | | Lapse of statute of limitations | | | - | | | | - | | | | - | | Unrecognized tax benefit, December 31 | | $ | 1,571 | | | $ | 1,102 | | | $ | 355 | |
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