Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Components of income tax expense attributable to operations

The significant components of income tax expense attributable to operations are as of December 31, 2016, 2015 and 2014:

	Years ended December 31,
(In thousands)	2016		2015		2014
Current
Federal	$	30,492	$	32,871	$	26,059
State		5,628		4,329		2,823
		36,120		37,200		28,882

Deferred
Federal		3,994		2,521		6,648
State		278		482		1,699
		4,272		3,003		8,347
Total income tax expense	$	40,392	$	40,203	$	37,229

Components of deferred tax assets and liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows as of December 31, 2016 and 2015:

	December 31,
(In thousands)	2016			2015
Deferred tax assets
Allowance for loan losses	$	24,925		$	24,090
Deferred compensation		11,578			10,023
Postretirement benefit obligation		2,929			2,988
Fair value adjustments from acquisitions		1,883			2,543
Unrealized losses on securities		3,259			589
Accrued liabilities		1,775			2,889
Stock-based compensation expense		4,817			5,394
Equipment leasing		256			476
Other		892			1,477
Total deferred tax assets		52,314			50,469
Deferred tax liabilities
Pension benefits		17,303			11,908
Amortization of intangible assets		17,557			19,082
Premises and equipment, primarily due to accelerated depreciation		4,375			2,444
Deferred loan costs		1,759			1,591
Cash flow hedges		1,129			-
Other		501			504
Total deferred tax liabilities		42,624			35,529
Net deferred tax asset at year-end		9,690			14,940
Net deferred tax asset at beginning of year		14,940			14,517
(Decrease) increase in net deferred tax asset	$	(5,250	)	$	423

Reconciliation of the provision for income taxes to the amount computed by applying the federal statutory rate

The following is a reconciliation of the provision for income taxes to the amount computed by applying the applicable Federal statutory rate of 35% to income before taxes:

	Years ended December 31
(In thousands)	2016			2015			2014
Federal income tax at statutory rate	$	41,581		$	40,820		$	39,306
Tax exempt income		(2,205	)		(2,037	)		(2,250	)
Net increase in CSV of life insurance		(1,712	)		(1,373	)		(1,734	)
Federal tax credit		(1,323	)		(939	)		(880	)
State taxes, net of federal tax benefit		3,838			3,127			2,939
Other, net		213			605			(152	)
Income tax expense	$	40,392		$	40,203		$	37,229

Reconciliation of gross unrecognized tax benefits

A reconciliation of the beginning and ending balance of Federal and State gross unrecognized tax benefits ("UTBs") is as follows:

(In thousands)	2016
Balance at January 1	$	-
Additions for tax positions of prior years		425
Current period tax positions		134
Balance at December 31		559
Amount that would affect the effective tax rate if recognized	$	363