Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Components of income tax expense attributable to operations

The significant components of income tax expense attributable to operations are as follows:

	Years ended December 31,
(In thousands)	2017			2016		2015
Current:
Federal	$	35,839		$	30,492	$	32,871
State		6,599			5,628		4,329
Total Current	$	42,438		$	36,120	$	37,200

Deferred:
Federal	$	3,850		$	3,994	$	2,521
State		(278	)		278		482
Total Deferred	$	3,572		$	4,272	$	3,003
Total income tax expense	$	46,010		$	40,392	$	40,203

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:

	December 31,
(In thousands)	2017			2016
Deferred tax assets:
Allowance for loan losses	$	17,390		$	24,925
Deferred compensation		7,230			11,578
Postretirement benefit obligation		2,159			2,929
Fair value adjustments from acquisitions		919			1,883
Unrealized losses on securities		3,715			3,259
Accrued liabilities		769			1,775
Stock-based compensation expense		2,642			4,817
Other		711			1,148
Total deferred tax assets	$	35,535		$	52,314
Deferred tax liabilities:
Pension benefits	$	12,439		$	17,303
Amortization of intangible assets		11,110			17,557
Premises and equipment, primarily due to accelerated depreciation		2,792			4,375
Deferred loan costs		634			1,759
Cash flow hedges		877			1,129
Other		390			501
Total deferred tax liabilities	$	28,242		$	42,624
Net deferred tax asset at year-end	$	7,293		$	9,690
Net deferred tax asset at beginning of year		9,690			14,940
(Decrease) in net deferred tax asset	$	(2,397	)	$	(5,250	)

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)	2017			2016			2015
Federal income tax at statutory rate	$	44,857		$	41,581		$	40,820
Tax exempt income		(2,303	)		(2,205	)		(2,037	)
Net increase in cash surrender value of life insurance		(1,780	)		(1,712	)		(1,373	)
Federal tax credit		(1,343	)		(1,323	)		(939	)
State taxes, net of federal tax benefit		4,107			3,838			3,127
Federal tax reform (Tax Act)		4,407			-			-
Stock-based compensation, excess tax benefit		(1,619	)		-			-
Other, net		(316	)		213			605
Income tax expense	$	46,010		$	40,392		$	40,203

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)	2017			2016
Balance at January 1	$	559		$	-
Additions for tax positions of prior years		-			425
Reduction for tax positions of prior years		(31	)		-
Current period tax positions		137			134
Balance at December 31	$	665		$	559
Amount that would affect the effective tax rate if recognized, gross of tax	$	525		$	363