INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Components of income tax expense (benefit)

The following table provides the components of income tax expense (benefit) for the years ended December 31:

(In thousands)	2012		2011		2010
Current income taxes (benefits):
Federal	$	11,199	$	6,840	$	8,106
State		2,913		2,327		1,423
Total current		14,112		9,167		9,529
Deferred income taxes (benefits):
Federal		3,116		5,640		(469	)
State		817		1,038		(11	)
Total deferred		3,933		6,678		(480	)
Total income tax expense (benefit)	$	18,045	$	15,845	$	9,049

Deferred tax assets and liabilities

Deferred tax assets and liabilities, shown as the sum of the appropriate tax effect for each significant type of temporary difference, are presented in the following table at December 31 for the years indicated:

(In thousands)	2012			2011
Deferred Tax Assets:
Allowance for loan and lease losses	$	17,132		$	19,714
Employee benefits		1,505			1,454
Pension plan OCI		5,933			4,482
Deferred loan fees and costs		579			681
Non-qualified stock option expense		376			413
Losses on other real estate owned		756			313
Other than temporary impairment		323			269
Loan and deposit premium/discount		2,267			159
Depreciation		-			-
Reserve for recourse loans		199			120
Loss carryforward		88
Other		145			111
Gross deferred tax assets		29,304			27,716
Valuation allowance		(88	)		-
Net deferred tax assets		29,216			27,716
Deferred Tax Liabilities:
Unrealized gains on investments available for sale		(13,436	)		(13,270	)
Pension plan costs		(2,644	)		(3,267	)
Depreciation		(704	)		(900	)
Intangible assets		(568	)		(286	)
Bond accretion		(109	)		(167	)
Other		(16	)		(16	)
Gross deferred tax liabilities		(17,477	)		(17,906	)
Net deferred tax asset	$	11,739		$	9,810

Reconcilements Between Statutory Federal Income Tax Rate And Effective Tax Rate

The reconcilements between the statutory federal income tax rate and the effective rate for the years ended December 31 are presented in the following table:

(Dollars in thousands)	2012						2011						2010
				Percentage of						Percentage of						Percentage of
				Pre-Tax						Pre-Tax						Pre-Tax
	Amount			Income			Amount			Income			Amount			Income
Income tax expense at federal statutory rate	$	19,110			35.0	%	$	17,481			35.0	%	$	11,399			35.0	%
Increase (decrease) resulting from:
Tax exempt income, net		(2,927	)		(5.4	)		(2,945	)		(5.9	)		(2,411	)		(7.4	)
Bank-owned life insurance		(916	)		(1.7	)		(923	)		(1.9	)		(980	)		(3.0	)
State income taxes, net of federal income tax benefits		2,424			4.4			2,187			4.4			906			2.8
Other, net		354			0.7			45			0.1			135			0.4
Total income tax expense (benefit) and rate	$	18,045			33.0	%	$	15,845			31.7	%	$	9,049			27.8	%