INCOME TAXES

6 Months Ended

Jun. 30, 2012

INCOME TAXES

13. INCOME TAXES

Income Tax Provision Analysis

(Dollars in thousands)

	Quarters Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Income before income taxes	$	30,696		$	15,338		$	54,646		$	28,591
Income tax provision:
Current income tax provision	$	15,279		$	3,879		$	16,526		$	6,020
Deferred income tax provision		(2,087	)		2,441			6,361			2,579
Total income tax provision	$	13,192		$	6,320		$	22,887		$	8,599
Effective tax rate		43.0	%		41.2	%		41.9	%		30.1	%

Deferred Tax Assets

Net deferred tax assets totaled $97.0 million at June 30, 2012 and $106.3 million at December 31, 2011. Net deferred tax assets are included in other assets in the accompanying Consolidated Statements of Financial Condition.

At June 30, 2012, we concluded that it was more likely than not the deferred tax assets will be realized and no valuation allowance was recorded. In making this determination, we relied in part on the fact that we were not in a cumulative book loss position for financial statement purposes, measured on a trailing three-year basis. In addition, we considered our recent earnings history, on both a book and tax basis, and our outlook for earnings in future periods. Our expectation of pre-tax book earnings in future periods should give rise to taxable income levels (exclusive of reversing temporary differences) that more likely than not will be sufficient to absorb the deferred tax assets.

As of June 30, 2012 and December 31, 2011, there were $122,000 and $454,000 respectively, of unrecognized tax benefits relating to uncertain tax positions that would favorably affect the effective tax rate, if recognized in future periods.