Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Schedule Of Provision For Income Tax Expense

The provision for income tax expense consists of the following for the years ended December 31:

(Dollars in thousands)	2012			2011			2010
Current expense	$	44,125		$	33,116		$	28,562
Deferred benefit		(7,527	)		(11,750	)		(3,607	)
Tax credits		(8,756	)		(6,734	)		(6,214	)
Tax benefits attributable to items charged to equity and goodwill		654			2,349			1,250
Total income tax expense	$	28,496		$	16,981		$	19,991

Reconciliation Of Effective Tax Rate

The provision for federal income taxes differs from the amount computed by applying the federal income tax statutory rate of 35 percent on income from operations as indicated in the following analysis for the years ended December 31:

(Dollars in thousands)	2012			2011			2010
Federal tax based on statutory rate	$	36,712		$	24,682		$	24,086
Increase (decrease) resulting from:
Effect of tax-exempt income		(7,558	)		(6,633	)		(5,935	)
Interest and other nondeductible expenses		1,847			1,487			1,295
State taxes		4,938			3,034			3,615
Tax credits		(8,756	)		(6,734	)		(6,214	)
Other		1,313			1,145			3,144
Total income tax expense	$	28,496		$	16,981		$	19,991
Effective rate		27.2	%		24.1	%		29.1	%

Deferred Tax Assets And Liabilities

The net deferred tax liability at December 31, 2012 and 2011 is as follows:

(Dollars in thousands)	2012			2011
Deferred tax asset:
Allowance for credit losses	$	78,817		$	56,684
Discount on purchased loans		158			153
Deferred compensation		5,193			1,727
Investments acquired		—			395
Unrealized loss on cash flow hedges		471			1,029
Other		38,886			25,381
Subtotal		123,525			85,369
Deferred tax liability:
Basis difference in acquired assets		(82,605	)		(63,140	)
FHLB stock		(19	)		(111	)
Premises and equipment		(13,050	)		(15,580	)
Acquisition intangibles		(11,267	)		(7,310	)
Deferred loan costs		(3,405	)		(1,732	)
Unrealized gain on investments classified as available for sale		(13,650	)		(14,197	)
Investments acquired		(224	)		—
Swap gain		(2	)		—
Other		(14,300	)		(11,584	)
Subtotal		(138,522	)		(113,654	)
Deferred tax liability, net	$	(14,997	)	$	(28,285	)