Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of components of income tax expense (benefit)

The components of income tax (benefit) expense for the years ended December 31 are as follows:



	Years ended December 31,
(in thousands)	2013			2012			2011
Current:
Federal	$	24,029		$	20,984		$	11,628
State and local	2,890			2,085			1,907
Deferred	(9,943		)	(8,535		)	(733		)
Total income tax expense	$	16,976		$	14,534		$	12,802

Schedule of effective income tax rate reconciliation

A reconciliation of expected income tax expense, computed by applying the statutory federal income tax rate of 35% in 2013, 2012, and 2011 to income before income taxes and the amounts reflected in the consolidated statements of operations is as follows:



	Years ended December 31,
(in thousands)	2013			2012			2011
Income tax expense at statutory rate	$	17,528		$	14,991		$	13,379
Increase (reduction) in income tax resulting from:
Tax-exempt income, net	(1,128		)	(853		)	(717		)
State and local income taxes, net	1,314			1,232			994
Bank-owned life insurance, net	(484		)	(353		)	(270		)
Non-deductible expenses	222			326			335
Change in estimated rate for deferred taxes	336			—			(1,180		)
Tax benefits of LIHTC investments, net	(204		)	(211		)	(174		)
Other, net	(608		)	(598		)	435
Total income tax expense	$	16,976		$	14,534		$	12,802

Schedule of deferred tax assets and liabilities

The tax effect of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities is as follows:



	Years ended December 31,
(in thousands)	2013		2012
Deferred tax assets:
Allowance for loan losses	$	16,365	$	17,846
Asset purchase tax basis difference, net	16,238		18,399
Basis difference on other real estate	1,611		1,222
Deferred compensation	4,604		2,815
Goodwill and other intangible assets	10,799		12,657
Accrued compensation	2,046		1,700
Unrealized losses on securities available for sale	2,672		—
Other, net	796		115
Total deferred tax assets	$	55,131	$	54,754

Deferred tax liabilities:
FDIC loss guarantee receivable, net	$	12,280	$	23,259
Unrealized gains on securities available for sale	—		4,960
State tax credits held for sale, net of economic hedge	1,368		1,875
Core deposit intangibles	2,075		2,881
Total deferred tax liabilities	15,723		32,975
Net deferred tax asset	$	39,408	$	21,779

Schedule of unrecognized tax benefits roll forward

The activity in the gross liability for unrecognized tax benefits was as follows:



(in thousands)	2013			2012			2011
Balance at beginning of year	$	1,148		$	1,057		$	4,003
Additions based on tax positions related to the current year	233			347			311
Additions for tax positions of prior years	53			49			38
Reductions for tax positions of prior years	—			—			(2,849		)
Settlements or lapse of statute of limitations	(177		)	(305		)	(446		)
Balance at end of year	$	1,257		$	1,148		$	1,057