Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Taxes

(14)  Income Taxes

The following table presents the components of income tax expense attributable to continuing operations included in the consolidated statements of income:

(dollars in thousands)	December 31,
	2011		2010		2009
Current tax expense			$	9,667	$	4,238
Deferred tax expense (benefit)				2,130		(1,352	)
Total	$	-	$	11,797	$	2,886

Reconciliation between the statutory federal income tax rate and the effective tax rate is as follows:

(dollars in thousands)	December 31,
	2011		2010					2009
Income tax expense at federal statutory rate	$		$	13,079		35.0	%	$	3,185		35.0	%
Federal tax credits				(480	)	(1.3	%)		(400	)	(4.4	%)
Interest income on tax-exempt securities				(372	)	(1.0	%)		(211	)	(2.3	%)
Other				(430	)	(1.1	%)		312		3.4	%
Total	$	-	$	11,797		31.6	%	$	2,886		31.7	%

Federal tax credits are related to the New Markets Tax Credit program, whereby a subsidiary of the Bank has been awarded $3.1 million in future Federal tax credits which are available through 2012. Tax benefits related to these credits will be recognized for financial reporting purposes in the same periods that the credits are recognized in the Company's income tax returns. The Company believes that it has complied with the various regulatory provisions of the New Markets Tax Credit program for all years presented, and therefore has reflected the impact of these credits in its estimated annual effective tax rate for all years presented.

The following table presents major components of the net deferred income tax asset resulting from differences between financial reporting and tax basis:

(dollars in thousands)	December 31,
	2011		2010
Deferred tax assets
Covered assets			$	26,384
Goodwill				11,307
Allowance for loan losses				7,052
Fair value adjustment of investment securities available for sale				131
Deferred compensation				369
Other				1,870
Total deferred tax assets	$	-	$	47,113
Deferred tax liabilities
FDIC indemnification asset			$	38,335
Deferred loan fees				1,718
Premises and equipment				252
FHLB stock dividend				152
Investment in partnership				728
Prepaid expenses				107
Fair value adjustment of investment securities available for sale				-
Other				4,604
Total deferred tax liabilities		-		45,896
Deferred tax assets, net	$	-	$	1,217

There was no valuation allowance for deferred tax assets as of December 31, 2011 or 2010. The Company has determined that it is not required to establish a valuation allowance for the deferred tax assets as management believes it is more likely than not that the deferred tax asset will be realized in the normal course of business.