Federal Income Taxes

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Federal Income Taxes

FEDERAL INCOME TAXES

The provision for federal income taxes was less than that computed by applying the federal statutory income tax rate of 35% to pre-tax income, primarily due to tax-exempt interest income on investment securities and loans and income tax credits during 2013, 2012 and 2011. The differences between the provision for federal income taxes computed at the federal statutory income tax rate and the amounts recorded in the consolidated financial statements were as follows:

	Years Ended December 31,
	2013			2012			2011
	(Dollars in thousands)
Tax at statutory rate	$	28,388		$	25,133		$	21,088
Changes resulting from:
Tax-exempt interest income	(2,746		)	(2,524		)	(2,569		)
Income tax credits	(1,615		)	(1,561		)	(1,374		)
Other, net	273			(248		)	55
Provision for federal income taxes	$	24,300		$	20,800		$	17,200
Effective federal income tax rate	30.0		%	29.0		%	28.5		%

The provision for federal income taxes consisted of the following:

	Years Ended December 31,
	2013		2012		2011
	(In thousands)
Current	$	23,665	$	8,132	$	10,787
Deferred	635		12,668		6,413
Total	$	24,300	$	20,800	$	17,200

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant temporary differences that comprise the deferred tax assets and liabilities of the Corporation were as follows:

	December 31,
	2013		2012
	(In thousands)
Deferred tax assets:
Allowance for loan losses	$	27,675	$	29,572
Acquisition-related fair value adjustments	8,699		9,498
Accrued expenses not currently deductible	6,288		4,518
Other	11,663		11,756
Total deferred tax assets	54,325		55,344
Deferred tax liabilities:
Defined benefit pension plan	8,020		—
Goodwill	4,680		4,177
Other	6,140		9,339
Total deferred tax liabilities	18,840		13,516
Net deferred tax assets	$	35,485	$	41,828

Management expects to realize the full benefits of the deferred tax assets recorded at December 31, 2013. The Corporation had no reserve for contingent income tax liabilities recorded at December 31, 2013 and 2012. The tax periods open to examination by the Internal Revenue Service include the years ended December 31, 2013, 2012, 2011 and 2010.