Federal Income Taxes

12 Months Ended

Dec. 31, 2011

Federal Income Taxes [Abstract]

FEDERAL INCOME TAXES

NOTE 19 — FEDERAL INCOME TAXES

The provision for federal income taxes was less than that computed by applying the federal statutory income tax rate of 35%, primarily due to tax-exempt interest income on investment securities and loans and income tax credits during 2011, 2010 and 2009. 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 for the years ended December 31:

	2011			2010			2009
	(Dollars in thousands)
Tax at statutory rate	$	21,088		$	10,916		$	4,184
Changes resulting from:
Tax-exempt interest income		(2,569	)		(2,169	)		(1,751	)
Income tax credits		(1,374	)		(1,232	)		(569	)
Other, net		55			585			86
Provision for federal income taxes	$	17,200		$	8,100		$	1,950
Effective federal income tax rate		28.5	%		26.0	%		16.3	%

The provision for federal income taxes consisted of the following for the years ended December 31:

	2011		2010		2009
	(In thousands)
Current	$	10,787	$	4,661	$	8,927
Deferred		6,413		3,439		(6,977	)
Total	$	17,200	$	8,100	$	1,950

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,
	2011		2010
	(In thousands)
Deferred tax assets:
Allowance for loan losses	$	30,916	$	31,335
Acquisition-related fair value adjustments		13,373		16,932
Employee benefit plans		7,875		1,725
Accrued expenses not currently deductible		3,924		3,419
Other real estate		3,407		3,125
Nonaccrual loan interest		1,495		3,826
Share-based awards		1,452		920
Other		1,096		1,269
Total deferred tax assets		63,538		62,551
Deferred tax liabilities:
Goodwill		3,800		3,434
Loan fees		2,191		1,268
Investment securities available-for-sale		1,796		1,786
Core deposit intangible assets		1,468		1,730
Mortgage servicing rights		1,257		1,324
Prepaid expenses		888		775
Other		1,366		1,090
Total deferred tax liabilities		12,766		11,407
Net deferred tax assets	$	50,772	$	51,144

Management expects to realize the full benefits of the deferred tax assets recorded at December 31, 2011. The Corporation had no reserve for contingent income tax liabilities recorded at December 31, 2011 and 2010. The tax periods open to examination by the Internal Revenue Service include the years ended December 31, 2011, 2010, 2009 and 2008.