Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

The income tax provision included in the statements of income is as follows ($ in thousands):

Current	2011			2010			2009
Federal	$	46,749		$	43,806		$	42,117
State		4,712			4,702			6,393
Deferred
Federal		(8,414	)		(5,558	)		(3,892	)
State		(1,269	)		(831	)		(585	)
Income tax provision	$	41,778		$	42,119		$	44,033

Income tax reconciliation

The income tax provision differs from the amount computed by applying the statutory federal income tax rate of 35% to income before income taxes as a result of the following ($ in thousands):

	2011			2010			2009
Income tax computed at statutory tax rate	$	52,017		$	49,964		$	47,978
Tax exempt interest		(5,244	)		(5,115	)		(5,066	)
Nondeductible interest expense		153			181			270
State income taxes, net		2,238			2,517			3,775
Income tax credits		(7,633	)		(6,729	)		(3,396	)
Other		247			1,301			472
Income tax provision	$	41,778		$	42,119		$	44,033

Deferred tax assets and liabilities

Temporary differences between the financial statement carrying amounts and the tax basis of assets and liabilities gave rise to the following net deferred tax assets at December 31, 2011 and 2010, which are included in other assets ($ in thousands):

Deferred tax assets	2011		2010
Allowance for loan losses	$	34,433	$	35,767
Pension and other postretirement benefit plans		31,606		24,271
Other real estate		25,113		22,048
Stock-based compensation		5,387		6,249
Deferred compensation		4,519		4,444
Other		11,094		6,102
Gross deferred tax asset		112,152		98,881

Deferred tax liabilities
Unrealized gains on securities available for sale		28,202		13,072
Goodwill and other identifiable intangibles		15,871		15,478
Premises and equipment		15,336		13,185
Mortgage servicing rights		2,925		6,019
Securities		2,167		5,034
Other		3,485		2,942
Gross deferred tax liability		67,986		55,730
Net deferred tax asset	$	44,166	$	43,151

Changes in unrecognized tax benefits

The following table provides a summary of the changes during the 2011 calendar year in the amount of unrecognized tax benefits that are included in other liabilities in the consolidated balance sheet ($ in thousands):

Balance at January 1, 2011	$	1,397

Increases due to tax positions taken during the current year		208
Decreases due to tax positions taken during a prior year		(123	)
Decreases due to the lapse of applicable statute of limitations during the current year		(318	)

Balance at December 31, 2011	$	1,164

Accrued interest, net of federal benefit, at December 31, 2011	$	372

Unrecognized tax benefits that would impact the effective tax rate, if recognized, at December 31, 2011	$	814

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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