INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013


	2013	2012	2011
	(In thousands)
Income tax expense	$ 37,551	$ 33,252	$ 4,475
Shareholders' equity for other comprehensive income	(13,249)	(3,943)	7,600
Shareholders' equity for stock option plans	(139)	32	(7)
Total	$ 24,163	$ 29,341	$ 12,068

Components Of Income Tax (Benefit) Expense


	2013	2012	2011
Current:	(In thousands)
Federal	$ 32,729	$ 34,316	$ 5,643
State	1,570	3,389	5,400
Deferred:
Federal	1,774	(4,964)	(1,626)
State	1,478	511	(4,942)
Total	$ 37,551	$ 33,252	$ 4,475

Income Tax Reconciliation


	2013	2012	2011
	(In thousands)
Tax expense at statutory rates	$ 46,083	$ 41,141	$ 14,715
Increase (decrease) in taxes resulting from:
State income taxes, net of federal tax benefit	1,926	2,453	266
Tax-exempt interest revenue	(7,423)	(7,789)	(7,881)
Tax-exempt earnings on life insurance	(2,889)	(2,790)	(2,647)
Deductible dividends paid on 401(k) plan	(187)	(100)	(331)
Other, net	41	337	353
Total	$ 37,551	$ 33,252	$ 4,475

Deferred Tax Assets and Deferred Tax Liabilities


	2013	2012
Deferred tax assets:	(In thousands)
Loans, principally due to allowance
for credit losses	$ 58,003	$ 62,206
Other real estate owned	6,799	13,027
Mark to market - securities	4,164	4,160
Accrued liabilities, principally due to
compensation arrangements and vacation accruals	13,085	15,897
Other	2,993	3,884
Investments, principally due to interest income recognition	-	516
State tax credits (net of federal benefit)	-	428
Unrecognized pension expense	20,997	31,374
Total gross deferred tax assets	106,041	131,492
Less: valuation allowance	-	-
Deferred tax assets	$ 106,041	$ 131,492
Deferred tax liabilities:
Lease transactions	$ 29,997	$ 34,532
Employment benefits	12,483	22,392
Premises and equipment, principally due
to differences in depreciation	23,488	26,824
Mortgage servicing rights	20,679	14,313
Intangible assets	10,654	10,439
Investments, principally due to interest income recognition	133	-
Deferred loan points	2,806	2,650
Other assets, principally due to expense recognition	1,033	767
Unrealized net gains on available-for-sale securities	2,289	26,066
Total gross deferred tax liabilities	103,562	137,983
Net deferred tax assets (liabilities)	$ 2,479	$ (6,491)

Activity In Unrecognized Tax Benefits


	2013	2012	2011
	(In thousands)
Unrecognized tax benefit, January 1	$ 1,571	$ 1,102	$ 355
Gross increases - tax positions in prior period	-	199	873
Gross decreases - tax positions in prior period	(1,571)	-	(355)
Gross increases - tax positions in current period	-	270	229
Settlements	-	-	-
Lapse of statute of limitations	-	-	-
Unrecognized tax benefit, December 31	$ -	$ 1,571	$ 1,102

- 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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