INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2014


	2014	2013	2012
	(In thousands)
Income tax expense	$ 50,652	$ 37,551	$ 33,252
Shareholders' equity for other comprehensive income	(8,481)	(13,249)	(3,943)
Shareholders' equity for stock option plans	(1,856)	(139)	32
Total	$ 40,315	$ 24,163	$ 29,341

Components Of Income Tax (Benefit) Expense


	2014	2013	2012
Current:	(In thousands)
Federal	$ 51,014	$ 32,729	$ 34,316
State	7,201	1,570	3,389
Deferred:
Federal	(6,870)	1,774	(4,964)
State	(693)	1,478	511
Total	$ 50,652	$ 37,551	$ 33,252

Income Tax Reconciliation


	2014	2013	2012
	(In thousands)
Tax expense at statutory rates	$ 58,591	$ 46,083	$ 41,141
Increase (decrease) in taxes resulting from:
State income taxes, net of federal tax benefit	4,230	1,926	2,453
Tax-exempt interest revenue	(7,371)	(7,423)	(7,789)
Tax-exempt earnings on life insurance	(3,076)	(2,889)	(2,790)
Deductible dividends paid on 401(k) plan	(458)	(187)	(100)
Tax credits	(1,771)	(578)	(466)
Other, net	507	619	803
Total	$ 50,652	$ 37,551	$ 33,252

Deferred Tax Assets and Deferred Tax Liabilities


	2014	2013
Deferred tax assets:	(In thousands)
Loans, principally due to allowance for credit losses	$ 53,922	$ 58,003
Other real estate owned	4,605	6,799
Mark to market - securities	4,164	4,164
Accrued liabilities, principally due to
compensation arrangements and vacation accruals	17,877	13,085
Other	129	2,993
Unrecognized pension expense	39,428	20,997
Total gross deferred tax assets	120,125	106,041
Less: valuation allowance	-	-
Deferred tax assets	$ 120,125	$ 106,041
Deferred tax liabilities:
Lease transactions	$ 25,033	$ 29,997
Employment benefits	7,435	12,483
Premises and equipment, principally due
to differences in depreciation	21,845	23,488
Mortgage servicing rights	19,409	20,679
Intangible assets	11,024	10,654
Investments, principally due to interest income recognition	592	133
Deferred loan points	3,851	2,806
Other assets, principally due to expense recognition	959	1,033
Unrealized net gains on available-for-sale securities	12,393	2,289
Total gross deferred tax liabilities	102,541	103,562
Net deferred tax assets	$ 17,584	$ 2,479

Activity In Unrecognized Tax Benefits


	2014	2013	2012
	(In thousands)
Unrecognized tax benefit, January 1	$ -	$ 1,571	$ 1,102
Gross increases - tax positions in prior period	-	-	199
Gross decreases - tax positions in prior period	-	(1,571)	-
Gross increases - tax positions in current period	-	-	270
Settlements	-	-	-
Lapse of statute of limitations	-	-	-
Unrecognized tax benefit, December 31	$ -	$ -	$ 1,571

- 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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