INCOME TAXES

12 Months Ended

Dec. 31, 2011

INCOME TAXES [Abstract]

INCOME TAXES

17. INCOME TAXES

The provisions for income taxes included in the accompanying statements of income consist of the following (in thousands):

	Years Ended December 31,
	2011			2010		2009
Current tax provision	$	11,665		$	11,100	$	16,816
Deferred tax provision (benefit)		(1,271	)		656		(207	)
Provision for tax expense charged to operations	$	10,394		$	11,756	$	16,609

The components of the net deferred tax (liability) asset as of December 31, 2011 and 2010 are summarized below (in thousands):

	Assets			Liabilities
Write-downs on OREO	$	57		$
Allowance for loan losses		6,490
Retirement and other benefit plans					(3,910	)
Unrealized gains on securities available for sale					(19,221	)
Premises and equipment					(1,170	)
FHLB stock dividends					(9	)
Fair value gain (loss) – securities					(2,133	)
Other-than-temporary impairment losses		4,199
Unfunded status of defined benefit plan		11,294
State Business Tax Credit		692
Stock-based compensation		91
Other		162
Gross deferred tax assets (liabilities)		22,985			(26,443	)
Net deferred tax liability at December 31, 2011	$	(3,458	)
Write-downs on OREO	$	58		$
Allowance for loan losses		6,193
Retirement and other benefit plans					(4,220	)
Unrealized gains on securities available for sale					(4,972	)
Premises and equipment					(1,007	)
FHLB stock dividends					(12	)
Fair value gain (loss) – securities		210
Other-than-temporary impairment losses		1,076
Unfunded status of defined benefit plan		8,360
State Business Tax Credit		709
Other		208
Gross deferred tax assets (liabilities)		16,814			(10,211	)
Net deferred tax asset at December 31, 2010	$	6,603

A reconciliation of tax at statutory rates and total tax expense is as follows (dollars in thousands):

	Years Ended December 31,
	2011						2010						2009
	Amount			Percent of Pre-Tax Income			Amount			Percent of Pre-Tax Income			Amount			Percent of Pre-Tax Income
Statutory Tax Expense	$	17,810			35.0	%	$	18,134			35.0	%	$	21,865			35.0	%
Increase (Decrease) in Taxes from:
Tax Exempt Interest		(7,182	)		(14.1	% )		(6,323	)		(12.2	% )		(4,990	)		(8.0	% )
State Business Tax		82			0.1	%		91			0.2	%		86			0.1	%
Other Net		(316	)		(0.6	% )		(146	)		(0.3	% )		(352	)		(0.5	% )
Provision for Tax Expense Charged to Operations	$	10,394			20.4	%	$	11,756			22.7	%	$	16,609			26.6	%

We file income tax returns in the U.S. federal jurisdiction and in certain states.  We are no longer subject to U.S. federal income tax examinations by tax authorities for years before 2008.