Income Taxes

9 Months Ended

Sep. 30, 2012

Income Taxes [Abstract]

Income Taxes

Note G – Income Taxes

(In Thousands)

The reconciliation of the United States federal statutory tax rate to the effective tax rate is as follows:

	Three Months  Ended September 30,						Nine Months  Ended September 30,
	2012			2011			2012			2011
Tax at U.S. statutory rate		35.00	%		35.00	%		35.00	%		35.00	%
Increase (decrease) in taxes resulting from:
Tax-exempt interest income		(7.58	)		(7.93	)		(8.41	)		(7.71	)
BOLI income		(4.18	)		(2.44	)		(3.30	)		(2.66	)
Investment tax credits, net of amortization		(2.19	)		(0.56	)		(0.72	)		(0.54	)
State income taxes, net of federal benefit		0.31			(0.77	)		(0.03	)		(0.16	)
(Decrease)/increase to valuation allowance		(10.76	)		(1.30	)		(4.21	)		0.54
Other items, net		0.21			4.17			0.81			3.47
Effective tax rate		10.81	%		26.17	%		19.14	%		27.94	%

The provision for income taxes for the three and nine months ended September 30, 2012 includes the reversals of the valuation allowances against the deferred tax assets related to state net operating loss carryforwards that were utilized on 2011 state income tax returns filed during the third quarter of 2012. At September 30, 2012, the Company had remaining unused state net operating loss carryforwards expiring from 2012 to 2017. The Company anticipants that these carryforwards will be utilized on the Company’s state income tax returns and has not recorder a valuation allowance against the deferred tax assets related to these carryforwards.