INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Schedule of Components of Income Taxes

The provision for income taxes is comprised of the following components:

	Years Ended December 31
	2012			2011			2010
	(Dollars in thousands)
Current expense
Federal	$	11,928		$	11,830		$	10,453
State	4,664			5,227			4,268
Total current expense	16,592			17,057			14,721
Deferred expense (benefit)
Federal	(1,183		)	548			(2,223		)
State	(736		)	(457		)	(271		)
Total deferred expense (benefit)	(1,919		)	91			(2,494		)
Total expense	$	14,673		$	17,148		$	12,227

Schedule of Income Tax Rate Reconciliation

The difference between the statutory federal income tax rate of 35% and the effective income tax rate reported for the last three years is detailed below:

	Years Ended December 31
	2012					2011					2010
	(Dollars in thousands)
Computed statutory federal income tax provision	$	20,055		35.00	%	$	21,904		35.00	%	$	18,364		35.00	%
State taxes, net of federal tax benefit	2,553			4.46	%	3,101			4.95	%	2,598			4.95	%
Nontaxable interest, net	(542		)	(0.95	)%	(661		)	(1.06	)%	(564		)	(1.07	)%
Tax credits	(6,567		)	(11.46	)%	(6,238		)	(9.97	)%	(6,932		)	(13.21	)%
Increase in cash surrender value of life insurance and tax exempt gain on death proceeds	(1,612		)	(2.81	)%	(1,109		)	(1.77	)%	(1,117		)	(2.13	)%
Merger and other related costs (non-deductible)	404			0.71	%	—			—	%	—			—	%
Other, net	382			0.66	%	151			0.25	%	(122		)	(0.24	)%
Total expense	$	14,673		25.61	%	$	17,148		27.40	%	$	12,227		23.30	%

Schedule of Net Deferred Tax Asset

The tax-effected components of the net deferred tax asset at December 31 were as follows:

	2012		2011
	(Dollars in thousands)
Deferred tax assets
Allowance for loan losses	$	21,252	$	19,845
Accrued expenses not deducted for tax purposes	7,739		6,181
Derivatives fair value adjustment	6,020		6,767
Other-than-temporary impairment on securities	4,435		4,403
Federal Home Loan Bank borrowings fair value adjustment	3,883		318
Deferred gain on sale leaseback transaction	3,541		3,968
Employee and director equity compensation	2,474		2,159
Net operating loss carry-forward	2,440		—
Loan basis difference fair value adjustment	1,402		—
Other	1,768		2,166
Total	$	54,954	$	45,807
Deferred tax liabilities
Goodwill	$	11,831	$	11,499
Fixed assets	7,286		6,269
Core deposit and other intangibles	3,775		3,499
Net unrealized gain on securities available for sale	3,257		3,762
Deferred loan fees, net	3,104		2,369
Loan basis difference fair value adjustment	—		1,326
Other	356		942
Total	$	29,609	$	29,666
Total net deferred tax asset	$	25,345	$	16,141

Reconciliation of Unrecognized Tax Benefits

The Company accounts for uncertainties in income taxes by providing a tax reserve for certain positions. The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits:

	(Dollars in thousands)
Balance at December 31, 2010	$	226
Reduction of tax positions for prior years	(115		)
Increase for current year tax positions	—
Balance at December 31, 2011	$	111
Reduction of tax positions for prior years	(34		)
Increase for prior year tax positions	5
Increase for current year tax positions	44
Balance at December 31, 2012	$	126