INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

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
	2013		2012			2011
	(Dollars in thousands)
Current expense
Federal	$	9,570	$	11,928		$	11,830
State	4,357		4,664			5,227
Total current expense	13,927		16,592			17,057
Deferred expense (benefit)
Federal	1,598		(1,183		)	548
State	959		(736		)	(457		)
Total deferred expense (benefit)	2,557		(1,919		)	91
Total expense	$	16,484	$	14,673		$	17,148

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
	2013					2012					2011
	(Dollars in thousands)
Computed statutory federal income tax provision	$	23,359		35.00	%	$	20,055		35.00	%	$	21,904		35.00	%
State taxes, net of federal tax benefit	3,455			5.17	%	2,553			4.46	%	3,101			4.95	%
Nontaxable interest, net	(557		)	(0.83	)%	(542		)	(0.95	)%	(661		)	(1.06	)%
Tax credits	(9,194		)	(13.77	)%	(6,567		)	(11.46	)%	(6,238		)	(9.97	)%
Increase in cash surrender value of life insurance and tax exempt gain on benefit payments	(1,209		)	(1.81	)%	(1,612		)	(2.81	)%	(1,109		)	(1.77	)%
Merger and other related costs (non-deductible)	366			0.55	%	404			0.71	%	—			—	%
Other, net	264			0.39	%	382			0.66	%	151			0.25	%
Total expense	$	16,484		24.70	%	$	14,673		25.61	%	$	17,148		27.40	%

Schedule of Net Deferred Tax Asset

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

	2013		2012
	(Dollars in thousands)
Deferred tax assets
Allowance for loan losses	$	21,743	$	21,252
Accrued expenses not deducted for tax purposes	8,530		8,627
Other-than-temporary impairment on securities	4,074		4,435
Derivatives fair value adjustment	3,440		6,020
Deferred gain on sale leaseback transaction	3,104		3,541
Employee and director equity compensation	2,351		2,474
New Markets Tax Credit carry-forward	2,257		—
Loan basis difference fair value adjustment	1,819		1,402
Net operating loss carry-forward	1,671		2,440
Net unrealized loss on securities available for sale	1,418		—
Federal Home Loan Bank borrowings fair value adjustment	220		4,005
Other	1,481		758
Total	$	52,108	$	54,954
Deferred tax liabilities
Goodwill	$	13,030	$	11,831
Fixed assets	5,571		7,286
Core deposit and other intangibles	4,052		3,775
Deferred loan fees, net	3,530		3,104
Net unrealized gain on securities available for sale	—		3,257
Other	956		356
Total	$	27,139	$	29,609
Total net deferred tax asset	$	24,969	$	25,345

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, 2011	$	111
Reduction of tax positions for prior years	(34		)
Increase for prior year tax position	5
Increase for current year tax positions	44
Balance at December 31, 2012	$	126
Reduction of tax positions for prior years	(113		)
Increase for prior year tax positions	42
Increase for current year tax positions	—
Balance at December 31, 2013	$	55