Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Components of income tax expense attributable to operations

The significant components of income tax expense attributable to operations are:

	Years ended December 31,
	2012			2011			2010
Current
Federal	$	21,011		$	29,274		$	34,124
State		1,815			1,477			1,743
		22,826			30,751			35,867

Deferred
Federal		(13	)		(8,129	)		(12,121	)
State		3			(1,349	)		(2,834	)
		(10	)		(9,478	)		(14,955	)
Total income tax expense	$	22,816		$	21,273		$	20,912

Components of deferred tax assets and liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows:

	December 31,
(In thousands)	2012		2011
Deferred tax assets
Allowance for loan losses	$	26,687	$	27,487
Deferred compensation		5,362		4,911
Postretirement benefit obligation		1,600		1,036
Fair value adjustments from acquisitions		3,633		2,227
Accrued liabilities		1,524		1,482
Stock-based compensation expense		5,726		4,440
Other		1,933		1,214
Total deferred tax assets		46,465		42,797
Deferred tax liabilities
Pension and executive retirement		7,676		6,916
Unrealized gains on securities available for sale		10,939		12,156
Premises and equipment, primarily due to accelerated depreciation		1,980		2,340
Equipment leasing		582		3,090
Deferred loan costs		873		767
Intangible amortization		13,146		11,081
Other		154		494
Total deferred tax liabilities		35,350		36,844
Net deferred tax asset at year-end		11,115		5,953
Net deferred tax asset (liability) at beginning of year		5,953		(4,023	)
Increase in net deferred tax asset	$	5,162	$	9,976

Reconciliation of gross unrecognized tax benefits

A reconciliation of the beginning and ending balance of gross unrecognized tax benefits is as follows:

(In thousands)	2012			2011			2010
Balance at January 1	$	888		$	3,081		$	2,287
Additions for tax positions of prior years		-			-			1,714
Reduction for tax positions of prior years		(888	)		(2,193	)		(920	)
Balance at December 31	$	-		$	888		$	3,081

Reconciliation of the provision for income taxes to the amount computed by applying the federal statutory rate

The following is a reconciliation of the provision for income taxes to the amount computed by applying the applicable Federal statutory rate of 35% to income before taxes:

	Years ended December 31
(In thousands)	2012			2011			2010
Federal income tax at statutory rate	$	27,081		$	27,711		$	27,410
Tax exempt income		(2,536	)		(2,925	)		(3,448	)
Net increase in CSV of life insurance		(908	)		(919	)		(939	)
Low income housing tax credits		(629	)		(782	)		(296	)
State taxes, net of federal tax benefit		1,182			764			756
State audit settlements		-			(681	)		(1,465	)
Other, net		(1,374	)		(1,895	)		(1,106	)
Income tax expense	$	22,816		$	21,273		$	20,912

- 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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