Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Income tax allocation

(In thousands)	2012			2011			2010
Allocated to net income	$	(16,952	)		7,370			4,960
Allocated to stockholders’ equity, for unrealized holding gain/loss on    debt and equity securities for financial reporting purposes		(237	)		554			251
Allocated to stockholders’ equity, for tax expense (benefit) of pension liabilities		5,824			(2,912	)		(688	)
Total income tax expense (benefit)	$	(11,365	)		5,012			4,523

Components of Income tax expense

($ in thousands)	2012			2011			2010
Current     - Federal	$	(8,401	)		9,204			25,353
- State		(43	)		2,094			3,807
Deferred   - Federal		(5,914	)		(3,234	)		(21,092	)
- State		(2,594	)		(694	)		(3,108	)
Total	$	(16,592	)		7,370			4,960

Deferred tax assets and liabilities

(In thousands)	2012			2011
Deferred tax assets:
Allowance for loan losses	$	18,228			16,458
Excess book over tax SERP retirement plan cost		2,553			2,378
Deferred compensation		128			138
State net operating loss carryforwards		961			62
Accruals, book versus tax		1,403			329
Pension liability adjustments		1,396			7,220
Foreclosed real estate		6,813			1,402
Basis differences in assets acquired in FDIC transactions		1,058			771
Nonqualified stock options		554			277
Nonaccrual loan interest		420			744
All other		732			663
Gross deferred tax assets		34,246			30,442
Less: Valuation allowance		(112	)		(81	)
Net deferred tax assets		34,134			30,361
Deferred tax liabilities:
Loan fees		(1,427	)		(1,217	)
Excess tax over book pension cost		(451	)		(219	)
Depreciable basis of fixed assets		(2,308	)		(2,372	)
Amortizable basis of intangible assets		(9,119	)		(8,334	)
Unrealized gain on securities available for sale		(1,283	)		(1,520	)
FHLB stock dividends		(437	)		(437	)
All other		(124	)		(198	)
Gross deferred tax liabilities		(15,149	)		(14,297	)
Net deferred tax asset - included in other assets	$	18,985			16,064

Effective tax rate reconciliation

The following is a reconcilement of federal income tax expense at the statutory rate of 35% to the income tax provision reported in the financial statements.

(In thousands)	2012			2011			2010
Tax provision at statutory rate	$	(14,125	)		7,354			5,230
Increase (decrease) in income taxes resulting from:
Tax-exempt interest income		(831	)		(852	)		(726	)
Low income housing tax credits		(181	)		(163	)		(143	)
Non-deductible interest expense		23			33			37
State income taxes, net of federal benefit		(1,714	)		910			454
Change in valuation allowance		31			(5	)		(145	)
Other, net		(155	)		93			253
Total	$	(16,952	)		7,370			4,960