Income Taxes

Income tax expense was as follows:



	2014			2013		2012
Current income tax expense	$	62,177		$	49,736	$	76,928
Deferred income tax expense (benefit)	(4,130		)	3,279		(6,405		)
Income tax expense, as reported	$	58,047		$	53,015	$	70,523

Reported income tax expense differed from the amounts computed by applying the U.S. federal statutory income tax rate of 35% to income before income taxes as follows:



	2014			2013			2012
Income tax expense computed at the statutory rate	$	117,608		$	101,808		$	107,966
Effect of tax-exempt interest	(58,761		)	(46,535		)	(36,543		)
Bank owned life insurance income	(1,116		)	(1,086		)	(1,413		)
Other	316			(1,172		)	513
Income tax expense, as reported	$	58,047		$	53,015		$	70,523

Year-end deferred taxes were as follows:



	2014			2013
Deferred tax assets:
Allowance for loan losses	$	34,840		$	32,353
Net actuarial loss on defined benefit post-retirement benefit plans	26,263			14,070
Stock-based compensation	18,839			17,746
Bonus accrual	6,118			5,301
Gain on sale of assets	2,139			2,234
Partnerships	1,911			2,208
Transaction costs	1,794			565
Other	5,272			4,489
Total gross deferred tax assets	97,176			78,966
Deferred tax liabilities:
Net unrealized gain on securities available for sale and effective cash flow hedging derivatives	(102,626		)	(89,689		)
Premises and equipment	(20,039		)	(21,192		)
Defined benefit post-retirement benefit plans	(15,010		)	(14,137		)
Intangible assets	(6,143		)	(7,253		)
Leases	(4,952		)	(4,237		)
Reserve for medical insurance	(3,017		)	(2,171		)
Prepaid expenses	(1,639		)	(1,618		)
Other	(341		)	(1,456		)
Total gross deferred tax liabilities	(153,767		)	(141,753		)
Net deferred tax asset (liability)	$	(56,591	)	$	(62,787	)

No valuation allowance for deferred tax assets was recorded at December 31, 2014 and 2013 as management believes it is more likely than not that all of the deferred tax assets will be realized because they were supported by recoverable taxes paid in prior years. There were no unrecognized tax benefits during any of the reported periods.

The Corporation files income tax returns in the U.S. federal jurisdiction. The Company is no longer subject to U.S. federal income tax examinations by tax authorities for years before 2011.