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Income Taxes
 12 Months Ended
Dec. 31, 2011
Income Taxes  
Income Taxes

(14) Income Taxes

        The Company files a consolidated U.S. Federal and State income tax return. The current and deferred portions of net income tax expense included in the consolidated statements of income are presented below for the years ended December 31:

 
   2011   2010   2009  
 
   (Dollars in Thousands)
  

Current

                    

U.S. 

   $ 61,279   $ 70,338   $ 77,653  

State

     5,083     4,129     3,340  

Foreign

     15     22     30  
               

Total current taxes

     66,377     74,489     81,023  

Deferred

                    

U.S. 

     (2,296 )   (3,394 )   (8,513 )

State

     (3 )   (138 )   5,478  
               

Total deferred taxes

     (2,299 )   (3,532 )   (3,035 )
               

Total income taxes

   $ 64,078   $ 70,957   $ 77,988  
               

        Total income tax expense differs from the amount computed by applying the U.S. Federal income tax rate of 35% for 2011, 2010 and 2009 to income before income taxes. The reasons for the differences for the years ended December 31 are as follows:

 
   2011   2010   2009  
 
   (Dollars in Thousands)
  

Computed expected tax expense

   $ 66,941   $ 70,355   $ 77,293  

Change in taxes resulting from:

                    

Tax-exempt interest income

     (3,682 )   (2,813 )   (1,937 )

State tax, net of federal income taxes and tax credit

     3,302     2,594     5,722  

Tax refunds

     —     (2,143 )   —  

Litigation expense

     —     5,375     —  

Other investment income

     (3,083 )   (3,172 )   (3,526 )

Other

     600     761     436  
               

Actual tax expense

   $ 64,078   $ 70,957   $ 77,988  
               

        The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2011 and 2010 are reflected below:

 
   2011   2010  
 
   (Dollars in Thousands)
  

Deferred tax assets:

              

Loans receivable, principally due to the allowance for probable loan losses

   $ 34,035   $ 34,086  

Other real estate owned

     3,774     323  

Impairment charges on available-for-sale securities

     3,288     2,946  

Accrued expenses

     514     304  

Other

     5,189     6,065  
           

Total deferred tax assets

     46,800     43,724  
           

Deferred tax liabilities:

              

Bank premises and equipment, principally due to differences on depreciation

     (23,313 )   (24,272 )

Net unrealized gains on available for sale investment securities

     (47,252 )   (15,833 )

Identified intangible assets and goodwill

     (18,430 )   (18,383 )

Other

     (9,439 )   (7,750 )
           

Total deferred tax liabilities

     (98,434 )   (66,238 )
           

Net deferred tax liability

   $ (51,634 ) $ (22,514 )
           

        The net deferred tax liability of $51,634,000 at December 31, 2011 and $22,514,000 at December 31, 2010 is included in other liabilities in the consolidated statements of condition.