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Income Taxes
 12 Months Ended
Dec. 31, 2012
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:

 
   2012   2011   2010  
 
   (Dollars in Thousands)
  

Current

                    

U.S. 

   $ 40,375   $ 61,279   $ 70,338  

State

     2,234     5,083     4,129  

Foreign

     33     15     22  
               

Total current taxes

     42,642     66,377     74,489  
               

Deferred

                    

U.S. 

     7,928     (2,296 )   (3,394 )

State

     (5 )   (3 )   (138 )
               

Total deferred taxes

     7,923     (2,299 )   (3,532 )
               

Total income taxes

   $ 50,565   $ 64,078   $ 70,957  
               

        Total income tax expense differs from the amount computed by applying the U.S. Federal income tax rate of 35% for 2012, 2011 and 2010 to income before income taxes. The reasons for the differences for the years ended December 31 are as follows:

 
   2012   2011   2010  
 
   (Dollars in Thousands)
  

Computed expected tax expense

   $ 55,634   $ 66,941   $ 70,355  

Change in taxes resulting from:

                    

Tax-exempt interest income

     (4,381 )   (3,682 )   (2,813 )

State tax, net of federal income taxes and tax credit

     1,446     3,302     2,594  

Tax refunds

     —     —     (2,143 )

Litigation expense

     —     —     5,375  

Other investment income

     (2,691 )   (3,083 )   (3,172 )

Other

     557     600     761  
               

Actual tax expense

   $ 50,565   $ 64,078   $ 70,957  
               

        The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2012 and 2011 are reflected below:

 
   2012   2011  
 
   (Dollars in Thousands)
  

Deferred tax assets:

              

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

   $ 24,323   $ 34,035  

Other real estate owned

     3,919     3,774  

Impairment charges on available-for-sale securities

     3,611     3,288  

Accrued expenses

     137     514  

Other

     5,549     5,189  
           

Total deferred tax assets

     37,539     46,800  
           

Deferred tax liabilities:

              

Bank premises and equipment, principally due to differences on depreciation

     (21,529 )   (23,313 )

Net unrealized gains on available for sale investment securities

     (36,156 )   (47,252 )

Identified intangible assets and goodwill

     (18,133 )   (18,430 )

Other

     (10,182 )   (9,439 )
           

Total deferred tax liabilities

     (86,000 )   (98,434 )
           

Net deferred tax liability

   $ (48,461 ) $ (51,634 )
           

        The net deferred tax liability of $48,461,000 at December 31, 2012 and $51,634,000 at December 31, 2011 is included in other liabilities in the consolidated statements of condition.