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Income Taxes
 12 Months Ended
Dec. 31, 2012
Income Taxes [Abstract]  
INCOME TAXES

(12) INCOME TAXES

The components of the Company’s income tax expense (benefit) are as follows:

 

                         
    Year Ended December 31,  
    2012     2011     2010  
    (Dollars in thousands)  

Current taxes:

                        

Federal

   $ 24,928     $ 26,489     $ 20,240  

State

     2,865       3,869       3,155  

Deferred taxes

     (689 )      (5,282 )      (58 ) 
   

 

 

    

 

 

    

 

 

  

Total income taxes

   $ 27,104     $ 25,076     $ 23,337  
   

 

 

    

 

 

    

 

 

  

Income tax expense applicable to securities transactions approximated $1,720,000, $560,000 and $106,000 for the years ended December 31, 2012, 2011 and 2010, respectively.

A reconciliation of tax expense at the Federal statutory tax rate applied to income before taxes is presented in the following table:

 

                         
    Year Ended December 31,  
    2012     2011     2010  
    (Dollars in thousands)  

Tax expense at the Federal statutory tax rate

   $ 27,651     $ 24,744     $ 22,976  

Increase (decrease) in tax expense from:

                        

Tax-exempt income, net

     (783 )      (904 )      (648 ) 

Modified endowment life contracts

     (870 )      (809 )      (705 ) 

State tax expense, net of Federal tax benefit

     3,652       3,916       3,098  

Federal tax credits

     (2,455 )      (1,227 )      (1,914 ) 

Other, net

     (91 )      (644 )      530  
   

 

 

    

 

 

    

 

 

  

Total tax expense

   $ 27,104     $ 25,076     $ 23,337  
   

 

 

    

 

 

    

 

 

  

 

The net deferred tax asset consisted of the following and is reported in other assets:

 

                 
    December 31,  
    2012     2011  
    (Dollars in thousands)  

Provision for loan losses

   $ 13,617     $ 14,252  

Write-downs of other real estate owned

     915       973  

Deferred compensation

     1,995       1,787  

Stock-based compensation

     2,707       2,260  

Other

     994       910  
   

 

 

    

 

 

  

Gross deferred tax assets

     20,228       20,182  
   

 

 

    

 

 

  

Unrealized net gains on securities

     (3,402 )      (5,085 ) 

Premium on securities of banks acquired

     (806 )      (1,080 ) 

Intangibles

     (2,397 )      (2,175 ) 

Basis difference related to tax credits

     (775 )      (664 ) 

Depreciation

     (4,443 )      (3,923 ) 

Leveraged lease

     (2,607 )      (2,982 ) 

Other

     (507 )      (1,336 ) 
   

 

 

    

 

 

  

Gross deferred tax liabilities

     (14,937 )      (17,245 ) 
   

 

 

    

 

 

  

Net deferred tax asset

   $ 5,291     $ 2,937  
   

 

 

    

 

 

  

The Company recognizes accrued interest and penalties related to unrecognized tax benefits, if applicable, in income tax expense. During the years ended December 31, 2012, 2011 and 2010, the Company did not recognize or accrue any interest and penalties related to unrecognized tax benefits. Federal and various state income tax statutes dictate that tax returns filed in any of the previous three reporting periods remain open to examination which includes the years 2010 to 2012. The Company has no open examinations with either the Internal Revenue Service or any state agency.

Management performs an analysis of the Company’s tax position annually and believes it is more likely than not that all of its tax positions will be utilized in future years.