Huntington National Bank 2012 Annual Report Download - page 168

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The following is a reconcilement of provision for income taxes:
Year Ended December 31,
(dollar amounts in thousands) 2012 2011 2010
Provision for income taxes computed at the statutory rate $ 288,791 $ 247,532 $ 123,310
Increases (decreases):
Tax-exempt interest income (15,752) (9,695) (6,680)
Tax-exempt bank owned life insurance income (19,151) (21,169) (20,595)
Dividends --- (17,744) ---
Asset securitization activities --- --- 46,160
General business credits (49,654) (31,269) (23,360)
State deferred tax asset valuation allowance adjustment, net (21,251) --- ---
Capital loss (18,659) (7,000) (62,681)
Loan acquisitions --- --- (43,650)
Affordable housing investment amortization 13,621 5,983 4,344
State income taxes, net 4,152 (2,962) 19,196
Other 1,998 945 3,920
Provision for income taxes $ 184,095 $ 164,621 $ 39,964
The significant components of deferred tax assets and liabilities at December 31, were as follows:
At December 31,
(dollar amounts in thousands) 2012 2011
Deferred tax assets:
Allowances for credit losses $ 282,175 $ 348,269
Loss and other carryforwards 215,232 217,877
Fair value adjustments 84,740 92,569
Accrued expense/prepaid 39,813 32,736
Purchase accounting adjustments 8,383 10,556
Partnership investments 7,148 ---
Other 17,883 15,661
Total deferred tax assets 655,374 717,668
Deferred tax liabilities:
Lease financing 122,395 65,029
Loan origination costs 61,189 51,124
Purchase accounting adjustments 50,704 51,754
Operating assets 35,655 33,511
Pension and other employee benefits 33,898 19,290
Securities adjustments 30,713 40,273
Mortgage servicing rights 30,686 45,948
Partnership investments --- 6,761
Other 21,447 15,558
Total deferred tax liabilities 386,687 329,248
N
et deferred tax asset before valuation allowance 268,687 388,420
Valuation allowance (64,812) (23,594)
N
et deferred tax asse
t
$ 203,875 $ 364,826
At December 31, 2012, Huntington’s net deferred tax asset related to loss and other carryforwards was $215.2 million. This was
comprised of federal net operating loss carryforwards of $27.0 million, which will begin expiring in 2023, $86.6 million of state net
operating loss carryforward, which will begin expiring in 2015, an alternative minimum tax credit carryforward of $50.1 million,
which may be carried forward indefinitely, a general business credit carryover of $47.7 million, which will begin expiring in 2027, a
capital loss carryforward of $3.0 million, which will expire in 2015, and a charitable contribution carryforward of $0.8 million, which
will expire in 2016. A valuation allowance of $3.0 million has been established for the capital loss carryforward because Management
believes that it is more likely than not that the realization of this asset will not occur. The valuation allowance on this capital loss
carryforward decreased $20.5 million compared with 2011 from the utilization and expiration of capital loss carryforwards.