v3.25.2
Income Taxes
 6 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

4. INCOME TAXES

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Our effective tax rate for the three and six months ended June 30, 2025 was 20.6 percent and 20.2 percent, compared to 20.6 percent and 20.3 percent for the same period in 2024. Effective rates are dependent upon components of pretax earnings and the related tax effects.

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Income tax expense attributable to income from operations for the three and six-month periods ended June 30, 2025 and 2024 differed from the amounts computed by applying the U.S. federal tax rate of 21 percent to pretax income by the items detailed in the table below. In interim periods, income taxes are adjusted to reflect the effective tax rate we anticipate for the year, with adjustments flowing through the other items, net line.

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For the Three Months Ended June 30,

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For the Six Months Ended June 30, 2025

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2025

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2024

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2025

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2024

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(in thousands)

 

Amount

 

%

 

Amount

 

%

 

Amount

 

%

 

Amount

 

%

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Provision for income taxes at the statutory rate of 21%

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$

32,868

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21.0

% 

$

21,694

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21.0

% 

$

49,381

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21.0

%

$

55,292

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21.0

%

Increase (reduction) in taxes resulting from:

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Excess tax benefit on share-based compensation

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​

(408)

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(0.3)

% 

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(422)

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(0.4)

% 

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(3,159)

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(1.4)

%

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(2,297)

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(0.8)

%

Tax exempt interest income

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(163)

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(0.1)

% 

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(249)

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(0.2)

% 

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(332)

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(0.1)

%

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(509)

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(0.2)

%

Dividends received deduction

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(247)

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(0.2)

% 

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(234)

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(0.2)

% 

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(499)

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(0.2)

%

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(468)

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(0.2)

%

Tax credit

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(645)

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(0.4)

% 

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(768)

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(0.8)

% 

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(1,290)

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(0.6)

%

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(1,536)

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(0.6)

%

ESOP dividends paid deduction

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(159)

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(0.1)

% 

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(151)

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(0.2)

% 

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(308)

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(0.1)

%

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(290)

​

(0.1)

%

Nondeductible expenses

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​

889

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0.6

% 

​

946

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0.9

% 

​

1,566

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0.7

%

​

1,659

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0.6

%

Other items, net

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​

44

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0.1

% 

​

495

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0.5

% 

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2,237

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0.9

%

​

1,551

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0.6

%

Total tax expense

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$

32,179

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20.6

% 

$

21,311

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20.6

% 

$

47,596

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20.2

%

$

53,402

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20.3

%

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We have recorded our deferred tax assets and liabilities using the statutory federal tax rate of 21 percent. We believe it is more likely than not that all deferred tax assets will be recovered, given the carry back availability as well as the result of future operations, which we believe will generate sufficient taxable income to realize the deferred tax asset.

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The One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025. The primary implications to the Company include the timing of when depreciation and other costs can be deducted for tax purposes. The Company does not expect the tax provisions in the OBBBA to have a material impact on our financial statements.