v3.25.2
Income Tax
 6 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
INCOME TAX INCOME TAX
Income tax expense (benefit) is composed of the following:
Three months ended June 30,Six months ended June 30,
2025202420252024
Current$10,564 $3,434 $16,779 $11,475 
Deferred(4,309)(4,468)(6,370)(9,728)
Income tax expense (benefit)$6,255 $(1,035)$10,409 $1,747 
Our effective tax rate for the three- and six-month periods ended June 30, 2025 and 2024 is different than the federal statutory rate of 21 percent, due primarily to the net effect of tax-exempt municipal bond interest income, state income taxes and interest on a federal tax refund.
As of June 30, 2025 and 2024, the Company has recorded no valuation allowance as we believe it is more likely than not that all the deferred tax assets will be realized. Our determination was based on evidence of taxable income in the carryback and carryforward periods and our tax planning strategy of holding debt securities with unrealized losses to recovery.
For each of the six-month periods ended June 30, 2025 and 2024, we made payments for income taxes totaling $16,200 and $9,612, respectively. For the six-month periods ended June 30, 2025 and 2024, we received a federal tax refund of $9,283 and $0, respectively. Interest on the federal tax refund of $1,392 was also received in the second quarter of 2025.
We file a consolidated federal income tax return. We also file income tax returns in various state jurisdictions. We are no longer subject to federal or state income tax examination for tax years 2018 and prior.
Enactment of the One Big Beautiful Bill Act of 2025
On July 4, 2025, the One Big Beautiful Bill Act of 2025 (the "Tax Act") was signed into law, which includes both tax and non-tax provisions. Changes in tax law are recorded in the period of enactment. The changes resulting from the tax provisions in the Tax Act are not expected to have a material impact on the Company's financial statements.