v3.25.4
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The components of income tax expense were as follows for the year ended December 31, 2025:
2025
Federal:
Current$18,780 
Deferred2,291 
Federal income tax expense21,071 
State:
Current3,421 
Deferred468 
State income tax expense3,889 
Total income tax expense$24,960 
For the year ended December 31, 2025, we have no current or deferred foreign income tax expense.
The provision for income tax is summarized as follows for the years ended December 31,:
20242023
Current$16,137 $24,938 
Deferred3,347 3,012 
Federal income tax expense$19,484 $27,950 
The following tables present a reconciliation of the statutory federal income tax rate to the effective income tax rate for the years ended December 31,:
2025
AmountPercent
U.S. federal statutory income tax$25,808 21.0 %
State and local income taxes, net of federal benefits1
3,170 2.6 %
Tax credits:
Proportional Amortization of LIHTC Credits2
1,072 0.9 %
Nontaxable or nondeductible items:
Tax Exempt Interest(3,867)(3.1)%
Share-based payment awards133 0.1 %
Non-deductible professional fees427 0.3 %
Other adjustments:
Permanent RTP3
(1,208)(1.0)%
Other(575)(0.5)%
Income tax expense$24,960 20.3 %
1 The majority of state and local income taxes are from Colorado, Illinois, Kansas, Texas and Arizona.
2 LIHTC tax credits are net of amortization and other income tax benefits.
3 2024 Provision to Return adjustment.
20242023
AmountPercentAmountPercent
Taxes at statutory federal income tax rate$19,974 21.0 %$27,611 21.0 %
Tax effect from:
State income taxes, net of federal benefits4,012 4.2 %3,718 2.9 %
Tax exempt income(3,827)(4.0)%(4,017)(3.1)%
Net increase in cash surrender value of BOLI(588)(0.6)%(405)(0.3)%
Federal tax credits(380)(0.4)%— — %
Executive compensation107 0.1 %301 0.2 %
Other186 0.2 %742 0.6 %
Income tax provision$19,484 20.5 %$27,950 21.3 %
The following table presents income taxes paid for the year ended December 31, 2025:
Federal$12,691 
State:
Texas640 
Kansas416 
California332 
Arizona227 
Other States1,401 
Federal and state income taxes paid$15,707 
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows at December 31,:
20252024
Deferred tax assets:
 Acquired federal and state net operating loss $18,421 $20,620 
 Allowance for credit losses 19,907 20,794 
 Unrealized loss on securities 8,396 12,203 
 Deferred compensation 4,324 3,679 
Fair value adjustments on securities2,185 2,449 
 Deferred loan fees 2,011 877 
 Accrued expenses 1,534 1,615 
 Share-based compensation 1,143 1,374 
 Fair value adjustments on loans 759 1,073 
 Lease liability 420 448 
Unfunded commitment liability283 — 
 Fair value adjustments on deposits — 19 
 Other 655 1,682 
Total deferred tax assets60,038 66,833 
Deferred tax liabilities:
Mortgage servicing rights20,196 19,623 
Prepaid expenses1,601 1,661 
Fair value adjustments on intangible assets1,562 2,098 
Premises and equipment1,002 978 
Fair value adjustments on debt433 516 
FHLB stock100 100 
Partnership investment— 485 
Other271 177 
Total deferred tax liabilities25,165 25,638 
Total deferred tax assets, net$34,873 $41,195 
As of December 31, 2025, we had net operating loss carryforwards of approximately $86,648, which begin to expire between 2030 and 2037, and operating loss carryforwards generated after 2017 of $341 that do not expire. As of December 31, 2025, we had net operating loss carryforwards for state tax purposes of approximately $142, which will begin to expire in 2033. Utilization of the net operating losses may be subject to a substantial annual limitation due to the ownership change limitations set forth in Internal Revenue Code Section 382 and similar state provisions. Such an annual limitation could result in the expiration of the net operating loss carryforwards before utilization. We believe that all of the net operating loss carryforwards will be used prior to expiration.
We evaluate uncertain tax positions at the end of each reporting period. We may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefit recognized in the financial statements from any such position is measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. As of December 31, 2025 and 2024, we concluded there were no material uncertain tax positions.