v3.26.1
Income Taxes
 3 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The following is a summary of the components of the provision for income taxes for the three months ended March 31, 2026 and 2025:
For the Three Months Ended March 31,
20262025
(In thousands)
Current:
Federal$21,564 $21,218 
State4,293 4,290 
Total current25,857 25,508 
Deferred:
Federal6,810 5,354 
State1,356 1,083 
Total deferred8,166 6,437 
Income tax expense$34,023 $31,945 
The reconciliation between the statutory federal income tax rate and effective income tax rate by dollar amount and percentage is as follows for the three months ended March 31, 2026 and 2025:
Three Months Ended March 31, 2026Three Months Ended March 31, 2025
AmountPercentAmountPercent
Income tax at federal statutory rate$31,969 21.00 %$30,902 21.00 %
Tax effect of:
State income taxes, net of federal income taxes(1)
3,730 2.45 3,583 2.44 
Tax credits
Other tax credits(60)(0.04)%(60)(0.04)%
Nontaxable or nondeductible items
Nontaxable income:
Interest on municipal securities(1,782)(1.17)%(1,689)(1.15)%
Income on bank-owned life insurance(288)(0.19)%(387)(0.26)%
Other nontaxable income(635)(0.42)%(985)(0.67)%
Nondeductible expenses:
Municipal bond interest expense47 0.03 %43 0.03 %
Executive compensation expense634 0.42 %269 0.18 %
Other nondeductible expenses408 0.27 %269 0.18 %
Other— — %— — %
Total$34,023 22.35 %$31,945 21.71 %
(1) State taxes in Arkansas, Florida and New York made up the majority (greater than 50%) of the tax effect in this category.
The effective tax rate differs from the U.S. federal statutory rate primarily due to state income taxes, net of federal benefit, and executive compensation, which increased the rate. These increases were partially offset by the effect of non-taxable interest income, which lowered the rate.
Income taxes paid, net of refunds received, for the three months ended March 31, 2026 is as follows:
March 31, 2026
(In thousands)
Federal$— 
State and local
New York1,071 
All other states780 
Total1,851 
The types of temporary differences between the tax basis of assets and liabilities and their financial reporting amounts that give rise to deferred income tax assets and liabilities, and their approximate tax effects, are as follows:
March 31,
2026		December 31,
2025
(In thousands)
Deferred tax assets:
Allowance for credit losses$80,249 $80,486 
Deferred compensation3,900 7,048 
Stock compensation2,345 3,671 
Non-accrual interest income1,479 1,388 
Real estate owned310 310 
Unrealized loss on investment securities, available-for-sale55,461 51,026 
Loan discounts1,871 2,110 
Investments22,208 22,619 
Other11,799 12,882 
Gross deferred tax assets179,622 181,540 
Deferred tax liabilities:
Accelerated depreciation on premises and equipment4,563 2,521 
Tax basis on acquisitions11,308 10,645 
Core deposit intangible6,777 7,217 
FHLB dividends1,935 2,003 
Other11,052 11,132 
Gross deferred tax liabilities35,635 33,518 
Net deferred tax assets$143,987 $148,022 
The Company files income tax returns in the U.S. federal jurisdiction. The Company is no longer subject to U.S. federal and state tax examinations by tax authorities for years before 2022. The Company’s income tax returns are open and subject to examinations from the 2022 tax year and forward.
The Company recognizes interest related to unrecognized tax benefits in interest expense and penalties in other non-interest expense. During the three months ended March 31, 2026 and 2025, the Company did not recognize any significant interest or penalties.