v3.26.1
INCOME TAX
 3 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
INCOME TAX INCOME TAX
Income tax expense (benefit) is composed of the following:
Three months ended March 31,
20262025
Current$2,449 $6,215 
Deferred5,511 (2,061)
Income tax expense (benefit)$7,960 $4,154 
Our effective tax rates for the three-month periods ended March 31, 2026 and 2025 are different than the federal statutory rate of 21 percent, due primarily to the net effect of tax-exempt municipal bond interest income.
As of March 31, 2026 and 2025, 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 the three-month periods ended March 31, 2026 and 2025, we made payments for income taxes totaling $496 and $0, respectively. We did not receive a federal tax refund for the three-month periods ended March 31, 2026 and 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 2022 and prior.