v3.26.1
Income Taxes
 6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The income tax expense included in the accompanying consolidated statements of income consists of the following (in thousands):
 Three Months Ended
June 30,		Six Months Ended
June 30,
 2026202520262025
Current income tax expense$5,500 $4,804 $10,795 $9,840 
Deferred income tax expense (benefit)242 (85)(13)(400)
Income tax expense$5,742 $4,719 $10,782 $9,440 

The net deferred tax asset totaled $26.1 million at June 30, 2026, as compared to $27.1 million at December 31, 2025. The decrease in the net deferred tax asset is primarily the result of an increase in the estimated fair value of the effective hedging derivatives. No valuation allowance was recorded at June 30, 2026 or December 31, 2025, as management believes it is more likely than not that all of the deferred tax asset items will be realized in future years. Unrecognized tax benefits were not material at June 30, 2026 or December 31, 2025.
We recognized income tax expense of $5.7 million and $10.8 million, for an ETR of 17.6% and 17.7% for the three and six months ended June 30, 2026, respectively, compared to income tax expense of $4.7 million and $9.4 million, for an ETR of 17.8% and 17.9%, for the three and six months ended June 30, 2025, respectively. The marginally lower ETR for the three and six months ended June 30, 2026 was partially due to a decrease in state income tax expense as a percentage of pre-tax income, as well as a discrete tax benefit recorded in connection with equity award transactions as compared to the same periods in 2025. The ETR differs from the statutory rate of 21% for the three and six months ended June 30, 2026 and 2025 primarily due to the effect of tax-exempt income from municipal loans and securities, BOLI and state income tax. We file income tax returns in the U.S. federal jurisdictions and in certain states. We are no longer subject to U.S. federal income tax examinations by tax authorities for years before 2022 or Texas state tax examinations by tax authorities for years before 2021.