INCOME TAXES |
6 Months Ended |
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Jun. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | NOTE 16 — INCOME TAXES BancShares’ global effective income tax rates (“ETRs”) were 24.5% and 24.1% for the three months ended June 30, 2026 and 2025, respectively. The increase in the ETR for the three months ended June 30, 2026 compared to 2025 was primarily due to the favorable impact from the revaluation of deferred taxes due to a change in state law enacted in the prior year quarter. BancShares’ global ETRs were 24.4% and 24.9% for the six months ended June 30, 2026 and 2025, respectively. The decrease in the ETR for the six months ended June 30, 2026 compared to 2025 was primarily due to a higher tax credit benefit for 2026. The quarterly income tax expense is based on a projection of BancShares’ annual ETR. This annual ETR is applied to the year-to-date consolidated pretax income to determine the interim provision for income taxes before discrete items. The ETR each period is also impacted by a number of factors, including the relative mix of domestic and international earnings, effects of changes in enacted tax laws, adjustments to the valuation allowances, and discrete items. The currently forecasted ETR may vary from the actual year-end 2026 ETR due to the changes in these factors. Uncertain Tax Benefits BancShares recognizes tax benefits when it is more likely than not that the position will prevail, based solely on the technical merits under the tax law of the relevant jurisdiction. BancShares will recognize the tax benefit if the position meets this recognition threshold determined based on the largest amount of the benefit that is more than likely to be recognized. Deferred Tax Assets and Valuation Adjustments BancShares’ ability to recognize DTAs is evaluated on a quarterly basis to determine if there are any significant events that would affect our ability to utilize existing DTAs. If events are identified that affect our ability to utilize our DTAs, changes to the valuation allowance may be required.
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