v3.26.1
Income Taxes
 6 Months Ended
Jun. 30, 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 and six months ended June 30, 2026 and 2025:
For the Three Months Ended June 30,For the Six Months Ended June 30,
2026202520262025
(In thousands)
Current:
Federal$31,852 $28,777 $53,416 $49,995 
State6,341 5,818 10,634 10,108 
Total current38,193 34,595 64,050 60,103 
Deferred:
Federal(2,599)(838)4,211 4,517 
State(518)(169)838 913 
Total deferred(3,117)(1,007)5,049 5,430 
Income tax expense$35,076 $33,588 $69,099 $65,533 
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 and six months ended June 30, 2026 and 2025:
Three Months Ended June 30, 2026Three Months Ended June 30, 2025Six Months Ended June 30, 2026Six Months Ended June 30, 2025
AmountPercentAmountPercentAmountPercentAmountPercent
Income tax at federal statutory rate$32,425 21.00 %$31,918 21.00 %$64,393 21.00 %$62,821 21.00 %
Tax effect of:
State income taxes, net of federal income taxes(1)
3,764 2.44 3,490 2.30 7,494 2.44 7,073 2.37 
Tax credits
Other tax credits(56)(0.04)%(61)(0.04)%(116)(0.04)%(121)(0.04)%
Nontaxable or nondeductible items
Nontaxable income:
Interest on municipal securities(1,776)(1.15)%(1,681)(1.11)%(3,559)(1.16)%(3,370)(1.13)%
Income on bank-owned life insurance(384)(0.25)%(559)(0.37)%(672)(0.22)%(946)(0.32)%
Other nontaxable income(210)(0.14)%(446)(0.29)%(845)(0.28)%(1,431)(0.48)%
Nondeductible expenses:
Municipal bond interest expense46 0.03 %41 0.03 %93 0.03 %84 0.03 %
Executive compensation expense799 0.52 %633 0.42 %1,434 0.47 %902 0.30 %
Other nondeductible expenses468 0.30 %253 0.17 %877 0.29 %521 0.17 %
Other— — %— — %— — %— — %
Total$35,076 22.72 %$33,588 22.10 %$69,099 22.53 %$65,533 21.91 %
(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 six months ended June 30, 2026 is as follows:
June 30, 2026
(In thousands)
Federal$20,000 
State and local
New York2,196 
All other states1,999 
Total24,195 
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:
June 30,
2026		December 31,
2025
(In thousands)
Deferred tax assets:
Allowance for credit losses$89,168 $80,486 
Deferred compensation5,297 7,048 
Stock compensation2,621 3,671 
Non-accrual interest income1,551 1,388 
Real estate owned455 310 
Unrealized loss on investment securities, available-for-sale52,416 51,026 
Loan discounts9,215 2,110 
Investments25,746 22,619 
Other14,253 12,882 
Gross deferred tax assets200,722 181,540 
Deferred tax liabilities:
Accelerated depreciation on premises and equipment6,622 2,521 
Tax basis on acquisitions11,970 10,645 
Core deposit intangible15,309 7,217 
FHLB dividends1,877 2,003 
Other11,141 11,132 
Gross deferred tax liabilities46,919 33,518 
Net deferred tax assets$153,803 $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 and six months ended June 30, 2026 and 2025, the Company did not recognize any significant interest or penalties.