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INCOME TAXES
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The amount of the Company’s income tax expense from continuing operations was as follows for the dates indicated below:
Years Ended December 31,
202520242023
(In thousands)
Current income tax expense$26,651 $26,659 $21,137 
Deferred income tax (benefit) expense(1,741)3,298 10,250 
Income tax expense, as reported$24,910 $29,957 $31,387 
A reconciliation between reported income tax expense and the amounts computed by applying the U.S. federal statutory income tax rate of 21% to income before income taxes is presented in the following table. There were no activities or transactions that
had foreign income taxes or cross-border tax effects during the reported periods. State income/franchise taxes are primarily related to the State of Texas, while amounts related to other jurisdictions were not significant, in the aggregate, during the reported periods.
Years Ended December 31,
202520242023
AmountPercentAmountPercentAmountPercent
(Dollars in thousands)
U.S. federal income tax expense computed at statutory rate$26,835 21.0%$30,444 21.0%$33,995 21.0%
State income/franchise taxes, net of U.S. federal income tax effects— 0.0%— 0.0%— 0.0%
Effect of changes in tax laws or rates enacted during the year— 0.0%— 0.0%— 0.0%
Transferable energy tax credits(938)(0.7%)— 0.0%— 0.0%
Non-taxable or non-deductible items:
Effect of tax-exempt income(1,514)(1.2%)(1,510)(1.0)%(1,943)(1.2)%
Non-deductible merger expenses— 0.0%— 0.0%10 0.0%
Bank-owned life insurance(606)(0.5%)(507)(0.3%)(457)(0.3%)
Executive compensation limitation807 0.6%231 0.1%152 0.1%
FDIC assessment limitation26 0.0%23 0.0%26 0.0%
Excise tax on share repurchases134 0.1%— 0.0%— 0.0%
Other, net59 0.1%1,140 0.8%— (335)(0.2%)
Net tax benefit from stock-based compensation107 0.1%136 0.1%(61)0.0%
     Income tax expense and effective tax rate, as reported$24,910 19.5%$29,957 20.7%$31,387 19.4%
Deferred taxes as of December 31, 2025 and 2024 are based on the 21% maximum federal statutory tax rate. Deferred tax assets and liabilities were as follows:
December 31,
20252024
(In thousands)
Deferred tax assets:
Allowance for credit losses on loans and unfunded commitments$21,969 $20,457 
Deferred loan fees62 62 
Deferred compensation2,367 2,621 
Loans and securities purchase accounting adjustments11,415 15,485 
Net unrealized loss on available for sale securities19,393 33,322 
Other deferred assets1,647 1,760 
   Total deferred tax assets56,853 73,707 
Deferred tax liabilities:
Core deposit intangible and other purchase accounting adjustments(15,409)(19,922)
Premises and equipment basis difference(2,336)(2,633)
   Total deferred tax liabilities(17,745)(22,555)
        Net deferred tax assets $39,108 $51,152 
Interest and penalties related to tax positions are recognized in the period in which they begin accruing or when the entity claims the position that does not meet the minimum statutory thresholds. The Company does not have any material uncertain tax positions and does not have any interest or penalties recorded in the income statement for the years ended December 31, 2025, 2024 and 2023. The Company is no longer subject to examination by the U.S. Federal Tax Jurisdiction for the years prior to 2022.