XML 28 R19.htm IDEA: XBRL DOCUMENT v3.22.2
Income Taxes
 6 Months Ended
Jun. 30, 2022
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,
 2022202120222021
Current income tax expense$2,939 $3,026 $5,800 $5,615 
Deferred income tax expense (benefit)358 (139)643 2,022 
Income tax expense$3,297 $2,887 $6,443 $7,637 

The net deferred tax asset totaled $34.5 million at June 30, 2022 as compared to a net deferred tax liability of $17.8 million at December 31, 2021. The increase in the net deferred tax asset is primarily the result of an increase in unrealized losses in the AFS securities portfolio.  No valuation allowance was recorded at June 30, 2022 or December 31, 2021, 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, 2022 or December 31, 2021.
We recognized income tax expense of $3.3 million and $6.4 million, for an ETR of 11.5% and 11.3% for the three and six months ended June 30, 2022, respectively, compared to income tax expense of $2.9 million and $7.6 million, for an ETR of 11.9% and 12.1%, for the three and six months ended June 30, 2021, respectively. The lower ETR for the six months ended June 30, 2022 was primarily due to an increase in tax-exempt income as a percentage of pre-tax income as compared to the same periods in 2021. The ETR differs from the statutory rate of 21% for the three and six months ended June 30, 2022 and 2021 primarily due to the effect of tax-exempt income from municipal loans and securities, as well as BOLI. 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 2018 or Texas state tax examinations by tax authorities for years before 2017.