XML 43 R24.htm IDEA: XBRL DOCUMENT v3.25.0.1
INCOME TAXES
 12 Months Ended
Dec. 31, 2024
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):
 Years Ended December 31,
 202420232022
Current income tax expense$19,909 $16,547 $14,700 
Deferred income tax expense (benefit)(1,026)(2,110)(89)
Income tax expense$18,883 $14,437 $14,611 
The components of the net deferred tax asset/liability as of December 31, 2024 and 2023 are summarized below (in thousands):
 AssetsLiabilities
Allowance for loan losses$9,426 $
Retirement and other benefit plans 2,674 
Premises and equipment8,196 
Operating lease liabilities3,313 
Operating lease ROU assets2,911 
Core deposit intangible132 
Unrealized losses on securities AFS33,466 
Effective hedging derivatives4,926 
Fair value adjustment on loans385 
Unfunded status of defined benefit plan5,051  
State business tax credit121  
Stock-based compensation1,404  
Other165 
Gross deferred tax assets/liabilities53,331 18,839 
Net deferred tax asset at December 31, 2024$34,492 
Allowance for loan losses$8,962 $
Retirement and other benefit plans 2,529 
Premises and equipment 8,852 
Operating lease liabilities3,508 
Operating lease ROU assets3,116 
Core deposit intangible292 
Unrealized losses on securities AFS31,820 
Effective hedging derivatives6,268 
Fair value adjustment on loans436 
Unfunded status of defined benefit plan4,988  
State business tax credit181  
Stock-based compensation1,294  
Other294 
Gross deferred tax assets/liabilities51,483 21,057 
Net deferred tax asset at December 31, 2023$30,426 
A reconciliation of tax at statutory rates and total tax expense is as follows (dollars in thousands):
 Years Ended December 31,
 202420232022
 AmountPercent of Pre-Tax IncomeAmountPercent of Pre-Tax IncomeAmountPercent of Pre-Tax Income
Statutory tax expense$22,549 21.0 %$21,237 21.0 %$25,123 21.0 %
Increase (decrease) in taxes from:      
Tax exempt interest(3,797)(3.5)%(6,107)(6.0)%(10,345)(8.6)%
BOLI(893)(0.8)%(1,222)(1.2)%(555)(0.5)%
Share-based compensation24 — 89 0.1 %(93)(0.1)%
State business tax883 0.8 %353 0.3 %312 0.3 %
Other, net117 0.1 %87 0.1 %169 0.1 %
Income tax expense$18,883 17.6 %$14,437 14.3 %$14,611 12.2 %
We file income tax returns in the U.S. federal jurisdiction and in certain states.  We are no longer subject to U.S. federal income tax examinations by tax authorities for years before 2021 or Texas state tax examinations by tax authorities for years before 2020.  No valuation allowance was recorded at December 31, 2024 or 2023 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 December 31, 2024 or 2023.