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Income Taxes
 9 Months Ended
Sep. 30, 2025
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
September 30,		Nine Months Ended
September 30,
 2025202420252024
Current income tax expense$335 $5,283 $10,175 $15,102 
Deferred income tax expense (benefit)(146)(893)(546)(878)
Income tax expense$189 $4,390 $9,629 $14,224 

The net deferred tax asset totaled $30.6 million at September 30, 2025, as compared to $34.5 million at December 31, 2024. The decrease in the net deferred tax asset is primarily the result of a decrease in the unrealized loss in the AFS securities portfolio, partially offset by an increase in the estimated fair value of the effective hedging derivatives. No valuation allowance was recorded at September 30, 2025 or December 31, 2024, 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 September 30, 2025 or December 31, 2024.
We recognized income tax expense of $189,000 and $9.6 million for an ETR of 3.7% and 16.6% for the three and nine months ended September 30, 2025, respectively, compared to income tax expense of $4.4 million and $14.2 million for an ETR of 17.6% for both the three and nine months ended September 30, 2024, respectively. The decrease in the ETR for the three and nine months ended September 30, 2025 was primarily due to the impact of the net loss on the sale of AFS securities of $24.4 million recorded during the third quarter of 2025 on our tax-exempt income as a percentage of pre-tax income as well as a decrease in state income tax expense compared to the same periods in 2024. The ETR differs from the statutory rate of 21% for the three and nine months ended September 30, 2025 and 2024 primarily due to the effect of tax-exempt income from municipal loans and securities, BOLI and state income tax. 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 2022 or Texas state tax examinations by tax authorities for years before 2020.