INCOME TAX

9 Months Ended

Sep. 30, 2025

Income Tax Disclosure [Abstract]

INCOME TAX

INCOME TAX

Income tax expense (benefit) is composed of the following:

	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Current	$	8,345	$	4,109	$	25,124	$	15,584
Deferred	1,141		1,118		(5,229)		(8,610)
Income tax expense (benefit)	$	9,486	$	5,227	$	19,895	$	6,974

Our effective tax rate for the three- and nine-month periods ended September 30, 2025 and 2024 is different than the federal statutory rate of 21 percent, due primarily to the net effect of tax-exempt municipal bond interest income, state income taxes and interest on a federal tax refund.

As of September 30, 2025 and 2024, the Company has recorded no valuation allowance as we believe it is more likely than not that all the deferred tax assets will be realized. Our determination was based on evidence of taxable income in the carryback and carryforward periods and our tax planning strategy of holding debt securities with unrealized losses to recovery.

For each of the nine-month periods ended September 30, 2025 and 2024, we made payments for income taxes totaling $27,800 and $10,712, respectively. For the nine-month periods ended September 30, 2025 and 2024, we received a federal tax refund of $16,319 and $0, respectively. Interest on the federal tax refund of $2,571 was also received in the nine-month period ended September 30, 2025.

We file a consolidated federal income tax return. We also file income tax returns in various state jurisdictions. We are no longer subject to federal or state income tax examination for tax years 2018 and prior.

Enactment of the One Big Beautiful Bill Act of 2025

On July 4, 2025, the One Big Beautiful Bill Act of 2025 (the "Tax Act") was signed into law, which includes both tax and non-tax provisions. Changes in tax law are recorded in the period of enactment. The changes resulting from the tax provisions in the Tax Act did not have a material impact on the Company's financial statements.