Income Taxes

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Income tax expense was as follows:

	2025			2024			2023
Current income tax expense	$	117,773		$	125,025		$	129,229
Deferred income tax expense (benefit)	5,372			(11,600)			(14,829)
Income tax expense, as reported	$	123,145		$	113,425		$	114,400
Effective tax rate	16.0		%	16.3		%	16.1		%

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.

	2025				2024				2023
	Amount		Percent		Amount		Percent		Amount		Percent
U.S. federal income tax expense computed at the statutory rate	$	162,057	21.0	%	$	146,153	21.0	%	$	149,598	21.0	%
State income/franchise taxes, net of U.S. federal income tax effects	1,628		0.2		1,343		0.2		1,527		0.2
Effect of changes in tax laws or rates enacted during the year	—		—		—		—		—		—
Tax credits	(131)		—		(141)		—		(162)		—
Non-taxable or non-deductible items:
Tax-exempt interest	(45,497)		(5.9)		(38,498)		(5.5)		(43,114)		(6.1)
FDIC premiums	5,979		0.8		5,943		0.9		5,263		0.8
Executive compensation	2,572		0.3		1,629		0.2		2,591		0.4
Meals and entertainment	2,001		0.3		1,861		0.2		1,692		0.2
Other	(925)		(0.1)		1,211		0.2		34		—
Tax benefit of 401(k) dividends	(2,274)		(0.3)		(2,281)		(0.3)		(2,135)		(0.3)
Net tax benefit from stock-based compensation	(2,265)		(0.3)		(3,795)		(0.6)		(894)		(0.1)
Income tax expense and effective tax rate, as reported	$	123,145	16.0	%	$	113,425	16.3	%	$	114,400	16.1	%

There were no unrecognized tax benefits during the reported periods. Interest and/or penalties related to income taxes are reported as a component of income tax expense. Such amounts were not significant during the reported periods.

Year-end deferred taxes are presented in the table below. Deferred taxes are based on the U.S. statutory federal income tax rate of 21%.

	2025		2024
Deferred tax assets:
Net unrealized loss on securities available for sale and transferred securities	$	219,058	$	327,184
Allowance for credit losses	69,992		67,697
Lease liabilities under operating leases	62,239		64,691
Bonus accrual	15,642		13,753
Stock-based compensation	6,623		6,321
Net actuarial loss on defined benefit post-retirement benefit plans	5,020		5,630
Deferred loan and lease origination fees	3,898		3,990
FDIC deposit insurance special assessment	1,195		8,647
Other	6,221		4,882
Total gross deferred tax assets	389,888		502,795
Deferred tax liabilities:
Right-of-use assets under operating leases	(54,427)		(56,759)
Premises and equipment	(36,614)		(38,352)
Intangible assets	(21,605)		(16,434)
Defined benefit post-retirement benefit plans	(14,149)		(13,591)
Other	(1,964)		(2,422)
Total gross deferred tax liabilities	(128,759)		(127,558)
Net deferred tax asset (liability)	$	261,129	$	375,237

No valuation allowance for deferred tax assets was recorded at December 31, 2025 and 2024 as management believes it is more likely than not that all of the deferred tax assets will be realized against deferred tax liabilities and projected future taxable income. There were no unrecognized tax benefits during any of the reported periods.

We file income tax returns in the U.S. federal jurisdiction. We are no longer subject to U.S. federal income tax examinations by tax authorities for years before 2022.