Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

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		%

Income Tax Computed by Applying U.S. Federal Statutory Income Tax Rate

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	%

Schedule of Deferred Tax Assets and Liabilities

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