Income Taxes

9 Months Ended

Sep. 30, 2025

Income Tax Disclosure [Abstract]

Income Taxes

4. INCOME TAXES

Our effective tax rate for the three and nine months ended September 30, 2025 was 20.8 percent and 20.4 percent, compared to 18.7 percent and 19.8 percent for the same periods in 2024. Effective rates are dependent upon components of pretax earnings and the related tax effects. The effective tax rate was higher for the three and nine month periods in 2025 due to lower levels of tax-favored adjustments and higher levels of pretax income, which decreased the percentage impact of the tax-favored adjustments.

Income tax expense attributable to income from operations for the three and nine-month periods ended September 30, 2025 and 2024 differed from the amounts computed by applying the U.S. federal tax rate of 21 percent to pretax income by the items detailed in the table below. In interim periods, income taxes are adjusted to reflect the effective tax rate we anticipate for the year, with adjustments flowing through the other items, net line.

	For the Three Months Ended September 30,								For the Nine Months Ended September 30, 2025
	2025				2024				2025				2024
(in thousands)	Amount		%		Amount		%		Amount		%		Amount		%
Provision for income taxes at the statutory rate of 21%	$	33,021	21.0	%	$	24,533	21.0	%	$	82,402	21.0	%	$	79,825	21.0	%
Increase (reduction) in taxes resulting from:
Excess tax benefit on share-based compensation		(50)	(0.0)	%		(1,967)	(1.7)	%		(3,208)	(0.8)	%		(4,264)	(1.1)	%
Tax exempt interest income		(144)	(0.1)	%		(216)	(0.2)	%		(476)	(0.1)	%		(725)	(0.2)	%
Dividends received deduction		(253)	(0.2)	%		(588)	(0.5)	%		(752)	(0.2)	%		(1,056)	(0.3)	%
Tax credit		(645)	(0.4)	%		(1,093)	(0.9)	%		(1,935)	(0.5)	%		(2,629)	(0.7)	%
ESOP dividends paid deduction		(158)	(0.1)	%		(149)	(0.1)	%		(466)	(0.1)	%		(439)	(0.1)	%
Nondeductible expenses		1,367	0.9	%		1,160	1.0	%		2,933	0.7	%		2,819	0.7	%
Other items, net		(503)	(0.3)	%		118	0.1	%		1,733	0.4	%		1,669	0.5	%
Total tax expense	$	32,635	20.8	%	$	21,798	18.7	%	$	80,231	20.4	%	$	75,200	19.8	%

We have recorded our deferred tax assets and liabilities using the statutory federal tax rate of 21 percent. We believe it is more likely than not that all deferred tax assets will be recovered, given the carry back availability as well as the result of future operations, which we believe will generate sufficient taxable income to realize the deferred tax asset.

The One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025. The primary implications to the Company include the timing of when depreciation and other capitalized costs can be deducted for tax purposes. Adopting the tax provisions in the OBBBA did not have a material impact on our financial statements.