INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

The provision for income taxes for the years ended December 31 is comprised of the following components:


(In thousands)	2025		2024		2023
Income taxes currently payable:
Federal	$	9,701	$	18,987	$	27,129
State	13,717		2,410		877
Deferred income taxes:
Federal	(138,025)		(712)		(784)
State	(15,494)		(2,070)		(1,676)
Total income tax expense (benefit)	$	(130,101)	$	18,615	$	25,546

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences between the tax basis of assets and liabilities and their financial reporting amounts that give rise to deferred income tax assets and liabilities, and their approximate tax effects, are as follows as of December 31, 2025 and 2024:


(In thousands)	2025		2024
Deferred tax assets:
Loans acquired	$	1,241	$	2,141
Allowance for credit losses	52,923		55,196
Valuation of foreclosed assets	31		374
Tax NOLs from acquisition	6,507		9,945
Deferred compensation payable	3,960		3,989
Accrued equity and other compensation	11,626		9,323
Acquired securities	7,010		7,504
Capitalized intangibles(1)	145,126		—
Right-of-use lease liability	12,653		16,416
Unrealized loss on AFS securities	98,492		128,873
Allowance for unfunded commitments	6,094		6,069
Other	7,488		7,163
Gross deferred tax assets	353,151		246,993
Deferred tax liabilities:
Goodwill and other intangible amortization	(36,335)		(38,139)
Accumulated depreciation	(22,475)		(24,489)
Right-of-use lease asset	(12,175)		(15,920)
Unrealized gain on swaps	(14,437)		(25,174)
Deferred loan fees and costs	—		(2,075)
Other	(1,271)		(11,193)
Gross deferred tax liabilities	(86,693)		(116,990)
Net deferred tax asset	$	266,458	$	130,003

_______________________

(1) Capitalized intangibles primarily consist of deferred loan origination costs, net with deferred loan origination fees, capitalized under Treas. Reg. §1.263(a)-4 and amortized as ordinary deductions over the estimated life of the related loans.

Schedule of Income Tax Expense

A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense and effective tax rate percentage is shown below for the years ended December 31:


(Dollars in thousands)	2025				2024				2023
	$		%		$		%		$		%
Federal income tax expense computed at the US statutory rate	(110,807)		21.0	%	35,974		21.0	%	42,127		21.0	%
Increase (decrease) in taxes resulting from:
State income taxes, net of federal tax benefit(1)	(4,748)		0.9		(165)		(0.1)		(983)		(0.5)
Income tax credits:
Tax credits(2)	(1,575)		0.3		(500)		(0.3)		(218)		(0.1)
Nontaxable or nondeductible items:
Tax exempt interest income	(11,596)		2.2		(15,330)		(9.0)		(15,357)		(7.7)
Tax exempt earnings on bank owned life insurance	(3,741)		0.7		(3,136)		(1.8)		(2,607)		(1.3)
Other	4,475		(0.9)		3,512		2.1		2,646		1.3
Other differences:
Discrete items related to share-based compensation	15		—		468		0.3		596		0.3
Other differences, net	(2,124)		0.4		(2,208)		(1.3)		(658)		(0.3)
Total income tax expense (benefit)	$	(130,101)	24.7	%	$	18,615	10.9	%	$	25,546	12.7	%

_________________________

(1) In 2025, state taxes in Arkansas and Tennessee made up the majority (greater than 50 percent) of the tax effect in this category. In 2024, state taxes in Arkansas, Illinois, Missouri, Tennessee and Texas made up the majority (greater than 50 percent) of the tax effect in this category. In 2023, state taxes in Arkansas, Tennessee and Texas made up the majority (greater than 50 percent) of the tax effect in this category.

(2) Tax credits consist of low income housing, new markets and historic tax credits along with investment amortization, partnership losses and basis adjustments.

Schedule of Income Taxes Paid

Income taxes paid (net of refunds) for the years ended December 31:


(In thousands)	2025		2024		2023
Federal taxes paid	$	3,500	$	7,200	$	17,702
State and city taxes paid:
Arkansas	2,868		*		*
Missouri	1,647		505		*
Tennessee	4,605		*		*
Texas	974		932		*
Other	5,708		1,322		3,216
Total state and city taxes paid	15,802		2,759		3,216
Total income taxes paid (net of refunds)	$	19,302	$	9,959	$	20,918

_________________________

Jurisdiction below 5 percent of total income taxes paid (net of refunds) threshold for the period presented.

The following is a summary of the Company’s additional cash flow information during the years ended December 31:


(In thousands)	2025		2024		2023
Interest paid	$	557,039	$	652,107	$	540,816
Income taxes paid	19,318		9,979		20,948
Transfers of loans to foreclosed assets held for sale	13,736		9,697		3,075
Transfer of HTM securities to AFS securities	3,594,888		—		—