| Income Taxes |
Income taxes The following table presents a reconciliation of federal income taxes at the statutory federal rate of 21.0% to the Company’s effective tax rates for the three and six months ended June 30, 2026: | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | Six Months Ended June 30, | | | 2026 | | | 2026 | | | Federal taxes calculated at statutory rate | | $ | 15,363 | | 21.0 | % | | $ | 30,935 | | 21.0 | % | | Increase (decrease) resulting from: | | | | | | | State taxes, net of federal benefit(1) | | 1,630 | | 2.2 | % | | 3,987 | | 2.7 | % | State tax credits, net of federal benefit(1) | | (903) | | (1.2) | % | | (1,677) | | (1.1) | % | | New market tax credits | | (160) | | (0.2) | % | | (320) | | (0.2) | % | | | | | | | | | Energy credits | | (1,875) | | (2.6) | % | | (1,875) | | (1.3) | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nondeductible/nontaxable items: | | | | | | | | Municipal interest income, net of interest disallowance | | (413) | | (0.6) | % | | (823) | | (0.7) | % | | Section 162(m) limitation | | 588 | | 0.8 | % | | 1,273 | | 0.9 | % | | Other | | 156 | | 0.2 | % | | 115 | | 0.1 | % | | Other | | 113 | | 0.2 | % | | (490) | | (0.3) | % | | Income tax expense, as reported | | 14,499 | | 19.8 | % | | 31,125 | | 21.1 | % | (1) State of Tennessee makes up the majority (more than 50%) of the total of state taxes and state tax credits. |
The following table presents a reconciliation of federal income taxes at the statutory federal rate of 21.0% to the Company's effective tax rates for the three and six months ended June 30, 2025: | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | Six Months Ended June 30, | | | 2025 | | | 2025 | | | Federal taxes calculated at statutory rate | | $ | (2,045) | | 21.0 | % | | $ | 8,210 | | 21.0 | % | | (Decrease) increase resulting from: | | | | | | | | State taxes, net of federal benefit | | (212) | | 2.2 | % | | 247 | | 0.6 | % | | Benefit from stock-based compensation | | (246) | | 2.5 | % | | (379) | | (1.0) | % | | Municipal interest income, net of interest disallowance | | (417) | | 4.3 | % | | (813) | | (2.1) | % | | Bank-owned life insurance | | (89) | | 0.9 | % | | (183) | | (0.5) | % | | Section 162(m) limitation | | 99 | | (1.0) | % | | 685 | | 1.8 | % | | Expiration of the statute of limitations | | (8,713) | | 89.5 | % | | (8,713) | | (22.3) | % | | Interest on refunds | | (1,645) | | 16.9 | % | | (2,591) | | (6.6) | % | | Other | | 616 | | (6.3) | % | | 356 | | 1.0 | % | | Income tax benefit, as reported | | $ | (12,652) | | 130.0 | % | | $ | (3,181) | | (8.1) | % |
For the three and six months ended June 30, 2025, a one-time gross tax benefit of $10,713 was recognized due to the expiration of the statute of limitations with respect to an amended income tax return and the associated interest.
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