HOME BANCSHARES INCHOMB

HOME BANCSHARES INC Income Taxes Disclosure

10-KFiled Feb 27, 20263 min read
Income Taxes
In July 2025, the United States enacted the One Big Beautiful Bill Act, which extends certain provisions of the Tax Cuts and Jobs Act of 2017 in addition to other changes. The Company continues to evaluate the impact the new legislation will have on the Company’s consolidated financial statements.
The following is a summary of the components of the provision for income taxes for the years ended December 31, 2025, 2024 and 2023:
Year Ended December 31,
202520242023
(In thousands)
Current:   
Federal$105,085 $92,995 $99,938 
State20,921 18,802 23,093 
Total current126,006 111,797 123,031 
Deferred:
Federal8,630 6,907 (3,312)
State1,718 1,397 (765)
Total deferred10,348 8,304 (4,077)
Income tax expense$136,354 $120,101 $118,954 
The reconciliation between the statutory federal income tax and effective income tax by dollar amount and percentage is as follows for the year ended December 31, 2025, 2024 and 2023:
202520242023
(Dollars in thousands)AmountPercentAmountPercentAmountPercent
Income tax at federal statutory rate$128,477 21.00 %$109,692 21.00 %$107,526 21.00 %
Tax effect of:
State income taxes, net of federal income taxes(1)
14,762 2.41 16,038 3.07 14,906 2.92 
Tax credits
     Other tax credits(242)(0.04)(250)(0.05)(289)(0.06)
Nontaxable or nondeductible items
     Nontaxable income:
          Interest on municipal securities(6,845)(1.12)(6,874)(1.32)(7,157)(1.40)
          Income on bank-owned life insurance(1,575)(0.26)(1,073)(0.21)(1,044)(0.20)
          Other nontaxable income(1,807)(0.30)(1,797)(0.33)(1,081)(0.21)
     Nondeductible expenses:
          Municipal bond interest expense176 0.03 1,331 0.25 3,686 0.72 
          Executive compensation expense2,091 0.35 1,878 0.36 1,052 0.21 
          Other nondeductible expenses1,317 0.22 1,156 0.22 1,355 0.26 
Other— — — — — — 
Total$136,354 22.29 %$120,101 22.99 %$118,954 23.24 %
(1) State taxes in Arkansas, Florida and New York made up the majority (greater than 50%) of the tax effect in this category.
The effective tax rate differs from the U.S. federal statutory rate primarily due to state income taxes, net of federal benefit, and stock compensation, which increased the rate. These increases were partially offset by the effect of non-taxable interest income and other, which lowered the rate.
Income taxes paid, net of refunds received for the year ended December 31, 2025 is as follows:
2025
(In thousands)
Federal$99,500 
State and local
       New York6,454 
       All other states3,673 
Total$109,627 
The types 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:
December 31, 2025December 31, 2024
(In thousands)
Deferred tax assets:
Allowance for credit losses$80,486 $76,221 
Deferred compensation7,048 6,783 
Stock compensation3,671 4,981 
Non-accrual interest income1,388 1,798 
Real estate owned310 674 
Unrealized loss on Securities AFS51,026 79,847 
Loan discounts2,110 3,323 
Investments22,619 26,042 
Accelerated depreciation on premises and equipment— 664 
Other12,882 14,634 
Gross deferred tax assets181,540 214,967 
Deferred tax liabilities:
Accelerated depreciation on premises and equipment2,521 — 
Core deposit intangible7,217 8,997 
FHLB dividends2,003 1,919 
Tax basis/premium on acquisitions10,645 7,439 
Other11,132 9,915 
Gross deferred tax liabilities33,518 28,270 
Net deferred tax assets$148,022 $186,697 
The Company files income tax returns in the U.S. federal jurisdiction. The Company is no longer subject to U.S. federal and state tax examinations by tax authorities for years before 2021. The Company’s income tax returns are open and subject to examinations from the 2022 tax year and forward.
The Company recognizes interest related to unrecognized tax benefits in interest expense and penalties in other non-interest expense. During the years ended December 31, 2025, 2024 and 2023, the Company did not recognize any significant interest or penalties.
Free Sentinel

Want the next HOME BANCSHARES INC income taxes disclosure the moment it drops?

Set a Sentinel and we'll alert you the moment HOME BANCSHARES INC's next filing hits EDGAR. No credit card, your email never gets sold.

Track for free

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Feb 27, 2025
2023Feb 26, 2024
2022Feb 24, 2023
2021Feb 24, 2022
2020Feb 26, 2021
2019Feb 26, 2020
2018Feb 26, 2019
2017Feb 27, 2018
2016Feb 28, 2017
2015Feb 26, 2016

About Income Taxes Disclosures

The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.

Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.

Other Available Disclosures

RevenueFair ValuePP&EGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsNew Standards