Company: SFNC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023690
Chunk: 82

Company: SIMMONS FIRST NATIONAL CORP
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 82
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125,565 128,873 Allowance for unfunded commitments6,069 6,069 Other7,154 7,163 Gross deferred tax assets242,960 246,993 Deferred tax liabilities:Goodwill and other intangible amortization(37,575)(38,139)Accumulated depreciation(24,529)(24,489)Right-of-use lease asset(15,058)(15,920)Unrealized gain on swaps(20,624)(25,174)Other(12,842)(13,268)Gross deferred tax liabilities(110,628)(116,990)Net deferred tax asset$132,332 $130,003 

29

A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense is shown for the periods indicated below: Three Months EndedMarch 31,(In thousands)20252024Computed at the statutory rate (21%)$8,022 $9,451 Increase (decrease) in taxes resulting from:State income taxes, net of federal tax benefit(272)(425)Discrete items related to share-based compensation195 454 Tax exempt interest income(3,808)(3,867)Tax exempt earnings on BOLI(796)(840)Federal tax credits(647)(560)Other differences, net3,118 1,921 Actual tax provision$5,812 $6,134 The Company follows ASC Topic 740, Income Taxes, which prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. ASC Topic 740 also provides guidance on the accounting for and disclosure of unrecognized tax benefits, interest and