Note 6 - Federal Income Taxes

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Income Tax Disclosure [Text Block]

6. FEDERAL INCOME TAXES

The Company calculates its year to date income tax provision by applying the estimated annual effective tax rate for the year to pretax income. The effective tax rate for the

three

months ended

March 31, 2019

was

22.2%

with tax expense of approximately

$114,000.

The effective tax rate for the

three

months ended

March 31, 2018

was

27.9%

with tax expense of approximately

$223,000.

The decrease in federal income tax is the result of the moratorium of the non-deductible federal premium tax in

2019.

Tax years subsequent to

2014

remain open to examination by the Internal Revenue Service (“IRS”), and

2013

remains open to state and local tax authorities.  The Company has recorded

no

uncertain tax positions in the tax years that are subject to examination.