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Income Taxes
3 Months Ended
Mar. 31, 2018
Income Tax Disclosure [Abstract]  
Income Taxes
INCOME TAXES
The Company uses an estimated annual effective tax rate method in computing its interim tax provision. This effective tax rate is based on forecasted annual pre-tax income, permanent tax differences and statutory tax rates.
The effective tax rates for the three months ended March 31, 2018 and 2017 were 16.8% and 9.2%, respectively. The increase in the effective tax rate for the first quarter of 2018 was due to a decrease in excess tax benefits recognized at settlement for share-based payments which resulted in recording a $2.5 million tax benefit in the Consolidated Statements of Income for the quarter ended March 31, 2018 compared to $9.2 million for the quarter ended March 31, 2017. This was partially offset by the Tax Cuts and Jobs Act of 2017 (the "TCJA") which resulted in a reduction in the maximum federal corporate income tax rate from 35% to 21%, effective January 1, 2018, as well as higher levels of pre-tax income, which is subject to the marginal tax rate and changes in permanent tax differences. The tax rate differs from the statutory rate due to the impact of tax benefits related to bank-owned life insurance, dividends received deductions and certain stock-based compensation awards.