7. INCOME TAXES

The Company’s effective tax rate for the three month period ended March 31, 2019, was 17.3%, compared to 19.6% for the same period in 2018. Effective rates are dependent upon components of pretax earnings and the related tax effects.

Income tax expense for the three-month periods ended March 31, 2019 and 2018, differed from the amounts computed by applying the U.S. federal tax rate of 21% to pretax income from continuing operations as demonstrated in the following tables:



	For the Three-Months Ended
	March 31,
	2019		2018
Provision for income taxes at the statutory federal tax rates	$	73,025	$	176,615
Increase (reduction) in taxes resulting from:
Dividends received deduction		(9,763)		(8,951)
Tax-exempt interest income		(23,166)		(36,323)
Proration of tax exempt interest and dividends received deduction		8,232		11,079
Officer life insurance, net		3,578		3,229
Nondeductible expenses		7,087		14,423
Prior year true-ups and other		—		5,126
Total	$	58,993	$	165,198

Management believes it is more likely than not that all deferred tax assets will be recovered as the result of future operations, which will generate sufficient taxable income to realize the deferred tax asset.

As of March 31, 2019 and December 31, 2018, the Company does not have any capital or operating loss carryforwards. Periods still subject to IRS audit include 2015 through current year. There are currently no open tax exams.