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Income Taxes
3 Months Ended
Mar. 31, 2020
Income Tax Disclosure [Abstract]  
Income Taxes

Note 10—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 rate for the three months ended March 31, 2020 and 2019 was 26.1% and 27.6%, respectively. The Company recorded discrete income tax benefit of $69,000 and $47,000 related to the exercise of stock options and vesting of restricted shares for the three months ended March 31, 2020 and 2019, respectively.

Net deferred tax assets decreased to $33.8 million at March 31, 2020 compared to $38.3 million at December 31, 2019. The net decrease in the total net deferred tax assets recorded as of March 31, 2020 was a result of an increase in unrealized gains on available-for-sale securities.