Income Taxes

3 Months Ended

Mar. 31, 2020

The following table presents the components of income tax expense and effective tax rates for the periods indicated:


	Three months ended March 31,
	2020			2019
	(In thousands)

Income before income taxes	$	908		$	24,459
Income tax expense	102			4,917
Net income before attribution to noncontrolling interests	$	806		$	19,542
Effective tax rate	11.2		%	20.1		%

The effective tax rate for the three months ended March 31, 2020 of 11.2%, with related tax expense of $0.1 million, was calculated based on a forecasted 2020 annual effective tax rate. The effective tax rate for the three months ended March 31, 2019 of 20.1%, with related tax expense of $4.9 million, was calculated based on a forecasted 2019 annual effective tax rate.

The effective tax rates for the three months ended March 31, 2020 and March 31, 2019 of 11.2% and 20.1%, respectively, were calculated based on forecasted annual effective tax rates. The effective tax rate for both periods was less than the statutory rate of 21% due primarily to earnings from tax-exempt investments and income tax credits, which were partially offset by state and local income taxes and the accounting for investments in affordable housing projects. The effective tax rate for the three months ended March 31, 2020 is less than the effective tax rate for the same period in 2019 due primarily to the lower level of income in 2020 as compared to 2019.