Income Taxes

6 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

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

	Six months ended June 30,
	2020			2019
	(In thousands)
Income/(loss) before income taxes	$	(1,549)		$	49,277
Income tax expense	943			10,286
Net income/(loss) before attribution to noncontrolling interests	$	(2,492)		$	38,991
Effective tax rate	(60.9)		%	20.9		%

The effective tax rate for the six months ended June 30, 2020 of (60.9)%, with related tax expense of $0.9 million, was calculated based on a forecasted 2020 annual effective tax rate. The effective tax rate for the six months ended June 30, 2019 of 20.9%, with related tax expense of $10.3 million, was calculated based on a forecasted 2019 annual effective tax rate.

The effective tax rate for the six months ended June 30, 2020 was negative due primarily to the impact of earnings from tax-exempt investments and income tax credits in relation to near break-even income. The tax rate is less meaningful in periods where the Company is near break-even as a result of the larger proportionate impact of tax benefit items compared to pre-tax income. The effective tax rate for the six months ended June 30, 2019 is 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 six months ended June 30, 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. In addition, the effective tax rate for the six months ended June 30, 2020 includes income tax expense of $0.5 million related to employee share-based payments.