5. INCOME TAXES

Our effective tax rate for the three-month period ended March 31, 2019 was 19.9 percent, compared to 15.0 percent for the same period in 2018. Effective rates are dependent upon components of pretax earnings and the related tax effects. The effective rate was higher for the first quarter of 2019 due largely to higher levels of pre-tax earnings, which caused the tax favored adjustments to be smaller on a percentage basis in 2019 compared to the prior year.

Income tax expense attributable to income from operations 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 percent to pretax income by the items detailed in the below table. In interim periods, income taxes are adjusted to reflect the effective tax rate we anticipate for the year, with adjustments flowing through the other items line.


	For the Three-Month Periods Ended March 31,
	2019				2018
(in thousands)	Amount		%		Amount		%
Provision for income taxes at the statutory rate of 21%	$	17,166	21.0	%	$	3,019	21.0	%
Increase (reduction) in taxes resulting from:
Excess tax benefit on share-based compensation		(741)	(0.9)	%		(1,143)	(7.9)	%
Tax exempt interest income		(345)	(0.4)	%		(581)	(4.0)	%
Dividends received deduction		(203)	(0.2)	%		(196)	(1.4)	%
ESOP dividends paid deduction		(137)	(0.2)	%		(139)	(1.0)	%
Other items, net		528	0.6	%		1,202	8.3	%
Total tax expense	$	16,268	19.9	%	$	2,162	15.0	%