INCOME TAXES

3 Months Ended

Mar. 31, 2020

INCOME TAXES

INCOME TAXES

4. INCOME TAXES

Our effective tax rate for the three-month period ended March 31, 2020 was 22.8 percent, compared to 19.9 percent for the same period in 2019. Effective rates are dependent upon components of pretax earnings and the related tax effects. The effective rate was higher for the three-month period in 2020 as tax-favored adjustments increased the tax benefit realized on pretax losses.

Income tax expense (benefit) attributable to income from operations for the three-month periods ended March 31, 2020 and 2019 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, net line.

	For the Three-Month Periods Ended March 31,
	2020				2019
(in thousands)	Amount		%		Amount		%
Provision for income taxes at the statutory rate of 21%	$	(16,666)	21.0	%	$	17,166	21.0	%
Increase (reduction) in taxes resulting from:
Excess tax benefit on share-based compensation		(1,029)	1.3	%		(741)	(0.9)	%
Tax exempt interest income		(313)	0.4	%		(345)	(0.4)	%
Dividends received deduction		(271)	0.3	%		(203)	(0.2)	%
ESOP dividends paid deduction		(132)	0.2	%		(137)	(0.2)	%
Nondeductible expenses		203	(0.3)	%		509	0.6	%
Other items, net		111	(0.1)	%		19	0.0	%
Total tax expense (benefit)	$	(18,097)	22.8	%	$	16,268	19.9	%