4. INCOME TAXES

Our effective tax rate for the three and six-month periods ended June 30, 2015 was 32 percent compared to 31 percent for the same periods in 2014. Effective rates are dependent upon components of pretax earnings and the related tax effects. The effective rate was higher for the three and six-month periods ended June 30, 2015 due to an increase in underwriting income compared to the same periods in 2014.

Income tax expense attributable to income from operations for the three and six-month periods ended June 30, 2015 and 2014 differed from the amounts computed by applying the U.S. federal tax rate of 35 percent to pretax income as a result of the following:


	For the Three-Month Periods Ended June 30,								For the Six-Month Periods Ended June 30,
	2015				2014				2015				2014
(in thousands)	Amount		%		Amount		%		Amount		%		Amount		%
Provision for income taxes at the statutory rate of 35%	$	19,127	35	%	$	18,348	35	%	$	34,707	35	%	$	33,045	35	%
Increase (reduction) in taxes resulting from:
Tax exempt interest income		(1,054)	(2)	%		(1,048)	(2)	%		(2,016)	(2)	%		(2,082)	(2)	%
Dividends received deduction		(535)	(1)	%		(533)	(1)	%		(1,112)	(1)	%		(1,131)	(1)	%
ESOP dividends paid deduction		(238)	—	%		(220)	(1)	%		(458)	—	%		(421)	(1)	%
Other items, net		165	—	%		151	—	%		259	—	%		309	—	%
Total tax expense	$	17,465	32	%	$	16,698	31	%	$	31,380	32	%	$	29,720	31	%