4. INCOME TAXES

Our effective tax rate for the three and nine-month periods ended September 30, 2015 was 30.9 percent and 31.4 percent, respectively, compared to 31.6 percent and 31.5 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 slightly lower for the three and nine-month periods ended September 30, 2015 due to a combination of minor tax adjustments.

Income tax expense attributable to income from operations for the three and nine-month periods ended September 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 September 30,								For the Nine-Month Periods Ended September 30,
	2015				2014				2015				2014
(in thousands)	Amount		%		Amount		%		Amount		%		Amount		%
Provision for income taxes at the statutory rate of 35%	$	18,178	35.0	%	$	17,008	35.0	%	$	52,885	35.0	%	$	50,053	35.0	%
Increase (reduction) in taxes resulting from:
Tax exempt interest income		(1,082)	(2.1)	%		(1,033)	(2.1)	%		(3,098)	(2.0)	%		(3,115)	(2.2)	%
Dividends received deduction		(603)	(1.2)	%		(633)	(1.3)	%		(1,715)	(1.1)	%		(1,764)	(1.2)	%
ESOP dividends paid deduction		(234)	(0.4)	%		(218)	(0.4)	%		(693)	(0.5)	%		(639)	(0.5)	%
Other items, net		(230)	(0.4)	%		216	0.4	%		30	0.0	%		525	0.4	%
Total tax expense	$	16,029	30.9	%	$	15,340	31.6	%	$	47,409	31.4	%	$	45,060	31.5	%