4. INCOME TAXES

Our effective tax rate for the three-month period ended March 31, 2016 was 31.1 percent, compared to 31.3 percent for the same period in 2015. Effective rates are dependent upon components of pretax earnings and the related tax effects. The effective rate was slightly lower for the three month period ended March 31, 2016 due to an increase in tax-favored investment income.

Income tax expense attributable to income from operations for the three-month period ended March 31, 2016 and 2015 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 March 31,
	2016				2015
(in thousands)	Amount		%		Amount		%
Provision for income taxes at the statutory rate of 35%	$	15,958	35.0	%	$	15,580	35.0	%
Increase (reduction) in taxes resulting from:
Tax exempt interest income		(1,100)	(2.4)	%		(962)	(2.2)	%
Dividends received deduction		(565)	(1.2)	%		(577)	(1.3)	%
ESOP dividends paid deduction		(232)	(0.5)	%		(220)	(0.5)	%
Other items, net		139	0.2	%		94	0.3	%
Total tax expense	$	14,200	31.1	%	$	13,915	31.3	%