Federal and State Income Taxes

6 Months Ended

Jun. 30, 2017

Income Tax Disclosure [Abstract]

Federal and State Income Taxes

Federal and State Income Taxes

The Company is a corporation subject to federal income tax at a statutory rate of 34% of pretax earnings. The Company estimated an annual effective income tax rate of 8.6% based on projected results for the year and applied this rate to income before taxes to calculate income tax expense. The tax expense was approximately $254,000 and $46,000, resulting in an effective tax rate of approximately 10.5% and 2.7%, for the three months ended June 30, 2017 and 2016, respectively. The tax expense was approximately $336,000 and $112,000, resulting in an effective tax rate of approximately 8.6% and 4.3%, for the six months ended June 30, 2017 and 2016, respectively.

Based on management's analysis, the Company did not have any uncertain tax positions as of June 30, 2017.