Note 5 - Taxes on Income

9 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Note 5: Taxes on Income

The effective tax rate was 45.4% in the third quarter of 2014 as compared to 40.9% in the third quarter of 2013 and 44.2% in the first nine months of 2014 as compared 40.9% in the equivalent prior-year period.  The increase in both periods was due primarily to increased merger-related expenses, a significant portion of which will not be deductible for tax purposes.  The tax expense in both years was predominantly non-cash due to the Company’s interim net loss for tax purposes and significant net operating loss carryover.  Current tax expense was approximately $0.5 million in the third quarter of 2014 as compared to $0.2 million in the prior year period and was approximately $0.8 million and $0.6 million in the first nine months of 2014, and 2013, respectively; it was attributable to state income taxes.