INCOME TAXES

The Company used its respective estimates for its annual 2019 and 2018 incomes in computing its effective income tax rates for the three and six months ended June 30, 2019 and 2018. The effective tax rates for the three and six months ended June 30, 2019 and 2018, were 16.9% and 18.2% and 14.2% and 14.8%, respectively.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



	As of
	June 30, 2019			December 31, 2018
	(Dollars In Thousands)
Balance, beginning of period	$	7,134		$	11,353
Additions for tax positions of the current year	—			—
Additions for tax positions of prior years	—			—
Reductions of tax positions of prior years:
Changes in judgment	—			(4,219		)
Settlements during the period	(5,343		)	—
Lapses of applicable statute of limitations	—			—
Balance, end of period	$	1,791		$	7,134

Included in the end of period balance above, as of June 30, 2019 and December 31, 2018, there were $1.8 million unrecognized tax benefits for which the ultimate deductibility is certain but for which there is uncertainty about the timing of such deductions. Other than interest and penalties, the disallowance of the shorter deductibility period would not affect the annual effective income tax rate but would accelerate to an earlier period the payment of cash to the taxing authority. The total amount of unrecognized tax benefits, if recognized, that would affect the effective income tax rate is approximately $1.8 million and $7.1 million for the period ending June 30, 2019 and the year ending December 31, 2018, respectively.

Any accrued interest related to the unrecognized tax benefits and other accrued income taxes have been included in income tax expense. There were no amounts included in the period ending June 30, 2019 and the year ending December 31, 2018 as the parent company maintains responsibility for the interest on unrecognized tax benefits.

In April, 2019, the IRS proposed favorable and unfavorable adjustments to the Company’s 2014 through 2016 reported taxable income. The Company agreed to these adjustments. The resulting taxes have not yet been settled but settlement will not materially impact the Company or its effective tax rate. This agreement with the IRS is the primary cause for the reductions of unrecognized tax benefits shown in the chart above.

The Company believes that in the next twelve months, none of the unrecognized tax benefits will be reduced.

Statute of limitations for years before 2017 are still open but, in general, the Company is no longer subject to income tax examinations by taxing authorities for tax years that began before 2017.

Due to IRS adjustments to the Company's pre-2014 taxable income, the Company has amended certain of its 2003 through 2013 state income tax returns. Such amendments will cause such years to remain open, pending the states' acceptances of the returns.