Note 22 - Income Taxes

The provisions for income taxes applicable to income before taxes differ from amounts computed by applying the statutory Federal income tax rates to income before taxes. The effective tax rate and the statutory federal income tax rate are reconciled for the periods indicated as follows:


	Three months ended June 30,						Six months ended June 30,
	2016			2015			2016			2015
Federal statutory income tax rate		35.0	%		35.0	%		35.0	%		35.0	%
State income taxes, net of federal tax benefit		7.0			6.7			6.6			6.8
Tax-exempt interest on municipal obligations		(2.3	)		(0.6	)		(2.0	)		(0.5	)
Increase in cash value of insurance policies		(2.2	)		(1.3	)		(1.8	)		(1.4	)
Low income housing tax credits		(1.4	)					(0.7	)		—
Other		0.8			(0.3	)		0.4			0.1

Effective Tax Rate		36.9	%		39.5	%		37.5	%		40.0	%