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 March 31,
	2018			2017
Federal statutory income tax rate		21.0	%		35.0	%
State income taxes, net of federal tax benefit		9.0			6.9
Tax-exempt interest on municipal obligations		(1.1	)		(1.9	)
Increase in cash value of insurance policies		(0.7	)		(1.4	)
Low income housing tax credits		(1.0	)		(0.6	)
Equity compensation		—			(0.5	)
Nondeductible merger expenses		0.4			—
Nondeductible joint beneficiary agreement expense		0.1			0.1
Other		0.4			0.2

Effective Tax Rate		28.1	%		37.8	%