Income Taxes

9 Months Ended

Sep. 30, 2011

Income Taxes [Abstract]

Income Taxes

Note 6 – Income Taxes

Income tax expense was $6.5 million for the third quarter in 2011 as compared to $5.2 million for the same period in 2010. Our effective tax rates on pretax income were 26.32% and 25.88% for the third quarter of 2011 and 2010, respectively. Income tax expense was $17.8 million for the nine months ended September 30, 2011 as compared to $14.8 million for the same period in 2010. Our effective tax rates on pretax income were 25.89% and 25.69% for the nine months ended September 30, 2011 and 2010, respectively. The effective tax rates differ from the statutory Federal tax rate of 35% largely due to tax exempt interest income earned on certain investment securities and loans, the deductibility of dividends paid to our employee stock ownership plan and Texas state taxes. The above effective tax rates for 2010 do not reflect income taxes related to the extraordinary item.