INCOME TAXES

The Company's effective income tax rate for the three months ended March 31, 2017 and 2016 was as follows:



	Three Months Ended March 31,
	2017			2016
Income tax expense	$	4,344		$	3,442
Income before income tax expense	$	14,420		$	12,088
Effective tax rate	30.1		%	28.5		%

Effective January 1, 2016, the Company adopted ASU 2016-09, and for the three months ended March 31, 2017 and 2016, has accounted for its windfall tax benefits and shortfalls generated upon vesting of share-based awards issued and exercise of stock options within income tax expense on the consolidated statements of income as a discrete period item in the quarter generated. For the three months ended March 31, 2017 and 2016, the Company recorded net windfall tax benefits of $149,000 and $299,000, respectively, which reduced the Company's effective tax rate 1.1% and 2.5%, respectively.