Note 11 - Income Taxes

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Income Tax Disclosure [Text Block]

11

. Income Taxes

The effective tax rate for the

first

six

months of

2018

was

17.9%

compared to

26.4%

for the

first

six

months of

2017.

The reduction in the effective tax rate was primarily due to the Tax Legislation, which reduced the Company’s Federal corporate tax rate from

35%

to

21%

effective

January 1, 2018,

an alternative energy investment made in the

second

quarter and the impact of low income housing tax credits.

As of

December 31, 2017,

the Company had income tax refunds receivable of

$7.2

million. These income tax receivables are included in other assets in the accompanying condensed consolidated balance sheets.

The Company’s tax returns are open for audit by the Internal Revenue Service back to

2014

and by the California Franchise Tax Board back to

2013.

It is reasonably possible that unrecognized tax benefits could change significantly over the next

twelve

months. The Company does

not

expect that any such changes would have a material impact on its annual effective tax rate.