Note 12 - Income Taxes

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Income Tax Disclosure [Text Block]

12.

Income Taxes

The effective tax rate for the

first

quarter of

2019

was

21.8%

compared to

22.8%

for the

first

quarter of

2018.

The effective tax rate includes the impact of low-income housing and alternative energy investment tax credits. Income tax expense for the

first

quarter of

2019

was reduced by

$0.5

million in benefits from the distribution of restricted stock units.

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

2015

and by the California Franchise Tax Board back to

2014.

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.