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Note 12 - Income Taxes
9 Months Ended
Sep. 30, 2019
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

12. Income Taxes

 

The effective tax rate for the first nine months of 2019 was 20.3% compared to 19.0% for the first nine months 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 nine months of 2019 was reduced by $0.6 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 2016 and by the California Franchise Tax Board back to 2014. The Company is currently under audit by the Internal Revenue Service for 2017.

 

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.