Income taxes

9 Months Ended

Sep. 30, 2023

Income taxes

Income taxes

8. Income taxes

An income tax expense of $1,110,000 was recorded for the three months ended September 30, 2023 compared to $1,295,000 for the three months ended September 30, 2022. The effective tax rate was approximately 28.9% for the three months ended September 30, 2023 compared to 108.7% for the three months ended September 30, 2022. An income tax expense of $2,710,000 was recorded for the nine months ended September 30, 2023 compared to $3,350,000 for the nine months ended September 30, 2022. The effective tax rate was approximately 27.9% for the nine months ended September 30, 2023 compared to 40.5% for the nine months ended September 30, 2022. Income tax provisions for interim (quarterly) periods are based on estimated annual income tax rates and are adjusted for the effects of significant, infrequent or unusual items (i.e. discrete items) occurring during the interim period. The prior year quarter rate was impacted by $3.8 million in expenses related to the compensation of our former CEO upon his death, in accordance with his employment agreement, that were permanent differences between our book and taxable income.