Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v3.20.1
Income Taxes
 3 Months Ended
Mar. 31, 2020
Income Tax Disclosure [Abstract]  
Income Taxes
13.
Income Taxes
The Company’s effective tax rate for the three months ended March 31, 2020 and 2019 was 31.2% and 26.6%, respectively. The Company provides for the effects of income taxes in interim financial statements based on the Company’s estimate of its annual effective tax rate for the full year, which is based on forecasted income by jurisdiction where the Company operates, adjusted for the tax effects of items that relate discretely to the period, if any.
The provision for income taxes differs from the amount computed by applying the U.S. federal statutory rate to income before provision for income taxes and consisted of the following (dollars in thousands):
 
Three Months Ended March 31,
 
 
2020
   
2019
 
 
Amount
   
Rate
   
Amount
   
Rate
 
Income tax expense at the federal statutory rate
  $
3,987
     
21.0
 %   $
4,472
     
21.0
 %
State income tax expense, net of federal benefit
   
1,018
     
5.4
 %    
894
     
4.2
 %
Windfall tax benefits, net related to stock-based compensation
   
(17
 )    
(0.1
 )%    
(265
 )    
(1.2
 )%
Change in valuation allowance
   
367
     
1.9
 %    
259
     
1.2
 %
Permanent and other items
 
(1)
    
562
     
3.0
 %    
297
     
1.4
 %
                                 
  $
 
5,917
     
31.2
 %   $
 
5,657
     
26.6
 %
                                 
(1) Permanent items relate principally to compensation charges, qualified transportation fringe benefits, reversal of uncertain tax positions, meals and entertainment and our
tax-exempt
deferred compensation plan assets.