9. Income Taxes

During the three months ended September 30, 2016 and 2015, the Company recorded approximately $17.3 million and $17.6 million of income taxes, respectively. The effective tax rate for the three months ended September 30, 2016 is 39.1% compared to a 36.7% effective tax rate for the same period in the prior year.

During the nine months ended September 30, 2016 and 2015, the Company recorded approximately $54.4 million and $49.8 million of income taxes, respectively. The effective tax rate for the nine months ended September 30, 2016 is 38.8% compared to a 39.2% effective tax rate for the same period in the prior year.

In arriving at these rates, the Company considers a variety of factors including the forecasted full year pre-tax results, the U.S. federal tax rate of 35%, expected non-deductible expenses, and estimated state income taxes. The Company’s final effective tax rate for the full year will be dependent on the level of pre-tax income, the apportionment of taxable income among state tax jurisdictions and the extent of non-deductible expenses in relation to pre-tax income.

Factors giving rise to the difference in the Company’s effective tax rates for the three and nine month ended September 30, 2016 compared to the same periods in 2015 include:

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a reduction in the amount of non-deductible executive compensation,

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an increase in the amount of tax-exempt interest income,

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current year expansion outside of Florida into non-income taxing state jurisdictions, and

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discrete items recorded during the three months ended September 30, 2016 and 2015 based on the filing of the Company’s income tax returns in the third quarters of those periods.

Tax years that remain open for purposes of examination of the Company’s income tax liability due to taxing authorities include the years ended December 31, 2015, 2014 and 2013.