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Income Taxes
9 Months Ended
Sep. 30, 2019
Income Tax Disclosure [Abstract]  
Income Taxes

10.

INCOME TAXES

The provision for income taxes was $0.9 million and $0.4 million for the nine-month periods ended September 30, 2019 and 2018, respectively. The Company’s effective tax rate was 20.5% and 29.8%, respectively, for the same periods. The effective tax rate is impacted by recurring permanent differences, such as those associated with bank-owned life insurance and tax-exempt investment and loan income. Additionally, the Company’s increased effective tax rate in 2018 was primarily due to certain non-deductible expenses associated with the acquisition of TPB in 2018.

The Company had a net deferred tax asset of $3.3 million and $4.6 million as of September 30, 2019 and December 31, 2018, respectively. The decrease in the net deferred tax asset resulted primarily from the impact of changes in the fair value of securities available-for-sale, combined with reductions in net operating loss carryforwards and other book-to-tax temporary differences.