NOTE 13. INCOME TAXES

Our forecasted annual effective tax rate at March 31, 2018 was 21.2%, as compared to 35.0% at March 31, 2017.  For the three months ended March 31, 2018 and 2017, our effective tax rate was 21.2% and 32.4%, respectively.  The decrease in both rates was primarily due to a reduction in the federal statutory rate as a result of the Tax Cuts and Jobs Act signed in December 2017  (the “Tax Act”).  As of March 31, 2018, we had completed our preliminary assessment for the tax effects resulting from the enactment of the Tax Act and made a reasonable estimate of the effect on our annual effective tax rate and existing deferred tax balances. We will continue to make and refine our calculations as additional analysis is completed. In addition, our estimates may also be affected as we gain a more thorough understanding of the Tax Act.