Southwest Bancorporation of Texas, Inc. and Subsidiaries
Notes to Consolidated Financial Statements— (Continued)

9. Income Taxes:

The income tax provision (benefit) for the years ended December 31, 2000, 1999 and 1998 is composed of the following:

The types of temporary differences between the tax bases of assets and liabilities and their financial reporting amounts that give rise to deferred income tax assets and liabilities and their approximate tax effects are as follows:

In connection with the Company’s merger with Citizens and CBLP, the Company recorded deferred tax assets of $2,669 with an offsetting credit to additional paid in capital related to differences in the tax bases of assets and liabilities and their financial reporting amounts. Such deferred taxes were not previously recorded by CBLP as it was organized as a limited partnership.

The reconciliation between the Company’s effective income tax rate and the statutory federal income tax rate is as follows:

10. Employee Benefits:

Stock-Based Compensation Plan

The Company sponsors, and currently grants awards under, the Southwest Bancorporation of Texas, Inc. 1996 Stock Option Plan (the ‘‘ Stock Option Plan") , which is a stock-based compensation plan as described below. The Company has also sponsored similar stock-based compensation plans in prior years.