Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2015
Income Taxes [Abstract]  
Schedule of Deferred Tax Assets and Liabilities

The composition of deferred tax assets and liabilities and the related tax effects as of December 31, 2015 and 2014, are as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

2014

Deferred tax liabilities:

 

 

 

 

 

 

Deferred policy acquisition costs

 

$

 (7,128)

 

$

 (7,261)

Net unrealized holding gain on investments

 

 

 (5,339)

 

 

 (10,886)

Agency relationship

 

 

 (66)

 

 

 (75)

Intangible assets

 

 

 (5,118)

 

 

 (5,613)

Goodwill

 

 

 (519)

 

 

 (479)

Fixed assets

 

 

 (861)

 

 

 (432)

Other

 

 

 (367)

 

 

 (133)

Total deferred tax liabilities

 

 

 (19,398)

 

 

 (24,879)

 

 

 

 

 

 

 

Deferred tax assets:

 

 

 

 

 

 

Unearned premiums

 

 

 10,592 

 

 

 10,042 

Amortization of non-compete agreements

 

 

 298 

 

 

 357 

Pension liability

 

 

 1,385 

 

 

 1,400 

Net operating loss carry-forward

 

 

 426 

 

 

 518 

Unpaid loss and loss adjustment expense

 

 

 6,920 

 

 

 6,871 

Rent reserve

 

 

 297 

 

 

 355 

Reinsurance payable

 

 

 421 

 

 

 387 

Bonus accrual

 

 

 759 

 

 

 809 

Investment impairments

 

 

 1,120 

 

 

 625 

Other

 

 

 540 

 

 

 423 

Total deferred tax assets

 

 

 22,758 

 

 

 21,787 

 

 

 

 

 

 

 

Deferred federal income taxes, net

 

$

 3,360 

 

$

 (3,092)

 

Schedule of Effective Income Tax Rate Reconciliation

 

A reconciliation of the income tax provisions based on the statutory tax rate to the provision reflected in the consolidated financial statements for the years ended December 31, 2015, 2014 and 2013, is as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

2014

 

2013

Computed expected income tax expense at statutory regulatory tax rate

 

$

 11,160 

 

$

 6,574 

 

$

 3,878 

Meals and entertainment

 

 

 32 

 

 

 27 

 

 

 25 

Tax exempt interest

 

 

 (1,259)

 

 

 (1,276)

 

 

 (1,314)

Dividends received deduction

 

 

 (141)

 

 

 (107)

 

 

 (101)

State taxes (net of federal benefit)

 

 

 176 

 

 

 259 

 

 

 276 

Other

 

 

 55 

 

 

 (124)

 

 

 71 

Income tax expense

 

$

 10,023 

 

$

 5,353 

 

$

 2,835 

 

 

 

 

 

 

 

 

 

 

Current income tax expense

 

$

 11,053 

 

$

 5,746 

 

$

 3,092 

Deferred tax benefit

 

 

 (1,030)

 

 

 (393)

 

 

 (257)

Income tax expense

 

$

 10,023 

 

$

 5,353 

 

$

 2,835 

 

Summary of Operating Loss Carryforwards

The net operating losses will expire if unused, as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

Year

 

 
2022 

 

$

 878 
2028 

 

 

 2 
2029 

 

 

 25 
2031 

 

 

 45 
2032 

 

 

 77 
2033 

 

 

 73 
2034 

 

 

 59 
2035 

 

 

 57 

 

 

$

 1,216