Income Taxes

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Income Taxes

7.Income Taxes

The Company’s deferred income tax assets and liabilities are as follows:

	December 31,
	2025			2024
	(in thousands)
Deferred income tax assets:
Discounting of net unpaid loss and loss adjustment expenses	$	13,744		$	14,552
Unearned premiums		6,794			6,257
Accrued expenses and other		2,057			2,145
State income tax		2,373			2,501
Accrued policyholder dividends		1,294			1,408
Accrued insurance-related assessments		1,598			1,557
Total deferred tax assets		27,860			28,420
Deferred income tax liabilities:
Deferred policy acquisition costs		(5,167	)		(4,737	)
Net unrealized gain on securities available-for-sale		(4,674	)		(2,389	)
Property and equipment and other		(171	)		(130	)
Salvage and subrogation		(276	)		(302	)
Loss reserves adjustment		—			(1,414	)
Total deferred income tax liabilities		(10,288	)		(8,972	)
Net deferred income taxes	$	17,572		$	19,448

The components of consolidated income tax expense (benefit) are as follows:

	Year Ended December 31,
	2025		2024			2023
	(in thousands)
Current:
Federal	$	10,341	$	11,351		$	13,621
State		993		867			1,020
		11,334		12,218			14,641
Deferred:
Federal		244		1,408			655
State		128		(6	)		(27	)
		372		1,402			628
Total	$	11,706	$	13,620		$	15,269

As of December 31, 2025, 2024 and 2023, the Company had no valuation allowance against its deferred income tax assets and liabilities. The realization of this asset is dependent upon the Company's ability to generate sufficient taxable income in future periods. Based on historical results and the prospects for future operations, management anticipates that it is more likely than not that future taxable income will be sufficient for the realization of this asset.

Income tax expense from operations is different from the amount computed by applying the U.S. federal income tax statutory rate of 21% to income before income taxes as follows:

	Year Ended December 31,
	2025						2024						2023
	Amount ($)			Percentage			Amount ($)			Percentage			Amount ($)			Percentage
	(in thousands)						(in thousands)						(in thousands)
Income tax computed at federal statutory tax rate	$	12,359			21.0	%	$	14,502			21.0	%		16,249			21.0	%
State income tax (1)		912			1.5	%		679			1.0	%		779			1.0	%
Nontaxable or nondeductible items
Tax-exempt interest, net		(1,908	)		-3.2	%		(1,945	)		-2.8	%		(1,997	)		-2.6	%
All other		351			0.6	%		376			0.5	%		225			0.3	%
Other		(8	)		0.0	%		8			0.0	%		13			0.0	%
	$	11,706			19.9	%	$	13,620			19.7	%	$	15,269			19.7	%

(1)State taxes in Florida and Illinois make up more than 50% of the state income tax category.

The Company has no foreign operations. Federal and state income tax payments, net of refunds, are as follows:

	Year Ended December 31,
	2025		2024		2023
	(in thousands)
Income taxes paid, net of refunds received
Federal	$	11,250	$	11,750	$	13,950
State (1)		1,200		1,099		962
Total	$	12,450	$	12,849	$	14,912
Income from continuing operations before income taxes
Domestic	$	58,851	$	69,056	$	77,377
Income tax expense from continuing operations
Federal	$	10,585	$	12,759	$	14,276
State		1,121		861		993
Total	$	11,706	$	13,620	$	15,269

(1) Payments to Florida and Illinois make up greater than 50% of the total state income taxes paid, net of refunds received.

The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. There were no uncertain tax positions as of December 31, 2025, 2024 and 2023.

The Inflation Reduction Act was enacted on August 16, 2022, and included a new Corporate Alternative Minimum Tax (CAMT). The Company has determined they do not expect to be liable for CAMT in 2025.

On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was enacted, introducing multiple changes to the U.S. tax code. The OBBBA contains several changes impacting corporate taxpayers, including modifications to the limitations on deductions for charitable contributions and the re-establishment of accelerated depreciation on certain qualified depreciable assets. The new tax regulation set forth by the OBBBA did not have a significant impact on the Company’s financial statements.

Tax years 2022 through 2025 are subject to examination by the federal and state taxing authorities.