Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Company's Deferred Income Tax Assets and Liabilities

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

	December 31,
	2021			2020
	(in thousands)
Deferred income tax assets:
Discounting of net unpaid loss and loss adjustment expenses	$	18,018		$	19,297
Unearned premiums		6,560			6,984
Accrued expenses and other		2,385			2,947
State income tax		2,135			2,212
Accrued policyholder dividends		1,989			2,020
Accrued insurance-related assessments		1,901			1,963
Total deferred tax assets		32,988			35,423
Less: Valuation allowance		—			(2,169	)
Net deferred tax assets		32,988			33,254

Deferred income tax liabilities:
Deferred policy acquisition costs		(4,430	)		(4,547	)
Unrealized gain on securities available-for-sale		(7,791	)		(7,194	)
Property and equipment and other		(298	)		(260	)
Salvage and subrogation		(428	)		(516	)
Loss reserves adjustment		(5,657	)		(7,072	)
Total deferred income tax liabilities		(18,604	)		(19,589	)
Net deferred income taxes	$	14,384		$	13,665

Components of Consolidated Income Tax Expense (Benefit)

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

	Year Ended December 31,
	2021			2020		2019
	(in thousands)
Current:
Federal	$	11,368		$	17,760	$	20,658
State		1,055			900		1,297
		12,423			18,660		21,955
Deferred:
Federal		2,943			1,403		732
State		(1,673	)		254		140
		1,270			1,657		872
Total	$	13,693		$	20,317	$	22,827

Income Tax Expense from Operations from the Amount Computed by Applying the U.S. Federal Income Tax Statutory Rate of 21% to Income Before Income Taxes

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,
	2021			2020			2019
	(in thousands)
Income tax computed at federal statutory tax rate	$	16,684		$	22,453		$	24,258
Tax-exempt interest, net		(2,511	)		(3,226	)		(2,999	)
State income tax		911			1,080			(591	)
Dividends received deduction		(107	)		(89	)		(59	)
Valuation allowance		(1,803	)		46			2,025
Prior year adjustments		344			3			30
Other		175			50			163
	$	13,693		$	20,317		$	22,827