INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

	Year Ended December 31,
	2018		2017		2016
	(In thousands)
Balance at January 1	$	585	$	585	$	203
Increases (decreases) for tax positions taken during the current year	—		—		382
	$	585	$	585	$	585

The components of income tax expense include the following:

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	Year Ended December 31,
	2018			2017			2016
	(In thousands)
Federal:
Current	$	5,162		$	2,431		$	5,076
Deferred	(751		)	810			(4,714		)
Federal income tax expense (benefit)	4,411			3,241			362
State:
Current	1,383			494			674
Deferred	(296		)	(150		)	(494		)
State income tax expense (benefit)	1,087			344			180
Total income tax expense (benefit)	$	5,498		$	3,585		$	542

Schedule of Effective Income Tax Rate Reconciliation

The actual income tax expense differs from the “expected” income tax expense (computed by applying the combined applicable effective federal and state tax rates to income before income tax expense) as follows:

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	Year Ended December 31,
	2018			2017			2016
	(In thousands)
Computed expected tax expense provision, at federal rate	$	4,244		$	3,124		$	631
State tax, net of federal tax benefit	761			187			50
Tax-exempt interest	(134		)	(429		)	(571		)
Income subject to dividends-received deduction	(13		)	(76		)	(219		)
Return to provision	158			329			145
Rate changes	—			297			—
Executive compensation	436			185			382
Meals and entertainment	28			76			130
Other	18			(108		)	(6		)
Total income tax expense (benefit)	$	5,498		$	3,585		$	542

Significant Components of Net Deferred Tax Liability

Significant components of the Company’s net deferred income tax asset (liability) include the following:

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	Year Ended December 31,
	2018			2017
	(In thousands)
Deferred income tax assets:
Unearned premiums	$	9,977		$	9,543
Unpaid losses and loss adjustment expenses	958			1,050
Accrued expenses	832			689
Net operating loss carryforwards	1,714			1,567
Deferred revenue	236			—
Share-based compensation	255			255
Unrealized gains on investment securities	1,254			—
Other	21			123
Total deferred income tax assets	15,247			13,227
Deferred income tax liabilities:
Deferred acquisition costs	(11,198		)	(11,742		)
Depreciation and amortization	(577		)	(548		)
Unrealized gains on investment securities	—			(600		)
Other	(273		)	(30		)
Total deferred income tax liabilities	(12,048		)	(12,920		)
Deferred income tax asset (liability), net	$	3,199		$	307