Income Taxes

6 Months Ended

Jun. 30, 2017

Income Tax Disclosure [Abstract]

Income Taxes

8. Income Taxes

Actual income tax expense for the three and six months ended June 30, 2017 and 2016 varies from the amount that would result by applying the applicable statutory federal income tax rate of 34% to income before income taxes as summarized in the following table:

	Three months ended June 30,				Six months ended June 30,
	2017		2016		2017		2016
Income tax expense at statutory income tax rate	$	530	$	734	$	660	$	159
State income tax (net of federal tax benefit)		107		82		109		77
Other		2		4		5		6
Income tax expense	$	639	$	820	$	774	$	242

The Company carries a net deferred income tax asset of $247 and $420 at June 30, 2017 and December 31, 2016, respectively, all of which the Company believes is more likely than not to be fully realized based upon management’s assessment of future taxable income. Significant components of the Company’s net deferred tax assets are as follows:

	June 30, 2017		December 31, 2016
Deferred income tax assets:
Loss and loss adjustment expense reserves	$	38	$	35
Unearned premium reserves		1,909		1,503
Net operating loss carryforwards		138		235
Share-based compensation		301		316
Other		287		270
Deferred income tax assets	$	2,673	$	2,359
Deferred income tax liabilities:
Deferred policy acquisition costs	$	1,885	$	1,492
State deferred taxes		472		397
Other		69		50
Deferred income tax liabilities	$	2,426	$	1,939
Net deferred income tax assets	$	247	$	420

As of June 30, 2017, the Company had no unrecognized tax benefits. The Company analyzed its tax positions in accordance with the provisions of Accounting Standards Codification Topic 740, Income Taxes, and has determined that there are currently no uncertain tax positions. The Company generally recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense (benefit).