Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Total income taxes were allocated as follows:

	2019			2018
Total tax benefit on income	$	(21	)	$	(267	)

Tax benefit on components of shareholders’ equity:
Net unrealized gains (losses) on investment securities		(4,783	)		(2,541	)
Total tax benefit	$	(4,804	)	$	(2,808	)

A reconciliation of the differences between income taxes computed at the federal statutory income tax rate and the income tax benefit is as follows:

	2019			2018
Federal income tax provision	$	(86	)	$	(204	)
Statutory rate		21	%		21	%

Dividends-received deduction		(23	)		(39	)
Meals & entertainment		55			56
Vested stock & club dues		37			19
Parking disallowance		17			-
Adjustment for prior years’ estimates to actual		(21	)		(99	)
Income tax benefit	$	(21	)	$	(267	)
Effective tax rate		5.2	%		27.5	%

Deferred tax liabilities and assets at December 31, 2019 and 2018 were comprised of the following:

	2019			2018
Deferred tax assets:
Deferred acquisition costs	$	2,540		$	175
Insurance reserves		3,323			3,410
Impaired assets		822			1,142
Bad debts and other		319			332
Total deferred tax assets		7,004			5,059
Deferred tax liabilities:
Deferred and uncollected premiums	$	(328	)	$	(360	)
Net unrealized investment gains		(6,090	)		(148	)
Other		(272	)		(367	)
Total deferred tax liabilities		(6,690	)		(875	)
Net deferred tax asset	$	314		$	4,184

The components of income tax expense (benefit) were: