Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Taxes [Abstract]

Allocation of Total Income Taxes

Total income taxes were allocated as follows:

	2021			2020
Total tax expense on income	$	1,021		$	3,334
Tax expense on components of shareholders’ equity:
Net unrealized gains (losses) on investment securities		(1,944	)		3,865
Total tax expense (benefit)	$	(923	)	$	7,199

Reconciliation of Income Tax Expense (Benefit)

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

	2021			2020
Federal income tax provision	$	1,112		$	3,256
Statutory rate		21	%		21	%
Dividends-received deduction		(26	)		(12	)
Meals and entertainment		32			20
Vested stock and club dues		(28	)		36
Parking disallowance		16			16
Adjustment for prior years’ estimates to actual		(85	)		18
Income tax expense	$	1,021		$	3,334
Effective tax rate		19.3	%		21.5	%

Deferred Tax Liabilities and Assets

Deferred tax assets and liabilities at December 31, 2021 and 2020 were comprised of the following:

	2021			2020
Deferred tax assets:
Deferred acquisition costs	$	7,026		$	4,666
Insurance reserves		2,028			2,682
Impaired assets		780			822
Bad debts and other		280			326
Total deferred tax assets		10,114			8,496
Deferred tax liabilities:
Deferred and uncollected premiums	$	(561	)	$	(409	)
Net unrealized investment gains		(7,689	)		(9,235	)
Other		(109	)		(153	)
Total deferred tax liabilities		(8,359	)		(9,797	)
Net deferred tax asset (liability)	$	1,755		$	(1,301)

Components of Income Tax Expense

The components of income tax expense were:

	2021			2020
Current – Federal	$	2,133		$	5,584
Deferred – Federal		(1,112	)		(2,250	)
Total	$	1,021		$	3,334