Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Taxes [Abstract]

Allocation of Total Income Taxes

Total income taxes were allocated as follows:

	2022			2021
Total tax expense on income	$	571		$	1,021
Tax benefit on components of shareholders’ equity:
Net unrealized losses on investment securities		(10,589	)		(1,944	)
Total tax benefit	$	(10,018	)	$	(923	)

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:

	2022			2021
Federal income tax provision at the statutory rate	$	440		$	1,112
Statutory rate		21	%		21	%
Dividends-received deduction		(24	)		(26	)
Meals and entertainment		61			32
Vested stock and club dues		14			(28	)
Parking disallowance		17			16
Penalties and fines		149			—
Adjustment for prior years’ estimates to actual		(86	)		(85	)
Income tax expense	$	571		$	1,021
Effective tax rate		27.2	%		19.3	%

Deferred Tax Liabilities and Assets

Deferred tax assets and liabilities at December 31, 2022 and 2021 were comprised of the following:

	2022			2021
Deferred tax assets:
Deferred acquisition costs	$	7,953		$	7,026
Net unrealized investment losses		4,489			—
Insurance reserves		1,597			2,028
Impaired assets		791			780
Bad debts and other		252			280
Total deferred tax assets		15,082			10,114
Deferred tax liabilities:
Deferred and uncollected premiums	$	(835	)	$	(561	)
Net unrealized investment gains		—			(7,689	)
Other		(84	)		(109	)
Total deferred tax liabilities		(919	)		(8,359	)
Net deferred tax asset (liability)	$	14,163		$	1,755

Components of Income Tax Expense

The components of income tax expense were:

	2022			2021
Current – Federal	$	2,390		$	2,133
Deferred – Federal		(1,819	)		(1,112	)
Total	$	571		$	1,021