Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Taxes [Abstract]

Allocation of Total Income Taxes

Total income taxes were allocated as follows:

	2024			2023
Total tax benefit on income	$	(996	)	$	(394	)
Tax expense (benefit) on components of shareholders’ equity:
Net unrealized income (losses) on investment securities		(689	)		1,602
Total tax expense (benefit)	$	(1,685	)	$	1,208

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:

	2024			2023
Federal income tax provision at the statutory rate	$	(1,105	)	$	(119	)
Statutory rate		21	%		21	%
Dividends-received deduction		(25	)		(24	)
Meals and entertainment		76			15
Vested stock and club dues		3			16
Parking disallowance		20			17
Adjustment for prior years’ estimates to actual		35			(299	)
Income tax benefit	$	(996	)	$	(394	)
Effective tax rate		18.9	%		69.7	%

Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities at December 31, 2024 and 2023 were comprised of the following:

	2024			2023
Deferred tax assets:
Deferred acquisition costs	$	9,508		$	8,808
Net unrealized investment losses		4,350			3,342
Insurance reserves		3,139			2,898
Impaired assets		791			791
Bad debts and other		482			337
Net operating loss		1,940			559
Total deferred tax assets		20,210			16,735
Deferred tax liabilities:
Deferred and uncollected premiums	$	(2,092	)		(1,053	)
Total deferred tax liabilities		(2,092	)		(1,053	)
Net deferred tax asset	$	18,118		$	15,682

Components of Income Tax Benefit

The components of income tax benefit were:

	2024			2023
Current – Federal	$	751		$	2,727
Deferred – Federal		(1,747	)		(3,121	)
Total	$	(996	)	$	(394	)