15. Income Taxes:

The composition of deferred tax assets and liabilities and the related tax effects as of December 31, 2014 and 2013, are as follows (in thousands):



	2014		2013
Deferred tax liabilities:
Deferred policy acquisition costs	$	(7,261)	$	(7,905)
Net unrealized holding gain on investments		(10,886)		(9,730)
Agency relationship		(75)		(85)
Intangible assets		(5,613)		(6,129)
Goodwill		(479)		(325)
Fixed assets		(432)		(499)
Other		(133)		(263)
Total deferred tax liabilities		(24,879)		(24,936)

Deferred tax assets:
Unearned premiums		10,042		9,822
Alternative minimum tax		-		442
Amortization of non-compete agreements		357		417
Pension liability		1,400		797
Net operating loss carry-forward		518		611
Unpaid loss and loss adjustment expense		6,871		8,173
Rent reserve		355		366
Reinsurance payable		387		238
Bonus accrual		809		215
Investment impairments		625		660
Other		423		370
Total deferred tax assets		21,787		22,111

Deferred federal income taxes, net	$	(3,092)	$	(2,825)

A reconciliation of the income tax provisions based on the statutory tax rate to the provision reflected in the consolidated financial statements for the years ended December 31, 2014, 2013 and 2012, is as follows (in thousands):



	2014		2013		2012
Computed expected income tax expense at statutory regulatory tax rate	$	6,574	$	3,878	$	1,181
Meals and entertainment		27		25		28
Tax exempt interest		(1,276)		(1,314)		(1,631)
Dividends received deduction		(107)		(101)		(111)
State taxes (net of federal benefit)		259		276		298
Other		(124)		71		(239)
Income tax expense (benefit)	$	5,353	$	2,835	$	(474)

Current income tax expense	$	5,746	$	3,092	$	2,377
Deferred tax benefit		(393)		(257)		(2,851)
Income tax expense (benefit)	$	5,353	$	2,835	$	(474)

We have available, for federal income tax purposes, unused net operating loss of approximately $1.5 million at December 31, 2014. The losses were acquired as part of the HIC and HCM acquisitions and may be used to offset future taxable income. Utilization of the losses is limited under Internal Revenue Code Section 382. The Internal Revenue Code provides that effective with tax years beginning September 1997, the carry-back and carry-forward periods are 2 years and 20 years, respectively, with respect to newly generated operating losses. The net operating losses will expire if unused, as follows (in thousands):



Year
2021	$	325
2022		878
2028		2
2029		25
2031		45
2032		77
2033		73
2034		56
	$	1,481

We are no longer subject to U.S. federal, state, local or non-U.S. income tax examinations by tax authorities for years prior to 2011. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. There were no uncertain tax positions at December 31, 2014.