15. Income Taxes:

The composition of deferred tax assets and liabilities and the related tax effects as of December 31, 2016 and 2015, are as follows (in thousands):



	2016		2015
Deferred tax liabilities:
Deferred policy acquisition costs	$	(6,717)	$	(7,128)
Net unrealized holding gain on investments		(7,395)		(5,339)
Agency relationship		(56)		(66)
Intangible assets		(4,623)		(5,118)
Goodwill		(559)		(519)
Fixed assets		(1,106)		(861)
Other		(435)		(367)
Total deferred tax liabilities		(20,891)		(19,398)

Deferred tax assets:
Unearned premiums		11,184		10,592
Amortization of non-compete agreements		238		298
Pension liability		1,436		1,385
Net operating loss carry-forward		319		426
Unpaid loss and loss adjustment expense		6,208		6,920
Rent reserve		247		297
Bond amortization		434		421
Bonus accrual		291		759
Investment impairments		1,419		1,120
Other		480		540
Total deferred tax assets		22,256		22,758

Deferred federal income taxes, net	$	1,365	$	3,360

We concluded that no valuation allowance was necessary to provide against our deferred tax assets as of December 31, 2016.

A reconciliation of the income tax provisions based on the 35% statutory tax rate to the provision reflected in the consolidated financial statements for the years ended December 31, 2016, 2015 and 2014, is as follows (in thousands):



	2016		2015		2014
Computed expected income tax expense at statutory regulatory tax rate	$	2,967	$	11,160	$	6,574
Meals and entertainment		81		32		27
Tax exempt interest		(1,164)		(1,259)		(1,276)
Dividends received deduction		(133)		(141)		(107)
State taxes (net of federal benefit)		203		176		259
Other		(2)		55		(124)
Income tax expense	$	1,952	$	10,023	$	5,353

Current income tax expense	$	1,547	$	11,053	$	5,746
Deferred tax expense (benefit)		405		(1,030)		(393)
Income tax expense	$	1,952	$	10,023	$	5,353

We have available, for federal income tax purposes, unused net operating loss of $0.9 million at December 31, 2016. 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
2022	$	553
2028		2
2029		25
2031		45
2032		77
2033		73
2034		59
2035		33
2036		44
	$	911

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 2013. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. There were no uncertain tax positions at December 31, 2016.