16.Income Taxes:

The composition of deferred tax assets and liabilities and the related tax effects as of December 31, 2019 and 2018, are as follows (in thousands):


	2019		2018
Deferred tax liabilities:
Deferred policy acquisition costs	$	(4,829)	$	(3,001)
Net unrealized holding gain on investments		(6,408)		(1,087)
Agency relationship		(17)		(22)
Intangible assets		(1,882)		(2,179)
Goodwill		(357)		(357)
Bond amortization		(77)		(72)
Fixed assets		(1,529)		(992)
Other		(315)		(279)
Total deferred tax liabilities		(15,414)		(7,989)

Deferred tax assets:
Unearned premiums		9,438		6,931
Amortization of non-compete agreements		36		71
Pension liability		842		867
Net operating loss carry-forward		2,154		93
Unpaid loss and loss adjustment expense		3,284		2,505
Rent reserve		18		54
Bonus accrual		722		632
Investment impairments		489		1,446
Other		616		373
Total deferred tax assets		17,599		12,972

Deferred federal income taxes, net	$	2,185	$	4,983

We concluded that no valuation allowance was necessary against our deferred tax assets as of December 31, 2019 and 2018.

A reconciliation of the income tax provisions based on the applicable statutory tax rate of 21% to the provisions reflected in the consolidated financial statements for the years ended December 31, 2019 and 2018, respectively, is as follows (in thousands):


	2019		2018
Computed expected income tax (benefit) expense at statutory tax rate	$	(217)	$	2,689
Meals and entertainment		102		75
Tax exempt interest		(421)		(435)
Dividends received deduction		(191)		(94)
State taxes (net of federal benefit)		414		266
Other		(94)		(45)
Income tax (benefit) expense	$	(407)	$	2,456

Current income tax (benefit) expense	$	(1,224)	$	4,300
Deferred tax expense (benefit)		817		(1,844)
Income tax (benefit) expense	$	(407)	$	2,456

We have available, for federal income tax purposes, unused net operating loss of $10.3 million at December 31, 2019. The TCJA generally repealed the previous two year carry-back and 20 year carry-forward provision for net operating losses and adopted an indefinite carry-forward of net operating losses arising in tax years ending after December 31, 2017. However, the TCJA preserved present law for net operating losses of property/casualty insurance companies. Thus, our net operating losses may be carried-back two years and carried-forward 20 years. On March 27, 2020, the Coronavirus Aid Relief and Economic Security Act (“CARES Act”) was signed into law. The CARES Act grants taxpayers a five-year carry-back period for net operating losses arising in tax years beginning after December 31, 2017 and before January 1, 2021 (i.e. calendar years 2018, 2019 and 2020).

The net operating losses will expire if unused, as follows (in thousands):


Year
2022	$	—
2028		2
2029		25
2031		45
2032		77
2033		73
2034		59
2035		33
2036		50
2037		29
2038		40
2039		67
Indefinite		9,758
	$	10,258

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 2016. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. There were no uncertain tax positions at December 31, 2019.