Federal Income Tax (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Federal Income Tax Expense (Benefit)

Federal income tax expense (benefit) is composed of the following:

Years Ended December 31,	2022		2021		2020
Current	$	1,627	$	11,081	$	(46,861)
Deferred	(4,581)		5,168		(9,948)
Total	$	(2,954)	$	16,249	$	(56,809)

Schedule of Income Tax Expense Reconciliation

A reconciliation of income tax expense (benefit) computed at the applicable federal tax rate of 21.0 percent in 2022, 2021 and 2020 to the amount recorded in the accompanying Consolidated Statements of Income and Comprehensive Income is as follows:

Years Ended December 31,	2022		2021		2020
Computed expected income tax expense (benefit)	$	2,536	$	20,337	$	(35,598)
The CARES Act	—		—		(18,562)
Tax-exempt municipal bond interest income	(3,115)		(3,412)		(3,669)
Nontaxable dividend income	(378)		(361)		(517)
Goodwill impairment	—		—		3,169
Compensation	582		770		695
Research & development credit	(1,591)		(1,545)		(2,045)
Other, net	(988)		460		(282)
Consolidated federal income tax expense (benefit)	$	(2,954)	$	16,249	$	(56,809)

Schedule of Components of Net Deferred Tax Liability

The significant components of our net deferred tax liability at December 31, 2022 and 2021 are as follows:

December 31,	2022		2021
Deferred tax liabilities
Net unrealized appreciation on investment securities:
Equity securities	$	19,701	$	27,047
All other securities	—		13,229
Deferred policy acquisition costs	21,887		19,204
Investments in partnerships	1,303		3,229
Over funded pension benefit	232		1,214
Prepaid pension cost	5,653		3,725
Net bond discount accretion	238		323
Depreciation	3,996		4,097
Revaluation of investment basis (1)	119		—
Identifiable intangible assets (1)	1,093		1,242
Capitalized Software	3,607		6,351
Other	1,550		2,183
Gross deferred tax liability	59,379		$	81,844
Deferred tax assets
Financial statement reserves in excess of income tax reserves	$	22,522	$	22,879
Unearned premium adjustment	18,513		17,296
Employee profit sharing	1,624		2,515
Post-retirement benefits other than pensions			2,650
Other-than-temporary impairment of investments	1,109		1,529
Compensation expense related to stock options	1,822		1,989
Nonqualified deferred compensation	2,399		2,574
Net Unrealized Appreciation - all other securities	23,382
Other	3,539		3,659
Gross deferred tax asset	$	74,910	$	55,091
Valuation allowance	—		—
Deferred tax asset	$	74,910	$	55,091
Net deferred tax liability (asset)	$	(15,531)	$	26,753

(1) Related to our acquisition of Mercer Insurance Group, Inc.