5. Income Taxes

The provision for income taxes consisted of the following (in thousands).

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2015			2014			2015		2014
Federal:
Current	$	(21	)	$	81		$	51	$	91
Deferred		209			(2	)		402		(2	)
		188			79			453		89
State:
Current		185			174			234		199
Deferred		2			1			6		2
		187			175			240		201
	$	375		$	254		$	693	$	290

The provision for income taxes differs from the amounts computed by applying the statutory federal corporate tax rate of 35% to income before income taxes as a result of the following (in thousands).

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2015			2014			2015			2014
Provision for income taxes at statutory rate	$	242		$	1,303		$	523		$	1,495
Tax effect of:
Tax-exempt investment income		(5	)		(5	)		(10	)		(10	)
Change in the beginning of the period balance of the valuation allowance for deferred tax assets allocated to federal income taxes		2			(1,233	)		2			(1,456	)
Stock-based compensation		22			7			22			44
State income taxes, net of federal income tax benefit and state valuation allowance		122			175			158			201
Other		(8	)		7			(2	)		16
	$	375		$	254		$	693		$	290

The Company had a deferred tax asset valuation allowance of approximately $1.8 million at both June 30, 2015 and December 31, 2014, relating to certain amounts that are more likely than not to be realized. The change in the valuation allowance for six months ended June 30, 2015 was not material.

At June 30, 2014 the Company had a full valuation allowance against its deferred tax asset based upon past negative evidence in the form of historical taxable losses. Based upon positive evidence from recent taxable income and the Company’s outlook for future profitability, the deferred tax asset valuation allowance was adjusted at December 31, 2014 to include only the certain amounts referred to above.