5. Income Taxes

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

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2015			2014		2015			2014
Federal:
Current	$	(30	)	$	80	$	21		$	170
Deferred		(1,467	)		—		(1,065	)		(1	)
		(1,497	)		80		(1,044	)		169
State:
Current		43			176		277			376
Deferred		(52	)		1		(46	)		2
		(9	)		177		231			378
	$	(1,506	)	$	257	$	(813	)	$	547

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Provision (benefit) for income taxes at statutory rate	$	(1,584	)	$	832		$	(1,061	)	$	2,327
Tax effect of:
Tax-exempt investment income		(5	)		(5	)		(15	)		(16	)
Change in the beginning of the period balance of the valuation allowance for deferred tax assets allocated to federal income taxes		6			(760	)		8			(2,216	)
Stock-based compensation		—			3			22			48
State income taxes, net of federal income tax benefit and state valuation allowance		(24	)		177			134			378
Other		101			10			99			26
	$	(1,506	)	$	257		$	(813	)	$	547

The Company had a deferred tax asset valuation allowance of approximately $1.8 million at both September 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 nine months ended September 30, 2015 was not material.

At September 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.