5. Income Taxes

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

	Three Months Ended
	March 31,
	2016			2015
Federal:
Current	$	(1	)	$	72
Deferred		(2,962	)		193
		(2,963	)		265
State:
Current		100			49
Deferred		(6	)		4
		94			53
	$	(2,869	)	$	318

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

	Three Months Ended
	March 31,
	2016			2015
(Benefit) provision for income taxes at statutory rate	$	(2,931	)	$	281
Tax effect of:
Tax-exempt investment income		(10	)		(5	)
Change in the beginning of the period balance of the valuation allowance for deferred tax assets allocated to federal income taxes		—			—
Stock-based compensation		4			—
State income taxes, net of federal income tax benefit and state valuation allowance		59			53
Other		9			(11	)
	$	(2,869	)	$	318

The Company had a deferred tax asset valuation allowance of approximately $1.8 million at both March 31, 2016 and December 31, 2015, relating to certain amounts that are more likely than not to be realized. In assessing the Company’s ability to realize the deferred tax asset, both positive and negative evidence are used to evaluate the allowance and the greater weight is placed on historical results rather than the outlook for future profitability. For the trailing twelve months, the Company has incurred pre-tax operating losses of $11.8 million which is a source of negative evidence. However, through March 31, 2016, the Company’s historical results still reflect a twelve quarter cumulative pre-tax income of $6.4 million. Based on this fact and the Company’s outlook for future profitability, the valuation allowance was not adjusted at March 31, 2016. However, should operating losses continue, an adjustment to the valuation allowance might be required in the future.