6. Income Taxes

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
Federal:
Current	$	—		$	(30	)	$	—		$	21
Deferred		(162	)		(1,467	)		(13,789	)		(1,065	)
		(162	)		(1,497	)		(13,789	)		(1,044	)
State:
Current		149			43			308			277
Deferred		19			(52	)		(90	)		(46	)
		168			(9	)		218			231
	$	6		$	(1,506	)	$	(13,571	)	$	(813	)

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
Benefit for income taxes at statutory rate	$	(115	)	$	(1,584	)	$	(13,758	)	$	(1,061	)
Tax effect of:
Tax-exempt investment income		(10	)		(5	)		(30	)		(15	)
Change in the beginning of the period balance of the valuation allowance for deferred tax assets allocated to federal income taxes		(6	)		6			51			8
Stock-based compensation		12			—			29			22
State income taxes, net of federal income tax benefit and state valuation allowance		116			(24	)		110			134
Other		9			101			27			99
	$	6		$	(1,506	)	$	(13,571	)	$	(813	)

The Company had a deferred tax asset (“DTA”) valuation allowance of $2.1 million at September 30, 2016 and $1.7 million at December 31, 2015, attributable to certain amounts related to state taxes and OTTI that are not more likely than not to be realized. In assessing the Company’s ability to realize the DTA, both positive and negative evidence are used to evaluate the allowance. Although the Company has incurred a nine-month pre-tax loss of $39.3 million which is a source of negative evidence, it placed greater weight on its outlook for future taxable income over the allowable time period for realization of the DTA and concluded that it is more likely than not that the remaining DTA will be realized. Regarding the length of time available to realize the DTA, at September 30, 2016, $20.6 million of the DTA related to net operating loss carryforwards do not expire until 2031 through 2036 and $2.0 million in AMT (“Alternative Minimum Tax”) carryforwards have no expiration date. The DTA valuation allowance may be adjusted in future periods if management determines that it is more likely than not that some portion or all of the DTA will not be realized. In the event the DTA valuation allowance is adjusted, the Company would record an income tax expense for the adjustment.