11.	Income Taxes

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

	Year Ended December 31,
	2016			2015			2014
Federal:
Current	$	—		$	20		$	228
Deferred		(16,024	)		(893	)		(19,098	)
		(16,024	)		(873	)		(18,870	)
State:
Current		328			255			650
Deferred		(152	)		(24	)		(125	)
		176			231			525
	$	(15,848	)	$	(642	)	$	(18,345	)

The benefit 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).

	Year Ended December 31,
	2016			2015			2014
(Benefit) provision for income taxes at statutory rate	$	(15,796	)	$	(900	)	$	3,403
Tax effect of:
Tax-exempt investment income		(48	)		(22	)		(21	)
Change in the beginning of the period balance of the valuation allowance for deferred tax assets allocated to federal income taxes		(157	)		9			(22,427	)
Stock-based compensation		64			22			137
State income taxes, net of federal income tax benefit and state valuation allowance		60			142			525
Other items		29			107			38
	$	(15,848	)	$	(642	)	$	(18,345	)

The tax effects of temporary differences that give rise to the net deferred tax assets and liabilities are presented below (in thousands).

	Year Ended December 31,
	2016			2015
Deferred tax assets:
Net operating loss carryforwards	$	24,208		$	6,859
Stock-based compensation		404			421
Unearned premiums and loss and loss adjustment expense reserves		6,752			6,797
Goodwill and identifiable intangible assets		2,832			4,252
Alternative minimum tax (“AMT”) credit carryforwards		2,015			2,015
Accrued expenses and other nondeductible items		1,345			1,551
Other		3,619			3,528
		41,175			25,423
Deferred tax liabilities:
Deferred acquisition costs		(1,698	)		(1,928	)
Identifiable intangible assets		(1,872	)		(1,872	)
Net unrealized gain on investments		(73	)		(1,244	)
Other		(19	)		(332	)
		(3,662	)		(5,376	)
Total net deferred tax asset		37,513			20,047
Less: Valuation allowance		(1,872	)		(1,746	)
Net deferred tax asset	$	35,641		$	18,301

The Company had a valuation allowance of $1.9 and $1.7 million at December 31, 2016 and 2015, respectively, relating to certain amounts that are more likely than not to be realized. In assessing our ability to realize the deferred tax asset (“DTA”), both positive and negative evidence are used to evaluate the allowance. Although the Company has incurred a pre-tax loss of $45.1 million which is a source of negative evidence, greater weight was placed on the Company’s 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 December 31, 2016, $24.2 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.

Prior to December 31, 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 at the time and the Company’s then outlook for future profitability, the deferred tax valuation allowance for the year ended December 31, 2014 was decreased by $22.4 million.