Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

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	)

Provision (Benefit) for Income Taxes Differs from Amounts Computed by Applying Statutory Federal Corporate Tax Rate

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	)

Summary of Net Deferred Tax Assets and Liabilities

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