6. Income Taxes

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

	Three Months Ended
	March 31,
	2017		2016
Federal:
Current	$	122	$	(1	)
Deferred		627		(2,962	)
		749		(2,963	)
State:
Current		80		100
Deferred		17		(6	)
		97		94
	$	846	$	(2,869	)

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
	March 31,
	2017			2016
Provision (benefit) for income taxes at statutory rate	$	552		$	(2,931	)
Tax effect of:
Tax-exempt investment income		(14	)		(10	)
Stock option expirations		229			4
State income taxes, net of federal income tax benefit and state valuation allowance		69			59
Other		10			9
	$	846		$	(2,869	)

The Company had a deferred tax asset (“DTA”) valuation allowance of $1.8 million at March 31, 2017 and $1.9 million at December 31, 2016, 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 incurred a 2016 pre-tax loss of $45.1 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 March 31, 2017, $22.1 million of the DTA related to net operating loss carryforwards do not expire until 2031 through 2036 and $2.1 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 increased, the Company would record an income tax expense for the adjustment.