7.	Income Taxes

The Company’s deferred income tax assets and liabilities are as follows:


	December 31,
	2014			2013
	(in thousands)
Deferred income tax assets:
Discounting of net unpaid loss and loss adjustment expenses	$	17,952		$	17,493
Unearned premiums		14,788			14,008
Accrued expenses and other		4,306			4,336
State income tax		591			—
Accrued policyholder dividends		438			684
Impaired securities		80			874
Accrued insurance-related assessments		4,804			3,989

Total deferred tax assets		42,959			41,384
Deferred income tax liabilities:
Deferred policy acquisition costs		(8,815	)		(7,937	)
Unrealized gain (loss) on securities available-for-sale		(1,513	)		2,313
Property and equipment and other		(331	)		(266	)
Salvage and subrogation		(289	)		(288	)
Guaranty fund related items		(780	)		(1,561	)

Total deferred income tax liabilities		(11,728	)		(7,739	)

Net deferred income taxes	$	31,231		$	33,645

The components of consolidated income tax expense (benefit) are as follows:


	Year Ended December 31,
	2014			2013			2012
	(in thousands)
Current:
Federal	$	20,811		$	15,270		$	7,373
State		684			504			302

		21,495			15,774			7,675
Deferred:
Federal		(821	)		(207	)		115
State		(591	)		—			—

		(1,412	)		(207	)		115

Total	$	20,083		$	15,567		$	7,790

In 2012, 2013 and 2014, the Company made no adjustment to the valuation allowance. As of December 31, 2014, there is no valuation allowance.

Income tax expense from operations is different from the amount computed by applying the U.S. federal income tax statutory rate of 35% to income before income taxes as follows:


	Year Ended December 31,
	2014			2013			2012
	(in thousands)
Income tax computed at federal statutory tax rate	$	25,812		$	20,721		$	13,000
Tax-exempt interest, net		(5,620	)		(5,458	)		(5,333	)
State income tax		(146	)		504			302
Dividends received deduction		(60	)		(113	)		(79	)
Other		97			(87	)		(100	)

	$	20,083		$	15,567		$	7,790

The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. There were no uncertain tax positions as of December 31, 2014, 2013 and 2012.

Tax years 2009 through 2014 are subject to examination by the federal and state taxing authorities. In April 2012, the Company was notified by the Internal Revenue Service that the examination for tax year 2009 had been completed, but remains subject to state taxing authorities.