7.	Income Taxes

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

	December 31,
	2017			2016
	(in thousands)
Deferred income tax assets:
Discounting of net unpaid loss and loss adjustment expenses	$	8,830		$	16,035
Unearned premiums		8,466			14,483
Accrued expenses and other		2,359			3,640
State income tax		782			617
Accrued policyholder dividends		1,918			2,024
Impaired securities		42			70
Capital loss carryforward		190			15
Accrued insurance-related assessments		3,256			5,323
Net unrealized loss on securities		—			265
Total deferred tax assets		25,843			42,472
Deferred income tax liabilities:
Deferred policy acquisition costs		(5,317	)		(8,492	)
Callable bond amortization		(8	)		(10	)
Unrealized gain on securities available-for-sale		(1,070	)		—
Property and equipment and other		(3	)		204
Salvage and subrogation		(183	)		(363	)
Total deferred income tax liabilities		(6,581	)		(8,661	)
Net deferred income taxes	$	19,262		$	33,811

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

	Year Ended December 31,
	2017			2016			2015
	(in thousands)
Current:
Federal	$	22,477		$	35,602		$	28,047
State		732			1,603			1,012
		23,209			37,205			29,059
Deferred:
Federal		12,965			(2,120	)		1,343
State		(165	)		(129	)		103
		12,800			(2,249	)		1,446
Total	$	36,009		$	34,956		$	30,505

During 2017, 2016 and 2015, there was no valuation allowance on the Company’s deferred income tax assets and liabilities.

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,
	2017			2016			2015
	(in thousands)
Income tax computed at federal statutory tax rate	$	28,784		$	39,487		$	35,338
Tax-exempt interest, net		(5,707	)		(5,370	)		(5,630	)
State income tax		311			913			762
Dividends received deduction		(48	)		(125	)		(19	)
Revaluation of net deferred income tax assets		12,620			—			—
Other		49			51			54
	$	36,009		$	34,956		$	30,505

On December 22, 2017, the Tax Act was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017. As a result, we have recorded $12.6 million as additional income tax expense related to our net deferred tax assets revalued at the new lower rate of 21% in the fourth quarter of 2017, the period in which the legislation was enacted.

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, 2017, 2016 and 2015.

Tax years 2014 through 2017 are subject to examination by the federal and state taxing authorities.