Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Company's Deferred Income Tax Assets and Liabilities

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

	December 31,
	2018			2017
	(in thousands)
Deferred income tax assets:
Discounting of net unpaid loss and loss adjustment expenses	$	21,377		$	8,830
Unearned premiums		8,069			8,466
Accrued expenses and other		2,636			2,359
State income tax		855			782
Accrued policyholder dividends		2,188			1,918
Impaired securities		21			42
Capital loss carryforward		—			190
Accrued insurance-related assessments		3,139			3,256
Net unrealized loss on securities		496			—
Total deferred tax assets		38,781			25,843
Deferred income tax liabilities:
Deferred policy acquisition costs		(5,207	)		(5,317	)
Callable bond amortization		(5	)		(8	)
Unrealized gain on securities available-for-sale		—			(1,070	)
Property and equipment and other		(178	)		(3	)
Salvage and subrogation		(719	)		(183	)
Loss reserves adjustment due to the Tax Act		(10,820	)		—
Total deferred income tax liabilities		(16,929	)		(6,581	)
Net deferred income taxes	$	21,852		$	19,262

Components of Consolidated Income Tax Expense (Benefit)

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

	Year Ended December 31,
	2018			2017			2016
	(in thousands)
Current:
Federal	$	16,407		$	22,477		$	35,602
State		1,004			732			1,603
		17,411			23,209			37,205
Deferred:
Federal		(1,389	)		12,965			(2,120	)
State		(73	)		(165	)		(129	)
		(1,462	)		12,800			(2,249	)
Total	$	15,949		$	36,009		$	34,956

Income Tax Expense from Operations from the Amount Computed by Applying the U.S. Federal Income Tax Statutory Rate of 35% to Income Before Income Taxes

Income tax expense from operations is different from the amount computed by applying the U.S. federal income tax statutory rate of 21% in 2018 and 35% in 2017 and 2016 to income before income taxes as follows:

	Year Ended December 31,
	2018			2017			2016
	(in thousands)
Income tax computed at federal statutory tax rate	$	18,392		$	28,784		$	39,487
Tax-exempt interest, net		(2,965	)		(5,707	)		(5,370	)
State income tax		720			311			913
Dividends received deduction		(44	)		(48	)		(125	)
Revaluation of net deferred income tax assets		—			12,620			—
Other		(154	)		49			51
	$	15,949		$	36,009		$	34,956