INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

INCOME TAXES [Abstract]

Summary of Provision for Income Tax Expense

	Year Ended
	December 31,
	2016		2015		2014
	(in thousands)
Federal:
Current	$	5,076	$	15,523	$	16,659
Deferred		(2,771)		6,118		1,059
Federal income tax expense		2,305		21,641		17,718
State:
Current		674		2,489		2,204
Deferred		(296)		623		186
State income tax expense		378		3,112		2,390
Total income tax expense	$	2,683	$	24,753	$	20,108

Effective Federal and State Tax Rates to Income before Income Tax Expense

	Year Ended
	December 31,
	2016		2015		2014
	(in thousands)
Computed expected tax expense provision, at federal rate	$	957	$	22,829	$	19,887
State tax, net of federal tax benefit		85		2,291		1,696
Tax-exempt interest		(571)		(445)		(312)
Income subject to dividends-received deduction		(219)		(109)		(136)
Meals and entertainment		130		-		-
Return to provision and rate changes		145		119		(1,027)
Prior year deferred tax true-up		2,163		-		-
Other		(7)		68		-
Total income tax expense	$	2,683	$	24,753	$	20,108

Significant Components of Net Deferred Tax Liability

	Year Ended December 31,
	2016		2015
	(in thousands)
Deferred tax assets:
Unearned premiums	$	13,975	$	9,375
Unpaid losses and loss adjustment expenses		1,612		1,175
Accrued expenses		692		694
Net operating loss carryforwards		7		140
Share-based compensation		582		606
Other		155		212
Total		17,023		12,202
Deferred tax liabilities:
Deferred acquisition costs		(16,364)		(11,906)
Unrealized gains on investment securities		(1,277)		(2,336)
Deferred revenue related to reinsurance		-		(3,395)
Depreciation and amortization		(718)		-
Other		(97)		(192)
Total		(18,456)		(17,829)
Net deferred tax liability	$	(1,433)	$	(5,627)