Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense

The components of income tax expense for the years ended December 31 are summarized as follows:

(in thousands)	2020		2019
Current:
Federal	$	8,886	$	5,945
State	137		142
Total current	9,023		6,087
Deferred:
Federal	1,236		2,280
State	(18)		(2)
Total deferred	1,218		2,278
Total	$	10,241	$	8,365

Schedule of Deferred Tax Assets and Liabilities

At December 31, the approximate tax effect of each component of deferred income tax assets and liabilities is summarized as follows:

(in thousands)	2020		2019
Deferred income tax assets:
Accrued benefits and retirement services	$	3,189	$	3,049
Other-than-temporary impairment of assets	167		178
Net operating loss carryforward	118		77
Allowance for doubtful accounts	65		91
Postretirement benefit obligation	39		9
Reinsurance and commission payable	9		36
Other	1,129		1,329
Total	4,716		4,769
Deferred income tax liabilities:
Net unrealized gain on investments	8,090		6,691
Recorded reserve for claims, net of statutory premium reserves	1,199		1,096
Excess of tax over book depreciation	1,149		947
Intangible assets	1,086		1,168
Other	1,784		1,905
Total	13,308		11,807
Net deferred income tax liabilities	$	(8,592)	$	(7,038)

Schedule of Reconciliation of Income Tax

As computed for the years ended December 31 at the U.S. federal statutory income tax rate of 21.0% for 2020 and 2019, to income tax expense follows:

(in thousands)	2020		2019
Anticipated income tax expense	$	10,429	$	8,362
Increase (decrease) related to:
State income taxes, net of federal income tax benefit	108		112
Tax-exempt interest income, net of amortization	(1,199)		(900)
Other, net	903		791
Provision for income taxes	$	10,241	$	8,365