Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

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)	2021		2020
Current:
Federal	$	12,911	$	8,886
State	176		137
Total current	13,087		9,023
Deferred:
Federal	4,740		1,236
State	85		(18)
Total deferred	4,825		1,218
Total	$	17,912	$	10,241

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)	2021		2020
Deferred income tax assets:
Accrued benefits and retirement services	$	3,382	$	3,189
Net operating loss carryforward	186		118
Other-than-temporary impairment of assets	161		167
Allowance for doubtful accounts	66		65
Postretirement benefit obligation	39		39
Reinsurance and commission payable	39		9
Other	1,550		1,129
Total	5,423		4,716
Deferred income tax liabilities:
Net unrealized gain on investments	10,964		8,090
Recorded statutory premium reserve, net of reserves for claims	1,835		1,199
Excess of tax over book depreciation	1,662		1,149
Intangible assets	1,002		1,086
Other	3,081		1,784
Total	18,544		13,308
Net deferred income tax liabilities	$	(13,121)	$	(8,592)

Schedule of Reconciliation of Income Tax

A reconciliation of the U.S. federal statutory income tax rate of 21.0% for the years ended December 31, 2021 and 2020, to income tax expense, is as follows:


(in thousands)	2021		2020
Anticipated income tax expense	$	17,836	$	10,429
Increase (decrease) related to:
State income taxes, net of federal income tax benefit	139		108
Tax-exempt interest income, net of amortization	(1,310)		(1,199)
Other, net	1,247		903
Provision for income taxes	$	17,912	$	10,241