Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

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)	2022		2021
Current:
Federal	$	10,685	$	12,911
State	164		176
Total current	10,849		13,087
Deferred:
Federal	(4,510)		4,740
State	(134)		85
Total deferred	(4,644)		4,825
Total	$	6,205	$	17,912

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)	2022		2021
Deferred income tax assets:
Accrued benefits and retirement services	$	3,860	$	3,382
Net operating loss carryforward	202		186
Impairment of assets	185		161
Allowance for doubtful accounts	59		66
Postretirement benefit obligation	—		39
Reinsurance and commission payable	28		39
Other	1,799		1,550
Total	6,133		5,423
Deferred income tax liabilities:
Net unrealized gain on investments	5,615		10,964
Recorded statutory premium reserve, net of reserves for claims	2,497		1,835
Excess of tax over book depreciation	1,551		1,662
Intangible assets	885		1,002
Other	3,250		3,081
Total	13,798		18,544
Net deferred income tax liabilities	$	(7,665)	$	(13,121)

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, 2022 and 2021, to income tax expense, is as follows:


(in thousands)	2022		2021
Anticipated income tax expense	$	6,323	$	17,836
Increase (decrease) related to:
State income taxes, net of federal income tax benefit	130		139
Tax-exempt interest income, net of amortization	(577)		(1,310)
162(m) non-deductible compensation	332		253
Other, net	(3)		994
Provision for income taxes	$	6,205	$	17,912