Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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)	2023		2022
Current:
Federal	$	8,389	$	10,685
State	389		164
Total current	8,778		10,849
Deferred:
Federal	(4,150)		(4,510)
State	(84)		(134)
Total deferred	(4,234)		(4,644)
Total	$	4,544	$	6,205

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)	2023		2022
Deferred income tax assets:
Accrued benefits and retirement services	$	3,990	$	3,860
Net operating loss carryforward	246		202
Impairment of assets	186		185
Reinsurance and commission payable	62		28
Allowance for doubtful accounts	29		59
Lease assets	1,354		1,280
Other	563		519
Total	6,430		6,133
Deferred income tax liabilities:
Net unrealized gain on investments	3,157		5,615
Recorded statutory premium reserve, net of reserves for claims	2,223		2,497
Intangible assets	797		885
Excess of tax over book depreciation	657		1,551
Lease liabilities	1,324		1,252
1031 gain	935		912
Other	883		1,086
Total	9,976		13,798
Net deferred income tax liabilities	$	(3,546)	$	(7,665)

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, 2023 and 2022, to income tax expense, is as follows:


(in thousands)	2023		2022
Anticipated income tax expense	$	5,508	$	6,323
Increase (decrease) related to:
State income taxes, net of federal income tax benefit	307		130
Tax-exempt interest income, net of amortization	(525)		(577)
Other, net	(746)		329
Provision for income taxes	$	4,544	$	6,205