Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The composition of deferred tax assets and liabilities and the related tax effects as of December 31, 2012 and 2011, are as follows (in thousands):

	2012			2011
				(as adjusted)
Deferred tax liabilities:
Deferred policy acquisition costs	$	(8,719	)	$	(7,894	)
Net unrealized holding gain on investments		(5,622	)		(5,047	)
Agency relationship		(94	)		(104	)
Intangible assets		(6,852	)		(7,738	)
Goodwill		(116	)		-
Fixed assets		(685	)		(858	)
Other		(275	)		(400	)
Total deferred tax liabilities		(22,363	)		(22,041	)
Deferred tax assets:
Unearned premiums		9,806			8,864
Alternative minimum tax		1,651			164
Amortization of non-compete agreements		476			536
Pension liability		1,591			1,604
Net operating loss carry-forward		702			1,070
Unpaid loss and loss adjustment expense		7,549			7,699
Goodwill		-			93
Rent reserve		363			223
Investment impairments		1,256			1,254
Other		909			399
Total deferred tax assets		24,303			21,906
Deferred federal income taxes, net	$	1,940		$	(135	)

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

A reconciliation of the income tax provisions based on the statutory tax rate to the provision reflected in the consolidated financial statements for the years ended December 31, 2012, 2011 and 2010, is as follows (in thousands):  

	2012			2011			2010
				(as adjusted)			(as adjusted)
Computed expected income tax expense (benefit)  at statutory regulatory tax rate	$	1,181		$	(6,926	)	$	2,930
Meals and entertainment		28			44			17
Tax exempt interest		(1,631	)		(1,835	)		(1,829	)
Dividends received deduction		(111	)		(99	)		(172	)
State taxes (net of federal benefit)		298			84			299
Other		(239	)		(222	)		(382	)
Income tax (benefit) expense	$	(474	)	$	(8,954	)	$	863
Current income tax (benefit) expense	$	2,377		$	(6,059	)	$	1,843
Deferred tax benefit		(2,851	)		(2,895	)		(980	)
Income tax (benefit) expense	$	(474	)	$	(8,954	)	$	863

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

The net operating losses will expire if unused, as follows (in thousands):

Year
2021	$	975
2022		878
2028		2
2030		25
2031		45
2032		79
	$	2,004