15.Income Taxes:

The composition of deferred tax assets and liabilities and the related tax effects as of December 31, 2018 and 2017, are as follows (in thousands):


	2018		2017
Deferred tax liabilities:
Deferred policy acquisition costs	$	(3,001)	$	(3,361)
Net unrealized holding gain on investments		(1,087)		(4,688)
Agency relationship		(22)		(28)
Intangible assets		(2,179)		(2,476)
Goodwill		(357)		(357)
Bond amortization		(72)		(111)
Fixed assets		(992)		(860)
Other		(279)		(303)
Total deferred tax liabilities		(7,989)		(12,184)

Deferred tax assets:
Unearned premiums		6,931		6,901
Amortization of non-compete agreements		71		107
Pension liability		867		746
Net operating loss carry-forward		93		200
Unpaid loss and loss adjustment expense		2,505		3,422
Rent reserve		54		158
Bonus accrual		632		302
Investment impairments		1,446		1,956
Other		373		329
Total deferred tax assets		12,972		14,121

Deferred federal income taxes, net	$	4,983	$	1,937

We concluded that no valuation allowance was necessary to provide against our deferred tax assets as of December 31, 2018.

A reconciliation of the income tax provisions based on the applicable statutory tax rates of 21% and 35% to the provisions reflected in the consolidated financial statements for the years ended December 31, 2018 and 2017, respectively, is as follows (in thousands):


	2018		2017
Computed expected income tax expense (benefit) at statutory tax rate	$	2,689	$	(5,800)
Meals and entertainment		75		81
Tax exempt interest		(435)		(987)
Dividends received deduction		(94)		(196)
State taxes (net of federal benefit)		266		165
Tax law change		—		1,276
True up bond amortization		—		464
Other		(45)		(22)
Income tax expense (benefit)	$	2,456	$	(5,019)

Current income tax expense (benefit)	$	4,300	$	(3,444)
Deferred tax benefit		(1,844)		(1,575)
Income tax expense (benefit)	$	2,456	$	(5,019)

We have available, for federal income tax purposes, unused net operating loss of $0.4 million at December 31, 2018. The losses were acquired as part of the HIC and HCM acquisitions and may be used to offset future taxable income. Utilization of the losses is limited under Internal Revenue Code Section 382. The Internal Revenue Code provides that effective with tax years beginning September 1997, the carry-back and carry-forward periods are 2 years and 20 years, respectively, with respect to newly generated operating losses. The net operating losses will expire if unused, as follows (in thousands):


Year
2022	$	—
2028		2
2029		25
2031		45
2032		77
2033		73
2034		59
2035		33
2036		50
2037		29
2038		49
	$	442

We are no longer subject to U.S. federal, state, local or non-U.S. income tax examinations by tax authorities for years prior to 2015. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. There were no uncertain tax positions at December 31, 2018.