INCOME TAXES (Tables)

3 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Deferred Tax Assets and Liabilities

The tax effect of significant differences representing deferred tax assets and liabilities are as follows:

($ in thousands)	As of March 31,  2022		As of December 31,  2021
General expenses	$	1,513	$	1,548
Unearned premiums	1,476		1,436
Claims liabilities	755		751
NOL carryforward	1,138		1,459
Impairment on real estate owned	147		147
Unrealized losses on trading securities	3		—
Unrealized losses on securities available-for-sale	599		—
Deferred tax assets	5,631		5,341
Depreciation	(96)		(99)
Deferred policy acquisition costs	(1,518)		(1,540)
Pre-1984 policyholder surplus account	(248)		(265)
Unrealized gains on securities available-for-sale	—		(537)
Unrealized gains on equity securities	(519)		(497)
Deferred tax liabilities	(2,381)		(2,938)
Net deferred tax asset	$	3,250	$	2,403

Changes in Temporary Differences in Federal Income Tax

The appropriate income tax effects of changes in temporary differences are as follows:

($ in thousands)	Three months ended March 31,
	2022		2021
Deferred policy acquisition costs	$	(22)	$	(4)
Trading securities	(3)		(2)
Unearned premiums	(40)		(82)
General expenses	35		(8)
Depreciation	(3)		(2)
Claims liabilities	(4)		13
Impact of repeal of special provision on pre-1984 policyholder surplus	(17)		(17)
NOL carryforward	321		336
Unrealized gains (losses) on equity securities	22		—
Deferred income tax expense	$	289	$	234

Schedule of Effective Income Tax Rate Reconciliation

Total income tax expense (benefit) varies from amounts computed by applying current federal income tax rates to income or loss before income taxes.  The reasons for these differences and the approximate tax effects are as follows:

	Three months ended March 31,
	2022		2021
Federal income tax rate applied to pre-tax income (loss)	21.0	%	21.0	%
Dividends received deduction and tax-exempt interest	(0.2)	%	(0.3)	%
Company owned life insurance	5.9	%	1.3	%
Other, net	0.1	%	(0.1)	%
Effective federal income tax rate	26.8	%	21.9	%