Income Taxes

3 Months Ended

Mar. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

10. INCOME TAXES

Income Tax Expense

Income Tax Rate Reconciliation
	Three Months Ended March 31,
	2019			2018
Tax provision at U.S. federal statutory rate	$	163		$	109
Tax-exempt interest	(15		)	(17		)
Executive compensation	4			4
Stock-based compensation	(3		)	(2		)
Tax Reform	—			(3		)
Other	(4		)	—
Provision for income taxes	$	145		$	91

In addition to the effect of tax-exempt interest, the Company's effective tax rate for the three months ended March 31, 2019 reflects a federal income tax expense of $4 related to non-deductible executive compensation and a benefit of $3 related to a deduction for stock-based compensation that vested at a fair value per share greater than the fair value on the date of grant.

Uncertain Tax Positions

Rollforward of Unrecognized Tax Benefits
	Three Months Ended March 31,
	2019		2018
Balance, beginning of period	$	14	$	9
Gross increases - tax positions in prior period	—		—
Gross decreases - tax positions in prior period	—		—
Balance, end of period	$	14	$	9

The entire amount of unrecognized tax benefits, if recognized, would affect the effective tax rate in the period of the release.

Other Tax Matters

As of March 31, 2019 the Company had alternative minimum tax (AMT) credit carryovers of $839 which are reflected as a current income tax receivable within other assets in the accompanying Condensed Consolidated Balance Sheets. AMT credits may be used to offset a regular tax liability for any taxable year beginning after December 31, 2017, and are refundable at an amount equal to 50 percent of the excess of the minimum tax credit for the taxable year over the amount of credit allowable for the year against regular tax liability. Any remaining credits not used against regular tax liability are refundable in the 2021 tax year to be realized in 2022. For the three months ended March 31, 2019, the Company offset $2 regular tax liability with AMT credits. Included within net deferred income taxes in the accompanying Condensed Consolidated Balance Sheet are $459 of future tax benefits associated with the Company's U.S. net operating loss ("NOL") carryovers. Although the Company projects there will be sufficient future taxable income to fully recover the remainder of the NOL carryover, the Company's estimate of the likely realization may change over time. NOL carryovers, if unused, would expire between 2026 and 2036.

The federal audits have been completed through 2013, and the Company is not currently under examination for any open years. Management believes that adequate provision has been made in the condensed consolidated financial statements for any potential adjustments that may result from tax examinations and other tax-related matters for all open tax years.

The Company classifies interest and penalties (if applicable) as income tax expense in the condensed consolidated financial statements. The Company recognized no interest expense for the three months ended March 31, 2019 and 2018. The Company had no interest payable as of March 31, 2019 and 2018. The Company does not believe it would be subject to any penalties in any open tax years and, therefore, has not recorded any accrual for penalties.