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Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2014
Income Tax Disclosure [Abstract] |
Income Taxes |
7. | Income Taxes
The Company’s deferred income tax assets and liabilities are as follows:
|  | December 31,
| 2014 |  | 2013
|  | (in thousands)
Deferred income tax assets: |  |  |  |  |  |  |  |
Discounting of net unpaid loss and loss adjustment expenses |  | $ | 17,952 |  |  | $ | 17,493 |
Unearned premiums |  |  | 14,788 |  |  |  | 14,008 |
Accrued expenses and other |  |  | 4,306 |  |  |  | 4,336 |
State income tax |  |  | 591 |  |  |  | — |
Accrued policyholder dividends |  |  | 438 |  |  |  | 684 |
Impaired securities |  |  | 80 |  |  |  | 874 |
Accrued insurance-related assessments |  |  | 4,804 |  |  |  | 3,989 |
Total deferred tax assets |  |  | 42,959 |  |  |  | 41,384 |
Deferred income tax liabilities: |  |  |  |  |  |  |  |
Deferred policy acquisition costs |  |  | (8,815 | ) |  |  | (7,937 | )
Unrealized gain (loss) on securities available-for-sale |  |  | (1,513 | ) |  |  | 2,313 |
Property and equipment and other |  |  | (331 | ) |  |  | (266 | )
Salvage and subrogation |  |  | (289 | ) |  |  | (288 | )
Guaranty fund related items |  |  | (780 | ) |  |  | (1,561 | )
Total deferred income tax liabilities |  |  | (11,728 | ) |  |  | (7,739 | )
Net deferred income taxes |  | $ | 31,231 |  |  | $ | 33,645 |
The components of consolidated income tax expense (benefit) are as follows:
|  | Year Ended December 31,
| 2014 |  | 2013 |  | 2012
|  | (in thousands)
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 20,811 |  |  | $ | 15,270 |  |  | $ | 7,373 |
State |  |  | 684 |  |  |  | 504 |  |  |  | 302 |
|  |  | 21,495 |  |  |  | 15,774 |  |  |  | 7,675 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (821 | ) |  |  | (207 | ) |  |  | 115 |
State |  |  | (591 | ) |  |  | — |  |  |  | — |
|  |  | (1,412 | ) |  |  | (207 | ) |  |  | 115 |
Total |  | $ | 20,083 |  |  | $ | 15,567 |  |  | $ | 7,790 |
In 2012, 2013 and 2014, the Company made no adjustment to the valuation allowance. As of December 31, 2014, there is no valuation allowance. Income tax expense from operations is different from the amount computed by applying the U.S. federal income tax statutory rate of 35% to income before income taxes as follows:
|  | Year Ended December 31,
| 2014 |  | 2013 |  | 2012
|  | (in thousands)
Income tax computed at federal statutory tax rate |  | $ | 25,812 |  |  | $ | 20,721 |  |  | $ | 13,000 |
Tax-exempt interest, net |  |  | (5,620 | ) |  |  | (5,458 | ) |  |  | (5,333 | )
State income tax |  |  | (146 | ) |  |  | 504 |  |  |  | 302 |
Dividends received deduction |  |  | (60 | ) |  |  | (113 | ) |  |  | (79 | )
Other |  |  | 97 |  |  |  | (87 | ) |  |  | (100 | )
|  | $ | 20,083 |  |  | $ | 15,567 |  |  | $ | 7,790 |
The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. There were no uncertain tax positions as of December 31, 2014, 2013 and 2012. Tax years 2009 through 2014 are subject to examination by the federal and state taxing authorities. In April 2012, the Company was notified by the Internal Revenue Service that the examination for tax year 2009 had been completed, but remains subject to state taxing authorities.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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