XML 30 R14.htm IDEA: XBRL DOCUMENT
v3.22.4

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | 7. Income Taxes The Company’s deferred income tax assets and liabilities are as follows:
|  | December 31, |
|  | 2022 |  |  | 2021 |
|  | (in thousands) |
Deferred income tax assets: |  |  |  |  |  |
Discounting of net unpaid loss and loss adjustment expenses |  | $ | 16,164 |  |  | $ | 18,018 |
Unearned premiums |  |  | 6,173 |  |  |  | 6,560 |
Accrued expenses and other |  |  | 2,403 |  |  |  | 2,385 |
State income tax |  |  | 2,468 |  |  |  | 2,135 |
Accrued policyholder dividends |  |  | 1,841 |  |  |  | 1,989 |
Accrued insurance-related assessments |  |  | 1,990 |  |  |  | 1,901 |
Net unrealized loss on securities |  |  | 1,182 |  |  |  | — |
Total deferred tax assets |  |  | 32,221 |  |  |  | 32,988 |
Deferred income tax liabilities: |  |  |  |  |  |
Deferred policy acquisition costs |  |  | (4,391 | ) |  |  | (4,430 | )
Unrealized gain on securities available-for-sale |  |  | — |  |  |  | (7,791 | )
Property and equipment and other |  |  | (473 | ) |  |  | (298 | )
Salvage and subrogation |  |  | (320 | ) |  |  | (428 | )
Loss reserves adjustment |  |  | (4,243 | ) |  |  | (5,657 | )
Total deferred income tax liabilities |  |  | (9,427 | ) |  |  | (18,604 | )
Net deferred income taxes |  | $ | 22,794 |  |  | $ | 14,384 |
The components of consolidated income tax expense (benefit) are as follows:
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
|  | (in thousands) |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | 12,753 |  |  | $ | 11,368 |  |  | $ | 17,760 |
State |  |  | 427 |  |  |  | 1,055 |  |  |  | 900 |
|  |  | 13,180 |  |  |  | 12,423 |  |  |  | 18,660 |
Deferred: |  |  |  |  |  |  |  |  |
Federal |  |  | (802 | ) |  |  | 2,943 |  |  |  | 1,403 |
State |  |  | (334 | ) |  |  | (1,673 | ) |  |  | 254 |
|  |  | (1,136 | ) |  |  | 1,270 |  |  |  | 1,657 |
Total |  | $ | 12,044 |  |  | $ | 13,693 |  |  | $ | 20,317 |
As of December 31, 2022 and 2021, the Company had no valuation allowance against its deferred income tax assets and liabilities. As of December 31, 2020, the Company had a valuation allowance against its deferred income tax benefits of $2.2 million. Income tax expense from operations is different from the amount computed by applying the U.S. federal income tax statutory rate of 21% to income before income taxes as follows:
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
|  | (in thousands) |
Income tax computed at federal statutory tax rate |  | $ | 14,206 |  |  | $ | 16,684 |  |  | $ | 22,453 |
Tax-exempt interest, net |  |  | (2,268 | ) |  |  | (2,511 | ) |  |  | (3,226 | )
State income tax |  |  | 3 |  |  |  | 911 |  |  |  | 1,080 |
Dividends received deduction |  |  | (134 | ) |  |  | (107 | ) |  |  | (89 | )
Valuation allowance |  |  | (17 | ) |  |  | (1,803 | ) |  |  | 46 |
Prior year adjustments |  |  | 14 |  |  |  | 344 |  |  |  | 3 |
Other |  |  | 240 |  |  |  | 175 |  |  |  | 50 |
|  | $ | 12,044 |  |  | $ | 13,693 |  |  | $ | 20,317 |
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, 2022, 2021 and 2020. Tax years 2019 through 2022 are subject to examination by the federal and state taxing authorities.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration