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Income Taxes | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of income tax expense for the years ended December 31 are summarized as follows:
(in thousands) | 2022 |  | 2021
Current: |  |  |
Federal | $ | 10,685 |  |  | $ | 12,911 |
State | 164 |  |  | 176 |
Total current | 10,849 |  |  | 13,087 |
Deferred: |  |  |
Federal | (4,510) |  |  | 4,740 |
State | (134) |  |  | 85 |
Total deferred | (4,644) |  |  | 4,825 |
Total | $ | 6,205 |  |  | $ | 17,912 |
For state income tax purposes, ITIC and NITIC generally pay only a gross premium tax found in other expenses in the Consolidated Statements of Operations. At December 31, the approximate tax effect of each component of deferred income tax assets and liabilities is summarized as follows:
(in thousands) | 2022 |  | 2021
Deferred income tax assets: |  |  |
Accrued benefits and retirement services | $ | 3,860 |  |  | $ | 3,382 |
Net operating loss carryforward | 202 |  |  | 186 |
Impairment of assets | 185 |  |  | 161 |
Allowance for doubtful accounts | 59 |  |  | 66 |
Postretirement benefit obligation | — |  |  | 39 |
Reinsurance and commission payable | 28 |  |  | 39 |
Other | 1,799 |  |  | 1,550 |
Total | 6,133 |  |  | 5,423 |
Deferred income tax liabilities: |  |  |
Net unrealized gain on investments | 5,615 |  |  | 10,964 |
Recorded statutory premium reserve, net of reserves for claims | 2,497 |  |  | 1,835 |
Excess of tax over book depreciation | 1,551 |  |  | 1,662 |
Intangible assets | 885 |  |  | 1,002 |
Other | 3,250 |  |  | 3,081 |
Total | 13,798 |  |  | 18,544 |
Net deferred income tax liabilities | $ | (7,665) |  |  | $ | (13,121) |
At December 31, 2022 and 2021, there were no valuation allowances recorded. Based upon the Company’s historical results of operations, the existing financial condition of the Company and management’s assessment of all other available information, management believes that it is more likely than not that the benefit of these deferred income tax assets will be realized. A reconciliation of the U.S. federal statutory income tax rate of 21.0% for the years ended December 31, 2022 and 2021, to income tax expense, is as follows:
(in thousands) | 2022 |  | 2021
Anticipated income tax expense | $ | 6,323 |  |  | $ | 17,836 |
Increase (decrease) related to: |  |  |
State income taxes, net of federal income tax benefit | 130 |  |  | 139 |
Tax-exempt interest income, net of amortization | (577) |  |  | (1,310) |
162(m) non-deductible compensation | 332 |  |  | 253 |
Other, net | (3) |  |  | 994 |
Provision for income taxes | $ | 6,205 |  |  | $ | 17,912 |
In accounting for uncertainty in income taxes, the Company is required to recognize in its Consolidated Financial Statements the impact of a tax position if that position is more likely than not of being sustained on an audit, based on the technical merits of the position. In this regard, an uncertain tax position represents the Company’s expected treatment of a tax position taken in a filed tax return, or planned to be taken in a future tax return, that has not been reflected in measuring income tax expense for financial reporting purposes. There were no unrecognized tax benefits or liabilities as of December 31, 2022. The amount of unrecognized tax benefit or liability may increase or decrease in the future for various reasons, including adding amounts for current tax year positions, expiration of open income tax returns due to the expiration of the applicable statute of limitations, changes in management’s judgment about the level of uncertainty, status of examinations, litigation and legislative activity and the additions or eliminations of uncertain tax positions. The Company’s policy is to report interest and penalties related to income taxes in the other expenses line item in the Consolidated Statements of Operations. The Company files income tax returns in the U.S. federal jurisdiction and various states. With few exceptions, the Company is no longer subject to U.S. federal or state and local examinations by taxing authorities for years before 2018.

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://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 http://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 http://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 http://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 http://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 http://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 http://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 http://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 http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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