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Income Taxes
 12 Months Ended
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)20222021
Current:
Federal$10,685 $12,911 
State164 176 
Total current10,849 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)20222021
Deferred income tax assets:
Accrued benefits and retirement services$3,860 $3,382 
Net operating loss carryforward202 186 
Impairment of assets185 161 
Allowance for doubtful accounts59 66 
Postretirement benefit obligation— 39 
Reinsurance and commission payable28 39 
Other1,799 1,550 
Total6,133 5,423 
Deferred income tax liabilities:
Net unrealized gain on investments5,615 10,964 
Recorded statutory premium reserve, net of reserves for claims2,497 1,835 
Excess of tax over book depreciation1,551 1,662 
Intangible assets885 1,002 
Other3,250 3,081 
Total13,798 18,544 
Net deferred income tax liabilities$(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)20222021
Anticipated income tax expense$6,323 $17,836 
Increase (decrease) related to:
State income taxes, net of federal income tax benefit130 139 
Tax-exempt interest income, net of amortization(577)(1,310)
162(m) non-deductible compensation332 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.