XML 36 R11.htm IDEA: XBRL DOCUMENT v3.21.2
INVESTMENTS
6 Months Ended
Jun. 30, 2021
Investments, Debt and Equity Securities [Abstract]  
INVESTMENTS
4. INVESTMENTS

Unrealized Gains and Losses

The difference between amortized cost or cost and estimated fair value and gross unrealized gains and losses, by major investment category, consisted of the following:
AmortizedGrossGross 
CostUnrealizedUnrealized 
or CostGainsLossesFair Value
(In thousands)
June 30, 2021    
Debt securities - available-for-sale:    
United States government obligations and authorities$122,895 $1,190 $457 $123,628 
Obligations of states and political subdivisions21,410 650 57 22,003 
Corporate234,179 8,105 1,104 241,180 
International31,079 477 66 31,490 
$409,563 $10,422 $1,684 $418,301 
AmortizedGrossGross 
CostUnrealizedUnrealized 
or CostGainsLossesFair Value
(In thousands)
December 31, 2020    
Debt securities - available-for-sale:    
United States government obligations and authorities$169,947 $1,866 $38 $171,775 
Obligations of states and political subdivisions21,560 704 — 22,264 
Corporate254,618 11,989 79 266,528 
International27,001 659 17 27,643 
$473,126 $15,218 $134 $488,210 

Net Realized and Unrealized Gains and Losses

The Company calculates the gain or loss realized on the sale of investments by comparing the sales price (fair value) to the cost or amortized cost of the security sold. Net realized gains and losses on investments are determined in accordance with the specific identification method.
Net realized and unrealized gains (losses) recognized in earnings, by major investment category, consisted of the following:

Three Months EndedSix Months Ended
June 30,June 30,
2021202020212020
(In thousands)
Gross realized and unrealized gains:  
Debt securities$304 $9,403 $1,168 $10,789 
Equity securities112 1,886 113 2,205 
Total gross realized and unrealized gains416 11,289 1,281 12,994 
  
Gross realized and unrealized losses:  
Debt securities(302)(2,339)(1,022)(2,487)
Equity securities45 1,433 (8)(2,949)
Total gross realized and unrealized losses(257)(906)(1,030)(5,436)
Net realized and unrealized gains (losses) on investments$159 $10,383 $251 $7,558 

The above line item, net realized and unrealized gains (losses) on investments, includes the following equity securities gains (losses) recognized in earnings:
Three Months EndedSix Months Ended
June 30,June 30,
2021202020212020
(In thousands)
Net gains (losses) on equity securities:
Realized$— $(65)$— $(807)
Unrealized157 3,384 105 63 
157 3,319 105 (744)
Less:
Net realized and unrealized gains (losses) on securities sold— 53 — (582)
Net unrealized gains (losses) still held as of the end-of-period$157 $3,266 $105 $(162)
Contractual Maturity

Actual maturities may differ from contractual maturities because issuers may have the right to call or pre-pay obligations.

Amortized cost and estimated fair value of debt securities, by contractual maturity, consisted of the following:

June 30, 2021
Amortized 
CostFair Value
Securities with Maturity Dates(In thousands)
Debt securities, available-for-sale:  
One year or less$20,074 $20,498 
Over one through five years128,974 132,632 
Over five through ten years138,480 140,336 
Over ten years122,035 124,835 
Total$409,563 $418,301 

Net Investment Income

Net investment income consisted of the following:
Three Months EndedSix Months Ended
June 30,June 30,
2021202020212020
(In thousands)
Interest income$1,693 $3,249 $3,343 $7,071 
Dividends income40 92 64 162 
Net investment income$1,733 $3,341 $3,407 $7,233 
Aging of Gross Unrealized Losses

Gross unrealized losses and related fair values for debt securities, grouped by duration of time in a continuous unrealized loss position, consisted of the following:
Less than 12 months12 months or longerTotal
 Gross Gross Gross
FairUnrealizedFairUnrealizedFairUnrealized
ValueLossesValueLossesValueLosses
  (In thousands)  
June 30, 2021
Debt securities - available-for-sale:      
United States government obligations and authorities
$46,436 $450 $600 $$47,036 $457 
Obligations of states and political subdivisions6,324 57 — — 6,324 57 
Corporate64,843 1,103 384 65,227 1,104 
International2,232 — 8,537 66 10,769 66 
$119,835 $1,610 $9,521 $74 $129,356 $1,684 

Less than 12 months12 months or longerTotal
 Gross Gross Gross
FairUnrealizedFairUnrealizedFairUnrealized
ValueLossesValueLossesValueLosses
  (In thousands)  
December 31, 2020
Debt securities - available-for-sale:     
United States government obligations and authorities
$25,521 $38 $— $— $25,521 $38 
Corporate7,989 79 — — 7,989 79 
International2,175 16 132 2,307 17 
$35,685 $133 $132 $$35,817 $134 

As of June 30, 2021, the Company held a total of 153 debt securities that were in an unrealized loss position, of which 3 securities were in an unrealized loss position continuously for 12 months or more. As of December 31, 2020, the Company held a total of 47 debt securities that were in an unrealized loss position, of which 2 securities were in an unrealized loss position continuously for 12 months or more. The unrealized losses associated with these securities consisted primarily of losses related to corporate securities. Refer to Note 6 below for information regarding the assessment of allowances for credit losses.

Collateral Deposits

Cash and cash equivalents and investments, the majority of which were debt securities, with fair values of $9.4 million and $11.5 million, were deposited with governmental authorities and into custodial bank accounts as required by law or contractual obligations as of June 30, 2021 and December 31, 2020, respectively.

Reclassification of Held-to-Maturity Securities to Available-for-Sale

The Company sold held-to-maturity securities with a carrying value of $70 thousand and realized a loss of less than $1 thousand during the second quarter of 2020 due to credit concerns for certain securities. The Company, as of the date of the aforementioned sales, reclassified its remaining held-to-maturity securities to available-for-sale. The held-to-maturity securities transferred had an amortized cost of $4.2 million and fair value of $4.3 million and resulted in $58 thousand of unrealized gains, pre-tax, recognized in other comprehensive income in the three and six months ended June 30, 2020.