Discontinued Operations (Tables)

6 Months Ended

Jun. 30, 2020

Discontinued Operations

Schedule of discontinued operations

	December 31,
	2019
Assets
Cash and due from banks	$	51,333
Securities:
Available for sale, at fair value		86,899
Equity, at fair value		19,841
		106,740
Premises and equipment, net		9,607
Operating lease right-of-use assets		2,739
Other assets		50,533
Goodwill		23,988
Other intangible assets, net		3,489
Total assets of discontinued operations	$	248,429
Liabilities
Notes payable	$	27,500
Operating lease liabilities		2,783
Other liabilities		110,391
Total liabilities of discontinued operations	$	140,674

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Interest income:
Securities:
Taxable	$	814	$	906	$	1,752	$	1,866
Other		4		150		71		292
Total interest income		818		1,056		1,823		2,158
Interest expense:
Notes payable		369		464		775		924
Noninterest income:
Net insurance premiums earned		32,440		33,466		65,077		66,669
Other		5,297		2,702		3,051		6,004
Total noninterest income		37,737		36,168		68,128		72,673
Noninterest expense:
Employees' compensation and benefits		3,225		2,784		6,002		5,986
Occupancy and equipment, net		217		281		464		525
Professional services		9,674		9,980		18,201		18,813
Loss and loss adjustment expenses		25,470		24,981		38,419		39,907
Other		1,511		1,563		3,987		4,696
Total noninterest expense		40,097		39,589		67,073		69,927
Income (loss) from discontinued operations before income taxes		(1,911)		(2,829)		2,103		3,980
Gain on disposal of discontinued operations		32,341		—		32,341		—
Income tax (benefit) expense		(345)		(575)		518		874
Income (loss) from discontinued operations, net of income taxes	$	30,775	$	(2,254)	$	33,926	$	3,106

Schedule of effects of reinsurance on premiums written and earned

The effects of reinsurance on premiums written and earned are included within discontinued operations for all periods presented and are summarized as follows (in thousands).

	Three Months Ended June 30,								Six Months Ended June 30,
	2020				2019				2020				2019
	Written		Earned		Written		Earned		Written		Earned		Written		Earned
Premiums from direct business	$	33,831	$	30,638	$	35,562	$	31,727	$	63,811	$	61,384	$	66,352	$	63,463
Reinsurance assumed		3,444		3,208		3,622		3,256		6,396		6,452		6,751		6,448
Reinsurance ceded		(1,406)		(1,406)		(1,517)		(1,517)		(2,759)		(2,759)		(3,242)		(3,242)
Net premiums	$	35,869	$	32,440	$	37,667	$	33,466	$	67,448	$	65,077	$	69,861	$	66,669

Schedule of effects of reinsurance on incurred losses

The effects of reinsurance on incurred losses and LAE are included within discontinued operations for all periods and are as follows (in thousands).

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Losses and LAE incurred	$	25,462	$	23,959	$	38,225	$	38,943
Reinsurance recoverables		8		1,022		194		964
Net loss and LAE incurred	$	25,470	$	24,981	$	38,419	$	39,907