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Note 2 - Investments
 6 Months Ended
Jun. 30, 2016
Notes to Financial Statements  
Investment [Text Block]
Note 2.   Investments
 
The amortized cost and fair value of available for sale and held to maturity investments as of June 30, 2016 and December 31, 2015 is as follows:
 
 
 
June 30, 2016
 
 
 
Cost or
 
 
Gross
 
 
Gross
 
 
 
 
 
 
 
Amortized
 
 
Unrealized
 
 
Unrealized
 
 
 
 
 
 
 
Cost
 
 
Gains
 
 
Losses
 
 
Fair Value
 
 
 
(unaudited)
 
Available for sale:
                                
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
US Treasury securities
 
$
313,150
 
 
$
1,700
 
 
$
-
 
 
$
314,850
 
Corporate bonds
 
 
2,924,809
 
 
 
124,256
 
 
 
(12,677
)
 
 
3,036,388
 
Municipal bonds
 
 
2,514,824
 
 
 
199,193
 
 
 
-
 
 
 
2,714,017
 
Mortgage backed and asset backed securities
 
 
3,595,324
 
 
 
96,633
 
 
 
(1,949
)
 
 
3,690,008
 
Total fixed maturities
 
 
9,348,107
 
 
 
421,782
 
 
 
(14,626
)
 
 
9,755,263
 
Equities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equities
 
 
4,059,768
 
 
 
262,734
 
 
 
(118,961
)
 
 
4,203,541
 
Other equity investments
 
 
189,606
 
 
 
24,822
 
 
 
(582
)
 
 
213,846
 
Total equities
 
 
4,249,374
 
 
 
287,556
 
 
 
(119,543
)
 
 
4,417,387
 
Total available for sale
 
$
13,597,481
 
 
$
709,338
 
 
$
(134,169
)
 
$
14,172,650
 
 
   
December 31, 2015
  
   
Cost or
Amortized
Cost
    
Gross
Unrealized
Gains
    
Gross
Unrealized
Losses
    
Fair Value
  
Available for sale:
                                
Fixed maturities:
                                
US Treasury securities
   $ 461,132     $ -     $ (34,816 )   $ 426,316  
Corporate bonds
     3,039,539       15,715       (143,701 )     2,911,553  
Municipal bonds
     1,726,098       28,634       (10,595 )     1,744,137  
Mortgage backed and asset backed securities
     3,083,390       19,554       (53,831 )     3,049,113  
Total fixed maturities
     8,310,159       63,903       (242,943 )     8,131,119  
Equities:
                                
Equities
     3,387,927       219,883       (177,756 )     3,430,054  
Other equity investments
     137,778       36,436       -       174,214  
Total equities
     3,525,705       256,319       (177,756 )     3,604,268  
Total available for sale
   $ 11,835,864     $ 320,222     $ (420,699 )   $ 11,735,387  
 
The amortized cost and fair value of debt securities as of June 30, 2016, by contractual maturity, are shown below. Equity securities do not have stated maturity dates and therefore are not included in the following maturity summary. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
 
   
Amortized
          
   
Cost
    
Fair Value
  
   
(unaudited)
  
Amounts maturing in:                
After one year through five years
   $ 953,840     $ 971,715  
After five years through ten years
     1,441,509       1,494,889  
More than 10 years
     3,357,434       3,598,651  
Mortgage backed and asset backed securities
     3,595,324       3,690,008  
Total fixed maturities
   $ 9,348,107     $ 9,755,263  
 
US Alliance Corporation
Notes to Consolidated Financial Statements (unaudited) 
 
Proceeds from the sale of securities, maturities, and asset paydowns for the first six months of 2016 and 2015 were $559,751 and $226,427, respectively. Realized gains and losses related to the sale of securities are summarized as follows:
 
   
Six Months Ended June 30,
  
   
(unaudited)
  
   
2016
    
2015
  
Gross gains
  
$
12,830
    $ 102  
Gross losses
    
(2,066
)
    -  
Net security (losses) gains
  
$
10,764
    $ 102  
 
Proceeds from the sale of securities, maturities, and asset paydowns for the three months ended June 30, 2016 and 2015 were $314,111 and $144,842, respectively. Realized gains and losses related to the sale of securities for the three months ended June 30, 2016 and 2015 are summarized as follows:
 
 
   
Three Months Ended June 30,
  
   
(unaudited)
  
   
2016
    
2015
  
Gross gains
  
$
1,992
    $ 102  
Gross losses
    
(2,066
)
    -  
Net security (losses) gains
  
$
(74
)
  $ 102  
 
Gross unrealized losses by duration are summarized as follows:
 
   
(unaudited)
  
 
 
Less than 12 months
 
 
Greater than 12 months
 
 
Total
 
 
 
Fair
 
 
Unrealized
 
 
Fair
 
 
Unrealized
 
 
Fair
 
 
Unrealized
 
 
 
Value
 
 
Loss
 
 
Value
 
 
Loss
 
 
Value
 
 
Loss
 
June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available for sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate bonds
 
$
46,903
 
 
$
(3,029
)
 
$
241,023
 
 
$
(9,648
)
 
$
287,926
 
 
$
(12,677
)
Mortgage backed and asset backed securities
 
 
37,436
 
 
 
(36
)
 
 
143,604
 
 
 
(1,913
)
 
 
181,040
 
 
 
(1,949
)
Total fixed maturities
 
 
84,339
 
 
 
(3,065
)
 
 
384,627
 
 
 
(11,561
)
 
 
468,966
 
 
 
(14,626
)
Equities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equities
 
 
790,276
 
 
 
(24,304
)
 
 
1,163,760
 
 
 
(94,657
)
 
 
1,954,036
 
 
 
(118,961
)
Other equity investments
 
 
40,936
 
 
 
(582
)
 
 
-
 
 
 
-
 
 
 
40,936
 
 
 
(582
)
Total equities
 
 
831,212
 
 
 
(24,886
)
 
 
1,163,760
 
 
 
(94,657
)
 
 
1,994,972
 
 
 
(119,543
)
Total available for sale
 
$
915,551
 
 
$
(27,951
)
 
$
1,548,387
 
 
$
(106,218
)
 
$
2,463,938
 
 
$
(134,169
)
 
   
(audited)
  
   
Less than 12 months
    
Greater than 12 months
    
Total
  
   
Fair
Value
    
Unrealized
Loss
    
Fair
Value
    
Unrealized
Loss
    
Fair
Value
    
Unrealized
Loss
  
December 31, 2015
                                                
Available for sale:
                                                
Fixed maturities:
                                                
US Treasury securities
   $ 197,719     $ (1,351 )   $ 228,597     $ (33,465 )   $ 426,316     $ (34,816 )
Corporate bonds
     2,141,253       (143,701 )     -       -       2,141,253       (143,701 )
Municipal bonds
     675,885       (10,595 )     -       -       675,885       (10,595 )
Mortgage backed and asset backed securities
     1,943,017       (39,189 )     438,173       (14,642 )     2,381,190       (53,831 )
Total fixed maturities
     4,957,874       (194,836 )     666,770       (48,107 )     5,624,644       (242,943 )
Equities:
                                                
Equities
     1,036,877       (75,352 )     820,370       (102,404 )     1,857,247       (177,756 )
Total equities
     1,036,877       (75,352 )     820,370       (102,404 )     1,857,247       (177,756 )
Total available for sale
   $ 5,994,751     $ (270,188 )   $ 1,487,140     $ (150,511 )   $ 7,481,891     $ (420,699 )
 
Unrealized losses occur from market price declines that may be due to a number of factors, including economic downturns, changes in interest rates, competitive forces within an industry, issuer specific events, operational difficulties, lawsuits, and market pricing anomalies caused by factors such as temporary lack of liquidity.
 
The total number of securities in the investment portfolio in an unrealized loss position as of June 30, 2016 was 20, which represented an unrealized loss of $134,169 of the aggregate carrying value of those securities. The 20
securities breakdown as follows: 5 bonds, 3 mortgage and asset backed securities, 8 common stocks, 2 high yield corporate bond fund, 1 preferred stock index fund, and 1 senior loan fund. The Company determined that no securities were considered to be other-than-temporarily impaired as of December 31, 2015. The Company determined that one security was other-than-temporarily impaired as of June 30. 2016 and the write down of the security was recorded as a realized loss. The unrealized gains on the remainder of the available for sale portfolio as of June 30, 2016 were $709,338.