XML 20 R9.htm IDEA: XBRL DOCUMENT v3.7.0.1
Note 2 - Investments
 3 Months Ended
Mar. 31, 2017
Notes to Financial Statements  
Investment [Text Block]
Note
2.
Investments
 
T
he amortized cost and fair value of available for sale and held to maturity investments as of
March
31,
2017
and
December
 
31,
2016
is as follows:
 
 
  
March 31, 2017
  
 
  
Cost or
    
Gross
    
Gross
  
 
 
 
  
 
  
Amortized
    
Unrealized
    
Unrealized
  
 
 
 
  
 
  
Cost
    
Gains
    
Losses
    
Fair Value
  
Available for sale:
  
(Unaudited)
  
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
US Treasury securities
 
$
315,229
 
 
$
-
 
 
$
(12,646
)
 
$
302,583
  
Corporate bonds
 
 
4,417,718
 
 
 
71,032
 
 
 
(36,034
)
 
 
4,452,716
  
Municipal bonds
 
 
3,624,678
 
 
 
62,399
 
 
 
(30,087
)
 
 
3,656,990
  
Mortgage backed and asset backed securities
 
 
3,276,332
 
 
 
39,488
 
 
 
(39,653
)
 
 
3,276,167
  
Total fixed maturities
 
 
11,633,957
 
 
 
172,919
 
 
 
(118,420
)
 
 
11,688,456
  
Equities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
Equities
 
 
4,962,881
 
 
 
257,651
 
 
 
(85,109
)
 
 
5,135,423
  
Other equity investments
 
 
296,226
 
 
 
38,949
 
 
 
(3,492
)
 
 
331,683
  
Total equities
 
 
5,259,107
 
 
 
296,600
 
 
 
(88,601
)
 
 
5,467,106
  
Total available for sale
 
$
16,893,064
 
 
$
469,519
 
 
$
(207,021
)
 
$
17,155,562
  
 
 
  
December 31, 2016
  
 
  
Cost or
    
Gross
    
Gross
  
 
 
 
  
 
  
Amortized
    
Unrealized
    
Unrealized
  
 
 
 
  
 
  
Cost
    
Gains
    
Losses
    
Fair Value
  
Available for sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
US Treasury securities
 
$
314,992
 
 
$
-
 
 
$
(15,830
)
 
$
299,162
  
Corporate bonds
 
 
3,828,418
 
 
 
62,712
 
 
 
(45,234
)
 
 
3,845,896
  
Municipal bonds
 
 
2,841,137
 
 
 
46,883
 
 
 
(38,191
)
 
 
2,849,829
  
Mortgage backed and asset backed securities
 
 
3,333,617
 
 
 
36,870
 
 
 
(45,300
)
 
 
3,325,187
  
Total fixed maturities
 
 
10,318,164
 
 
 
146,465
 
 
 
(144,555
)
 
 
10,320,074
  
Equities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
Equities
 
 
4,723,024
 
 
 
350,981
 
 
 
(131,757
)
 
 
4,942,248
  
Other equity investments
 
 
182,929
 
 
 
23,046
 
 
 
(4,719
)
 
 
201,256
  
Total equities
 
 
4,905,953
 
 
 
374,027
 
 
 
(136,476
)
 
 
5,143,504
  
Total available for sale
 
$
15,224,117
 
 
$
520,492
 
 
$
(281,031
)
 
$
15,463,578
  
 
 
The amortized cost and fair value of debt securities as of
March
31,
2017,
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.
 
   
As of March 31, 2017
  
   
Amortized Cost
    
Fair Value
  
Amounts maturing in:
  
(unaudited)
  
One year or less
   $
49,951
     $
49,929
  
After one year through five years
    
1,718,157
      
1,714,094
  
After five years through ten years
    
1,646,453
      
1,647,786
  
More than 10 years
    
4,943,064
      
5,000,480
  
Mortgage backed and asset backed securities
    
3,276,332
      
3,276,167
  
    $
11,633,957
     $
11,688,456
  
 
Proceeds from the sale of securities, maturities, and asset paydowns for the
first
three
months of
2017
and
2016
were
$969,740
and
$245,640,
respectively. Realized gains and losses related to the sale of securities are summarized as follows:
 
   
Quarter Ended March 31,
  
   
(unaudited)
  
   
2017
    
2016
  
Gross gains
  
$
192,405
    $
10,838
  
Gross losses
  
 
-
     
-
  
Net security gains
  
$
192,405
    $
10,838
  
 
Gross unrealized losses by duration are summarized as follows:
 
   
Less than 12 months
    
Greater than 12 months
    
Total
  
   
Fair
    
Unrealized
    
Fair
    
Unrealized
    
Fair
    
Unrealized
  
   
Value
    
Loss
    
Value
    
Loss
    
Value
    
Loss
  
March 31, 2017
  
Available for sale:
  
(unaudited)
  
Fixed maturities:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
US Treasury securities
  
$
302,583
   
$
(12,646
)
 
$
-
   
$
-
   
$
302,583
   
$
(12,646
)
Corporate bonds
  
 
2,057,429
   
 
(35,288
)
 
 
49,157
   
 
(746
)
 
 
2,106,586
   
 
(36,034
)
Municipal bonds
  
 
1,219,109
   
 
(30,087
)
 
 
-
   
 
-
   
 
1,219,109
   
 
(30,087
)
Mortgage backed and asset backed securities
  
 
1,564,225
   
 
(37,381
)
 
 
116,700
   
 
(2,272
)
 
 
1,680,925
   
 
(39,653
)
Total fixed maturities
  
 
5,143,346
   
 
(115,402
)
 
 
165,857
   
 
(3,018
)
 
 
5,309,203
   
 
(118,420
)
Equities:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Equities
  
 
1,648,897
   
 
(23,309
)
 
 
1,074,560
   
 
(61,800
)
 
 
2,723,457
   
 
(85,109
)
Other equity investments
  
 
109,804
   
 
(3,492
)
 
 
-
   
 
-
   
 
109,804
   
 
(3,492
)
Total equities
  
 
1,758,701
   
 
(26,801
)
 
 
1,074,560
   
 
(61,800
)
 
 
2,833,261
   
 
(88,601
)
Total available for sale
  
$
6,902,047
   
$
(142,203
)
 
$
1,240,417
   
$
(64,818
)
 
$
8,142,464
   
$
(207,021
)
 
   
Less than 12 months
    
Greater than 12 months
    
Total
  
   
Fair
    
Unrealized
    
Fair
    
Unrealized
    
Fair
    
Unrealized
  
   
Value
    
Loss
    
Value
    
Loss
    
Value
    
Loss
  
December 31, 2016
  
Available for sale:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Fixed maturities:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
US Treasury securities
  
$
299,162
   
$
(15,830
)
 
$
-
   
$
-
   
$
299,162
   
$
(15,830
)
Corporate bonds
  
 
1,897,000
   
 
(42,994
)
 
 
196,399
   
 
(2,240
)
 
 
2,093,399
   
 
(45,234
)
Municipal bonds
  
 
1,296,688
   
 
(38,191
)
 
 
-
   
 
-
   
 
1,296,688
   
 
(38,191
)
Mortgage backed and asset backed securities
  
 
1,700,173
   
 
(39,264
)
 
 
134,090
   
 
(6,036
)
 
 
1,834,263
   
 
(45,300
)
Total fixed maturities
  
 
5,193,023
   
 
(136,279
)
 
 
330,489
   
 
(8,276
)
 
 
5,523,512
   
 
(144,555
)
Equities:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Equities
  
 
1,007,860
   
 
(59,357
)
 
 
1,063,959
   
 
(72,400
)
 
 
2,071,819
   
 
(131,757
)
Other equity investments
  
 
52,840
   
 
(4,719
)
 
 
-
   
 
-
   
 
52,840
   
 
(4,719
)
Total equities
  
 
1,060,700
   
 
(64,076
)
 
 
1,063,959
   
 
(72,400
)
 
 
2,124,659
   
 
(136,476
)
Total available for sale
  
$
6,253,723
   
$
(200,355
)
 
$
1,394,448
   
$
(80,676
)
 
$
7,648,171
   
$
(281,031
)
 
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
March
 
31,
2017
was
66,
which represented an unrealized loss of
$207,021
of the aggregate carrying value of those securities. The
66
securities breakdown as follows:
33
bonds,
22
mortgage and asset backed securities,
7
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
March
31,
2017
and
December
31,
2016.
The unrealized gains on the remainder of the available for sale portfolio as of
March
31,
2017
were
$469,519.