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Note 3 - Investments
 9 Months Ended
Sep. 30, 2017
Notes to Financial Statements  
Investment [Text Block]
Note
3
.     Investments
 
The amortized cost and fair value of available for sale and held to maturity investments as of
September 30, 2017
and
December
 
31,
2016
is as follows:
 
   
September 30, 2017
  
   
Cost or
    
Gross
    
Gross
    
 
 
 
   
Amortized
    
Unrealized
    
Unrealized
    
 
 
 
   
Cost
    
Gains
    
Losses
    
Fair Value
  
   
(Unaudited)
  
Available for sale:
  
 
  
Fixed maturities:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
US Treasury securities
  
$
269,529
    
$
-
    
$
(29,054
)
  
$
240,475
  
Government agency bonds
  
 
299,842
    
 
-
    
 
(539
)
  
 
299,303
  
Corporate bonds
  
 
6,119,784
    
 
140,246
    
 
(25,617
)
  
 
6,234,413
  
Municipal bonds
  
 
5,570,008
    
 
152,099
    
 
(19,519
)
  
 
5,702,588
  
Redeemable preferred stock
  
 
99,560
    
 
480
    
 
-
    
 
100,040
  
Mortgage backed and asset backed securities
  
 
2,553,196
    
 
38,963
    
 
(15,154
)
  
 
2,577,005
  
Total fixed maturities
  
 
14,911,919
    
 
331,788
    
 
(89,883
)
  
 
15,153,824
  
Equities:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Equities
  
 
7,615,226
    
 
114,845
    
 
(64,574
)
  
 
7,665,497
  
Total available for sale
  
$
22,527,145
    
$
446,633
    
$
(154,457
)
  
$
22,819,321
  
 
 
   
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
September 30, 2017,
by contractual maturity, are shown in the following table. 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
          
September 30, 2017
  
Cost
    
Fair Value
  
    (unaudited)  
Amounts maturing in:
  
 
  
One year or less
   $
200,568
     $
200,473
  
After one year through five years
    
1,932,156
      
1,933,444
  
After five years through ten years
    
2,490,661
      
2,517,547
  
More than 10 years
    
7,635,778
      
7,825,315
  
Redeemable preferred stocks
    
99,560
      
100,040
  
Mortgage backed and asset backed securities
    
2,553,196
      
2,577,005
  
Total fixed maturities
   $
14,911,919
     $
15,153,824
  
 
Proceeds from the sale of securities, maturities, and asset paydowns for the
first
nine
months of
2017
and
2016
were
$7,520,945
and
$764,173,
respectively. Realized gains and losses related to the sale of securities are summarized as follows:
 
   
Nine Months Ended September 30,
  
   
(unaudited)
  
   
2017
    
2016
  
Gross gains
  
$
486,523
     $
42,719
  
Gross losses
  
 
(51,131
)
    
(2,066
 )
Net security gains
  
$
435,392
     $
40,653
  
 
Proceeds from the sale of securities, maturities, and asset paydowns for the
three
months ended
September 30, 2017
and
2016
were
$4,688,796
and
$204,422,
respectively. Realized gains and losses related to the sale of securities for the
three
months ended
September 30, 2017
and
2016
are summarized as follows:
 
   
Three Months Ended September 30,
  
   
(unaudited)
  
   
2017
    
2016
  
Gross gains
  
$
259,061
     $
29,889
  
Gross losses
  
 
(32,171
)
    
-
  
Net security gains
  
$
226,890
     $
29,889
  
 
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
  
September 30, 2017
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Available for sale:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Fixed maturities:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
US Treasury securities
  
$
240,475
    
$
(29,054
)
  
$
-
    
$
-
    
$
240,475
    
$
(29,054
)
Government agency bonds
  
 
299,303
    
 
(539
)
  
 
-
    
 
-
    
 
299,303
    
 
(539
)
Corporate bonds
  
 
1,734,089
    
 
(14,488
)
  
 
798,161
    
 
(11,129
)
  
 
2,532,250
    
 
(25,617
)
Municipal bonds
  
 
1,571,608
    
 
(18,464
)
  
 
98,945
    
 
(1,055
)
  
 
1,670,553
    
 
(19,519
)
Mortgage backed and asset backed securities
  
 
995,261
    
 
(13,137
)
  
 
92,315
    
 
(2,017
)
  
 
1,087,576
    
 
(15,154
)
Total fixed maturities
  
 
4,840,736
    
 
(75,682
)
  
 
989,421
    
 
(14,201
)
  
 
5,830,157
    
 
(89,883
)
Equities:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Equities
  
 
1,283,438
    
 
(4,999
)
  
 
1,179,505
    
 
(59,575
)
  
 
2,462,943
    
 
(64,574
)
Total available for sale
  
$
6,124,174
    
$
(80,681
)
  
$
2,168,926
    
$
(73,776
)
  
$
8,293,100
    
$
(154,457
)
 
 
   
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
)
  
$
7,648,170
    
$
(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
September 
30,
2017
was
71,
which represented an unrealized loss of
$154,457
of the aggregate carrying value of those securities. The
71
securities breakdown as follows:
51
bonds,
14
mortgage and asset backed securities,
1
common stock,
2
high yield corporate bond funds,
2
preferred stock index funds, and
1
senior loan fund. The Company determined that
no
securities were considered to be other-than-temporarily impaired as of
September 30, 2017
and
December 31, 2016.
The unrealized gains on the remainder of the available for sale portfolio as of
September 30, 2017
were
$446,663.