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Note 2 - Investments
 9 Months Ended
Sep. 30, 2018
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
September 30, 2018
and
December
 
31,
2017
is as follows:
 
   
September 30, 2018
  
   
Cost or
    
Gross
    
Gross
    
 
 
 
   
Amortized
    
Unrealized
    
Unrealized
    
 
 
 
   
Cost
    
Gains
    
Losses
    
Fair Value
  
Available for sale:
  
(unaudited)
  
Fixed maturities:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
US Treasury securities
  
$
277,558
   
$
-
   
$
(26,952
)
 
$
250,606
 
Corporate bonds
  
 
14,210,555
   
 
40,570
   
 
(737,343
)
 
 
13,513,782
 
Municipal bonds
  
 
6,563,729
   
 
76,687
   
 
(173,557
)
 
 
6,466,859
 
Redeemable preferred stock
  
 
99,560
   
 
-
   
 
(5,560
)
 
 
94,000
 
Mortgage backed and asset backed securities
  
 
3,929,386
   
 
8,899
   
 
(127,828
)
 
 
3,810,457
 
Total fixed maturities
  
 
25,080,788
   
 
126,156
   
 
(1,071,240
)
 
 
24,135,704
 
Equities:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Equities
  
 
11,818,671
   
 
69,437
   
 
(366,451
)
 
 
11,521,657
 
Total available for sale
  
$
36,899,459
   
$
195,593
   
$
(1,437,691
)
 
$
35,657,361
 
 
   
December 31, 2017
  
   
Cost or
    
Gross
    
Gross
    
 
 
 
   
Amortized
    
Unrealized
    
Unrealized
    
 
 
 
   
Cost
    
Gains
    
Losses
    
Fair Value
  
Available for sale:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Fixed maturities:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
US Treasury securities
  
$
271,620
   
$
-
   
$
(20,870
)
 
$
250,750
 
Corporate bonds
  
 
11,857,191
   
 
309,754
   
 
(10,720
)
 
 
12,156,225
 
Municipal bonds
  
 
6,134,323
   
 
230,842
   
 
(12,721
)
 
 
6,352,444
 
Redeemable preferred stock
  
 
99,560
   
 
960
   
 
-
   
 
100,520
 
Mortgage backed and asset backed securities
  
 
4,077,011
   
 
32,726
   
 
(23,976
)
 
 
4,085,761
 
Total fixed maturities
  
 
22,439,705
   
 
574,282
   
 
(68,287
)
 
 
22,945,700
 
Equities:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Equities
  
 
10,764,072
   
 
83,346
   
 
(183,903
)
 
 
10,663,515
 
Total available for sale
  
$
33,203,777
   
$
657,628
   
$
(252,190
)
 
$
33,609,215
 
 
The amortized cost and fair value of debt securities as of
September 30, 2018
and
December 31, 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.
 
   
As of September 30, 2018
    
As of December 31, 2017
  
   
Amortized Cost
    
Fair Value
    
Amortized Cost
    
Fair Value
  
    (unaudited)                  
Amounts maturing in:
  
 
                  
After one year through five years
   $
858,351
     $
847,014
     $
612,088
     $
617,562
  
After five years through ten years
    
1,804,441
      
1,753,743
      
1,910,307
      
1,945,454
  
More than 10 years
    
18,389,050
      
17,630,490
      
15,740,739
      
16,196,403
  
Redeemable preferred stocks
    
99,560
      
94,000
      
99,560
      
100,520
  
Mortgage backed and asset backed securities
    
3,929,386
      
3,810,457
      
4,077,011
      
4,085,761
  
    $
25,080,788
     $
24,135,704
     $
22,439,705
     $
22,945,700
  
 
Proceeds from the sale of securities, maturities, and asset paydowns for the
first
nine
months of
2018
and
2017
were
$248,077
and
$7,520,945
respectively. Realized gains and losses related to the sale of securities are summarized as follows:
 
   
Nine Months Ended September 30,
  
   
(unaudited)
  
   
2018
    
2017
  
Gross gains
  
$
530
    $
486,523
  
Gross losses
  
 
(857
)
   
(51,131
 )
Net security gains (losses)
  
$
(327
)
  $
435,392
  
 
 
Proceeds from the sale of securities, maturities, and asset paydowns for the
three
months ended
September 30, 2018
and
2017
were
$64,851
and
$4,688,796
respectively. Realized gains and losses related to the sale of securities are summarized as follows:
 
   
Three Months Ended September 30,
  
   
(unaudited)
  
   
2018
    
2017
  
Gross gains
  
$
-
    $
259,061
  
Gross losses
  
 
-
     
(32,171
 )
Net security gains
  
$
-
    $
226,890
  
 
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, 2018
  
   
(unaudited)
  
Available for sale:
  
 
  
Fixed maturities:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
US Treasury securities
  
$
250,606
   
$
(26,952
)
 
$
-
   
$
-
   
$
250,606
   
$
(26,952
)
Corporate bonds
  
 
11,573,963
   
 
(716,537
)
 
 
217,784
   
 
(20,806
)
 
 
11,791,747
   
 
(737,343
)
Municipal bonds
  
 
3,649,017
   
 
(149,490
)
 
 
328,873
   
 
(24,067
)
 
 
3,977,890
   
 
(173,557
)
Redeemable preferred stock
  
 
94,000
   
 
(5,560
)
 
 
-
   
 
-
   
 
94,000
   
 
(5,560
)
Mortgage backed and asset backed securities
  
 
2,406,729
   
 
(75,309
)
 
 
966,887
   
 
(52,519
)
 
 
3,373,616
   
 
(127,828
)
Total fixed maturities
  
 
17,974,315
   
 
(973,848
)
 
 
1,513,544
   
 
(97,392
)
 
 
19,487,859
   
 
(1,071,240
)
Equities:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Equities
  
 
7,378,410
   
 
(219,272
)
 
 
2,380,223
   
 
(147,179
)
 
 
9,758,633
   
 
(366,451
)
Total available for sale
  
$
25,352,725
   
$
(1,193,120
)
 
$
3,893,767
   
$
(244,571
)
 
$
29,246,492
   
$
(1,437,691
)
 
   
Less than 12 months
    
Greater than 12 months
    
Total
  
   
Fair
    
Unrealized
    
Fair
    
Unrealized
    
Fair
    
Unrealized
  
   
Value
    
Loss
    
Value
    
Loss
    
Value
    
Loss
  
December 31, 2017
  
Available for sale:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Fixed maturities:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
US Treasury securities
  
$
250,750
   
$
(20,870
)
 
$
-
   
$
-
   
$
250,750
   
$
(20,870
)
Corporate bonds
  
 
848,853
   
 
(5,733
)
 
 
121,718
   
 
(4,987
)
 
 
970,571
   
 
(10,720
)
Municipal bonds
  
 
735,257
   
 
(5,683
)
 
 
192,962
   
 
(7,038
)
 
 
928,219
   
 
(12,721
)
Mortgage backed and asset backed securities
  
 
2,056,887
   
 
(6,970
)
 
 
654,936
   
 
(17,006
)
 
 
2,711,823
   
 
(23,976
)
Total fixed maturities
  
 
3,891,747
   
 
(39,256
)
 
 
969,616
   
 
(29,031
)
 
 
4,861,363
   
 
(68,287
)
Equities:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Equities
  
 
7,971,440
   
 
(105,946
)
 
 
1,161,121
   
 
(77,957
)
 
 
9,132,561
   
 
(183,903
)
Total available for sale
  
$
11,863,187
   
$
(145,202
)
 
$
2,130,737
   
$
(106,988
)
 
$
13,993,924
   
$
(252,190
)
 
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,
2018
was
143,
which represented an unrealized loss of
$1,437,691
of the aggregate carrying value of those securities. The
143
securities breakdown as follows:
100
bonds,
33
mortgage and asset backed securities,
4
preferred stocks,
2
high yield corporate bond funds,
2
preferred stock index funds,
1
senior loan fund, and
1
common stock. The Company determined that
no
securities were considered to be other-than-temporarily impaired as of
September 30, 2018
and
December 31, 2017.