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Note 2 - Investments
 6 Months Ended
Jun. 30, 2019
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, 2019
and
December
 
31,
2018
is as follows:
 
   
June 30, 2019
  
   
Cost or
    
Gross
    
Gross
    
 
 
 
   
Amortized
    
Unrealized
    
Unrealized
    
 
 
 
   
Cost
    
Gains
    
Losses
    
Fair Value
  
 
  
(unaudited)
  
Available for sale:
                                
Fixed maturities:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
US Treasury securities
  
$
604,599
   
$
7,170
   
$
-
   
$
611,769
 
Corporate bonds
  
 
17,569,029
   
 
979,625
   
 
(71,441
)
 
 
18,477,213
 
Municipal bonds
  
 
6,551,992
   
 
521,129
   
 
-
   
 
7,073,121
 
Redeemable preferred stock
  
 
99,560
   
 
2,760
   
 
-
   
 
102,320
 
Mortgage backed and asset backed securities
  
 
3,711,264
   
 
70,522
   
 
(8,010
)
 
 
3,773,776
 
Total fixed maturities
  
 
28,536,444
   
 
1,581,206
   
 
(79,451
)
 
 
30,038,199
 
Equities:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Equities
  
 
11,987,669
   
 
102,210
   
 
(354,160
)
 
 
11,735,719
 
Total available for sale
  
$
40,524,113
   
$
1,683,416
   
$
(433,611
)
 
$
41,773,918
 
 
 
   
December 31, 2018
  
   
Cost or
    
Gross
    
Gross
    
 
 
 
   
Amortized
    
Unrealized
    
Unrealized
    
 
 
 
   
Cost
    
Gains
    
Losses
    
Fair Value
  
Available for sale:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Fixed maturities:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
US Treasury securities
  
$
597,265
   
$
-
   
$
(27,325
)
 
$
569,940
 
Corporate bonds
  
 
16,847,623
   
 
43,051
   
 
(1,048,313
)
 
 
15,842,361
 
Municipal bonds
  
 
6,559,854
   
 
118,890
   
 
(80,631
)
 
 
6,598,113
 
Redeemable preferred stock
  
 
99,560
   
 
-
   
 
(8,720
)
 
 
90,840
 
Mortgage backed and asset backed securities
  
 
3,853,395
   
 
11,425
   
 
(83,835
)
 
 
3,780,985
 
Total fixed maturities
  
 
27,957,697
   
 
173,366
   
 
(1,248,824
)
 
 
26,882,239
 
Equities:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Equities
  
 
12,096,488
   
 
31,505
   
 
(1,140,454
)
 
 
10,987,539
 
Total available for sale
  
$
40,054,185
   
$
204,871
   
$
(2,389,278
)
 
$
37,869,778
 
  
 
 
The amortized cost and fair value of debt securities as of
June 30, 2019
and
December 31, 2018,
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.
 
 
US Alliance Corporation
Notes to Consolidated Financial Statements (unaudited)
 
   
As of June 30, 2019
    
As of December 31, 2018
  
   
Amortized Cost
    
Fair Value
    
Amortized Cost
    
Fair Value
  
 
  
(unaudited)
                  
Amounts maturing in:                                
After one year through five years
   $
1,426,791
     $
1,463,196
     $
1,472,228
     $
1,462,745
  
After five years through ten years
    
2,436,981
      
2,583,369
      
2,101,676
      
2,055,173
  
More than 10 years
    
20,861,848
      
22,115,538
      
20,430,838
      
19,492,496
  
Redeemable preferred stocks
    
99,560
      
102,320
      
99,560
      
90,840
  
Mortgage backed and asset backed securities
    
3,711,264
      
3,773,776
      
3,853,395
      
3,780,985
  
Total amortized cost and fair value
   $
28,536,444
     $
30,038,199
     $
27,957,697
     $
26,882,239
  
 
Proceeds from the sale of securities, maturities, and asset paydowns for the
first
six
months of
2019
and
2018
were
$661,264
and
$183,226
respectively. Realized gains and losses related to the sale of securities are summarized as follows:
 
   
Six Months Ended June 30,
  
   
(unaudited)
  
   
2019
    
2018
  
Gross gains
  
$
3,951
    $
530
  
Gross losses
  
 
(18,479
)
   
(857
 )
Net security gains (losses)
  
$
(14,528
)
  $
(327
 )
 
Proceeds from the sale of securities, maturities, and asset paydowns for the
three
months ended
June 30, 2019
and
2018
were
$608,682
and
$155,100
respectively. Realized gains and losses related to the sale of securities are summarized as follows:
 
   
Three Months Ended June 30,
  
   
(unaudited)
  
   
2019
    
2018
  
Gross gains
  
$
3,951
    $
530
  
Gross losses
  
 
(18,479
)
   
(857
 )
Net security gains
  
$
(14,528
)
  $
(327
 )
 
 
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
  
June 30, 2019
      
 
  
(unaudited)
  
Available for sale:
                                                
Fixed maturities:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
US Treasury securities
  
$
-
   
$
-
   
$
-
   
$
-
   
$
-
   
$
-
 
Corporate bonds
  
 
-
   
 
-
   
 
2,114,270
   
 
(71,441
)
 
 
2,114,270
   
 
(71,441
)
Municipal bonds
  
 
-
   
 
-
   
 
-
   
 
-
   
 
-
   
 
-
 
Redeemable preferred stock
  
 
-
   
 
-
   
 
-
   
 
-
   
 
-
   
 
-
 
Mortgage backed and asset backed securities
  
 
-
   
 
-
   
 
651,830
   
 
(8,010
)
 
 
651,830
   
 
(8,010
)
Total fixed maturities
  
 
-
   
 
-
   
 
2,766,100
   
 
(79,451
)
 
 
2,766,100
   
 
(79,451
)
Equities:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Equities
  
 
1,026,307
   
 
(23,549
)
 
 
8,209,041
   
 
(330,611
)
 
 
9,235,348
   
 
(354,160
)
Total available for sale
  
$
1,026,307
   
$
(23,549
)
 
$
10,975,141
   
$
(410,062
)
 
$
12,001,448
   
$
(433,611
)
 
 
   
Less than 12 months
    
Greater than 12 months
    
Total
  
   
Fair
    
Unrealized
    
Fair
    
Unrealized
    
Fair
    
Unrealized
  
   
Value
    
Loss
    
Value
    
Loss
    
Value
    
Loss
  
December 31, 2018
                                                
Available for sale:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Fixed maturities:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
US Treasury securities
  
$
251,206
   
$
(27,325
)
 
$
-
   
$
-
   
$
251,206
   
$
(27,325
)
Corporate bonds
  
 
11,743,222
   
 
(948,539
)
 
 
830,239
   
 
(99,774
)
 
 
12,573,461
   
 
(1,048,313
)
Municipal bonds
  
 
2,114,260
   
 
(51,267
)
 
 
859,305
   
 
(29,364
)
 
 
2,973,565
   
 
(80,631
)
Redeemable preferred stock
  
 
90,840
   
 
(8,720
)
 
 
-
   
 
-
   
 
90,840
   
 
(8,720
)
Mortgage backed and asset backed securities
  
 
544,714
   
 
(6,656
)
 
 
2,448,551
   
 
(77,179
)
 
 
2,993,265
   
 
(83,835
)
Total fixed maturities
  
 
14,744,242
   
 
(1,042,507
)
 
 
4,138,095
   
 
(206,317
)
 
 
18,882,337
   
 
(1,248,824
)
Equities:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Equities
  
 
3,312,528
   
 
(228,148
)
 
 
7,440,504
   
 
(912,306
)
 
 
10,753,032
   
 
(1,140,454
)
Total available for sale
  
$
18,056,770
   
$
(1,270,655
)
 
$
11,578,599
   
$
(1,118,623
)
 
$
29,635,369
   
$
(2,389,278
)
 
 
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,
2019
was
29,
which represented an unrealized loss of
$433,611
of the aggregate carrying value of those securities. The
29
securities breakdown as follows:
11
bonds,
8
mortgage and asset backed securities,
1
preferred stocks,
2
high yield corporate bond funds,
2
preferred stock index funds,
1
senior loan fund, and
4
common stock. The Company determined that
no
securities were considered to be other-than-temporarily impaired as of
June 30, 2019
and
December 31, 2018.
 
 
US Alliance Corporation
Notes to Consolidated Financial Statements (unaudited)