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Note 3 - Investments
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Investment Holdings [Text Block]
Note
3.
     Investments
 
The amortized cost and fair value of available for sale investments as of
December 
31
is as follows:
 
   
December 31, 2019
  
   
Cost or
    
Gross
    
Gross
    
 
 
 
   
Amortized
    
Unrealized
    
Unrealized
    
 
 
 
   
Cost
    
Gains
    
Losses
    
Fair Value
  
Available for sale:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Fixed maturities:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
US Treasury securities
  
$
608,477
    
$
24,162
    
$
-
    
$
632,639
  
Corporate bonds
  
 
18,407,211
    
 
1,697,265
    
 
(20,079
)
  
 
20,084,397
  
Municipal bonds
  
 
6,538,883
    
 
518,059
    
 
(1,883
)
  
 
7,055,059
  
Redeemable preferred stock
  
 
2,097,206
    
 
36,687
    
 
-
    
 
2,133,893
  
Mortgage backed and asset backed securities
  
 
3,171,620
    
 
77,593
    
 
(2,309
)
  
 
3,246,904
  
Total fixed maturities
  
 
30,823,397
    
 
2,353,766
    
 
(24,271
)
  
 
33,152,892
  
Equities:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Common stock
  
 
9,064,262
    
 
239,490
    
 
(89,058
)
  
 
9,214,694
  
Preferred stock
  
 
918,688
    
 
8,121
    
 
-
    
 
926,809
  
Total equities
  
 
9,982,950
    
 
247,611
    
 
(89,058
)
  
 
10,141,503
  
Total available for sale
  
$
40,806,347
    
$
2,601,377
    
$
(113,329
)
  
$
43,294,395
  
 
   
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
  
 
211,313
    
 
-
    
 
(18,909
)
  
 
192,404
  
Mortgage backed and asset backed securities
  
 
3,853,395
    
 
11,425
    
 
(83,835
)
  
 
3,780,985
  
Total fixed maturities
  
 
28,069,450
    
 
173,366
    
 
(1,259,013
)
  
 
26,983,803
  
Equities:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Common stock
    
11,808,771
      
31,505
      
(1,104,341
)
    
10,735,935
  
Preferred stock
    
175,964
      
-
      
(25,924
)
    
150,040
  
Total equities
  
 
11,984,735
    
 
31,505
    
 
(1,130,265
)
  
 
10,885,975
  
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
December 31, 2019
and
2018,
by contractual maturity, are shown on the following page. 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 December 31, 2019
    
As of December 31, 2018
  
   
Amortized Cost
    
Fair Value
    
Amortized Cost
    
Fair Value
  
Amounts maturing in:
                                
One year or less
   $
99,987
     $
100,239
     $
-
     $
-
  
After one year through five years
    
1,424,337
      
1,471,552
      
1,472,228
      
1,462,745
  
After five years through ten years
    
3,286,937
      
3,574,191
      
2,101,676
      
2,055,173
  
More than 10 years
    
20,743,310
      
22,626,113
      
20,430,838
      
19,492,496
  
Redeemable preferred stocks
    
2,097,206
      
2,133,893
      
211,313
      
192,404
  
Mortgage backed and asset backed securities
    
3,171,620
      
3,246,904
      
3,853,395
      
3,780,985
  
Total amortized cost and fair value
   $
30,823,397
     $
33,152,892
     $
28,069,450
     $
26,983,803
  
 
Proceeds from the sale of securities, maturities, and asset paydowns in
2019
and
2018
were
$8,605,475
and
$460,638,
respectively. Realized gains and losses related to the sale of securities are summarized as follows:
 
   
Years Ended December 31,
  
   
2019
    
2018
  
Gross gains
  
$
43,935
     $
530
  
Gross losses
  
 
(258,370
)
    
(5,029
 )
Net security losses
  
$
(214,435
)
   $
(4,499
 )
 
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
  
December 31, 2019
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Available for sale:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Fixed maturities:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Corporate bonds
  
$
967,848
    
$
(20,079
)
  
$
-
    
$
-
    
$
967,848
    
$
(20,079
)
Municipal bonds
  
 
46,646
    
 
(1,883
)
  
 
-
    
 
-
    
 
46,646
    
 
(1,883
)
Mortgage backed and asset backed securities
  
 
-
    
 
-
    
 
296,576
    
 
(2,309
)
  
 
296,576
    
 
(2,309
)
Total fixed maturities
  
 
1,014,494
    
 
(21,962
)
  
 
296,576
    
 
(2,309
)
  
 
1,311,070
    
 
(24,271
)
Equities:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Common stock
  
 
68,789
    
 
(6,920
)
  
 
3,174,847
    
 
(82,138
)
  
 
3,243,636
    
 
(89,058
)
Total equities
  
 
68,789
    
 
(6,920
)
  
 
3,174,847
    
 
(82,138
)
  
 
3,243,636
    
 
(89,058
)
Total available for sale
  
$
1,083,283
    
$
(28,882
)
  
$
3,471,423
    
$
(84,447
)
  
$
4,554,706
    
$
(113,329
)
 
   
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
)
  
 
101,564
    
 
(10,189
)
  
 
192,404
    
 
(18,909
)
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
)
  
 
4,239,659
    
 
(216,506
)
  
 
18,983,901
    
 
(1,259,013
)
Equities:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Common stock
    
3,312,528
      
(228,148
)
    
7,188,900
      
(876,193
)
    
10,501,428
      
(1,104,341
)
Preferred stock
    
-
      
-
      
150,040
      
(25,924
)
    
150,040
      
(25,924
)
Total equities
  
 
3,312,528
    
 
(228,148
)
  
 
7,338,940
    
 
(902,117
)
  
 
10,651,468
    
 
(1,130,265
)
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
December 
31,
2019
was
19,
which represented an unrealized loss of
$113,329
of the aggregate carrying value of those securities. The
19
securities breakdown as follows:
6
bonds,
6
mortgage and asset backed securities,
4
common stocks,
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
December 31, 2019
and
2018.
 
The Company was required to implement a new accounting standard in the
first
quarter of
2019
which requires that the unrealized gains and losses on equity securities be reported as income on the Consolidated Statements of Comprehensive Income (Loss). For
2019,
net investment gains (losses) is compromised of
$1,256,769
of unrealized gains on our equity portfolio and net realized losses of
$214,435.
For
2018,
net investment losses consist entirely of our realized losses of
$4,499.