Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

6 Months Ended

Jun. 30, 2017

Notes

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure

Note 4.   Investment Securities 

The cost (amortized cost with respect to certain fixed maturities), gross unrealized gains, gross unrealized losses and fair value of investment securities are as follows for the periods indicated (in thousands):

		June 30, 2017
				GROSS		GROSS
		AMORTIZED		UNREALIZED		UNREALIZED		FAIR
		COST		GAINS		LOSSES		VALUE
FIXED MATURITIES
AVAILABLE-FOR-SALE:
Corporate securities	$	172,716	$	1,002	$	(2,815)	$	170,903
CMOs - residential (1)		7,188		1		(107)		7,082
U.S. Government obligations		44,057		80		(269)		43,868
Agency MBS - residential (2)		17		-		-		17
GSEs (3)		10,095		1		(202)		9,894
States and political subdivisions		190,242		1,157		(2,892)		188,507
Foreign government obligations		4,324		30		(90)		4,264
Redeemable preferred stocks		10,006		118		(114)		10,010
Total fixed maturities	$	438,645	$	2,389	$	(6,489)	$	434,545

EQUITY SECURITIES
AVAILABLE-FOR-SALE:
Common stocks	$	1,612	$	169	$	-	$	1,781
Nonredeemable preferred stocks		3,588		86		-		3,674
Total equity securities	$	5,200	$	255	$	-	$	5,455

		December 31, 2016
				GROSS		GROSS
		AMORTIZED		UNREALIZED		UNREALIZED		FAIR
		COST		GAINS		LOSSES		VALUE
FIXED MATURITIES
AVAILABLE-FOR-SALE:
Corporate securities	$	192,976	$	209	$	(5,490)	$	187,695
CMOs - residential (1)		6,021		8		(116)		5,913
U.S. Government obligations		43,417		133		(441)		43,109
Agency MBS - residential (2)		22		1		-		23
GSEs (3)		10,301		1		(422)		9,880
States and political subdivisions		191,146		780		(5,115)		186,811
Foreign government obligations		5,098		13		(157)		4,954
Redeemable preferred stocks		11,454		96		(448)		11,102
Total fixed maturities	$	460,435	$	1,241	$	(12,189)	$	449,487

EQUITY SECURITIES
AVAILABLE-FOR-SALE:
Common stocks	$	1,612	$	178	$	-	$	1,790
Nonredeemable preferred stocks		3,588		30		(75)		3,543
Total equity securities	$	5,200	$	208	$	(75)	$	5,333

(1)Collateralized mortgage obligations (“CMOs”). 

(2) Mortgage-backed securities (“MBS”). 

(3)Government-sponsored enterprises (“GSEs”) are private enterprises established and chartered by the Federal Government or its various insurance and lease programs which carry the full faith and credit obligation of the U.S. Government.  

The amortized cost and fair value of fixed maturities available-for-sale at June 30, 2017, by contractual maturity, are shown below (in thousands). Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

		AMORTIZED		FAIR
		COST		VALUE
Due in one year or less	$	8,176	$	8,188
Due after one year through five years		122,486		122,003
Due after five years through ten years		153,500		152,262
Due after ten years		137,182		135,099
Fixed maturities with no single maturity date		17,301		16,993
	$	438,645	$	434,545

The following tables summarize, for all available-for-sale securities in an unrealized loss position, the aggregate fair value and gross unrealized loss by length of time those securities that have continuously been in an unrealized loss position for the periods indicated (in thousands):

		June 30, 2017
		Less than 12 Months				12 Months or Longer				Total
		Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
		Value		Losses		Value		Losses		Value		Losses
Corporate securities	$	107,013	$	1,511	$	17,151	$	1,304	$	124,164	$	2,815
CMOs - residential		5,522		107		-		-		5,522		107
U.S. Government obligations		29,830		250		781		19		30,611		269
GSEs		-		-		9,878		202		9,878		202
States and political subdivisions		98,444		1,744		28,241		1,148		126,685		2,892
Foreign government obligations		-		-		3,042		90		3,042		90
Redeemable preferred stocks		-		-		3,649		114		3,649		114
Total fixed maturities		240,809		3,612		62,742		2,877		303,551		6,489
Total temporarily impaired
securities	$	240,809	$	3,612	$	62,742	$	2,877	$	303,551	$	6,489
Number of securities in an
unrealized loss position		108				26				134

		December 31, 2016
		Less than 12 Months				12 Months or Longer				Total
		Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
		Value		Losses		Value		Losses		Value		Losses
Corporate securities	$	145,205	$	3,818	$	19,841	$	1,672	$	165,046	$	5,490
CMO’s - residential		5,038		116		-		-		5,038		116
U.S. Government obligations		28,406		441		-		-		28,406		441
GSEs		3,640		166		6,220		256		9,860		422
States and political subdivisions		144,357		4,561		18,132		554		162,489		5,115
Foreign government obligations		3,738		157		-		-		3,738		157
Redeemable preferred stocks		-		-		3,315		448		3,315		448
Total fixed maturities		330,384		9,259		47,508		2,930		377,892		12,189
Nonredeemable preferred stocks		826		25		1,277		50		2,103		75
Total equity securities		826		25		1,277		50		2,103		75
Total temporarily impaired
securities	$	331,210	$	9,284	$	48,785	$	2,980	$	379,995	$	12,264
Number of securities in an
unrealized loss position		156				23				179

Substantially all of the unrealized losses on fixed maturities available-for-sale at June 30, 2017 and December 31, 2016 relate to investment grade securities and are attributable to changes in market interest rates. Because the Company does not intend to sell, nor is it more likely than not that the Company will have to sell such investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at June 30, 2017.

Net realized investment gains are as follows for periods indicated (in thousands):

		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2017		2016		2017		2016
Available-for-sale securities:
Fixed maturities	$	146	$	993	$	343	$	1,621
Total  available-for-sale securities		146		993		343		1,621
Trading securities		-		-		-		-
Total realized gains		146		993		343		1,621
Unrealized gains (losses) on trading securities:
Change in unrealized gains (losses) on trading securities		(47)		26		(72)		(44)
Total unrealized gains (losses)  on trading securities		(47)		26		(72)		(44)
Gains (losses) on other investments		1		(1)		1		1
Net realized investment gains	$	100	$	1,018	$	272	$	1,578

For the three months and six months ended June 30, 2017, proceeds from sales of available-for-sale securities, excluding paydowns and maturities, were $50,521,000 and $127,977,000, respectively, and the Company realized gross gains of $349,000 and $1,305,000, respectively, and gross losses of $121,000 and $844,000, respectively, on those sales. For the three months and six months ended June 30, 2016, proceeds from sales of available-for-sale securities, excluding paydowns and maturities, were $127,942,000 and $159,436,000, respectively, and the Company realized gross gains of $1,238,000 and $1,853,000,

respectively, and gross losses of $164,000 and $181,000, respectively, on those sales.

Other-Than-Temporary Impairment Evaluations

We recognize other-than-temporary impairment losses in earnings in the period that we determine: 1) we intend to sell the security; 2) it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis; or 3) the security has a credit loss. Any non-credit portion of the other-than-temporary impairment loss is recognized in other comprehensive income (loss). See Note 1G(iv) to the Consolidated Financial Statements in the 2016 Annual Report for further discussion of the factors considered by management in its regular review to identify and recognize other-than-temporary impairments on available-for-sale securities. The Company did not recognize any other-than-temporary impairments on available-for-sale securities in the first six months of 2017 or 2016.

Credit losses were recognized on certain fixed maturities for which each security also had an impairment loss recognized in other comprehensive income (loss). The rollforward of these credit losses were as follows for the periods indicated (in thousands):

		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2017		2016		2017		2016
Balance at beginning of year	$	-	$	-	$	-	$	473
Securities sold		-		-		-		(473)
Balance at end of period	$	-	$	-	$	-	$	-