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

9 Months Ended

Sep. 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):

		September 30, 2017
				GROSS		GROSS
		AMORTIZED		UNREALIZED		UNREALIZED		FAIR
		COST		GAINS		LOSSES		VALUE
FIXED MATURITIES
AVAILABLE-FOR-SALE:
Corporate securities	$	159,753	$	894	$	(2,471)	$	158,176
CMOs - residential (1)		7,011		-		(106)		6,905
U.S. Government obligations		44,077		57		(257)		43,877
Agency MBS - residential (2)		16		-		-		16
GSEs (3)		9,992		1		(211)		9,782
States and political subdivisions		194,724		1,143		(2,828)		193,039
Foreign government obligations		4,276		22		(85)		4,213
Redeemable preferred stocks		10,008		116		(132)		9,992
Total fixed maturities	$	429,857	$	2,233	$	(6,090)	$	426,000

EQUITY SECURITIES
AVAILABLE-FOR-SALE:
Common stocks	$	1,612	$	191	$	(18)	$	1,785
Nonredeemable preferred stocks		3,587		88		-		3,675
Total equity securities	$	5,199	$	279	$	(18)	$	5,460

		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 September 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	$	29,686	$	29,631
Due after one year through five years		113,190		112,572
Due after five years through ten years		145,877		145,322
Due after ten years		124,085		121,772
Fixed maturities with no single maturity date		17,019		16,703
	$	429,857	$	426,000

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):

		September 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	$	84,636	$	1,087	$	25,563	$	1,384	$	110,199	$	2,471
CMOs - residential		4,730		101		2,105		5		6,835		106
U.S. Government obligations		18,021		80		12,619		177		30,640		257
GSEs		3,286		65		6,480		146		9,766		211
States and political subdivisions		88,326		1,413		35,771		1,415		124,097		2,828
Foreign government obligations		-		-		3,006		85		3,006		85
Redeemable preferred stocks		-		-		3,631		132		3,631		132
Total fixed maturities		198,999		2,746		89,175		3,344		288,174		6,090
Common stocks		485		18		-		-		485		18
Total equity securities		485		18		-		-		485		18
Total temporarily impaired
securities	$	199,484	$	2,764	$	89,175	$	3,344	$	288,659	$	6,108
Number of securities in an
unrealized loss position		107				44				151

		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 September 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 September 30, 2017.

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

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2017		2016		2017		2016
Available-for-sale securities:
Fixed maturities	$	719	$	2,226	$	1,062	$	3,847
Common stocks		-		220		-		220
Total  available-for-sale securities		719		2,446		1,062		4,067
Trading securities		-		-		-		-
Total realized gains		719		2,446		1,062		4,067
Unrealized gains (losses) on trading securities:
Change in unrealized gains (losses) on trading securities		(4)		(80)		(76)		(124)
Total unrealized gains (losses)  on trading securities		(4)		(80)		(76)		(124)
Gains (losses) on other investments		-		1		1		2
Net realized investment gains	$	715	$	2,367	$	987	$	3,945

For the three months and nine months ended September 30, 2017, proceeds from sales of available-for-sale securities, excluding paydowns and maturities, were $29,564,000 and $157,541,000, respectively, and the Company realized gross gains of $747,000 and $2,052,000, respectively, and gross losses of $0 and $844,000, respectively, on those sales. For the three months and nine months ended September 30, 2016, proceeds from sales of available-for-sale securities, excluding paydowns and maturities, were $179,735,000

and $339,171,000, respectively, and the Company realized gross gains of $2,668,000 and $4,521,000, respectively, and gross losses of $94,000 and $275,000, 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 nine months of 2017. In the three months and nine months ended September 30, 2016, the Company recognized an other-than-temporary impairment loss of $1,475,000 on certain fixed maturities available-for-sale due to credit losses. The Company determined it was more likely than not that the securities would be sold before the recovery of their amortized cost basis.

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