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

12 Months Ended

Dec. 31, 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):

		December 31, 2017
				GROSS		GROSS
		AMORTIZED		UNREALIZED		UNREALIZED		FAIR
		COST		GAINS		LOSSES		VALUE
FIXED MATURITIES
AVAILABLE-FOR-SALE:
Corporate securities	$	148,996	$	298	$	(2,847)	$	146,447
CMOs - residential (1)		6,857		-		(180)		6,677
U.S. Government obligations		85,510		-		(396)		85,114
Agency MBS - residential (2)		14		-		-		14
GSEs (3)		9,887		-		(205)		9,682
States and political subdivisions		182,664		598		(3,619)		179,643
Foreign government obligations		4,227		13		(90)		4,150
Redeemable preferred stocks		10,006		179		-		10,185
Total fixed maturities	$	448,161	$	1,088	$	(7,337)	$	441,912

EQUITY SECURITIES
AVAILABLE-FOR-SALE:
Common stocks	$	1,612	$	388	$	-	$	2,000
Nonredeemable preferred stocks		3,588		60		(18)		3,630
Total equity securities	$	5,200	$	448	$	(18)	$	5,630

		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 December 31, 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	$	17,554	$	17,492
Due after one year through five years		165,260		163,826
Due after five years through ten years		140,361		138,909
Due after ten years		108,228		105,312
Fixed maturities with no single maturity date		16,758		16,373
	$	448,161	$	441,912

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):

		December 31, 2017
		Less than 12 Months				12 Months or Longer				Total
		Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
		Value		Losses		Value		Losses		Value		Losses
Corporate securities	$	85,642	$	1,250	$	44,640	$	1,597	$	130,282	$	2,847
CMOs - residential		1,381		45		5,237		135		6,618		180
U.S. Government obligations		75,811		198		9,302		198		85,113		396
GSEs		-		-		9,669		205		9,669		205
States and political subdivisions		83,682		1,348		66,617		2,271		150,299		3,619
Foreign government obligations		2,959		90		-		-		2,959		90
Total fixed maturities		249,475		2,931		135,465		4,406		384,940		7,337
Nonredeemable preferred stocks		2,160		18		-		-		2,160		18
Total equity securities		2,160		18		-		-		2,160		18
Total temporarily impaired
securities	$	251,635	$	2,949	$	135,465	$	4,406	$	387,100	$	7,355
Number of securities in an
unrealized loss position		61				76				137

		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 December 31, 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 December 31, 2017.

The following table summarizes the Company’s net investment income for the years indicated (in thousands):

		2017		2016		2015
Fixed maturities	$	13,397	$	14,960	$	15,364
Equity securities		613		676		845
Cash, cash equivalents and other short-term investments		264		1,088		66
Equity method investments		1,846		62		405
Other		221		(135)		661
Investment income, gross		16,341		16,651		17,341
Investment expenses		(65)		(81)		(104)
Net investment income	$	16,276	$	16,570	$	17,237

The following table summarizes the Company’s net realized investment gains (losses) for the years indicated (in thousands):

		2017		2016		2015
Available-for-sale securities:
Fixed maturities	$	2,640	$	4,275	$	3,533
Common stocks		-		263		1,519
Nonredeemable preferred stocks		-		-		151
Total available-for-sale securities		2,640		4,538		5,203
Trading securities		-		(409)		(1,653)
Total realized gains		2,640		4,129		3,550
Unrealized gains (losses) on trading securities:
Change in unrealized gains (losses) on trading securities		(102)		289		(452)
Total unrealized gains (losses) on trading securities		(102)		289		(452)
Gains (losses) on other investments		1		84		(4)
Net realized investment gains	$	2,539	$	4,502	$	3,094

For the years ended December 31, 2017, 2016 and 2015, proceeds from sales of available-for-sale securities, excluding paydowns and maturities, were $193,638,000, $414,997,000 and $640,902,000, respectively, and the company realized gross gains of $3,746,000, $5,356,000 and $6,412,000, respectively, and gross losses of $895,000, $480,000 and $805,000, respectively, on those sales.

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). The Company did not recognize any other-than-temporary impairments on available-for-sale securities in 2017. In 2016, the Company recognized an other-than-temporary impairment loss of $1,475,000 on certain fixed maturities available-for-sale. The Company determined that it was more likely than not that we would sell the securities before the recovery of their amortized cost basis. In 2015, the Company recognized $228,000 of other-than-temporary impairment losses in earnings on equity securities available-for-sale due to the length of time and extent an equity security was below cost.

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 years indicated (in thousands):

		2017		2016		2015
Balance at beginning of year	$	-	$	473	$	473
Securities sold		-		(473)		-
Balance at end of period	$	-	$	-	$	473