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

3 Months Ended

Mar. 31, 2018

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 fixed maturities available-for-sale are as follows for the periods indicated (in thousands):

		March 31, 2018
				GROSS		GROSS
		AMORTIZED		UNREALIZED		UNREALIZED		FAIR
		COST		GAINS		LOSSES		VALUE
FIXED MATURITIES
AVAILABLE-FOR-SALE:
Corporate securities	$	160,659	$	106	$	(5,244)	$	155,521
CMOs – residential (1)		6,691		2		(327)		6,366
U.S. Government obligations		81,583		-		(808)		80,775
Agency MBS – residential (2)		11		-		-		11
GSEs (3)		9,812		-		(219)		9,593
States and political subdivisions		181,626		349		(5,203)		176,772
Foreign government obligations		4,179		-		(102)		4,077
Redeemable preferred stocks		10,006		180		(111)		10,075
Total fixed maturities	$	454,567	$	637	$	(12,014)	$	443,190

		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

(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 March 31, 2018, 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	$	38,884	$	38,617
Due after one year through five years		159,599		156,585
Due after five years through ten years		138,694		135,032
Due after ten years		100,876		96,986
Fixed maturities with no single maturity date		16,514		15,970
	$	454,567	$	443,190

The following tables summarize, for all fixed maturities available-for-sale 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):

		March 31, 2018
		Less than 12 Months				12 Months or Longer				Total
		Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
		Value		Losses		Value		Losses		Value		Losses
Corporate securities	$	71,323	$	1,933	$	75,976	$	3,311	$	147,299	$	5,244
CMOs - residential		48		-		6,318		327		6,366		327
U.S. Government obligations		71,743		454		9,032		354		80,775		808
GSEs		-		-		9,583		219		9,583		219
States and political subdivisions		69,540		1,363		84,881		3,840		154,421		5,203
Foreign government obligations		1,168		3		2,909		99		4,077		102
Redeemable preferred stocks		5,859		111		-		-		5,859		111
Fixed maturities in an
unrealized loss position	$	219,681	$	3,864	$	188,699	$	8,150	$	408,380	$	12,014
Number of fixed maturities in an
unrealized loss position		79				86				165

		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
Fixed maturities in an
unrealized loss position	$	249,475	$	2,931	$	135,465	$	4,406	$	384,940	$	7,337
Number of fixed maturities in an
unrealized loss position		60				76				136

Substantially all of the unrealized losses on fixed maturities available-for-sale at March 31, 2018 and December 31, 2017 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 March 31, 2018.

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

		Three Months Ended
		March 31,
		2018		2017
Realized gains (losses):
Fixed maturities available-for-sale	$	171	$	197
Equity securities		-		-
Total realized gains on debt and equity securities		171		197
Unrealized gains (losses) on equity securities		(100)		(25)
Gains (losses) on debt and equity securities		71		172
Gains (losses) on other investments		-		-
Net investment gains (losses)	$	71	$	172

For the three months ended March 31, 2018 and 2017, the Company realized gross gains of $246,000 and $973,000, respectively, and gross losses of $75,000 and $776,000, respectively, from sales, maturities and prepayments of fixed maturities available-for-sale.

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 1F(iv) to the Consolidated Financial Statements in the 2017 Annual Report on Form 10-K for further discussion of the factors considered by management in its regular review to identify and recognize other-than-temporary impairments on fixed maturities available-for-sale. The Company did not recognize any other-than-temporary impairments on fixed maturities available-for-sale securities in the first three months of 2018 or 2017.