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

9 Months Ended

Sep. 30, 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):

		September 30, 2018
				GROSS		GROSS
		AMORTIZED		UNREALIZED		UNREALIZED		FAIR
		COST		GAINS		LOSSES		VALUE
FIXED MATURITIES
AVAILABLE-FOR-SALE:
Corporate securities	$	200,252	$	537	$	(6,882)	$	193,907
CMOs – residential (1)		6,266		2		(388)		5,880
U.S. Government obligations		48,857		-		(730)		48,127
Agency MBS – residential (2)		6		-		-		6
GSEs (3)		9,566		-		(347)		9,219
States and political subdivisions		173,109		129		(7,186)		166,052
Foreign government obligations		4,081		-		(119)		3,962
Redeemable preferred stocks		5,970		-		(173)		5,797
Total fixed maturities	$	448,107	$	668	$	(15,825)	$	432,950

		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 September 30, 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	$	27,898	$	27,734
Due after one year through five years		174,430		170,503
Due after five years through ten years		138,042		132,762
Due after ten years		91,899		86,846
Fixed maturities with no single maturity date		15,838		15,105
	$	448,107	$	432,950

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):

		September 30, 2018
		Less than 12 Months				12 Months or Longer				Total
		Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
		Value		Losses		Value		Losses		Value		Losses
Corporate securities	$	98,623	$	2,949	$	88,261	$	3,933	$	186,884	$	6,882
CMOs - residential		859		57		5,106		331		5,965		388
U.S. Government obligations		39,740		328		8,388		402		48,128		730
GSEs		-		-		9,318		347		9,318		347
States and political subdivisions		59,619		1,753		99,307		5,433		158,926		7,186
Foreign government obligations		1,145		12		2,816		107		3,961		119
Redeemable preferred stocks		5,797		173		-		-		5,797		173
Fixed maturities in an
unrealized loss position	$	205,783	$	5,272	$	213,196	$	10,553	$	418,979	$	15,825
Number of fixed maturities in an
unrealized loss position		99				96				195

		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 September 30, 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 September 30, 2018.

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

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2018		2017		2018		2017
Realized gains (losses):
Fixed maturities available-for-sale	$	(247)	$	719	$	(442)	$	1,062
Equity securities		(2)		-		(7)		-
Total realized gains (losses) on debt and equity securities		(249)		719		(449)		1,062
Unrealized gains (losses) on equity securities		266		(4)		114		(76)
Gains (losses) on debt and equity securities		17		715		(335)		986
Gains (losses) on other investments		-		-		-		1
Net investment gains (losses)	$	17	$	715	$	(335)	$	987

For the three months and nine months ended September 30, 2018, the Company realized gross gains of $130,000 and $449,000, respectively, and gross losses of $377,000 and $891,000, respectively, from sales, maturities and prepayments of fixed maturities available-for-sale. For the three months and nine months ended September 30, 2017, the company realized gross gains of $780,000 and $2,119,000, respectively, and gross losses of $61,000 and $1,057,000, 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 nine months of 2018 or 2017.