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

9 Months Ended

Sep. 30, 2019

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, 2019
				GROSS		GROSS
		AMORTIZED		UNREALIZED		UNREALIZED		FAIR
		COST		GAINS		LOSSES		VALUE
FIXED MATURITIES
AVAILABLE-FOR-SALE:
Corporate securities	$	205,770	$	3,326	$	(1,107)	$	207,989
CMOs – residential (1)		5,522		49		-		5,571
U.S. Government obligations		39,852		294		(69)		40,077
GSEs (3)		6,323		-		(114)		6,209
States and political subdivisions		165,493		2,552		(731)		167,314
Foreign government obligations		6,800		165		(3)		6,962
Redeemable preferred stocks		5,970		197		-		6,167
Total fixed maturities	$	435,730	$	6,583	$	(2,024)	$	440,289

		December 31, 2018
				GROSS		GROSS
		AMORTIZED		UNREALIZED		UNREALIZED		FAIR
		COST		GAINS		LOSSES		VALUE
FIXED MATURITIES
AVAILABLE-FOR-SALE:
Corporate securities	$	202,194	$	701	$	(5,406)	$	197,489
CMOs - residential (1)		6,092		-		(252)		5,840
U.S. Government obligations		63,231		1		(423)		62,809
Agency MBS - residential (2)		3		-		-		3
GSEs (3)		6,596		-		(110)		6,486
States and political subdivisions		172,860		302		(5,228)		167,934
Foreign government obligations		7,039		51		(46)		7,044
Redeemable preferred stocks		5,970		-		(111)		5,859
Total fixed maturities	$	463,985	$	1,055	$	(11,576)	$	453,464

(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, 2019, 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	$	33,408	$	33,481
Due after one year through five years		173,009		175,175
Due after five years through ten years		139,594		142,102
Due after ten years		77,874		77,751
Fixed maturities with no single maturity date		11,845		11,780
	$	435,730	$	440,289

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, 2019
		Less than 12 Months				12 Months or Longer				Total
		Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
		Value		Losses		Value		Losses		Value		Losses
Corporate securities	$	7,050	$	13	$	44,766	$	1,094	$	51,816	$	1,107
CMOs - residential		-		-		5		-		5		-
U.S. Government obligations		-		-		23,621		69		23,621		69
GSEs		-		-		6,203		114		6,203		114
States and political subdivisions		14,789		47		36,544		684		51,333		731
Foreign government obligations		-		-		1,632		3		1,632		3
Fixed maturities in an
unrealized loss position	$	21,839	$	60	$	112,771	$	1,964	$	134,610	$	2,024
Number of fixed maturities in an
unrealized loss position		14				48				62

		December 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	$	46,988	$	1,045	$	108,738	$	4,361	$	155,726	$	5,406
CMOs - residential		847		37		4,993		215		5,840		252
U.S. Government obligations		6,138		15		31,693		408		37,831		423
GSEs		-		-		6,478		110		6,478		110
States and political subdivisions		33,021		522		113,297		4,706		146,318		5,228
Foreign government obligations		-		-		2,835		46		2,835		46
Redeemable preferred stocks		5,859		111		-		-		5,859		111
Fixed maturities in an
unrealized loss position	$	92,853	$	1,730	$	268,034	$	9,846	$	360,887	$	11,576
Number of fixed maturities in an
unrealized loss position		47				115				162

Substantially all of the unrealized losses on fixed maturities available-for-sale at September 30, 2019 and December 31, 2018 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, 2019.

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

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2019		2018		2019		2018
Realized gains (losses):
Fixed maturities available-for-sale	$	895	$	(247)	$	2,144	$	(442)
Equity securities		-		(2)		-		(7)
Total realized gains (losses) on debt and equity securities		895		(249)		2,144		(449)
Unrealized gains (losses) on equity securities		35		266		412		114
Gains (losses) on debt and equity securities		930		17		2,556		(335)
Gains (losses) on other investments		-		-		-		-
Net investment gains (losses)	$	930	$	17	$	2,556	$	(335)

For the three and nine months ended September 30, 2019, the Company realized gross gains of $1,143,000 and $3,035,000, respectively, and gross losses of $248,000 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, 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.

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(v) to the Consolidated Financial Statements in the 2018 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 recognized other-than-temporary impairment losses of $0 and $646,000 on certain fixed maturities available-for-sale securities in the three months and nine months ended September 30, 2019, respectively. The Company determined that it was more likely than not that we would sell the securities before the recovery of their amortized cost basis. The Company did not recognize any other-than-temporary impairments on available for sale securities in the first nine months of 2018.