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

3 Months Ended

Mar. 31, 2020

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, 2020
				GROSS		GROSS
		AMORTIZED		UNREALIZED		UNREALIZED		FAIR
		COST		GAINS		LOSSES		VALUE
FIXED MATURITIES
AVAILABLE-FOR-SALE:
Corporate securities	$	139,487	$	1,476	$	(2,993)	$	137,970
CMOs – residential (1)		5,143		223		-		5,366
U.S. Government obligations		50,348		1,175		-		51,523
GSEs (2)		6,137		1		(271)		5,867
States and political subdivisions		204,836		2,252		(751)		206,337
Foreign government obligations		6,638		303		-		6,941
Total fixed maturities	$	412,589	$	5,430	$	(4,015)	$	414,004

		December 31, 2019
				GROSS		GROSS
		AMORTIZED		UNREALIZED		UNREALIZED		FAIR
		COST		GAINS		LOSSES		VALUE
FIXED MATURITIES
AVAILABLE-FOR-SALE:
Corporate securities	$	161,369	$	1,832	$	(1,178)	$	162,023
CMOs – residential (1)		5,328		54		-		5,382
U.S. Government obligations		50,340		257		(48)		50,549
GSEs (2)		6,230		-		(107)		6,123
States and political subdivisions		153,439		1,512		(943)		154,008
Foreign government obligations		6,719		172		(2)		6,889
Total fixed maturities	$	383,425	$	3,827	$	(2,278)	$	384,974

(1)Collateralized mortgage obligations (“CMOs”). 

(2)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, 2020, 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	$	34,214	$	34,512
Due after one year through five years		154,997		156,861
Due after five years through ten years		105,604		105,585
Due after ten years		106,494		105,814
Fixed maturities with no single maturity date		11,280		11,232
	$	412,589	$	414,004

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, 2020
		Less than 12 Months				12 Months or Longer				Total
		Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
		Value		Losses		Value		Losses		Value		Losses
Corporate securities	$	45,248	$	1,981	$	21,897	$	1,012	$	67,145	$	2,993
GSEs		-		-		5,861		271		5,861		271
States and political subdivisions		9,318		31		23,498		720		32,816		751
Fixed maturities in an
unrealized loss position	$	54,566	$	2,012	$	51,256	$	2,003	$	105,822	$	4,015
Number of fixed maturities in an
unrealized loss position		35				29				64

		December 31, 2019
		Less than 12 Months				12 Months or Longer				Total
		Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
		Value		Losses		Value		Losses		Value		Losses
Corporate securities	$	18,151	$	455	$	32,301	$	723	$	50,452	$	1,178
U.S. Government obligations		-		-		7,167		48		7,167		48
GSEs		-		-		6,173		107		6,173		107
States and political subdivisions		29,872		114		29,462		829		59,334		943
Foreign government obligations		-		-		1,603		2		1,603		2
Fixed maturities in an
unrealized loss position	$	48,023	$	569	$	76,706	$	1,709	$	124,729	$	2,278
Number of fixed maturities in an
unrealized loss position		18				43				61

Substantially all of the unrealized losses on fixed maturities available-for-sale at March 31, 2020 and December 31, 2019 relate to investment grade securities. Management does not intend to sell, and it is likely that management will not be required to sell these securities prior to their anticipated recovery. The unrealized losses on the Company's fixed maturity securities are related to general market changes in interest rates, and/or the levels of credit spreads largely due to current market conditions relating to the COVID-19 pandemic rather than specific concerns with the issuer's ability to pay interest and repay principal. We have evaluated each corporate security’s credit rating as well as industry risk factors associated with the securities. The fair value of these securities is expected to recover as they approach maturity and therefore the Company does not consider these investments to be other-than-temporarily impaired at March 31, 2020.

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

		Three Months Ended
		March 31,
		2020		2019
Realized gains (losses):
Fixed maturities available-for-sale	$	1,070	$	(22)
Total realized gains (losses) on debt and equity securities		1,070		(22)
Unrealized gains (losses) on equity securities		(787)		193
Gains (losses) on debt and equity securities		283		171
Gains (losses) on other investments		5		-
Net investment gains	$	288	$	171

For the three months ended March 31, 2020 and 2019, the Company realized gross gains of $1,091,000 and $38,000, respectively, and gross losses of $21,000 and $60,000, 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 2019 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 available-for-sale securities in the first three months of 2020. The Company recognized an other-than-temporary impairment loss of $646,000 on certain fixed maturities available-for-sale in the first three months of 2019. The Company determined that it was more likely than not that we would sell the securities before the recovery of their amortized cost basis