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

6 Months Ended

Jun. 30, 2021

Notes

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure

Note 5.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):

		June 30, 2021
				GROSS		GROSS
		AMORTIZED		UNREALIZED		UNREALIZED		FAIR
		COST		GAINS		LOSSES		VALUE
FIXED MATURITIES
AVAILABLE-FOR-SALE:
Corporate securities	$	75,245	$	1,583	$	(779)	$	76,049
CMOs – residential (1)		3,071		118		(5)		3,184
U.S. Government obligations		23,029		273		-		23,302
Agency MBS - residential (2)		35		-		(4)		31
GSEs (3)		2,969		-		(84)		2,885
States and political subdivisions		74,086		1,261		(384)		74,963
Foreign government obligations		3,144		151		-		3,295
Total fixed maturities	$	181,579	$	3,386	$	(1,256)	$	183,709

		December 31, 2020
				GROSS		GROSS
		AMORTIZED		UNREALIZED		UNREALIZED		FAIR
		COST		GAINS		LOSSES		VALUE
FIXED MATURITIES
AVAILABLE-FOR-SALE:
Corporate securities	$	91,802	$	2,174	$	(1,302)	$	92,674
CMOs – residential (1)		3,439		146		(2)		3,583
U.S. Government obligations		23,397		414		-		23,811
Agency MBS - residential (2)		39		-		(5)		34
GSEs (3)		3,055		-		(81)		2,974
States and political subdivisions		82,910		1,768		(452)		84,226
Foreign government obligations		3,211		206		-		3,417
Total fixed maturities	$	207,853	$	4,708	$	(1,842)	$	210,719

(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 June 30, 2021, 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	$	36,481	$	36,938
Due after one year through five years		87,377		89,128
Due after five years through ten years		20,124		20,292
Due after ten years		31,522		31,252
Fixed maturities with no single maturity date		6,075		6,099
	$	181,579	$	183,709

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):

		June 30, 2021
		Less than 12 Months				12 Months or Longer				Total
		Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
		Value		Losses		Value		Losses		Value		Losses
Corporate securities	$	19,962	$	740	$	4,503	$	39	$	24,465	$	779
CMOs-residential		707		5		-		-		707		5
Agency MBS - residential		31		4		-		-		31		4
GSEs		-		-		2,886		84		2,886		84
States and political subdivisions		10,319		76		8,813		308		19,132		384
Fixed maturities in an
unrealized loss position	$	31,019	$	825	$	16,202	$	431	$	47,221	$	1,256
Number of fixed maturities in an
unrealized loss position		9				14				23

		December 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	$	23,591	$	458	$	8,845	$	844	$	32,436	$	1,302
CMOs-residential		748		2		-		-		748		2
Agency MBS - residential		34		5		-		-		34		5
GSEs		-		-		2,974		81		2,974		81
States and political subdivisions		16,983		150		6,108		302		23,091		452
Fixed maturities in an
unrealized loss position	$	41,356	$	615	$	17,927	$	1,227	$	59,283	$	1,842
Number of fixed maturities in an
unrealized loss position		20				13				33

Substantially all of the unrealized losses on fixed maturities available-for-sale at June 30, 2021 and December 31, 2020 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 June 30, 2021.

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

		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2021		2020		2021		2020
Realized gains (losses):
Fixed maturities available-for-sale	$	(126)	$	50	$	46	$	284
Equity securities		-		-		292		-
Total realized gains (losses) on debt and equity securities		(126)		50		338		284
Unrealized gains (losses) on equity securities		-		214		(247)		(184)
Gains (losses) on debt and equity securities		(126)		264		91		100
Gains (losses) on other investments		-		10		-		17
Net investment gains	$	(126)	$	274	$	91	$	117

For the three months and six months ended June 30, 2021, the Company realized gross gains of $61,000 and $254,000, respectively, and gross losses of $187,000 and $206,000, respectively, from sales, maturities and prepayments of fixed maturities available-for-sale. For the three months and six months ended June 30, 2020, the Company realized gross gains of $97,000 and $346,000, respectively, and gross losses of $47,000 and $62,000, 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 1G(v) to the Consolidated Financial Statements in the 2020 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 six months of 2021 or 2020.