Investments (Tables)

6 Months Ended

Jun. 30, 2018

Investments in available for sale securities are summarized as follows:

June 30, 2018		Original or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Investments available for sale:
Fixed maturities
U.S. Government and govt. agencies and authorities	$	11,153,091	$	15,726	$	(191,954)	$	10,976,863
U.S. special revenue and assessments		9,014,836		392,039		0		9,406,875
All other corporate bonds		142,140,903		14,674,988		(2,622,870)		154,193,021
	$	162,308,830	$	15,082,753	$	(2,814,824)	$	174,576,759

December 31, 2017		Original or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Investments available for sale:
Fixed maturities
U.S. Government and govt. agencies and authorities	$	2,679,325	$	33,802	$	(73,530)	$	2,639,597
U.S. special revenue and assessments		9,012,232		620,789		0		9,633,021
All other corporate bonds		148,220,954		18,359,816		(298,163)		166,282,607
		159,912,511		19,014,407		(371,693)		178,555,225
Equity securities (1)		35,712,633		23,648,201		(512,343)		58,848,491
Total	$	195,625,144	$	42,662,608	$	(884,036)	$	237,403,716

Debt Securities by Contractual Maturity

The amortized cost and estimated market value of debt securities at June 30, 2018, by contractual maturity, is shown below. 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.

Fixed Maturities Available for Sale June 30, 2018		Amortized Cost		Estimated Fair Value
Due in one year or less	$	2,218,529	$	2,255,623
Due after one year through five years		35,657,891		47,784,447
Due after five years through ten years		44,894,902		45,902,793
Due after ten years		79,537,508		78,633,896
Total	$	162,308,830	$	174,576,759

Fair Value of Investments with Sustained Gross Unrealized Losses

The fair value of investments with sustained gross unrealized losses at June 30, 2018 and December 31, 2017 are as follows:

June 30, 2018		Less than 12 months			12 months or longer				Total
		Fair value	Unrealized losses			Fair value	Unrealized losses			Fair value		Unrealized losses
U.S. Government and govt. agencies and authorities	$	4,903,050	$	(71,855)	$	1,559,648	$	(120,099)	$	6,462,698	$	(191,954)
All other corporate bonds		63,995,581		(2,078,404)		6,396,386		(544,466)		70,391,967		(2,622,870)
Total fixed maturities	$	68,898,631	$	(2,150,259)	$	7,956,034		(664,565)	$	76,854,665		(2,814,824)

December 31, 2017		Less than 12 months			12 months or longer					Total
		Fair value	Unrealized losses			Fair value	Unrealized losses			Fair value	Unrealized losses
U.S. Government and govt. agencies and authorities	$	0	$	0	$	1,604,987	$	(73,530)	$	1,604,987	$	(73,530)
All other corporate bonds		9,732,635		(91,757)		11,164,317		(206,406)		20,896,952		(298,163)
Total fixed maturities	$	9,732,635	$	(91,757)	$	12,769,304		(279,936)	$	22,501,939		(371,693)

Equity securities (1)	$	4,130,260	$	(270,774)	$	1,526,868	$	(241,569)	$	5,657,128	$	(512,343)

Securities in Continuous Unrealized Loss Position

Additional information regarding investments in an unrealized loss position is as follows:

	Less than 12 months	12 months or longer	Total
As of June 30, 2018
Fixed maturities	32	6	38
As of December 31, 2017
Fixed maturities	6	6	12
Equity securities (1)	2	2	4

(1)	Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale. Prior periods have not been restated to conform to the current presentation. See Note 2 to the Condensed Consolidated Financial Statements for additional information.

Net Investment Gains (Losses) and Change in Net Unrealized Gains on AFS Investments

The following table presents net investment gains (losses) and the change in net unrealized gains on available-for-sale investments.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Realized gains on available-for-sale investments:
Sales of fixed maturities	$	373,662	$	244,639	$	373,662	$	244,639
Sales of equity securities ⁽¹⁾		0		853,026		0		853,026
Other		0		0		534,242		0
Total realized gains		373,662		1,097,665		907,904		1,097,665
Realized losses on available-for-sale investments:
Sales of fixed maturities		(258,458)		(19,688)		(258,458)		(34,032)
Sales of equity securities ⁽¹⁾		0		0		0		0
Other-than-temporary impairments		0		0		0		0
Other		0		(35,226)		0		(519,573)
Total realized losses		(258,458)		(54,914)		(258,458)		(553,605)
Net realized investment gains (losses)		115,204		1,042,751		649,446		544,060
Change in fair value of equity securities: ⁽¹⁾
Realized gains (losses) on equity securities sold during the period ⁽¹⁾		0		0		0		0
Change in fair value of equity securities held at the end of the period		11,231,720		0		15,360,956		0
Change in fair value of equity securities ⁽¹⁾		11,231,720		0		15,360,956		0
Net investment gains (losses)	$	11,346,924	$	1,042,751	$	16,010,402	$	544,060
Change in net unrealized gains on available-for-sale investments included in other comprehensive income:
Fixed maturities	$	(1,941,236)	$	2,138,739	$	(6,226,539)	$	5,186,182
Equity securities ⁽¹⁾		0		(1,753,868)		0		(330,287)
Net increase (decrease)	$	(1,941,236)	$	384,871	$	(6,226,539)	$	4,855,895

(1)

Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, equity securities are no longer classified as available-for-sale with unrealized gains and losses recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net income. Prior periods have not been restated to conform to the current presentation. See note 2.

Maximum and Minimum Lending Rates for Mortgage Loans

During 2018 and 2017, the maximum and minimum lending rates for mortgage loans were:

	2018		2017
	Maximum rate	Minimum rate	Maximum rate	Minimum rate
Farm Loans	5.00%	5.00%	5.00%	5.00%
Commercial Loans	7.50%	4.00%	7.50%	4.00%
Residential Loans	8.00%	5.00%	8.00%	4.00%

Mortgage Loans

The following table summarizes the mortgage loan holdings of the Company for the periods ended:

		June 30, 2018		December 31, 2017
In good standing	$	11,910,020	$	15,310,941
Overdue interest over 90 days		3,175,539		0
Restructured		0		0
In process of foreclosure		0		2,003,536
Total mortgage loans	$	15,085,559	$	17,314,477
Total foreclosed loans during the year	$	0	$	0