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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 9 Months Ended
Sep. 30, 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  
Schedule of goodwill and intangible assets

Goodwill and Intangible Assets

 

 

 

 

 

 

(in thousands)

 

 

September 30,

 

 

December 31,

Reporting Unit

 

 

2017

 

 

2016

Goodwill

 

 

 

 

 

 

 

Energy surety

 

$

25,706

 

$

25,706

 

Miscellaneous and contract surety

 

 

15,110

 

 

15,110

 

Small commercial

 

 

5,246

 

 

5,246

 

Medical professional liability *

 

 

3,595

 

 

5,208

Total goodwill

 

$

49,657

 

$

51,270

 

 

 

 

 

 

 

 

Intangibles

 

 

 

 

 

 

 

State insurance licenses

 

$

7,500

 

$

7,500

 

Definite-lived intangibles, net of accumulated amortization of $4,061 at 9/30/17 and $5,546 at 12/31/16

 

 

2,270

 

 

5,601

Total intangibles

 

$

9,770

 

$

13,101

 

 

 

 

 

 

 

 

Total goodwill and intangibles

 

$

59,427

 

$

64,371

*   The medical professional liability goodwill balance reflects a cumulative non-cash impairment charge of $8.8 million and $7.2 million as of September 30, 2017 and December 31, 2016, respectively.

Schedule of reconciliation of numerator and denominator of the basic and diluted earnings per share computations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three-Month Period

 

For the Three-Month Period

 

 

Ended September 30,  2017

 

Ended September 30,  2016

 

 

Income

 

Shares

 

Per Share

 

Income

 

Shares

 

Per Share

(in thousands, except per share data)

    

(Numerator)

    

(Denominator)

    

Amount

    

(Numerator)

    

(Denominator)

    

Amount

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic EPS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income available to common shareholders

   

$

1,734

    

44,058

    

$

0.04

    

$

22,263

    

43,843

    

$

0.51

Effect of Dilutive Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock options

 

 

 -

 

457

 

 

 

 

 

 -

 

649

 

 

 

Diluted EPS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income available to common shareholders

 

$

1,734

 

44,515

 

$

0.04

 

$

22,263

 

44,492

 

$

0.50

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Nine-Month Period

 

For the Nine-Month Period

 

 

Ended September 30,  2017

 

Ended September 30,  2016

 

 

Income

 

Shares

 

Per Share

 

Income

 

Shares

 

Per Share

(in thousands, except per share data)

    

(Numerator)

    

(Denominator)

    

Amount

    

(Numerator)

    

(Denominator)

    

Amount

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic EPS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income available to common shareholders

   

$

47,770

    

44,008

    

$

1.09

    

$

82,733

    

43,721

    

$

1.89

Effect of Dilutive Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock options

 

 

 -

 

509

 

 

 

 

 

 -

 

695

 

 

 

Diluted EPS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income available to common shareholders

 

$

47,770

 

44,517

 

$

1.07

 

$

82,733

 

44,416

 

$

1.86

 

Schedule of changes in the balance of each component of accumulated other comprehensive earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

For the Three-Month Periods

 

For the Nine-Month Periods

 

 

Ended September 30,

 

Ended September 30,

Unrealized Gains/Losses on Available-for-Sale Securities

    

2017

    

2016

    

2017

    

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

144,978

 

$

164,603

 

$

122,610

 

$

123,774

Other comprehensive earnings before reclassifications

 

 

9,141

 

 

(572)

 

 

33,066

 

 

54,159

Amounts reclassified from accumulated other comprehensive earnings

 

 

(697)

 

 

(6,359)

 

 

(2,254)

 

 

(20,261)

Net current-period other comprehensive earnings

 

$

8,444

 

$

(6,931)

 

$

30,812

 

$

33,898

Ending balance

 

$

153,422

 

$

157,672

 

$

153,422

 

$

157,672

 

Schedule of effects of reclassifications out of accumulated other comprehensive earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amount Reclassified from Accumulated Other

 

 

(in thousands)

 

Comprehensive Earnings

 

 

 

 

For the Three-Month

 

For the Nine-Month

 

 

Component of Accumulated 

 

Periods Ended September 30, 

 

Periods Ended September 30, 

 

Affected line item in the

Other Comprehensive Earnings

    

2017

    

2016

    

2017

    

2016

    

Statement of Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains and losses on available-for-sale securities

 

$

1,073

 

$

9,878

 

$

5,558

 

$

31,266

 

Net realized gains

 

 

 

 -

 

 

(95)

 

 

(2,090)

 

 

(95)

 

Other-than-temporary impairment (OTTI) losses on investments

 

 

$

1,073

 

$

9,783

 

$

3,468

 

$

31,171

 

Earnings before income taxes

 

 

 

(376)

 

 

(3,424)

 

 

(1,214)

 

 

(10,910)

 

Income tax expense

 

 

$

697

 

$

6,359

 

$

2,254

 

$

20,261

 

Net earnings