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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 6 Months Ended
Jun. 30, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  
Schedule of goodwill and intangible assets

 

 

 

 

 

 

 

 

Goodwill and Intangible Assets

 

 

June 30,

 

 

December 31,

(in thousands)

 

 

2018

 

 

2017

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

Total goodwill

 

$

46,062

 

$

49,657

 

 

 

 

 

 

 

 

Intangibles

 

 

 

 

 

 

 

State insurance licenses

 

$

7,500

 

$

7,500

 

Definite-lived intangibles, net of accumulated amortization of $2,862 at 6/30/18 and $5,678 at 12/31/17

 

 

1,131

 

 

2,145

Total intangibles

 

$

8,631

 

$

9,645

 

 

 

 

 

 

 

 

Total goodwill and intangibles

 

$

54,693

 

$

59,302

*   The medical professional liability goodwill balance reflects a cumulative non-cash impairment charge of $12.4 million and $8.8 million as of June 30, 2018 and December 31, 2017, 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 June 30, 2018

 

Ended June 30, 2017

 

 

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

   

$

33,251

    

44,310

    

$

0.75

    

$

26,208

    

44,005

    

$

0.60

Effect of Dilutive Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock options

 

 

 -

 

432

 

 

 

 

 

 -

 

514

 

 

 

Diluted EPS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income available to common shareholders

 

$

33,251

 

44,742

 

$

0.74

 

$

26,208

 

44,519

 

$

0.59

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Six-Month Period

 

For the Six-Month Period

 

 

Ended June 30, 2018

 

Ended June 30, 2017

 

 

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

   

$

45,467

    

44,266

    

$

1.03

    

$

46,036

    

43,983

    

$

1.05

Effect of Dilutive Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock options

 

 

 -

 

587

 

 

 

 

 

 -

 

534

 

 

 

Diluted EPS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income available to common shareholders

 

$

45,467

 

44,853

 

$

1.01

 

$

46,036

 

44,517

 

$

1.03

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

For the Three-Month Periods

 

For the Six-Month Periods

 

 

Ended June 30,

 

Ended June 30,

Unrealized Gains/Losses on Available-for-Sale Securities

    

2018

    

2017

    

2018

    

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

(6,973)

 

$

134,379

 

$

157,919

 

$

122,610

Cumulative effect adjustment of ASU 2016-01

 

 

 -

 

 

 -

 

 

(142,219)

 

 

 -

Adjusted beginning balance

 

$

(6,973)

 

$

134,379

 

$

15,700

 

$

122,610

Other comprehensive earnings before reclassifications

 

 

(8,385)

 

 

11,753

 

 

(34,795)

 

 

23,925

Amounts reclassified from accumulated other comprehensive earnings

 

 

710

 

 

(1,154)

 

 

722

 

 

(1,557)

Net current-period other comprehensive earnings (loss)

 

$

(7,675)

 

$

10,599

 

$

(34,073)

 

$

22,368

Reclassification of stranded tax effect per ASU 2018-02

 

 

 -

 

 

 -

 

 

3,725

 

 

 -

Ending balance

 

$

(14,648)

 

$

144,978

 

$

(14,648)

 

$

144,978

 

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 Six-Month

 

 

Component of Accumulated 

 

Periods Ended June 30, 

 

Periods Ended June 30, 

 

Affected line item in the

Other Comprehensive Earnings

    

2018

    

2017

    

2018

    

2017

    

Statement of Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains and losses on available-for-sale securities

 

$

(899)

 

$

1,775

 

$

(858)

 

$

4,485

 

Net realized gains (losses)

 

 

 

 -

 

 

 -

 

 

(56)

 

 

(2,090)

 

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

 

 

$

(899)

 

$

1,775

 

$

(914)

 

$

2,395

 

Earnings before income taxes

 

 

 

189

 

 

(621)

 

 

192

 

 

(838)

 

Income tax expense

 

 

$

(710)

 

$

1,154

 

$

(722)

 

$

1,557

 

Net earnings