SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2019

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of goodwill and intangible assets

Goodwill and Intangible Assets		March 31,		December 31,
(in thousands)		2019		2018
Goodwill
Energy surety	$	25,706	$	25,706
Miscellaneous and contract surety		15,110		15,110
Small commercial		5,246		5,246
Total goodwill	$	46,062	$	46,062
Intangibles
State insurance licenses	$	7,500	$	7,500
Definite-lived intangibles, net of accumulated amortization of $3,164 at 3/31/19 and $3,062 at 12/31/18		870		972
Total intangibles	$	8,370	$	8,472
Total goodwill and intangibles	$	54,432	$	54,534

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 March 31, 2019					Ended March 31, 2018
	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	$	65,473	44,536	$	1.47	$	12,216	44,221	$	0.28
Effect of Dilutive Securities
Stock options		-	351				-	429
Diluted EPS
Income available to common shareholders	$	65,473	44,887	$	1.46	$	12,216	44,650	$	0.27

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

(in thousands)	For the Three-Month Periods
	Ended March 31,
Unrealized Gains/Losses on Available-for-Sale Securities	2019		2018
Beginning balance	$	(14,572)	$	157,919
Cumulative effect adjustment of ASU 2016-01		-		(142,219)
Adjusted beginning balance	$	(14,572)	$	15,700
Other comprehensive earnings before reclassifications		29,795		(26,410)
Amounts reclassified from accumulated other comprehensive earnings		(494)		12
Net current-period other comprehensive earnings (loss)	$	29,301	$	(26,398)
Reclassification of stranded tax effect per ASU 2018-02		-		3,725
Ending balance	$	14,729	$	(6,973)

Schedule of effects of reclassifications out of accumulated other comprehensive earnings

	Amount Reclassified from Accumulated Other
(in thousands)	Comprehensive Earnings
	For the Three-Month
Component of Accumulated	Periods Ended March 31,				Affected line item in the
Other Comprehensive Earnings	2019		2018		Statement of Earnings
Unrealized gains and losses on available-for-sale securities	$	625	$	41	Net realized gains (losses)
		-		(56)	Other-than-temporary impairment (OTTI) losses on investments
	$	625	$	(15)	Earnings before income taxes
		(131)		3	Income tax benefit (expense)
	$	494	$	(12)	Net earnings (loss)