SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2019

Schedule of goodwill and intangible assets

Goodwill and Intangible Assets		June 30,		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 $3,266 at 6/30/19 and $3,062 at 12/31/18		768		972
Total intangibles	$	8,268	$	8,472
Total goodwill and intangibles	$	54,330	$	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 June 30, 2019					Ended June 30, 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	$	40,467	44,704	$	0.91	$	33,251	44,310	$	0.75
Effect of Dilutive Securities
Stock options		-	515				-	432
Diluted EPS
Income available to common shareholders	$	40,467	45,219	$	0.89	$	33,251	44,742	$	0.74
	For the Six-Month Period					For the Six-Month Period
	Ended June 30, 2019					Ended June 30, 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	$	105,940	44,620	$	2.37	$	45,467	44,266	$	1.03
Effect of Dilutive Securities
Stock options		-	436				-	587
Diluted EPS
Income available to common shareholders	$	105,940	45,056	$	2.35	$	45,467	44,853	$	1.01

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	2019		2018		2019		2018
Beginning balance	$	14,729	$	(6,973)	$	(14,572)	$	157,919
Cumulative effect adjustment of ASU 2016-01		-		-		-		(142,219)
Adjusted beginning balance	$	14,729	$	(6,973)	$	(14,572)	$	15,700
Other comprehensive earnings before reclassifications		28,388		(8,385)		58,183		(34,795)
Amounts reclassified from accumulated other comprehensive earnings		(524)		710		(1,018)		722
Net current-period other comprehensive earnings (loss)	$	27,864	$	(7,675)	$	57,165	$	(34,073)
Reclassification of stranded tax effect per ASU 2018-02		-		-		-		3,725
Ending balance	$	42,593	$	(14,648)	$	42,593	$	(14,648)

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	2019		2018		2019		2018		Statement of Earnings
Unrealized gains and losses on available-for-sale securities	$	664	$	(899)	$	1,289	$	(858)	Net realized gains (losses)
		-		-		-		(56)	Other-than-temporary impairment (OTTI) losses on investments
	$	664	$	(899)	$	1,289	$	(914)	Earnings before income taxes
		(140)		189		(271)		192	Income tax benefit (expense)
	$	524	$	(710)	$	1,018	$	(722)	Net earnings (loss)