SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2020

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of goodwill and intangible assets

Goodwill and Intangible Assets		March 31,		December 31,
(in thousands)		2020		2019
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
Indefinite-lived intangibles - state insurance licenses		7,500		7,500
Definite-lived intangibles, net of accumulated amortization of $3,572 at 3/31/20 and $3,470 at 12/31/19		463		565
Total intangibles	$	7,963	$	8,065
Total goodwill and intangibles	$	54,025	$	54,127

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, 2020					Ended March 31, 2019
	Income		Shares	Per Share		Income		Shares	Per Share
(in thousands, except per share data)	(Numerator)		(Denominator)	Amount		(Numerator)		(Denominator)	Amount
Basic EPS
Earnings (loss) available to common shareholders	$	(61,267)	44,920	$	(1.36)	$	65,473	44,536	$	1.47
Effect of Dilutive Securities
Stock options		-	-				-	351
Diluted EPS
Earnings (loss) available to common shareholders	$	(61,267)	44,920	$	(1.36)	$	65,473	44,887	$	1.46

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	2020		2019
Beginning balance	$	52,473	$	(14,572)
Cumulative-effect adjustment of ASU 2016-13 (see note 1.B.)		22		-
Adjusted beginning balance	$	52,495	$	(14,572)
Other comprehensive earnings before reclassifications		(11,880)		29,795
Amounts reclassified from accumulated other comprehensive earnings		(1,151)		(494)
Net current-period other comprehensive earnings (loss)	$	(13,031)	$	29,301
Ending balance	$	39,464	$	14,729
Balance of securities for which an allowance for credit losses has been recognized in net earnings	$	5,727	$	-

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	2020		2019		Statement of Earnings
Unrealized gains and losses on available-for-sale securities	$	2,306	$	625	Net realized gains
		(849)		-	Credit losses presented within net realized gains
	$	1,457	$	625	Earnings (loss) before income taxes
		(306)		(131)	Income tax benefit (expense)
	$	1,151	$	494	Net earnings (loss)