SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Jun. 30, 2020

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of goodwill and intangible assets

Goodwill and Intangible Assets		June 30,		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 $3,674 at 6/30/20 and $3,470 at 12/31/19		361		565
Total intangibles	$	7,861	$	8,065
Total goodwill and intangibles	$	53,923	$	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 June 30, 2020					Ended June 30, 2019
	Income		Shares	Per Share		Income		Shares	Per Share
(in thousands, except per share data)	(Numerator)		(Denominator)	Amount		(Numerator)		(Denominator)	Amount
Basic EPS
Earnings available to common shareholders	$	92,166	44,951	$	2.05	$	40,467	44,704	$	0.91
Effect of Dilutive Securities
Stock options and restricted stock units		-	323				-	515
Diluted EPS
Earnings available to common shareholders	$	92,166	45,274	$	2.04	$	40,467	45,219	$	0.89
Anti-dilutive options excluded from diluted EPS			94					-
	For the Six-Month Period					For the Six-Month Period
	Ended June 30, 2020					Ended June 30, 2019
	Income		Shares	Per Share		Income		Shares	Per Share
(in thousands, except per share data)	(Numerator)		(Denominator)	Amount		(Numerator)		(Denominator)	Amount
Basic EPS
Earnings available to common shareholders	$	30,899	44,936	$	0.69	$	105,940	44,620	$	2.37
Effect of Dilutive Securities
Stock options and restricted stock units		-	375				-	436
Diluted EPS
Earnings available to common shareholders	$	30,899	45,311	$	0.68	$	105,940	45,056	$	2.35
Anti-dilutive options excluded from diluted EPS			335					254

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	2020		2019		2020		2019
Beginning balance	$	39,464	$	14,729	$	52,473	$	(14,572)
Cumulative-effect adjustment of ASU 2016-13 (see note 1.B.)		-		-		22		-
Adjusted beginning balance	$	39,464	$	14,729	$	52,495	$	(14,572)
Other comprehensive earnings before reclassifications		53,733		28,388		41,853		58,183
Amounts reclassified from accumulated other comprehensive earnings		(162)		(524)		(1,313)		(1,018)
Net current-period other comprehensive earnings (loss)	$	53,571	$	27,864	$	40,540	$	57,165
Ending balance	$	93,035	$	42,593	$	93,035	$	42,593
Balance of securities for which an allowance for credit losses has been recognized in net earnings					$	1,752	$	-

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	2020		2019		2020		2019		Statement of Earnings
Unrealized gains and losses on available-for-sale securities	$	312	$	664	$	2,618	$	1,289	Net realized gains (losses)
		(107)		-		(956)		-	Credit losses presented within net realized gains
	$	205	$	664	$	1,662	$	1,289	Earnings before income taxes
		(43)		(140)		(349)		(271)	Income tax expense
	$	162	$	524	$	1,313	$	1,018	Net earnings