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Investments (Tables)
9 Months Ended
Sep. 30, 2022
Gross Unrecognized Gains and Losses and Cost or Amortized Cost, Allowance for Credit Losses, Carrying Amount and Fair Value of Investments Classified as Held-to-Maturity

The amortized cost, allowance for credit losses, carrying amount, gross unrecognized gains and losses, and the fair value of those investments classified as held-to-maturity at September 30, 2022 are summarized as follows:

 

 

 

Amortized
Cost

 

 

Allowance for Credit Losses

 

 

Carrying
Amount

 

 

Gross
Unrecognized
Gains

 

 

Gross
Unrecognized
Losses

 

 

Fair
Value

 

 

 

(in thousands)

 

States and political subdivisions

 

$

434,938

 

 

$

(44

)

 

$

434,894

 

 

$

265

 

 

$

(30,096

)

 

$

405,063

 

Corporate bonds

 

 

62,390

 

 

 

(208

)

 

 

62,182

 

 

 

2

 

 

 

(4,242

)

 

 

57,942

 

U.S. agency-based mortgage-backed securities

 

 

3,812

 

 

 

 

 

 

3,812

 

 

 

32

 

 

 

(185

)

 

 

3,659

 

U.S. Treasury securities and obligations
   of U.S. government agencies

 

 

13,647

 

 

 

 

 

 

13,647

 

 

 

27

 

 

 

(504

)

 

 

13,170

 

Asset-backed securities

 

 

78

 

 

 

(3

)

 

 

75

 

 

 

3

 

 

 

(1

)

 

 

77

 

Totals

 

$

514,865

 

 

$

(255

)

 

$

514,610

 

 

$

329

 

 

$

(35,028

)

 

$

479,911

 

The amortized cost, allowance for credit losses, carrying amount, gross unrecognized gains and losses, and the fair value of those investments classified as held-to-maturity at December 31, 2021 are summarized as follows:

 

 

 

Amortized
Cost

 

 

Allowance for Credit Losses

 

 

Carrying
Amount

 

 

Gross
Unrecognized
Gains

 

 

Gross
Unrecognized
Losses

 

 

Fair
Value

 

 

 

(in thousands)

 

States and political subdivisions

 

$

471,688

 

 

$

(48

)

 

$

471,640

 

 

$

25,175

 

 

$

(263

)

 

$

496,552

 

Corporate bonds

 

 

56,756

 

 

 

(143

)

 

 

56,613

 

 

 

1,344

 

 

 

(114

)

 

 

57,843

 

U.S. agency-based mortgage-backed securities

 

 

4,623

 

 

 

 

 

 

4,623

 

 

 

377

 

 

 

 

 

 

5,000

 

U.S. Treasury securities and obligations
   of U.S. government agencies

 

 

16,251

 

 

 

 

 

 

16,251

 

 

 

132

 

 

 

(36

)

 

 

16,347

 

Asset-backed securities

 

 

108

 

 

 

(4

)

 

 

104

 

 

 

4

 

 

 

 

 

 

108

 

Totals

 

$

549,426

 

 

$

(195

)

 

$

549,231

 

 

$

27,032

 

 

$

(413

)

 

$

575,850

 

Gross Unrealized Gains and Losses and Cost or Amortized Cost, Allowance for Credit Losses and Fair Value of Investments Classified as Available-for-sale

The amortized cost, gross unrealized gains and losses, fair value, and the allowance for credit losses of those investments classified as available-for-sale at September 30, 2022 are summarized as follows:

 

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Allowance for
Credit Losses

 

 

 

(in thousands)

 

States and political subdivisions

 

$

180,244

 

 

$

118

 

 

$

(14,201

)

 

$

166,161

 

 

$

 

Corporate bonds

 

 

149,008

 

 

 

 

 

 

(8,960

)

 

 

140,048

 

 

 

 

U.S. agency-based mortgage-backed securities

 

 

6,208

 

 

 

 

 

 

(629

)

 

 

5,579

 

 

 

 

U.S. Treasury securities and obligations
   of U.S. government agencies

 

 

15,658

 

 

 

6

 

 

 

(1,561

)

 

 

14,103

 

 

 

 

Totals

 

$

351,118

 

 

$

124

 

 

$

(25,351

)

 

$

325,891

 

 

$

 

The amortized cost, gross unrealized gains and losses, fair value, and the allowance for credit losses of those investments classified as available-for-sale at December 31, 2021 are summarized as follows:

 

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Allowance for
Credit Losses

 

 

 

(in thousands)

 

States and political subdivisions

 

$

202,008

 

 

$

14,538

 

 

$

(240

)

 

$

216,306

 

 

$

 

Corporate bonds

 

 

93,947

 

 

 

2,751

 

 

 

(272

)

 

 

96,426

 

 

 

 

U.S. agency-based mortgage-backed securities

 

 

7,944

 

 

 

158

 

 

 

(13

)

 

 

8,089

 

 

 

 

U.S. Treasury securities and obligations
   of U.S. government agencies

 

 

20,698

 

 

 

382

 

 

 

(132

)

 

 

20,948

 

 

 

 

Totals

 

$

324,597

 

 

$

17,829

 

 

$

(657

)

 

$

341,769

 

 

$

 

Gross Unrealized Gains and Losses and Cost of Equity

The cost, gross unrealized gains and losses, and the fair value of equity securities at September 30, 2022 are summarized as follows:

 

 

 

Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

 

(in thousands)

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

Domestic common stock

 

$

50,394

 

 

$

6,981

 

 

$

 

 

$

57,375

 

Total equity securities

 

$

50,394

 

 

$

6,981

 

 

$

 

 

$

57,375

 

The cost, gross unrealized gains and losses, and the fair value of equity securities at December 31, 2021 are summarized as follows:

 

 

 

Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

 

(in thousands)

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

Domestic common stock

 

$

44,175

 

 

$

19,965

 

 

$

 

 

$

64,140

 

Total equity securities

 

$

44,175

 

 

$

19,965

 

 

$

 

 

$

64,140

 

Investment Securities Continuous Unrealized Loss Position

The following table summarizes the fair value and gross unrealized losses on securities classified as available-for-sale, aggregated by major investment category and length of time that the individual securities have been in a continuous unrealized loss position as of September 30, 2022:

 

 

 

Less Than 12 Months

 

 

12 Months or Greater

 

 

Total

 

 

 

Fair Value of
Investments
with
Unrealized
Losses

 

 

Gross
Unrealized
Losses

 

 

Fair Value of
Investments
with
Unrealized
Losses

 

 

Gross
Unrealized
Losses

 

 

Fair Value of
Investments
with
Unrealized
Losses

 

 

Gross
Unrealized
Losses

 

 

 

(in thousands)

 

September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

States and political subdivisions

 

$

150,390

 

 

$

11,587

 

 

$

13,456

 

 

$

2,614

 

 

$

163,846

 

 

$

14,201

 

Corporate bonds

 

 

124,596

 

 

 

7,146

 

 

 

15,452

 

 

 

1,814

 

 

 

140,048

 

 

 

8,960

 

U.S. agency-based mortgage-backed securities

 

 

5,120

 

 

 

558

 

 

 

458

 

 

 

71

 

 

 

5,578

 

 

 

629

 

U.S. Treasury securities and obligations
   of U.S. government agencies

 

 

7,978

 

 

 

850

 

 

 

5,208

 

 

 

711

 

 

 

13,186

 

 

 

1,561

 

Total available-for-sale securities

 

$

288,084

 

 

$

20,141

 

 

$

34,574

 

 

$

5,210

 

 

$

322,658

 

 

$

25,351

 

The following table summarizes the fair value and gross unrealized losses on securities classified as available-for-sale, aggregated by major investment category and length of time that the individual securities have been in a continuous unrealized loss position as of December 31, 2021:

 

 

 

Less Than 12 Months

 

 

12 Months or Greater

 

 

Total

 

 

 

Fair Value of
Investments
with
Unrealized
Losses

 

 

Gross
Unrealized
Losses

 

 

Fair Value of
Investments
with
Unrealized
Losses

 

 

Gross
Unrealized
Losses

 

 

Fair Value of
Investments
with
Unrealized
Losses

 

 

Gross
Unrealized
Losses

 

 

 

(in thousands)

 

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

States and political subdivisions

 

$

23,465

 

 

$

240

 

 

$

 

 

$

 

 

$

23,465

 

 

$

240

 

Corporate bonds

 

 

36,443

 

 

 

272

 

 

 

 

 

 

 

 

 

36,443

 

 

 

272

 

U.S. agency-based mortgage-backed securities

 

 

1,146

 

 

 

13

 

 

 

 

 

 

 

 

 

1,146

 

 

 

13

 

U.S. Treasury securities and obligations
   of U.S. government agencies

 

 

6,771

 

 

 

132

 

 

 

 

 

 

 

 

 

6,771

 

 

 

132

 

Total available-for-sale securities

 

$

67,825

 

 

$

657

 

 

$

 

 

$

 

 

$

67,825

 

 

$

657

 

Changes in Allowance for Credit Losses by Major Security Type of Investments Classified as Held-to-Maturity

The following table illustrates the changes in the allowance for credit losses by major security type of the investments classified as held-to-maturity for the quarter ended September 30, 2022.

 

 

 

States and
Political
Subdivisions

 

 

Corporate
Bonds

 

 

U.S. Agency
-Based
Mortgage-
Backed
Securities

 

 

U.S.
Treasury
Securities
and
Obligations
of U.S.
Government
Agencies

 

 

Asset-Backed
Securities

 

 

Totals

 

 

 

(in thousands)

 

Balance at June 30, 2022

 

$

44

 

 

$

228

 

 

$

 

 

$

 

 

$

4

 

 

$

276

 

Provision for credit loss benefit

 

 

 

 

 

(20

)

 

 

 

 

 

 

 

 

(1

)

 

 

(21

)

Balance at September 30, 2022

 

$

44

 

 

$

208

 

 

$

 

 

$

 

 

$

3

 

 

$

255

 

The following table illustrates the changes in the allowance for credit losses by major security type of the investments classified as held-to-maturity for the nine months ended September 30, 2022.

 

 

 

States and
Political
Subdivisions

 

 

Corporate
Bonds

 

 

U.S. Agency
-Based
Mortgage-
Backed
Securities

 

 

U.S.
Treasury
Securities
and
Obligations
of U.S.
Government
Agencies

 

 

Asset-Backed
Securities

 

 

Totals

 

 

 

(in thousands)

 

Balance at December 31, 2021

 

$

48

 

 

$

143

 

 

$

 

 

$

 

 

$

4

 

 

$

195

 

Provision for credit loss expense (benefit)

 

 

(4

)

 

 

65

 

 

 

 

 

 

 

 

 

(1

)

 

 

60

 

Balance at September 30, 2022

 

$

44

 

 

$

208

 

 

$

 

 

$

 

 

$

3

 

 

$

255

 

Schedule of Amortized Cost Held-to-Maturity Securities Aggregated By Credit Quality Indicator

The table below presents the amortized cost of held-to-maturity securities aggregated by credit quality indicator as of September 30, 2022.

 

 

 

States and
Political
Subdivisions

 

 

Corporate
Bonds

 

 

U.S. Agency
-Based
Mortgage-
Backed
Securities

 

 

U.S.
Treasury
Securities
and
Obligations
of U.S.
Government
Agencies

 

 

Asset-Backed
Securities

 

 

Totals

 

 

 

Amortized cost

 

 

 

(in thousands)

 

AAA/AA/A ratings

 

$

431,963

 

 

$

26,782

 

 

$

3,812

 

 

$

13,647

 

 

$

56

 

 

$

476,260

 

Baa/BBB ratings

 

 

2,975

 

 

 

35,608

 

 

 

 

 

 

 

 

 

10

 

 

 

38,593

 

B ratings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12

 

 

 

12

 

Total

 

$

434,938

 

 

$

62,390

 

 

$

3,812

 

 

$

13,647

 

 

$

78

 

 

$

514,865

 

Held-to-Maturity Securities [Member]  
Summary of Carrying Amount, Amortized Cost and Fair Value of Investments in Fixed Maturity Securities, by Contractual Maturity

A summary of the carrying amounts and fair value of investments in fixed maturity securities classified as held-to-maturity, by contractual maturity, is as follows:

 

 

 

September 30, 2022

 

 

December 31, 2021

 

 

 

Carrying
Amount

 

 

Fair
Value

 

 

Carrying
Amount

 

 

Fair
Value

 

 

 

(in thousands)

 

Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

Within one year

 

$

49,585

 

 

$

49,329

 

 

$

70,859

 

 

$

71,455

 

After one year through five years

 

 

170,447

 

 

 

163,167

 

 

 

174,157

 

 

 

180,376

 

After five years through ten years

 

 

113,055

 

 

 

101,641

 

 

 

100,543

 

 

 

104,851

 

After ten years

 

 

177,636

 

 

 

162,038

 

 

 

198,945

 

 

 

214,060

 

U.S. agency-based mortgage-backed securities

 

 

3,812

 

 

 

3,659

 

 

 

4,623

 

 

 

5,000

 

Asset-backed securities

 

 

75

 

 

 

77

 

 

 

104

 

 

 

108

 

Totals

 

$

514,610

 

 

$

479,911

 

 

$

549,231

 

 

$

575,850

 

Available-for-Sale Securities [Member]  
Summary of Carrying Amount, Amortized Cost and Fair Value of Investments in Fixed Maturity Securities, by Contractual Maturity

A summary of the amortized cost and fair value of investments in fixed maturity securities classified as available-for-sale, by contractual maturity, is as follows:

 

 

 

September 30, 2022

 

 

December 31, 2021

 

 

 

Amortized
Cost

 

 

Fair
Value

 

 

Amortized
Cost

 

 

Fair
Value

 

 

 

(in thousands)

 

Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

Within one year

 

$

38,171

 

 

$

37,570

 

 

$

30,925

 

 

$

31,258

 

After one year through five years

 

 

71,031

 

 

 

67,053

 

 

 

97,830

 

 

 

100,716

 

After five years through ten years

 

 

100,619

 

 

 

91,651

 

 

 

58,050

 

 

 

60,137

 

After ten years

 

 

135,089

 

 

 

124,038

 

 

 

129,848

 

 

 

141,569

 

U.S. agency-based mortgage-backed securities

 

 

6,208

 

 

 

5,579

 

 

 

7,944

 

 

 

8,089

 

Totals

 

$

351,118

 

 

$

325,891

 

 

$

324,597

 

 

$

341,769