XML 30 R11.htm IDEA: XBRL DOCUMENT v3.21.2
Investments
6 Months Ended
Jun. 30, 2021
Investments  
Investments

3. Investments

The following table provides the Company’s investment income, and realized gains on investments for 2021:

Investment income

$

429

Realized gains on investments

$

20

Realized losses on investments

$

(52)

The following table provides the amortized cost, fair value and unrealized gains and (losses) of the Company’s investment securities:

June 30, 2021

Gross Unrealized

    

Amortized Cost

    

Gains

    

Losses

    

Fair Value

U.S. treasury - held as restricted

$

1,288

$

$

(2)

$

1,286

U.S. government obligations

4,280

(3)

4,277

Obligations of states, municipalities and political subdivisions

3,880

17

(3)

3,894

Industrial and miscellaneous

 

36,613

 

271

 

(16)

 

36,868

Residential and commercial mortgage-backed securities

15,578

80

(36)

15,622

Other loan-backed and structured securities

5,437

15

(7)

5,445

Total debt securities

$

67,076

$

383

$

(67)

$

67,392

The amortized cost and fair value of securities at June 30, 2021, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

June 30, 2021

Remaining Time to Maturity

    

Amortized Cost

    

Fair Value

Due in one year or less

$

8,513

$

8,509

Due after one year through five years

22,041

22,092

Due after five years through ten years

13,536

13,719

Due after ten years

 

1,971

 

2,005

Residential and commercial mortgage-backed securities

15,578

15,622

Other loan-backed and structured securities

5,437

5,445

Total

$

67,076

$

67,392

Other-than-temporary Impairment (“OTTI”)

The Company regularly reviews its individual investment securities for OTTI. The Company considers various factors in determining whether each individual security is other-than-temporarily impaired, including:

-the financial condition and near-term prospects of the issuer, including any specific events that may affect its operations or earnings;
-the length of time and the extent to which the market value of the security has been below its cost or amortized cost;
-general market conditions and industry or sector specific factors;
-nonpayment by the issuer of its contractually obligated interest and principal payments; and
-the Company’s intent and ability to hold the investment for a period of time sufficient to allow for the recovery of costs.

Securities with gross unrealized loss position at June 30, 2021, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows:

Less Than Twelve Months

Twelve Months or Greater

Total

Gross

Gross

Gross

Unrealized

Fair

Unrealized

Fair

Unrealized

Fair

At June 30, 2021

Loss

Value

    

Loss

Value

    

Loss

Value

U.S. treasury - held as restricted

$

(2)

$

673

$

$

$

(2)

$

673

U.S. government obligations

(3)

1,473

(3)

1,473

Obligations of states, municipalities and political subdivisions

(3)

1,113

(3)

1,113

Industrial and miscellaneous

(16)

11,472

(16)

11,472

Residential and commercial mortgage-backed securities

(36)

8,805

(36)

8,805

Other loan-backed and structured securities

(7)

3,073

(7)

3,073

Total securities

$

(67)

$

26,609

$

$

$

(67)

$

26,609

At June 30, 2021, there were 194 securities in an unrealized loss position. Of these securities, there were none that had been in an unrealized loss position for 12 months or longer.

The Company believes there were no fundamental issues such as credit losses or other factors with respect to any of its available-for-sale securities. The unrealized losses on investments in fixed-maturity securities were caused primarily by interest rate changes. It is expected that the securities would not be settled at a price less than par value of the investments. Because the declines in fair value are attributable to changes in interest rates or market conditions and not credit quality, and because the Company has the ability and intent to hold its available-for-sale investments until a market price recovery or maturity, the Company does not consider any of its investments to be other-than-temporarily impaired at June 30, 2021.