Investments (Tables)

3 Months Ended

Mar. 31, 2017

Investments, Debt and Equity Securities [Abstract]

Summary of Amortized Cost and Estimated Fair Values of Fixed Maturities and Equity Securities

The amortized cost and estimated fair values of our fixed maturities and equity securities at March 31, 2017 were as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in thousands)
Held to Maturity
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	63,474	$	1,338	$	658	$	64,154
Obligations of states and political subdivisions		129,306		8,844		285		137,865
Corporate securities		102,024		1,372		1,166		102,230
Mortgage-backed securities		57,492		664		109		58,047
Totals	$	352,296	$	12,218	$	2,218	$	362,296

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in thousands)
Available for Sale
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	39,090	$	93	$	576	$	38,607
Obligations of states and political subdivisions		168,602		6,217		319		174,500
Corporate securities		91,299		762		761		91,300
Mortgage-backed securities		208,865		645		2,748		206,762
Fixed maturities		507,856		7,717		4,404		511,169
Equity securities		43,625		5,176		200		48,601
Totals	$	551,481	$	12,893	$	4,604	$	559,770

The amortized cost and estimated fair values of our fixed maturities and equity securities at December 31, 2016 were as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in thousands)
Held to Maturity
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	61,382	$	1,255	$	674	$	61,963
Obligations of states and political subdivisions		122,793		8,404		369		130,828
Corporate securities		91,555		1,172		1,678		91,049
Mortgage-backed securities		60,371		546		110		60,807
Totals	$	336,101	$	11,377	$	2,831	$	344,647

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in thousands)
Available for Sale
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	39,094	$	100	$	606	$	38,588
Obligations of states and political subdivisions		179,889		6,637		443		186,083
Corporate securities		87,715		662		921		87,456
Mortgage-backed securities		204,931		637		2,620		202,948
Fixed maturities		511,629		8,036		4,590		515,075
Equity securities		42,432		4,788		132		47,088
Totals	$	554,061	$	12,824	$	4,722	$	562,163

Summary of Amortized Cost and Estimated Fair Value of Fixed Maturities by Contractual Maturity

We show below the amortized cost and estimated fair value of our fixed maturities at March 31, 2017 by contractual maturity. Expected maturities may differ from contractual maturities because issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized Cost		Estimated Fair Value
	(in thousands)
Held to maturity
Due in one year or less	$	10,830	$	10,850
Due after one year through five years		51,254		52,381
Due after five years through ten years		131,295		134,235
Due after ten years		101,425		106,783
Mortgage-backed securities		57,492		58,047
Total held to maturity	$	352,296	$	362,296
Available for sale
Due in one year or less	$	76,426	$	78,276
Due after one year through five years		88,029		89,498
Due after five years through ten years		97,313		97,917
Due after ten years		37,223		38,716
Mortgage-backed securities		208,865		206,762
Total available for sale	$	507,856	$	511,169

Summary of Gross Realized Gains and Losses from Investments before Applicable Income Taxes

Gross realized gains and losses from investments before applicable income taxes for the three months ended March 31, 2017 and 2016 were as follows:

	Three Months Ended March 31,
	2017		2016
	(in thousands)
Gross realized gains:
Fixed maturities	$	5	$	1,165
Equity securities		2,544		—
		2,549		1,165
Gross realized losses:
Fixed maturities		—		255
Equity securities		—		439
		—		694
Net realized gains	$	2,549	$	471

Summary of Fixed Maturities and Equity Securities with Unrealized Losses

We held fixed maturities and equity securities with unrealized losses representing declines that we considered temporary at March 31, 2017 as follows:

	Less Than 12 Months				More Than 12 Months
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	40,432	$	1,234	$	—	$	—
Obligations of states and political subdivisions		33,890		594		705		10
Corporate securities		69,055		1,589		4,839		338
Mortgage-backed securities		173,073		2,857		108		—
Equity securities		4,267		117		436		83
Totals	$	320,717	$	6,391	$	6,088	$	431

We held fixed maturities and equity securities with unrealized losses representing declines that we considered temporary at December 31, 2016 as follows:

	Less Than 12 Months				More Than 12 Months
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	37,730	$	1,280	$	—	$	—
Obligations of states and political subdivisions		40,739		802		710		9
Corporate securities		80,181		2,127		4,707		472
Mortgage-backed securities		168,772		2,728		417		3
Equity securities		5,421		132		—		—
Totals	$	332,843	$	7,069	$	5,834	$	484

Summary of Financial Information

The financial information of DFSC at March 31, 2017 and 2016 and for the three months then ended is unaudited.

Balance sheets:

	March 31,   2017		December 31, 2016
	(in thousands)
Total assets	$	541,225	$	535,590
Total liabilities	$	462,113	$	457,101
Stockholders’ equity		79,112		78,489
Total liabilities and stockholders’ equity	$	541,225	$	535,590

Income statements:

	Three Months Ended March 31,
	2017		2016
	(in thousands)
Net income	$	483	$	73