Investments (Tables)

6 Months Ended

Jun. 30, 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 June 30, 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	$	65,104	$	1,454	$	497	$	66,061
Obligations of states and political subdivisions		133,149		10,574		195		143,528
Corporate securities		103,305		2,338		1,287		104,356
Mortgage-backed securities		54,749		804		83		55,470
Totals	$	356,307	$	15,170	$	2,062	$	369,415

	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	$	39,186	$	85	$	437	$	38,834
Obligations of states and political subdivisions		157,048		5,582		204		162,426
Corporate securities		93,225		1,060		442		93,843
Mortgage-backed securities		217,734		744		2,272		216,206
Fixed maturities		507,193		7,471		3,355		511,309
Equity securities		42,163		4,875		722		46,316
Totals	$	549,356	$	12,346	$	4,077	$	557,625

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 June 30, 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	$	7,719	$	7,727
Due after one year through five years		51,321		52,370
Due after five years through ten years		135,275		139,408
Due after ten years		107,243		114,440
Mortgage-backed securities		54,749		55,470
Total held to maturity	$	356,307	$	369,415
Available for sale
Due in one year or less	$	74,570	$	76,005
Due after one year through five years		88,896		90,496
Due after five years through ten years		102,651		104,184
Due after ten years		23,342		24,418
Mortgage-backed securities		217,734		216,206
Total available for sale	$	507,193	$	511,309

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 and six months ended June 30, 2017 and 2016 were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
	(in thousands)				(in thousands)
Gross realized gains:
Fixed maturities	$	45	$	675	$	50	$	1,840
Equity securities		1,085		56		3,629		56
		1,130		731		3,679		1,896
Gross realized losses:
Fixed maturities		30		3		30		258
Equity securities		3		13		3		452
		33		16		33		710
Net realized gains	$	1,097	$	715	$	3,646	$	1,186

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 June 30, 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	$	41,087	$	934	$	—	$	—
Obligations of states and political subdivisions		20,102		385		696		14
Corporate securities		48,822		1,195		6,051		534
Mortgage-backed securities		164,760		2,325		1,196		30
Equity securities		6,222		473		370		249
Totals	$	280,993	$	5,312	$	8,313	$	827

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 June 30, 2017 and 2016 and for the three and six months then ended is unaudited.

Balance sheets:	June 30, 2017		December 31, 2016
	(in thousands)
Total assets	$	544,943	$	535,590
Total liabilities	$	464,454	$	457,101
Stockholders’ equity		80,489		78,489
Total liabilities and stockholders’ equity	$	544,943	$	535,590

	Three Months Ended June 30,				Six Months Ended June 30,
Income statements:	2017		2016		2017		2016
	(in thousands)				(in thousands)
Net income	$	802	$	634	$	1,285	$	707