Investments (Tables)

9 Months Ended

Sep. 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 September 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	$	70,145	$	1,357	$	444	$	71,058
Obligations of states and political subdivisions		136,835		10,941		152		147,624
Corporate securities		106,387		2,786		1,077		108,096
Mortgage-backed securities		51,910		818		77		52,651
Totals	$	365,277	$	15,902	$	1,750	$	379,429
	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	$	47,217	$	63	$	499	$	46,781
Obligations of states and political subdivisions		135,367		4,874		270		139,971
Corporate securities		100,230		1,228		347		101,111
Mortgage-backed securities		246,925		794		2,121		245,598
Fixed maturities		529,739		6,959		3,237		533,461
Equity securities		44,819		5,855		646		50,028
Totals	$	574,558	$	12,814	$	3,883	$	583,489

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 September 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
Held to maturity	(in thousands)
Due in one year or less	$	6,681	$	6,689
Due after one year through five years		52,418		53,656
Due after five years through ten years		139,103		143,566
Due after ten years		115,165		122,867
Mortgage-backed securities		51,910		52,651
Total held to maturity	$	365,277	$	379,429
Available for sale
Due in one year or less	$	54,276	$	55,289
Due after one year through five years		94,106		95,647
Due after five years through ten years		110,187		111,712
Due after ten years		24,245		25,215
Mortgage-backed securities		246,925		245,598
Total available for sale	$	529,739	$	533,461

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 nine months ended September 30, 2017 and 2016 were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
	(in thousands)				(in thousands)
Gross realized gains:
Fixed maturities	$	87	$	289	$	138	$	2,129
Equity securities		513		1,170		4,142		1,226
		600		1,459		4,280		3,355
Gross realized losses:
Fixed maturities		39		22		69		280
Equity securities		—		419		3		870
		39		441		72		1,150
Net realized gains	$	561	$	1,018	$	4,208	$	2,205

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 September 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	$	50,877	$	865	$	1,919	$	78
Obligations of states and political subdivisions		19,651		366		4,601		56
Corporate securities		39,754		735		16,426		689
Mortgage-backed securities		176,141		1,677		16,653		521
Equity securities		4,678		475		766		171
Totals	$	291,101	$	4,118	$	40,365	$	1,515

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 September 30, 2017 and 2016 and for the three and nine months then ended is unaudited.

Balance sheets:	September 30, 2017		December 31, 2016
	(in thousands)
Total assets	$	559,961	$	535,590
Total liabilities	$	478,455	$	457,101
Stockholders’ equity		81,506		78,489
Total liabilities and stockholders’ equity	$	559,961	$	535,590

	Three Months Ended September 30,				Nine Months Ended September 30,
Income statements:	2017		2016		2017		2016
	(in thousands)				(in thousands)
Net income	$	837	$	742	$	2,122	$	1,449