Fair Value of Financial Assets and Financial Liabilities (Tables)

9 Months Ended

Sep. 30, 2014

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2014 are summarized in the following table by the type of inputs applicable to the fair value measurements (unaudited) (in thousands):



	Fair Value Measurements at Reporting Date Using
Description	Total			Level 1		Level 2		Level 3
Financial Assets
Fixed maturities available-for-sale
Corporate debt securities	$	40,257		$	—	$	40,257	$	—
Trust preferred securities	—			—		—		—
Mortgage backed securities	11,645			—		11,645		—
Private label mortgage backed securities	1,443			—		1,443		—
Obligations of states and political subdivisions	15,795			—		15,795		—
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	18,067			18,067		—		—
Trading securities	19			19		—		—
Equity securities available-for-sale	4,762			3,664		—		1,098
Total Financial Assets	$	91,988		$	21,750	$	69,140	$	1,098
Financial Liabilities
Interest rate swap	$	(1,085	)	$	—	$	—	$	(1,085	)
Total Financial Liabilities	$	(1,085	)	$	—	$	—	$	(1,085	)

Financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 are summarized in the following table by the type of inputs applicable to the fair value measurements (in thousands):



	Fair Value Measurements at Reporting Date Using
Description	Total		Level 1		Level 2		Level 3
Financial Assets
Fixed maturities available-for-sale
Corporate debt securities	$	36,816	$	—	$	36,816	$	—
Trust preferred securities	571		—		571		—
Mortgage backed securities	7,140		—		7,140		—
Private label mortgage backed securities	2,186		—		2,186		—
Obligations of states and political subdivisions	16,741		—		16,741		—
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	15,980		15,980		—		—
Trading securities	19		19		—		—
Equity securities available-for-sale	4,374		3,499		—		875
Total Financial Assets	$	83,827	$	19,498	$	63,454	$	875
Financial Liabilities
Interest rate swap	$	897	$	—	$	—	$	897
Total Financial Liabilities	$	897	$	—	$	—	$	897

Schedule of Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The table below presents a reconciliation for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended September 30, 2014 (in thousands):



For the nine months ended September 30, 2014	Equity Securities Available-for-Sale		Interest Rate Swap
Beginning balance	$	875	$	(897	)
Total gains or losses (realized and unrealized):
Included in earnings	—		—
Included in other comprehensive income	223		(188		)
Purchases:	—		—
Sales:	—		—
Issuances:	—		—
Settlements:	—		—
Transfers in/(out) of Level 3	—		—
Ending balance	$	1,098	$	(1,085	)
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets and liabilities still held as of September 30, 2014:	$	—	$	—

The table below presents a reconciliation for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2013 (in thousands):



For the year ended December 31, 2013	Equity Securities Available-for-Sale		Interest Rate Swap
Beginning balance	$	829	$	(1,521	)
Total gains or losses (realized and unrealized):
Included in earnings	—		—
Included in other comprehensive income	46		624
Purchases:	—		—
Sales:	—		—
Issuances:	—		—
Settlements:	—		—
Transfers in/(out) of Level 3	—		—
Ending balance	$	875	$	(897	)
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets and liabilities still held as of December 31, 2013:	$	—	$	—

Schedule of Fair Value, by Balance Sheet Grouping

The carrying amount and estimated fair value of the Company’s financial instruments as of September 30, 2014 and December 31, 2013 are as follows (in thousands):



	September 30, 2014				December 31, 2013
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Assets and related instruments
Mortgage loans	$	227	$	227	$	333	$	333
Policy loans	1,523		1,523		1,443		1,443
Company owned life insurance	5,494		5,494		5,858		5,858
Other invested assets	3,509		3,509		3,559		3,559

Liabilities and related instruments
Other policyholder funds	1,485		1,485		1,447		1,447
Short-term notes payable and current portion of long-term debt	1,166		1,166		1,866		1,866
Long-term debt	20,539		20,539		20,889		20,889

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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