Fair Value of Financial Assets and Financial Liabilities (Tables)

9 Months Ended

Sep. 30, 2015

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, 2015 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	$	35,408		$	—	$	35,408	$	—
Mortgage backed securities	14,886			—		14,886		—
Private label mortgage backed securities	6,085			—		6,085		—
Obligations of states and political subdivisions	15,780			—		15,780		—
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	16,370			16,370		—		—
Trading securities	107			107		—		—
Equity securities available-for-sale	4,654			3,502		—		1,152
Total Financial Assets	$	93,290		$	19,979	$	72,159	$	1,152
Financial Liabilities
Interest rate swap	$	(1,569	)	$	—	$	—	$	(1,569	)
Total Financial Liabilities	$	(1,569	)	$	—	$	—	$	(1,569	)

Financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2014 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	$	38,667		$	—	$	38,667	$	—
Mortgage backed securities	12,752			—		12,752		—
Private label mortgage backed securities	1,296			—		1,296		—
Obligations of states and political subdivisions	15,899			—		15,899		—
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	18,272			18,272		—		—
Trading securities	19			19		—		—
Equity securities available-for-sale	4,995			3,879		—		1,116
Total Financial Assets	$	91,900		$	22,170	$	68,614	$	1,116
Financial Liabilities
Interest rate swap	$	(1,238	)	$	—	$	—	$	(1,238	)
Total Financial Liabilities	$	(1,238	)	$	—	$	—	$	(1,238	)

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 year ended December 31, 2014 (in thousands):



For the year ended December 31, 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	241		(341		)
Purchases:	—		—
Sales:	—		—
Issuances:	—		—
Settlements:	—		—
Transfers in/(out) of Level 3	—		—
Ending balance	$	1,116	$	(1,238	)
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, 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 nine months ended September 30, 2015 (in thousands):



For the nine months ended September 30, 2015	Equity Securities Available-for-Sale		Interest Rate Swap
Beginning balance	$	1,116	$	(1,238	)
Total gains or losses (realized and unrealized):
Included in earnings	—		—
Included in other comprehensive income	36		(331		)
Purchases:	—		—
Sales:	—		—
Issuances:	—		—
Settlements:	—		—
Transfers in/(out) of Level 3	—		—
Ending balance	$	1,152	$	(1,569	)
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, 2015:	$	—	$	—

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, 2015 and December 31, 2014 are as follows (in thousands):



	September 30, 2015				December 31, 2014
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Assets and related instruments
Held-to-maturity securities	$	2,554	$	2,660	$	3,108	$	3,182
Mortgage loans	204		204		210		210
Policy loans	1,616		1,616		1,530		1,530
Company owned life insurance	4,909		4,909		5,513		5,513
Other invested assets	3,303		3,303		3,553		3,553

Liabilities and related instruments
Other policyholder funds	1,545		1,545		1,510		1,510
Short-term notes payable and current portion of long-term debt	857		857		857		857
Long-term debt	17,515		17,515		18,715		18,715