Fair Value of Financial Assets and Financial Liabilities (Tables)

9 Months Ended

Sep. 30, 2016

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 December 31, 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	$	37,264		$	—	$	37,264	$	—
Mortgage backed securities	15,257			—		15,257		—
Private label asset backed securities	5,673			—		5,673		—
Obligations of states and political subdivisions	15,476			—		15,476		—
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	18,142			18,142		—		—
Trading securities	107			107		—		—
Equity securities available-for-sale	4,897			3,724		—		1,173
Total Financial Assets	$	96,816		$	21,973	$	73,670	$	1,173
Financial Liabilities
Interest rate swap	$	(1,419	)	$	—	$	—	$	(1,419	)
Total Financial Liabilities	$	(1,419	)	$	—	$	—	$	(1,419	)

Financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2016 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	$	44,128		$	—	$	44,128	$	—
Mortgage backed securities	12,036			—		12,036		—
Private label asset backed securities	6,482			—		6,482		—
Obligations of states and political subdivisions	15,645			—		15,645		—
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	22,163			22,163		—		—
Trading securities	107			107		—		—
Equity securities available-for-sale	5,204			3,946		—		1,258
Total Financial Assets	$	105,765		$	26,216	$	78,291	$	1,258
Financial Liabilities
Interest rate swap	$	(1,338	)	$	—	$	—	$	(1,338	)
Total Financial Liabilities	$	(1,338	)	$	—	$	—	$	(1,338	)

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, 2015 (in thousands):



For the year ended December 31, 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	57		(181		)
Purchases:	—		—
Sales:	—		—
Issuances:	—		—
Settlements:	—		—
Transfers in/(out) of Level 3	—		—
Ending balance	$	1,173	$	(1,419	)
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, 2015:	$	—	$	—

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, 2016 (in thousands):



For the nine months ended September 30, 2016	Equity Securities Available-for-Sale		Interest Rate Swap
Beginning balance	$	1,173	$	(1,419	)
Total gains or losses (realized and unrealized):
Included in earnings	—		—
Included in other comprehensive income	85		81
Purchases:	—		—
Sales:	—		—
Issuances:	—		—
Settlements:	—		—
Transfers in/(out) of Level 3	—		—
Ending balance	$	1,258	$	(1,338	)
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, 2016:	$	—	$	—

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, 2016 and December 31, 2015 are as follows (in thousands):



	September 30, 2016				December 31, 2015
Assets and related instruments	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Held-to-maturity securities	$	2,072	$	2,175	$	2,439	$	2,504
Mortgage loans	174		174		202		202
Policy loans	1,708		1,708		1,655		1,655
Company owned life insurance	4,978		4,978		4,898		4,898
Other invested assets	3,027		3,027		3,256		3,256
Liabilities and related instruments
Other policyholder funds	1,614		1,614		1,561		1,561
Short-term notes payable and current portion of long-term debt	857		857		857		857
Long-term debt	16,409		16,409		17,100		17,100