Fair Value of Financial Assets and Financial Liabilities (Tables)

9 Months Ended

Sep. 30, 2017

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, 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	$	40,403		$	—	$	40,403	$	—
Mortgage backed securities	10,931			—		10,931		—
Private label asset backed securities	7,774			—		7,774		—
Obligations of states and political subdivisions	15,166			—		15,166		—
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	18,518			18,518		—		—
Trading securities	107			107		—		—
Equity securities available-for-sale	4,943			3,685		—		1,258
Total Financial Assets	$	97,842		$	22,310	$	74,274	$	1,258
Financial Liabilities
Interest rate swap	$	(1,030	)	$	—	$	—	$	(1,030	)
Total Financial Liabilities	$	(1,030	)	$	—	$	—	$	(1,030	)

Financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2017 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	$	39,137		$	—	$	39,137	$	—
Mortgage backed securities	9,829			—		9,829		—
Private label asset backed securities	10,233			—		10,233		—
Obligations of states and political subdivisions	14,552			—		14,552		—
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	19,072			19,072		—		—
Trading securities	107			107		—		—
Equity securities available-for-sale	4,790			3,717		—		1,073
Total Financial Assets	$	97,720		$	22,896	$	73,751	$	1,073
Financial Liabilities
Interest rate swap	$	(757	)	$	—	$	—	$	(757	)
Total Financial Liabilities	$	(757	)	$	—	$	—	$	(757	)

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, 2017 (in thousands):



For the nine months ended September 30, 2017	Equity Securities Available-for-Sale			Interest Rate Swap
Beginning balance	$	1,258		$	(1,030	)
Total gains or losses (realized and unrealized):
Included in earnings	—			—
Included in other comprehensive income	114			273
Purchases:	46			—
Sales:	(345		)	—
Issuances:	—			—
Settlements:	—			—
Transfers in/(out) of Level 3	—			—
Ending balance	$	1,073		$	(757	)
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, 2017:	$	—		$	—

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, 2016 (in thousands):



For the year ended December 31, 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		389
Purchases:	—		—
Sales:	—		—
Issuances:	—		—
Settlements:	—		—
Transfers in/(out) of Level 3	—		—
Ending balance	$	1,258	$	(1,030	)
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, 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, 2017 and December 31, 2016 are as follows (in thousands):



	September 30, 2017				December 31, 2016
Assets and related instruments	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Held-to-maturity securities	$	1,684	$	1,729	$	1,890	$	1,930
Mortgage loans	163		163		174		174
Policy loans	1,768		1,768		1,708		1,708
Company owned life insurance	4,959		4,959		4,864		4,864
Other invested assets	2,688		2,688		2,958		2,958
Liabilities and related instruments
Other policyholder funds	1,683		1,683		1,629		1,629
Short-term notes payable and current portion of long-term debt	1,300		1,300		1,800		1,800
Long-term debt	15,335		15,335		15,326		15,326