Fair Value of Financial Assets and Financial Liabilities (Tables)

6 Months Ended

Jun. 30, 2018

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, 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	$	39,909		$	—	$	39,909	$	—
Mortgage backed securities	12,795			—		12,795		—
Private label asset backed securities	10,510			—		10,510		—
Obligations of states and political subdivisions	14,093			—		14,093		—
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	18,451			18,451		—		—
Trading securities	107			107		—		—
Equity securities available-for-sale	4,509			3,436		—		1,073
Total Financial Assets	$	100,374		$	21,994	$	77,307	$	1,073
Financial Liabilities
Interest rate swap	$	(608	)	$	—	$	—	$	(608	)
Total Financial Liabilities	$	(608	)	$	—	$	—	$	(608	)

Financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2018 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	$	38,761		$	—	$	38,761	$	—
Mortgage backed securities	13,286			—		13,286		—
Private label asset backed securities	14,188			—		14,188		—
Obligations of states and political subdivisions	12,011			—		12,011		—
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	18,790			18,790		—		—
Trading securities	107			107		—		—
Equity securities	4,140			3,084		—		1,056
Total Financial Assets	$	101,283		$	21,981	$	78,246	$	1,056
Financial Liabilities
Interest rate swap	$	(346	)	$	—	$	—	$	(346	)
Total Financial Liabilities	$	(346	)	$	—	$	—	$	(346	)

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 six months ended June 30, 2018 (in thousands):



For the six months ended June 30, 2018	Equity Securities			Interest Rate Swap
Beginning balance	$	1,073		$	(608	)
Total gains or losses (realized and unrealized):
Included in earnings	(17		)	—
Included in other comprehensive income	—			262
Purchases:	—			—
Sales:	—			—
Issuances:	—			—
Settlements:	—			—
Transfers in/(out) of Level 3	—			—
Ending balance	$	1,056		$	(346	)
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 June 30, 2018:	$	—		$	—

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, 2017 (in thousands):



For the year ended December 31, 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			422
Purchases:	46			—
Sales:	(345		)	—
Issuances:	—			—
Settlements:	—			—
Transfers in/(out) of Level 3	—			—
Ending balance	$	1,073		$	(608	)
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, 2017:	$	—		$	—

Schedule of Fair Value, by Balance Sheet Grouping

The carrying amount and estimated fair value of the Company’s financial instruments as of June 30, 2018 and December 31, 2017 are as follows (in thousands):



	June 30, 2018				December 31, 2017
Assets and related instruments	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Held-to-maturity securities	$	1,523	$	1,512	$	1,616	$	1,645
Mortgage loans	160		160		162		162
Policy loans	1,851		1,851		1,810		1,810
Company owned life insurance	4,838		4,838		4,974		4,974
Other invested assets	2,346		2,346		2,574		2,574
Liabilities and related instruments
Other policyholder funds	1,708		1,708		1,706		1,706
Short-term notes payable and current portion of long-term debt	800		800		1,300		1,300
Long-term debt	14,345		14,345		14,339		14,339