FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES (Tables)

3 Months Ended

Mar. 31, 2019

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, 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
U.S. Government corporations and agencies	$	4,744		$	4,147	$	597	$	—
Agency mortgage backed securities	27,106			11,756		15,350		—
Asset backed securities	10,560			2,839		7,721		—
Corporate bonds	35,791			—		35,791		—
Private label asset backed securities	5,947			—		5,947		—
States, municipalities and political subdivisions	10,073			—		10,073		—
Foreign governments	804			804		—		—
Trading securities	107			107		—		—
Equity securities available-for-sale	4,306			3,181		—		1,125
Total Financial Assets	$	99,438		$	22,834	$	75,479	$	1,125
Financial Liabilities
Interest rate swap	$	(234	)	$	—	$	—	$	(234	)
Total Financial Liabilities	$	(234	)	$	—	$	—	$	(234	)

Financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2019 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
U.S. Government corporations and agencies	$	4,831		$	4,831	$	—	$	—
Agency mortgage backed securities	30,620			17,190		13,430		—
Asset backed securities	10,595			2,869		7,726		—
Corporate bonds	36,039			—		36,039		—
Private label asset backed securities	6,116			—		6,116		—
States, municipalities and political subdivisions	10,103			—		10,103		—
Foreign governments	821			821		—		—
Trading securities	136			136		—		—
Equity securities	4,439			3,268		—		1,171
Total Financial Assets	$	103,700		$	29,115	$	73,414	$	1,171
Financial Liabilities
Interest rate swap	$	(202	)	$	—	$	—	$	(202	)
Total Financial Liabilities	$	(202	)	$	—	$	—	$	(202	)

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 three months ended March 31, 2019 (in thousands):



For the three months March 31, 2019	Equity Securities		Interest Rate Swap
Beginning balance	$	1,125	$	(234	)
Total gains or losses (realized and unrealized):
Included in earnings	46		—
Included in other comprehensive income	—		32
Purchases:	—		—
Sales:	—		—
Issuances:	—		—
Settlements:	—		—
Transfers in/(out) of Level 3	—		—
Ending balance	$	1,171	$	(202	)
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 March 31, 2019:	$	—	$	—

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, 2018 (in thousands):



For the year ended December 31, 2018	Equity Securities Available-for-Sale		Interest Rate Swap
Beginning balance	$	1,073	$	(608	)
Total gains or losses (realized and unrealized):
Included in earnings	52		—
Included in other comprehensive income	—		374
Purchases:	—		—
Sales:	—		—
Issuances:	—		—
Settlements:	—		—
Transfers in/(out) of Level 3	—		—
Ending balance	$	1,125	$	(234	)
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, 2018:	$	—	$	—

Schedule of Fair Value, by Balance Sheet Grouping

The carrying amount and estimated fair value of the Company’s financial instruments as of March 31, 2019 and December 31, 2018 are as follows (in thousands):



	March 31, 2019				December 31, 2018
Assets and related instruments	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Held-to-maturity securities	$	1,429	$	1,449	$	1,449	$	1,443
Mortgage loans	154		154		156		156
Policy loans	1,850		1,850		1,854		1,854
Company owned life insurance	4,550		4,550		4,600		4,600
Other invested assets	2,073		2,073		2,148		2,148
Liabilities and related instruments
Other policyholder funds	1,473		1,473		1,515		1,515
Short-term notes payable and current portion of long-term debt	2,200		2,200		2,200		2,200
Long-term debt	12,155		12,155		12,152		12,152