Investments (Tables)
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9 Months Ended |
Sep. 30, 2021 |
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| Investments, Debt and Equity Securities [Abstract] |
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| Schedule of Cost or Amortized Cost and Fair Value of Securities Available for Sale |
The following table provides the amortized cost and fair value of available-for-sale debt securities as of the dates presented (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2021 | | Amortized
Cost | | Allowance for Expected Credit Losses | | Gross
Unrealized
Gains | | Gross
Unrealized
Losses | | Fair Value | | Debt Securities: | | | | | | | | | | | U.S. government obligations and agencies | $ | 37,291 | | | $ | — | | | $ | 102 | | | $ | (277) | | | $ | 37,116 | | | Corporate bonds | 640,855 | | | (236) | | | 1,435 | | | (7,562) | | | 634,492 | | | Mortgage-backed and asset-backed securities | 336,881 | | | — | | | 493 | | | (3,620) | | | 333,754 | | | Municipal bonds | 14,925 | | | (1) | | | 1 | | | (244) | | | 14,681 | | | Redeemable preferred stock | 9,090 | | | (53) | | | 90 | | | (13) | | | 9,114 | | | Total | $ | 1,039,042 | | | $ | (290) | | | $ | 2,121 | | | $ | (11,716) | | | $ | 1,029,157 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2020 | | Amortized
Cost | Allowance for Expected Credit Losses | | Gross
Unrealized
Gains | | Gross
Unrealized
Losses | | Fair Value | | Debt Securities: | | | | | | | | | | U.S. government obligations and agencies | $ | 59,529 | | $ | — | | | $ | 157 | | | $ | (55) | | | $ | 59,631 | | | Corporate bonds | 416,758 | | (148) | | | 3,571 | | | (337) | | | 419,844 | | | Mortgage-backed and asset-backed securities | 319,377 | | — | | | 1,175 | | | (615) | | | 319,937 | | | Municipal bonds | 11,990 | | — | | | 138 | | | — | | | 12,128 | | | Redeemable preferred stock | 7,993 | | (38) | | | 424 | | | (58) | | | 8,321 | | | Total | $ | 815,647 | | $ | (186) | | | $ | 5,465 | | | $ | (1,065) | | | $ | 819,861 | |
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| Schedule of Credit Quality of Investment Securities |
The following table provides the credit quality of available-for-sale debt securities as of the dates presented (dollars in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2021 | | December 31, 2020 | | Equivalent S&P Credit Ratings | | Fair Value | | % of Total
Fair Value | | Fair Value | | % of Total
Fair Value | | AAA | | $ | 330,344 | | | 32.1 | % | | $ | 337,462 | | | 41.2 | % | | AA | | 143,806 | | | 14.0 | % | | 89,681 | | | 10.9 | % | | A | | 315,761 | | | 30.7 | % | | 230,290 | | | 28.1 | % | | BBB | | 229,208 | | | 22.2 | % | | 160,662 | | | 19.6 | % | | BB and Below | | — | | | — | % | | 233 | | | — | % | | No Rating Available | | 10,038 | | | 1.0 | % | | 1,533 | | | 0.2 | % | | Total | | $ | 1,029,157 | | | 100.0 | % | | $ | 819,861 | | | 100.0 | % |
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| Schedule of Amortized Cost and Fair Value on Mortgage-Backed and Asset-Backed Securities |
The following table summarizes the amortized cost and fair value of mortgage-backed and asset-backed securities as of the dates presented (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2021 | | December 31, 2020 | | Amortized
Cost | | Fair Value | | Amortized
Cost | | Fair Value | | Mortgage-backed Securities: | | | | | | | | | Agency | $ | 149,850 | | | $ | 147,723 | | | $ | 153,937 | | | $ | 153,758 | | | Non-agency | 68,025 | | | 66,940 | | | 54,231 | | | 54,666 | | | Asset-backed Securities: | | | | | | | | | Auto loan receivables | 71,716 | | | 71,764 | | | 68,188 | | | 68,440 | | | Credit card receivables | 4,756 | | | 4,749 | | | 7,878 | | | 7,891 | | | Other receivables | 42,534 | | | 42,578 | | | 35,143 | | | 35,182 | | | Total | $ | 336,881 | | | $ | 333,754 | | | $ | 319,377 | | | $ | 319,937 | |
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| Schedule of Fair Value and Gross Unrealized Losses on Securities Available for Sale |
The following tables summarize available-for-sale debt securities, aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position, for which no allowance for expected credit losses has been recorded as of the dates presented (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2021 | | Less Than 12 Months | | 12 Months or Longer | | Number of
Issues | | Fair Value | | Unrealized
Losses | | Number of
Issues | | Fair Value | | Unrealized
Losses | | Debt Securities: | | | | | | | | | | | | | U.S. government obligations and agencies | 5 | | | $ | 21,069 | | | $ | (145) | | | 2 | | | $ | 1,981 | | | $ | (132) | | | Corporate bonds | 216 | | | 304,464 | | | (4,143) | | | 7 | | | 12,896 | | | (339) | | | Mortgage-backed and asset-backed securities | 108 | | | 232,904 | | | (3,425) | | | 5 | | | 5,320 | | | (195) | | | Municipal bonds | 4 | | | 8,881 | | | (199) | | | — | | | — | | | — | | | Redeemable preferred stock | 1 | | | 498 | | | (2) | | | — | | | — | | | — | | | Total | 334 | | | $ | 567,816 | | | $ | (7,914) | | | 14 | | | $ | 20,197 | | | $ | (666) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2020 | | Less Than 12 Months | | 12 Months or Longer | | Number of
Issues | | Fair Value | | Unrealized
Losses | | Number of
Issues | | Fair Value | | Unrealized
Losses | | Debt Securities: | | | | | | | | | | | | | U.S. government obligations and agencies | 8 | | | $ | 31,729 | | | $ | (55) | | | — | | | $ | — | | | $ | — | | | Corporate bonds | 27 | | | 28,791 | | | (162) | | | — | | | — | | | — | | | Mortgage-backed and asset-backed securities | 42 | | | 112,462 | | | (615) | | | — | | | — | | | — | | | Municipal bonds | — | | | — | | | — | | | — | | | — | | | — | | | Redeemable preferred stock | 2 | | | 688 | | | (12) | | | — | | | — | | | — | | | Total | 79 | | | $ | 173,670 | | | $ | (844) | | | — | | | $ | — | | | $ | — | |
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| Schedule of Debt Securities, Available-for-sale, Allowance for Credit Loss |
The following table presents a reconciliation of the beginning and ending balances for expected credit losses on available-for-sale debt securities (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Corporate Bonds | | | | Municipal Bonds | | Redeemable
Preferred Stock | | Total | | Balance, December 31, 2019 | | $ | — | | | | | $ | — | | | $ | — | | | $ | — | | | Cumulative effect adjustment as of January 1, 2020 | | 665 | | | | | — | | | 126 | | | 791 | | | Increase (decrease) | | (517) | | | | | — | | | (88) | | | (605) | | | Balance, December 31, 2020 | | 148 | | | | | — | | | 38 | | | 186 | | | Increase (decrease) | | 88 | | | | | 1 | | | 15 | | | 104 | | | Balance, September 30, 2021 | | $ | 236 | | | | | $ | 1 | | | $ | 53 | | | $ | 290 | |
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| Schedule of Amortized Cost and Fair Value of Investments With Contractual Maturities |
The following table presents the amortized cost and fair value of investments with maturities as of the date presented (in thousands): | | | | | | | | | | | | | September 30, 2021 | | Amortized Cost | | Fair Value | | Due in one year or less | $ | 31,202 | | | $ | 31,275 | | | Due after one year through five years | 609,963 | | | 606,996 | | | Due after five years through ten years | 370,677 | | | 363,943 | | | Due after ten years | 26,301 | | | 26,046 | | | Perpetual maturity securities | 899 | | | 897 | | | Total | $ | 1,039,042 | | | $ | 1,029,157 | |
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| Schedule of Securities Available for Sale |
The following table provides certain information related to available-for-sale debt securities, equity securities and investment in real estate during the periods presented (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
September 30, | | Nine Months Ended
September 30, | | 2021 | | 2020 | | 2021 | | 2020 | | Proceeds from sales and maturities (fair value): | | | | | | | | | Available-for-sale debt securities (1) | $ | 32,320 | | | $ | 773,673 | | | $ | 146,611 | | | $ | 873,355 | | | Equity securities | $ | 48,486 | | | $ | — | | | $ | 53,651 | | | $ | — | | | Gross realized gains on sale of securities: | | | | | | | | | Available-for-sale debt securities (1) | $ | 882 | | | $ | 53,893 | | | $ | 1,899 | | | $ | 54,779 | | | Equity securities | $ | 1,315 | | | $ | — | | | $ | 2,399 | | | $ | — | | | Gross realized losses on sale of securities: | | | | | | | | | Available-for-sale debt securities (1) | $ | (192) | | | $ | (66) | | | $ | (1,656) | | | $ | (485) | | | Equity securities | $ | — | | | $ | — | | | $ | — | | | $ | — | | | Realized gains on sales of investment real estate (2) | $ | — | | | $ | — | | | $ | 401 | | | $ | — | |
| | | | | | | | | | (1) | | | In the third quarter of 2020, the Company took advantage of the market recovery and recognized $53.8 million of net realized gains on the sale of our available-for-sale debt securities that were in an unrealized gain position. | | (2) | | | See the discussion below for “Investment Real Estate” sold. |
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| Schedule of Investment Income (Expense) Comprised Primarily of Interest and Dividends |
The following table presents the components of net investment income, comprised primarily of interest and dividends, for the periods presented (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
September 30, | | Nine Months Ended
September 30, | | 2021 | | 2020 | | 2021 | | 2020 | | Available-for-sale debt securities | $ | 2,799 | | | $ | 4,394 | | | $ | 8,393 | | | $ | 16,425 | | | Equity securities | 544 | | | 583 | | | 1,787 | | | 1,732 | | | | | | | | | | | Cash and cash equivalents (1) | 2 | | | 49 | | | 28 | | | 935 | | | Other (2) | 274 | | | 268 | | | 809 | | | 782 | | | Total investment income | 3,619 | | | 5,294 | | | 11,017 | | | 19,874 | | | Less: Investment expenses (3) | (822) | | | (737) | | | (2,376) | | | (2,304) | | | Net investment income | $ | 2,797 | | | $ | 4,557 | | | $ | 8,641 | | | $ | 17,570 | |
| | | | | | | | | | (1) | | | Includes interest earned on restricted cash and cash equivalents. | | (2) | | | Includes investment income earned on real estate investments. | | (3) | | | Includes custodial fees, investment accounting and advisory fees, and expenses associated with real estate investments. |
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| Schedule of Details on Realized and Unrealized Gains and Losses Related to Equity Securities |
The following table provides the unrealized gains and losses recognized for the periods presented on equity securities still held at the end of the reported period (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
September 30, | | Nine Months Ended
September 30, | | 2021 | | 2020 | | 2021 | | 2020 | | Unrealized gains (losses) recognized during the reported period on equity securities still held at the end of the reported period | $ | (3,418) | | | $ | 1,991 | | | $ | (2,391) | | | $ | (2,162) | |
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| Schedule of Real Estate Investment |
Investment real estate consisted of the following as of the dates presented (in thousands): | | | | | | | | | | | | | September 30, | | December 31, | | 2021 | | 2020 | | Income Producing: | | | | | Investment real estate | $ | 7,087 | | | $ | 14,685 | | | Less: Accumulated depreciation | (1,153) | | | (1,699) | | | 5,934 | | | 12,986 | | | Non-Income Producing: | | | | | Investment real estate | — | | | 2,190 | | | Investment real estate, net | $ | 5,934 | | | $ | 15,176 | |
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| Schedule of Depreciation Expense Related to Investment Real Estate |
Depreciation expense related to investment real estate for the periods presented (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
September 30, | | Nine Months Ended
September 30, | | | 2021 | | 2020 | | 2021 | | 2020 | | Depreciation expense on investment real estate | $ | 47 | | | $ | 103 | | | $ | 139 | | | $ | 311 | |
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