Investments (Tables)
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9 Months Ended |
Sep. 30, 2022 |
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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, 2022 | | Amortized
Cost | | Allowance for Expected Credit Losses | | Gross
Unrealized
Gains | | Gross
Unrealized
Losses | | Fair Value | | Debt Securities: | | | | | | | | | | | U.S. government obligations and agencies | $ | 12,602 | | | $ | — | | | $ | — | | | $ | (1,004) | | | $ | 11,598 | | | Corporate bonds | 781,131 | | | (589) | | | 42 | | | (105,221) | | | 675,363 | | | Mortgage-backed and asset-backed securities | 332,444 | | | — | | | 63 | | | (42,774) | | | 289,733 | | | Municipal bonds | 14,924 | | | — | | | — | | | (2,486) | | | 12,438 | | | Redeemable preferred stock | 9,423 | | | (135) | | | — | | | (1,637) | | | 7,651 | | | Total | $ | 1,150,524 | | | $ | (724) | | | $ | 105 | | | $ | (153,122) | | | $ | 996,783 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2021 | | Amortized
Cost | Allowance for Expected Credit Losses | | Gross
Unrealized
Gains | | Gross
Unrealized
Losses | | Fair Value | | Debt Securities: | | | | | | | | | | U.S. government obligations and agencies | $ | 27,076 | | $ | — | | | $ | 64 | | | $ | (334) | | | $ | 26,806 | | | Corporate bonds | 687,058 | | (371) | | | 843 | | | (13,725) | | | 673,805 | | | Mortgage-backed and asset-backed securities | 322,844 | | — | | | 194 | | | (6,920) | | | 316,118 | | | Municipal bonds | 14,925 | | (1) | | | — | | | (350) | | | 14,574 | | | Redeemable preferred stock | 9,289 | | (117) | | | 28 | | | (48) | | | 9,152 | | | Total | $ | 1,061,192 | | $ | (489) | | | $ | 1,129 | | | $ | (21,377) | | | $ | 1,040,455 | |
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| Schedule of Credit Quality of Investment Securities |
The following table provides the credit quality of available-for-sale debt securities with contractual maturities as of the dates presented (dollars in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2022 | | December 31, 2021 | | Average Credit Ratings | | Fair Value | | % of Total
Fair Value | | Fair Value | | % of Total
Fair Value | | AAA | | $ | 297,030 | | | 29.8 | % | | $ | 321,975 | | | 31.0 | % | | AA | | 150,936 | | | 15.2 | % | | 139,186 | | | 13.4 | % | | A | | 320,427 | | | 32.1 | % | | 339,500 | | | 32.6 | % | | BBB | | 225,154 | | | 22.6 | % | | 234,358 | | | 22.5 | % | | | | | | | | | | | No Rating Available | | 3,236 | | | 0.3 | % | | 5,436 | | | 0.5 | % | | Total | | $ | 996,783 | | | 100.0 | % | | $ | 1,040,455 | | | 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, 2022 | | December 31, 2021 | | Amortized
Cost | | Fair Value | | Amortized
Cost | | Fair Value | | Mortgage-backed securities: | | | | | | | | | Agency | $ | 159,177 | | | $ | 133,795 | | | $ | 147,992 | | | $ | 143,819 | | | Non-agency | 61,880 | | | 51,242 | | | 59,906 | | | 58,263 | | | Asset-backed securities: | | | | | | | | | Auto loan receivables | 66,392 | | | 63,258 | | | 67,352 | | | 66,877 | | | Credit card receivables | 657 | | | 611 | | | 4,741 | | | 4,719 | | | Other receivables | 44,338 | | | 40,827 | | | 42,853 | | | 42,440 | | | Total | $ | 332,444 | | | $ | 289,733 | | | $ | 322,844 | | | $ | 316,118 | |
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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, 2022 | | 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 | 2 | | | $ | 2,720 | | | $ | (113) | | | 5 | | | $ | 8,878 | | | $ | (891) | | | Corporate bonds | 123 | | | 136,528 | | | (17,249) | | | 173 | | | 202,294 | | | (37,753) | | | Mortgage-backed and asset-backed securities | 116 | | | 121,753 | | | (10,259) | | | 96 | | | 157,818 | | | (32,515) | | | Municipal bonds | 3 | | | 2,299 | | | (390) | | | 7 | | | 10,139 | | | (2,096) | | | Redeemable preferred stock | 7 | | | 2,167 | | | (427) | | | — | | | — | | | — | | | Total | 251 | | | $ | 265,467 | | | $ | (28,438) | | | 281 | | | $ | 379,129 | | | $ | (73,255) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 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 | 4 | | | $ | 18,913 | | | $ | (111) | | | 4 | | | $ | 5,016 | | | $ | (223) | | | Corporate bonds | 249 | | | 378,595 | | | (7,468) | | | 18 | | | 17,356 | | | (679) | | | Mortgage-backed and asset-backed securities | 145 | | | 274,883 | | | (5,969) | | | 11 | | | 23,273 | | | (951) | | | Municipal bonds | 5 | | | 9,811 | | | (269) | | | — | | | — | | | — | | | Redeemable preferred stock | 1 | | | 200 | | | (1) | | | — | | | — | | | — | | | Total | 404 | | | $ | 682,402 | | | $ | (13,818) | | | 33 | | | $ | 45,645 | | | $ | (1,853) | |
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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, 2020 | | $ | 148 | | | | | $ | — | | | $ | 38 | | | $ | 186 | | | | | | | | | | | | | | Provision for (or reversal of) credit loss expense | | 223 | | | | | 1 | | | 79 | | | 303 | | | Balance, December 31, 2021 | | 371 | | | | | 1 | | | 117 | | | 489 | | | Provision for (or reversal of) credit loss expense | | 218 | | | | | (1) | | | 18 | | | 235 | | | Balance, September 30, 2022 | | $ | 589 | | | | | $ | — | | | $ | 135 | | | $ | 724 | |
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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, 2022 | | Amortized Cost | | Fair Value | | Due in one year or less | $ | 67,525 | | | $ | 65,865 | | | Due after one year through five years | 557,115 | | | 499,715 | | | Due after five years through ten years | 496,292 | | | 408,509 | | | Due after ten years | 27,048 | | | 20,640 | | | Perpetual maturity securities | 2,544 | | | 2,054 | | | Total | $ | 1,150,524 | | | $ | 996,783 | |
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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, | | 2022 | | 2021 | | 2022 | | 2021 | | Proceeds from sales and maturities (fair value): | | | | | | | | | Available-for-sale debt securities | $ | 30,929 | | | $ | 32,320 | | | $ | 84,146 | | | $ | 146,611 | | | Equity securities | $ | 8,975 | | | $ | 48,486 | | | $ | 26,667 | | | $ | 53,651 | | | Gross realized gains on sale of securities: | | | | | | | | | Available-for-sale debt securities | $ | — | | | $ | 882 | | | $ | 242 | | | $ | 1,899 | | | Equity securities | $ | 571 | | | $ | 1,315 | | | $ | 1,119 | | | $ | 2,399 | | | Gross realized losses on sale of securities: | | | | | | | | | Available-for-sale debt securities | $ | (210) | | | $ | (192) | | | $ | (1,665) | | | $ | (1,656) | | | Equity securities | $ | (69) | | | $ | — | | | $ | (71) | | | $ | — | | | Realized gains on sales of investment real estate (1) | $ | — | | | $ | — | | | $ | — | | | $ | 401 | |
| | | | | | | | | | | | | (1) | | | During the first quarter of 2021, the Company completed the sale of a non-income producing investment real estate property. The Company received net cash proceeds of approximately $2.6 million and recognized a pre-tax gain of approximately $0.4 million that is included in net realized gains (losses) on investments in the Condensed Consolidated Statements of Income for the nine months ended September 30, 2021. | | | |
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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, | | 2022 | | 2021 | | 2022 | | 2021 | | Available-for-sale debt securities | $ | 4,847 | | | $ | 2,799 | | | $ | 13,791 | | | $ | 8,393 | | | Equity securities | 740 | | | 544 | | | 1,965 | | | 1,787 | | | | | | | | | | | Cash and cash equivalents (1) | 1,069 | | | 2 | | | 1,324 | | | 28 | | | Other (2) | 122 | | | 274 | | | 371 | | | 809 | | | Total investment income | 6,778 | | | 3,619 | | | 17,451 | | | 11,017 | | | Less: Investment expenses (3) | (704) | | | (822) | | | (2,114) | | | (2,376) | | | Net investment income | $ | 6,074 | | | $ | 2,797 | | | $ | 15,337 | | | $ | 8,641 | |
| | | | | | | | | | (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, | | 2022 | | 2021 | | 2022 | | 2021 | | Unrealized gains (losses) recognized during the reported period on equity securities still held at the end of the reported period | $ | (4,150) | | | $ | (3,418) | | | $ | (16,387) | | | $ | (2,391) | |
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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, | | 2022 | | 2021 | | Income Producing: | | | | | Investment real estate | $ | 7,091 | | | $ | 7,091 | | | Less: Accumulated depreciation | (1,339) | | | (1,200) | | | Investment real estate, net | $ | 5,752 | | | $ | 5,891 | | | | | | | | | | | | | |
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| Schedule of Depreciation Expense Related to Investment Real Estate |
The following table provides the depreciation expense related to investment real estate for the periods presented (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
September 30, | | Nine Months Ended
September 30, | | | 2022 | | 2021 | | 2022 | | 2021 | | Depreciation expense on investment real estate | $ | 46 | | | $ | 47 | | | $ | 139 | | | $ | 139 | |
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