v3.26.1
Note 7 - Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income
6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Comprehensive Income (Loss) Note [Text Block]

7. Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income

 

The changes in the components of the Company’s accumulated other comprehensive income for the three and six months ended June 30, 2026 and 2025 are summarized as follows:

 

   

Three Months Ended June 30, 2026 and 2025 (Unaudited)

 
           

Remeasurement

         
   

Unrealized

   

Gains on Future

   

Accumulated

 
   

Depreciation on

   

Policy Benefits

   

Other

 
   

Available-For-Sale

   

Related to

   

Comprehensive

 
   

Securities

   

Discount Rate

   

Income

 

Balance as of April 1, 2026

  $ (6,946,140 )   $ 15,009,930     $ 8,063,790  

Other comprehensive loss before reclassifications, net of tax

    106,129       (619,519 )     (513,390 )

Less amounts reclassified from accumulated other comprehensive income having no credit losses, net of tax

    33,049       -       33,049  

Other comprehensive loss

    73,080       (619,519 )     (546,439 )

Balance as of June 30, 2026

  $ (6,873,060 )   $ 14,390,411     $ 7,517,351  
                         

Balance as of April 1, 2025

  $ (7,986,508 )   $ 13,230,122     $ 5,243,614  

Other comprehensive income before reclassifications, net of tax

    399,732       397,200       796,932  

Less amounts reclassified from accumulated other comprehensive income having no credit losses, net of tax

    (57,900 )     -       (57,900 )

Other comprehensive income

    457,632       397,200       854,832  

Balance as of June 30, 2025

  $ (7,528,876 )   $ 13,627,322     $ 6,098,446  

 

   

Six Months Ended June 30, 2026 and 2025 (Unaudited)

 
           

Remeasurement

         
   

Unrealized

   

Gains on Future

   

Accumulated

 
   

Depreciation on

   

Policy Benefits

   

Other

 
   

Available-For-Sale

   

Related to

   

Comprehensive

 
   

Securities

   

Discount Rate

   

Income

 

Balance as of January 1, 2026

  $ (4,829,770 )   $ 13,330,326     $ 8,500,556  

Other comprehensive loss before reclassifications, net of tax

    (2,005,878 )     1,060,085       (945,793 )

Less amounts reclassified from accumulated other comprehensive income having no credit losses, net of tax

    37,412       -       37,412  

Other comprehensive loss

    (2,043,290 )     1,060,085       (983,205 )

Balance as of June 30, 2026

  $ (6,873,060 )   $ 14,390,411     $ 7,517,351  
                         

Balance as of January 1, 2025

  $ (11,026,727 )   $ 14,066,588     $ 3,039,861  

Other comprehensive income before reclassifications, net of tax

    3,618,554       (439,266 )     3,179,288  

Less amounts reclassified from accumulated other comprehensive income having no credit losses, net of tax

    120,703       -       120,703  

Other comprehensive income

    3,497,851       (439,266 )     3,058,585  

Balance as of June 30, 2025

  $ (7,528,876 )   $ 13,627,322     $ 6,098,446  

 

 

The pretax components of the Company’s other comprehensive income (loss) and the related income tax expense (benefit) for each component for the three and six months ended June 30, 2026 and 2025 are summarized as follows:

 

   

Three Months Ended June 30, 2026 (Unaudited)

 
           

Income Tax

         
   

Pretax

   

Expense (Benefit)

   

Net of Tax

 

Other comprehensive loss:

                       

Change in net unrealized gains on available-for-sale securities:

                       

Unrealized holding gains arising during the period

  $ 134,341     $ 28,212     $ 106,129  

Reclassification adjustment for net gains included in operations having no credit losses

    41,835       8,786       33,049  

Net unrealized gains on investments

    92,506       19,426       73,080  

Remeasurement loss on future policy benefits related to discount rate

    (784,202 )     (164,683 )     (619,519 )

Total other comprehensive loss

  $ (691,696 )   $ (145,257 )   $ (546,439 )

 

   

Three Months Ended June 30, 2025 (Unaudited)

 
           

Income Tax

         
   

Pretax

   

Expense (Benefit)

   

Net of Tax

 

Other comprehensive income:

                       

Change in net unrealized gains on available-for-sale securities:

                       

Unrealized holding gains arising during the period

  $ 505,990     $ 106,258     $ 399,732  

Reclassification adjustment for net losses included in operations having no credit losses

    (73,291 )     (15,391 )     (57,900 )

Net unrealized gains on investments

    579,281       121,649       457,632  

Remeasurement gains on future policy benefits related to discount rate

    502,785       105,585       397,200  

Total other comprehensive income

  $ 1,082,066     $ 227,234     $ 854,832  

 

   

Six Months Ended June 30, 2026 (Unaudited)

 
           

Income Tax

         
   

Pretax

   

Expense (Benefit)

   

Net of Tax

 

Other comprehensive loss:

                       

Change in net unrealized losses on available-for-sale securities:

                       

Unrealized holding losses arising during the period

  $ (2,539,087 )   $ (533,209 )   $ (2,005,878 )

Reclassification adjustment for net gains included in operations having no credit losses

    47,357       9,945       37,412  

Net unrealized losses on investments

    (2,586,444 )     (543,154 )     (2,043,290 )

Remeasurement loss on future policy benefits related to discount rate

    1,341,880       281,795       1,060,085  

Total other comprehensive loss

  $ (1,244,564 )   $ (261,359 )   $ (983,205 )

 

   

Six Months Ended June 30, 2025 (Unaudited)

 
           

Income Tax

         
   

Pretax

   

Expense (Benefit)

   

Net of Tax

 

Other comprehensive income:

                       

Change in net unrealized gains on available-for-sale securities:

                       

Unrealized holding gains arising during the period

  $ 4,580,448     $ 961,894     $ 3,618,554  

Reclassification adjustment for net gains included in operations having no credit losses

    152,789       32,086       120,703  

Net unrealized gains on investments

    4,427,659       929,808       3,497,851  

Remeasurement loss on future policy benefits related to discount rate

    (556,033 )     (116,767 )     (439,266 )

Total other comprehensive income

  $ 3,871,626     $ 813,041     $ 3,058,585  

 

Realized gains and losses on the sales of investments are determined based upon the specific identification method and include provisions for other-than-temporary impairments where appropriate.

 

The pretax and the related income tax components of the amounts reclassified from the Company’s accumulated other comprehensive income to the Company’s consolidated statement of operations for the three and six months ended June 30, 2026 and 2025 are summarized as follows:

 

   

Three Months Ended June 30, (Unaudited)

   

Six Months Ended June 30, (Unaudited)

 

Reclassification Adjustments

 

2026

   

2025

   

2026

   

2025

 

Unrealized losses on available-for-sale securities having no credit losses:

                               

Realized gains (losses) on sales of securities (a)

  $ 41,835     $ (73,291 )   $ 47,357     $ 152,789  

Income tax expense (benefit) (b)

    8,786       (15,391 )     9,945       32,086  

Total reclassification adjustments

  $ 33,049     $ (57,900 )   $ 37,412     $ 120,703  

 

(a) These items appear within net realized investment gains (losses) in the consolidated statements of operations.

(b) These items appear within federal income taxes in the consolidated statements of operations.