Investments | Note 5 -- Investments a) Available-for-Sale Fixed-Maturity Securities The Company holds investments in fixed-maturity securities that are classified as available-for-sale. At June 30, 2020 and December 31, 2019, the cost or amortized cost, allowance for credit loss, gross unrealized gains and losses, and estimated fair value of the Company’s available-for-sale securities by security type were as follows: Cost or Amortized Allowance for Credit Gross Unrealized Gross Unrealized Estimated Fair Cost Loss Gain Loss Value As of June 30, 2020 U.S. Treasury and U.S. government agencies $ 12,146 $ — $ 296 $ — $ 12,442 Corporate bonds 73,662 (526 ) 1,664 (392 ) 74,408 State, municipalities, and political subdivisions 5,832 — 89 (12 ) 5,909 Exchange-traded debt 6,994 — 280 (74 ) 7,200 Redeemable preferred stock 35 — — (1 ) 34 Total $ 98,669 $ (526 ) $ 2,329 $ (479 ) $ 99,993 As of December 31, 2019 U.S. Treasury and U.S. government agencies $ 26,220 $ — $ 78 $ (3 ) $ 26,295 Corporate bonds 157,155 — 2,212 (3 ) 159,364 State, municipalities, and political subdivisions 7,763 — 149 — 7,912 Exchange-traded debt 8,698 — 462 (15 ) 9,145 Redeemable preferred stock 118 — 5 — 123 Total $ 199,954 $ — $ 2,906 $ (21 ) $ 202,839 Expected maturities will differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties. The scheduled contractual maturities of fixed-maturity securities as of June 30, 2020 and December 31, 2019 are as follows: Amortized Estimated Cost Fair Value As of June 30, 2020 Due in one year or less $ 40,293 $ 40,672 Due after one year through five years 50,879 51,423 Due after five years through ten years 2,590 2,874 Due after ten years 4,907 5,024 $ 98,669 $ 99,993 Amortized Estimated Cost Fair Value As of December 31, 2019 Due in one year or less $ 63,135 $ 63,429 Due after one year through five years 125,833 127,660 Due after five years through ten years 6,896 7,350 Due after ten years 4,090 4,400 $ 199,954 $ 202,839 Sales of Available-for-Sale Fixed-Maturity Securities Proceeds received, and the gross realized gains and losses from sales of available-for-sale securities, for the three and six months ended June 30, 2020 and 2019 were as follows: Gross Realized Gross Realized Proceeds Gains Losses Three months ended June 30, 2020 $ 74,137 $ 1,653 $ (226 ) Three months ended June 30, 2019 $ 74 $ — $ — Six months ended June 30, 2020 $ 78,186 $ 1,730 $ (576 ) Six months ended June 30, 2019 $ 2,985 $ 34 $ (1 ) Gross Unrealized Losses for Available-for-Sale Fixed-Maturity Securities Securities with gross unrealized loss positions at June 30, 2020 and December 31, 2019, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows: Less Than Twelve Months Twelve Months or Longer Total Gross Estimated Gross Estimated Gross Estimated Unrealized Fair Unrealized Fair Unrealized Fair As of June 30, 2020 Loss Value Loss Value Loss Value Corporate bonds $ (392 ) $ 7,785 $ — $ — $ (392 ) $ 7,785 State, municipalities, and political subdivisions (12 ) 1,270 — — (12 ) 1,270 Exchange-traded debt (74 ) 1,481 — — (74 ) 1,481 Redeemable preferred stock (1 ) 35 — — (1 ) 35 Total $ (479 ) $ 10,571 $ — $ — $ (479 ) $ 10,571 At June 30, 2020, there were 25 securities in an unrealized loss position. Of these securities, none had been in an unrealized loss position for 12 months or longer. Less Than Twelve Months Twelve Months or Longer Total Gross Estimated Gross Estimated Gross Estimated Unrealized Fair Unrealized Fair Unrealized Fair As of December 31, 2019 Loss Value Loss Value Loss Value U.S. Treasury and U.S. government agencies $ (3 ) $ 2,292 $ — $ — $ (3 ) $ 2,292 Corporate bonds (3 ) 4,597 — — (3 ) 4,597 Exchange-traded debt (15 ) 345 — — (15 ) 345 Total $ (21 ) $ 7,234 $ — $ — $ (21 ) $ 7,234 At December 31, 2019, there were eight securities in an unrealized loss position. Of these securities, none had been in an unrealized loss position for 12 months or longer. Allowance for Credit Losses of Available-for-Sale Fixed-Maturity Securities The Company regularly reviews its individual investment securities for credit impairment. The Company considers various factors in determining whether each individual security is impaired, including- • the financial condition and near-term prospects of the issuer, including any specific events that may affect its operations or earnings; • the extent to which the market value of the security has been below its cost or amortized cost; • general market conditions and industry or sector specific factors and other qualitative factors; • nonpayment by the issuer of its contractually obligated interest and principal payments; and • the Company’s intent and ability to hold the investment for a period of time sufficient to allow for the recovery of costs. The table below summarized the activity in the allowance for credit losses of available-for-sale securities for the three and six months ended on June 30, 2020: 2020 Balance at January 1 $ — Credit loss expense 439 Balance at March 31 $ 439 Credit loss expense 87 Balance at June 30 $ 526 b) Equity Securities The Company holds investments in equity securities measured at fair values which are readily determinable. At June 30, 2020 and December 31, 2019, the cost, gross unrealized gains and losses, and estimated fair value of the Company’s equity securities were as follows: Gross Unrealized Gross Unrealized Estimated Fair Cost Gain Loss Value June 30, 2020 $ 37,808 $ 2,707 $ (1,206 ) $ 39,309 December 31, 2019 $ 31,863 $ 3,652 $ (230 ) $ 35,285 The table below presents the portion of unrealized gains and losses in the Company’s consolidated statement of income for the periods related to equity securities still held. Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Net gains (losses) recognized $ 2,892 $ 1,193 $ (3,884 ) $ 6,030 Exclude: Net realized gains (losses) recognized for securities sold 8 (133 ) (1,963 ) (589 ) Net unrealized gains (losses) recognized $ 2,884 $ 1,326 $ (1,921 ) $ 6,619 Sales of Equity Securities Proceeds received, and the gross realized gains and losses from sales of equity securities, for the three and six months ended June 30, 2020 and 2019 were as follows: Gross Realized Gross Realized Proceeds Gains Losses Three months ended June 30, 2020 $ 3,448 $ 184 $ (176 ) Three months ended June 30, 2019 $ 4,967 $ 113 $ (246 ) Six months ended June 30, 2020 $ 12,455 $ 969 $ (2,932 ) Six months ended June 30, 2019 $ 32,841 $ 2,187 $ (2,776 ) c) Limited Partnership Investments The Company has interests in limited partnerships that are not registered or readily tradeable on a securities exchange. These partnerships are private equity funds managed by general partners who make decisions with regard to financial policies and operations. As such, the Company is not the primary beneficiary and does not consolidate these partnerships. The following table provides information related to the Company’s investments in limited partnerships: June 30, 2020 December 31, 2019 Carrying Unfunded Carrying Unfunded Investment Strategy Value Balance (%)(a) Value Balance (%)(a) Primarily in senior secured loans and, to a limited extent, in other debt and equity securities of private U.S. lower-middle-market companies. (b)(c)(e) $ 9,394 $ 2,085 15.37 $ 9,659 $ 2,085 15.37 Value creation through active distressed debt investing primarily in bank loans, public and private corporate bonds, asset-backed securities, and equity securities received in connection with debt restructuring. (b)(d)(e) 5,691 — 1.76 5,985 — 1.76 High returns and long-term capital appreciation through investments in the power, utility and energy industries, and in the infrastructure sector. (b)(f)(g) 6,289 1,401 0.18 9,188 1,391 0.18 Value-oriented investments in less liquid and mispriced senior and junior debts of private equity-backed companies. (b)(h)(i) 3,071 1,542 0.47 1,602 3,106 0.47 Value-oriented investments in mature real estate private equity funds and portfolio globally. (b)(j) 1,732 8,632 2.24 1,912 8,548 2.24 Total $ 26,177 $ 13,660 $ 28,346 $ 15,130 (a) Represents the Company’s percentage investment in the fund at each balance sheet date. (b) Except under certain circumstances, withdrawals from the funds or any assignments are not permitted. Distributions, except income from late admission of a new limited partner, will be received when underlying investments of the funds are liquidated. (c) Expected to have a ten-year term . A lthough the capital commitment period has expired, there are still follow-on in vest ments and pending commitments that require additional fundings. (d) Expected to have a three-year (e) At the fund manager’s discretion, the term of the fund may be extended for up to two additional one-year periods. (f) Expected to have a ten-year (g) With the consent of a supermajority of partners, the term of the fund may be extended for up to three additional one-year periods. (h) Expected to have a six-year (i) The capital commitment was extended and is now expected to expire on December 1, 2020. (j) Expected to have an eight-year The following is the summary of aggregated unaudited financial information of limited partnerships included in the investment strategy table above, which in certain cases is presented on a three-month lag due to the unavailability of information at the Company’s respective balance sheet dates. The financial statements of these limited partnerships are audited annually. Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Operating results: Total income $ (1,230,124 ) $ 338,414 $ (1,681,016 ) $ 247,901 Total expenses (25,708 ) (32,140 ) (80,520 ) (81,173 ) Net (loss) income $ (1,255,832 ) $ 306,274 $ (1,761,536 ) $ 166,728 June 30, December 31, 2020 2019 Balance Sheet: Total assets $ 5,101,450 $ 6,850,913 Total liabilities $ 641,725 $ 549,562 For the three and six months ended June 30, 2020, the Company recognized net investment income of $188 and net investment loss of $2,747, respectively. During the three and six months ended June 30, 2020, the Company received total cash distributions of $196 and $892, respectively, including returns on investment of $196 and $578, respectively. For the three and six months ended June 30, 2019, the Company recognized net investment income of $1,043 and $832, respectively, for these investments. During the three and six months ended June 30, 2019, the Company received total cash distributions of $3,073 and $4,086, respectively. Cash distributions representing return on investment were $2,603 and $3,616 for the three and six months ended June 30, 2019, respectively. At June 30, 2020 and December 31, 2019, the Company’s cumulative contributed capital to the partnerships at each respective balance sheet date totaled $30,998 and $29,528, respectively, and the Company’s maximum exposure to loss aggregated $26,177 and $28,346, respectively. d ) Investment in Unconsolidated Joint Venture Melbourne FMA, LLC, a wholly owned subsidiary, currently has an equity investment in FMKT Mel JV, a Florida limited liability company treated as a joint venture under U.S. GAAP. At June 30, 2020 and December 31, 2019, the Company’s maximum exposure to loss relating to the variable interest entity was $734 and $762, respectively, representing the carrying value of the investment. There were no cash distributions during the six months ended June 30, 2020 and 2019. At June 30, 2020 and December 31, 2019, there was no undistributed income from this equity method investment. The following tables provide FMJV’s summarized unaudited financial results and the unaudited financial positions: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Operating results: Total revenues and gain $ — $ — $ — $ 2 Total expenses (13 ) (24 ) (32 ) (62 ) Net loss $ (13 ) $ (24 ) $ (32 ) $ (60 ) The Company’s share of net loss* $ (12 ) $ (21 ) $ (28 ) $ (54 ) * Included in net investment income in the Company’s consolidated statements of income. June 30, December 31, 2020 2019 Balance Sheet: Property and equipment, net $ 723 $ 741 Cash 96 102 Other 4 4 Total assets $ 823 $ 847 Other liabilities $ 8 $ — Members’ capital 815 847 Total liabilities and members’ capital $ 823 $ 847 Investment in unconsolidated joint venture, at equity** $ 734 $ 762 * * Includes the 90% share of FMKT Mel JV’s operating results. e) Assets Held for Sale On April 9, 2020, Greenleaf Capital, LLC decided to offer for sale its investment property in Riverview, Florida. The proceeds from the sale are expected to exceed the property’s carrying value of $4,519 and, accordingly, no impairment loss was recognized on the classification of this property as held for sale. f ) Real Estate Investments Real estate investments consist of the following as of June 30, 2020 and December 31, 2019. June 30, December 31, 2020 2019 Land $ 36,681 $ 39,511 Land improvements 11,422 11,907 Buildings 23,006 24,086 Tenant and leasehold improvements 1,246 1,487 Other 5,928 3,489 Total, at cost 78,283 80,480 Less: accumulated depreciation and amortization (7,375 ) (6,717 ) Real estate investments $ 70,908 $ 73,763 Depreciation and amortization expense related to real estate investments was $432 and $422 for the three months ended June 30, 2020 and 2019, respectively, and $887 and $754 for the six months ended June 30, 2020 and 2019, respectively. During the second quarter of 2020, the Company classified the investment property as described earlier to assets held for sale. g) Net Investment (Loss) Income Net investment (loss) income, by source, is summarized as follows: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Available-for-sale fixed-maturity securities $ 1,243 $ 1,622 $ 2,758 $ 3,157 Equity securities 299 293 634 674 Investment expense (124 ) (106 ) (242 ) (235 ) Limited partnership investments 188 1,043 (2,747 ) 832 Real estate investments (346 ) (105 ) (265 ) 201 Loss from unconsolidated joint venture (12 ) (21 ) (28 ) (54 ) Cash and cash equivalents 362 1,484 1,301 2,554 Short-term investments (6 ) 16 1 375 Net investment income $ 1,604 $ 4,226 $ 1,412 $ 7,504 |