Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 09, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | ICC Holdings, Inc. | |
Entity Central Index Key | 1,681,903 | |
Trading Symbol | ICCH | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 3,500,000 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 | |
Available for sale securities, at fair value | |||
Fixed maturity securities (amortized cost - $89,877,704 at 3/31/2018 and $87,773,047 at 12/31/2017) | $ 90,042,265 | $ 89,605,073 | |
Available-for-sale | 12,533,554 | 12,401,538 | |
Other invested assets | 139,200 | ||
Property held for investment, at cost, net of accumulated depreciation of $150,200 at 3/31/2018 and $50,948 at 12/31/2017 | 3,142,229 | 3,126,566 | |
Cash and cash equivalents | 1,523,380 | 6,876,519 | |
Total investments and cash | 107,380,628 | 112,009,696 | |
Accrued investment income | 703,801 | 687,453 | |
Premiums and reinsurance balances receivable, net of allowances for uncollectible amounts of $50,000 at 3/31/2018 and 12/31/2017 | 19,934,301 | 19,013,262 | |
Ceded unearned premiums | 494,023 | 274,972 | |
Reinsurance balances recoverable on unpaid losses and settlement expenses, net of allowances for uncollectible amounts of $0 at 3/31/2018 and 12/31/2017 | 9,764,338 | 10,029,834 | |
Federal income taxes | 1,465,640 | 922,405 | |
Deferred policy acquisition costs, net | 4,519,590 | 4,592,415 | |
Property and equipment, at cost, net of accumulated depreciation of $4,691,231 at 3/31/2018 and $4,896,042 at 12/31/2017 | 3,516,809 | 3,503,904 | |
Other assets | 1,283,522 | 1,301,420 | |
Total assets | 149,062,652 | 152,335,361 | |
Liabilities: | |||
Unpaid losses and settlement expenses | 51,444,103 | 51,074,126 | |
Unearned premiums | 27,451,191 | 26,555,582 | |
Reinsurance balances payable | 683,077 | 327,483 | |
Corporate debt | 3,491,077 | 4,339,208 | |
Accrued expenses | 2,471,516 | 4,274,002 | |
Other liabilities | 1,214,858 | 1,663,415 | |
Total liabilities | 86,755,822 | 88,233,816 | |
Equity: | |||
Common stock | [1] | 35,000 | 35,000 |
Additional paid-in capital | 32,371,876 | 32,333,290 | |
Accumulated other comprehensive earnings, net of tax | (340,008) | 2,227,069 | |
Retained earnings | 33,463,233 | 32,787,406 | |
Less: Unearned Employee Stock Ownership Plan shares at cost | [2] | (3,223,271) | (3,281,220) |
Total equity | 62,306,830 | 64,101,545 | |
Total liabilities and equity | 149,062,652 | 152,335,361 | |
Common Stock [Member] | |||
Available for sale securities, at fair value | |||
Available-for-sale | [3] | 12,467,829 | 8,534,109 |
Preferred Stock [Member] | |||
Available for sale securities, at fair value | |||
Available-for-sale | $ 65,725 | $ 3,867,429 | |
[1] | Par value $0.01; authorized: 2018 - 10,000,000 shares and 2017 - 10,000,000 shares; issued: 2018 - 3,500,000 shares and 2017 - 3,500,000 shares; outstanding: 2018 - 3,177,672 and 2017 - 3,171,878 shares. | ||
[2] | 2018 -322,328 shares and 2017 - 328,122 shares | ||
[3] | At March 31, 2018, common stock securities consist entirely of individual common stocks. At December 31, 2017, common stock consisted of exchange trade funds (ETF) made up primarily of Dividends Select and the S&P 500. |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Fixed maturity securities, amortized cost | $ 89,877,704 | $ 87,773,047 |
Equity securities, amortized cost | 13,128,507 | 11,414,491 |
Property held for investment, accumulated depreciation | 150,200 | 50,948 |
Premiums and reinsurance balances receivable, allowances for uncollectible amounts | 50,000 | 50,000 |
Reinsurance balances recoverable on unpaid losses and settlement expenses, allowances for uncollectible amounts | 0 | 0 |
Property and equipment, at cost, accumulated depreciation | $ 4,691,231 | $ 4,896,042 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 3,500,000 | 3,500,000 |
Common stock, shares outstanding (in shares) | 3,177,672 | 3,171,878 |
Unearned ESOP shares (in shares) | 322,328 | 328,122 |
Common Stock [Member] | ||
Equity securities, amortized cost | $ 13,061,832 | $ 7,631,180 |
Preferred Stock [Member] | ||
Equity securities, amortized cost | $ 66,675 | $ 3,783,311 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings and Comprehensive Earnings - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Condensed Consolidated Statements of Earnings and Comprehensive Earnings [Abstract] | ||
Net premiums earned | $ 11,296,944 | $ 10,838,106 |
Net investment income | 702,884 | 472,324 |
Net realized investment gains | 1,102,130 | 444,781 |
Other income | 56,678 | 84,258 |
Consolidated revenues | 13,158,636 | 11,839,469 |
Losses and settlement expenses | 7,995,849 | 6,599,384 |
Policy acquisition costs and other operating expenses | 4,137,351 | 3,734,652 |
Interest expense on debt | 48,161 | 52,310 |
General corporate expenses | 136,250 | 139,215 |
Total expenses | 12,317,611 | 10,525,561 |
Earnings before income taxes | 841,025 | 1,313,908 |
Total income tax expense | 165,198 | 464,864 |
Net earnings | 675,827 | 849,044 |
Other comprehensive (loss) earnings, net of tax | (2,567,077) | 54,481 |
Comprehensive (loss) earnings | $ (1,891,250) | $ 903,525 |
Basic: | ||
Basic net earnings per share | $ 0.21 | $ 0.27 |
Diluted: | ||
Diluted net earnings per share | $ 0.21 | $ 0.27 |
Weighted average number of common shares outstanding: | ||
Basic | 3,173,807 | 3,150,000 |
Diluted | 3,174,234 | 3,150,000 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash Flows From Operating Activities | ||
Net earnings | $ 675,827 | $ 849,044 |
Adjustments to reconcile net earnings to net cash used in operating activities | ||
Net realized investment gains | (1,102,130) | (444,781) |
Depreciation | 131,273 | 216,554 |
Deferred income tax | 12,135 | 333,766 |
Amortization of bond premium and discount | 87,514 | 59,521 |
Change in: | ||
Accrued investment income | (16,348) | 489 |
Premiums and reinsurance balances receivable (net) | (921,039) | (16,280) |
Ceded unearned premiums | (219,051) | 27,676 |
Reinsurance balances payable | 355,594 | 45,178 |
Reinsurance balances recoverable | 265,496 | 2,642,373 |
Deferred policy acquisition costs | 72,825 | (172,158) |
Unpaid losses and settlement expenses | 369,977 | (2,953,321) |
Unearned premiums | 895,609 | (213,584) |
Accrued expenses | (1,802,486) | (2,339,301) |
Current federal income tax | 127,018 | 95,379 |
Other | (430,656) | 1,151,454 |
Net cash used in operating activities | (1,498,442) | (717,991) |
Purchases of: | ||
Fixed maturity securities, available-for-sale | (6,227,279) | (3,870,786) |
Other invested assets | (39,200) | |
Property held for investment | (33,703) | (220,148) |
Property and equipment | (165,674) | (6,646) |
Proceeds from sales, maturities and calls of: | ||
Fixed maturity securities, available-for-sale | 4,070,941 | 3,507,897 |
Property and equipment | 44,536 | 365 |
Net cash used in investing activities | (3,098,100) | (1,706,246) |
Cash flows from financing activities: | ||
Net proceeds received from issuance of shares of common stock and stock-based compensation expense | 96,535 | 29,136,900 |
Proceeds from loan | 3,499,149 | |
Repayments of borrowed funds | (848,132) | (2,070,957) |
Net cash provided by (used in) financing activities | (751,597) | 30,565,092 |
Net (decrease) increase in cash and cash equivalents | (5,348,139) | 28,140,855 |
Cash and cash equivalents at beginning of year | 6,876,519 | 4,376,847 |
Cash and cash equivalents at end of period | 1,528,380 | 32,517,702 |
Supplemental information: | ||
Federal income tax paid | ||
Interest paid | 80,394 | 52,186 |
Non-cash transactions: | ||
Payable for securities purchased | 3,842,037 | |
Common Stock [Member] | ||
Purchases of: | ||
Equity securities, available-for-sale | (13,061,846) | (2,947,068) |
Proceeds from sales, maturities and calls of: | ||
Equity securities, available-for-sale | 8,593,328 | 1,955,715 |
Preferred Stock [Member] | ||
Purchases of: | ||
Equity securities, available-for-sale | (140,925) | $ (125,575) |
Proceeds from sales, maturities and calls of: | ||
Equity securities, available-for-sale | $ 3,861,722 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Not es to Unaudited Condensed Consolidated Financial Statements 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. DESCRIPTION OF BUSINESS ICC Holdings, Inc. is a Pennsylvania corporation that was organized in 2016. As used in this Form 10-Q, references to “the Company,” “we,” “us,” and “our” refer to the consolidated group for the period after the completion of the stock conversion and refer to Illinois Casualty Company ( ICC ) and its subsidiaries for the period prior to the stock conversion. On a stand-alone basis ICC Holdings, Inc . is referred to as the “Parent Company.” The consolidated group consists of the holding company, ICC Holdings, Inc. ; ICC Realty, LLC, a real estate services and holding company; ICC, an operating insurance company; and ICC’s two wholly-owned subsidiaries, Beverage Insurance Agency, Inc ., an inactive insurance agency; and Estrella Innovative Solutions, Inc., an outsourcing company. ICC is an Illinois domiciled company. ICC Holdings, Inc. was formed so that it could acquire all of the capital stock of ICC in a mutual-to-stock conversion. The plan of conversion was approved by ICC policyholders at a special meeting on March 17, 2017. Simultaneously, surplus notes totaling $1.65 million were converted into 165,000 shares of the Company’s common stock. The Company’s offering closed on March 24, 2017, and o ur Employee Stock Ownership Plan (ESOP) purchased 350,000 of the shares in the offering. On March 28, 2017, the Company’s stock began trading on the NASDAQ Capital Market under the “ICCH” ticker. The Company paid $1.0 million of underwriting fees to Griffin Financial Group, LLC. Proceeds received from the offering , net of offering costs and underwriting fees , was $28. 7 million. Prior to the conversion on March 24, 2017, ICC Holdings, Inc . did not engage in any operations. Since the conversion, ICC Holdings, Inc’s primary assets are the outstanding equity of ICC and ICC Realty, LLC and a portion of the net proceeds from the stock offering completed in connection with the mutual-to-stock conversion. On the effective date of the conversion, ICC became a wholly owned subsidiary of ICC Holdings, Inc. The mutual to stock conversion was accounted for as a change in corporate form with the historic basis of ICC’s assets, liabilities, and equity unchanged as a result. We are a specialty insurance carrier primarily underwriting commercial multi-peril, liquor liability, workers’ compensation, and umbrella liability coverages for the food and beverage industry through our subsidiary insurance company, ICC. ICC writes business in Colorado, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Ohio, and Wisconsin and markets through independent agents. Approximately 33.3% and 35.9% of the premium is written in Illinois for the three months ended March 3 1 , 201 8 and 2017 , respectively. ICC sold all of its real estate holdings held by ICC Realty, LLC to its parent, ICC Holdings, Inc.; via the sale of all of the outstanding equity of ICC Realty, LLC to ICC Holdings, Inc. during the fourth quarter of 2017. The Company operates as a single segment. B. PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION The unaudited condensed consolidated interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial reporting and with the instructions to Form 10-Q. Accordingly, they do not include all of the disclosures required by GAAP for complete financial statements. As such, these unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (the “2017 10-K”) . Management believes that the disclosures are adequate to make the information presented not misleading, and all normal and recurring adjustments necessary to present fairly the financial position at March 3 1, 2018 , and the results of operations of the Company and its subsidiaries for all periods presented have been made. The results of operations for any interim period are not necessarily indicative of the operating results for a full year. The preparation of the unaudited condensed consolidated interim financial statements requires management to make estimates and assumptions relating to the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated interim financial statements, and the reported amounts of revenue and expenses during the period. These amounts are inherently subject to change and actual results could differ significantly from these estimates. C. SIGNIFICANT ACCOUNTING POLICIES The Company reported significant accounting policies in the 2017 10-K. The following are new or revised disclosures. STOCK-BASED COMPENSATION We have compensation plans under which stock-based awards may be granted to our employees as described in Note 8 – Employee Benefits . The Company recognizes the fair value of stock-based compensation ratably during each year through a charge to compensation expense and a corresponding entry to equity based on vesting criteria and other pertinent terms of the awards. Stock-based awards are accounted for as equity awards in instances where the awards’ vesting are linked to market, performance, or service condition. The Company granted Restricted Stock Units (RSUs) for the first time in February of 2018. Upon vesting of any outstanding RSUs, t he Company has the option to elect to pay cash or part cash and part Common Stock in lieu of delivering on shares of Common Stock for vested units. The Company’s intention is to settle vested units in Common Stock, and therefore the RSUs are accounted for as equity awards. Equity awards to employees are generally expensed based on the grant date fair value. EARNINGS PER SHARE Basic and diluted earnings per share (EPS) are calculated by dividing earnings available to common shareholders by the weighted average number of common shares outstanding during the period. The denominator for basic and diluted EPS includes ESOP shares committed to be released. Dilutive earnings per share includes the effect of all potentially dilutive instruments, such as restricted stock units (RSUs), outstanding during the period. D. PROSPECTIVE ACCOUNTING STANDARDS For information regarding accounting standards that the Company has not yet adopted, see the “Prospective Accounting Standards” in Note 1 – Summary of Significant Accounting Policies in the 2017 10-K. The Company maintains its status as an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). We have taken advantage of the extended transition period provided by Section 107 of the JOBS Act. We decided to comply with the effective dates for financial accounting standards applicable to emerging growth companies at a later date in compliance with the requirements in Sections 107(b)(2) and (3) of the JOBS Act. Such decision is irrevocable. E. PROPERTY AND EQUIPMENT Annually, the Company reviews the major asset classes of property and equipment held for impairment. For the periods ended March 31, 2018 and 2017, the Company recognized no impairments. Property and equipment are summarized as follows: As of March 31, December 31, 2018 2017 Automobiles $ 550,736 $ 794,959 Furniture and fixtures 426,852 425,825 Computer equipment and software 3,446,480 3,404,975 Home office 3,783,972 3,774,187 Total cost 8,208,040 8,399,946 Accumulated depreciation (4,691,231) (4,896,042) Net property and equipment $ 3,516,809 $ 3,503,904 F. COMPREHENSIVE EARNINGS Comprehensive earnings include net earnings plus unrealized gains and losses on available-for-sale investment securities, net of tax. In reporting the components of comprehensive earnings on a net basis in the statement of earnings, the Company used a 21 % tax rate. The following table illustrates the components of other comprehensive earnings for each period presented in the condensed consolidated interim financial statements. Three-Month Periods Ended March 31, 2018 2017 Pre-tax Tax After-tax Pre-tax Tax After-tax Other comprehensive earnings (loss), net of tax Unrealized gains and losses on investments: Unrealized holding (losses) gains arising during the period $ (2,147,336) $ 450,942 $ (1,696,394) $ 527,327 $ (179,291) $ 348,036 Reclassification adjustment for (gains) losses included in net earnings (1,102,130) 231,447 (870,683) (444,781) 151,226 (293,555) Total other comprehensive (loss) earnings $ (3,249,466) $ 682,389 $ (2,567,077) $ 82,546 $ (28,065) $ 54,481 The following table provides the reclassifications out of accumulated other comprehensive earnings for the periods presented: Amounts Reclassified from Accumulated Other Comprehensive Earnings Details about Accumulated Other Three-Month Periods Ended March 31, Affected Line Item in the Statement Comprehensive Earnings Component 2018 2017 where Net Earnings is Presented Unrealized gains (losses) on AFS investments: $ (1,102,130) $ (444,781) Net realized investment gains 231,447 151,226 Income tax expense Total reclassification adjustment, net of tax $ (870,683) $ (293,555) |
Investments
Investments | 3 Months Ended |
Mar. 31, 2018 | |
Investments [Abstract] | |
Investments | 2. INVESTMENTS The Company’s investments are primarily composed of fixed income debt securities and common and preferred stock equity securities. All of the Company’s fixed maturity debt and equity investments are presented as available-for-sale (AFS), which are carried at fair value. When available, quoted market prices are obtained to determine fair value for the Company’s investments. If a quoted market price is not available, fair value is estimated using a secondary pricing source or using quoted market prices of similar securities. The Company has no investment securities for which fair value is determined using Level 3 inputs as defined in Note 3 – Fair Value Disclosures . Realized gains and losses on disposition of investments are based on specific identification of the investments sold on the settlement date, which does not differ significantly from trade date accounting. Fixed Income Securities - Available-for-Sale The following is a summary of the proceeds from sales, maturities, and calls of available-for-sale securities and the related gross realized gains and losses for the three -months ended March 3 1, 2018 and 201 7 . For the Three-Months Ended March 31, Net realized Proceeds Gains Losses gain 2018 Fixed maturity securities $ 4,070,941 $ 48,118 $ (13,031) $ 35,087 Common stocks 8,593,328 1,086,389 (24,254) 1,062,135 Preferred stocks 3,861,722 86,862 (81,954) 4,908 2017 Fixed maturity securities $ 3,507,897 $ 29,328 $ (18) $ 29,310 Common stocks 1,955,715 415,471 — 415,471 Preferred stocks — — — — The amortized cost and estimated fair value of fixed income securities at March 31 , 201 8 , by contractual maturity, are shown as follows: Amortized Cost Fair Value Due in one year or less $ 1,061,657 $ 1,061,993 Due after one year through five years 23,542,852 23,690,082 Due after five years through 10 years 11,577,116 11,742,908 Due after 10 years 18,429,974 18,767,338 Asset and mortgage backed securities without a specific due date 35,266,105 34,779,944 Total fixed maturity securities $ 89,877,704 $ 90,042,265 Expected maturities may differ from contractual maturities due to call provisions on some existing securities. The following table is a schedule of cost or amortized cost and estimated fair values of investments in fixed income and equity securities as of March 3 1 , 201 8 and December 31, 201 7 : Cost or Gross Unrealized Amortized Cost Fair Value Gains Losses 2018 Fixed maturity securities: U.S. treasury $ 1,347,174 $ 1,324,026 $ — $ (23,148) MBS/ABS/CMBS 35,266,105 34,779,944 76,938 (563,099) Corporate 31,493,585 31,717,913 518,918 (294,590) Municipal 21,770,840 22,220,382 523,709 (74,167) Total fixed maturity securities 89,877,704 90,042,265 1,119,565 (955,004) Equity securities: Common stocks 13,061,832 12,467,829 210,297 (804,300) Preferred stocks 66,675 65,725 — (950) Total equity securities 13,128,507 12,533,554 210,297 (805,250) Total AFS securities $ 103,006,211 $ 102,575,819 $ 1,329,862 $ (1,760,254) Cost or Gross Unrealized Amortized Cost Fair Value Gains Losses 2017 Fixed maturity securities: U.S. treasury $ 1,346,712 $ 1,333,725 $ — $ (12,987) MBS/ABS/CMBS 31,584,141 31,518,662 158,944 (224,423) Corporate 31,038,526 31,989,174 1,001,906 (51,258) Municipal 23,803,668 24,763,512 976,872 (17,028) Total fixed maturity securities 87,773,047 89,605,073 2,137,722 (305,696) Equity securities: Common stocks 7,631,180 8,534,109 920,629 (17,700) Preferred stocks 3,783,311 3,867,429 132,054 (47,936) Total equity securities 11,414,491 12,401,538 1,052,683 (65,636) Total AFS securities $ 99,187,538 $ 102,006,611 $ 3,190,405 $ (371,332) All of the Company’s collaterized securities carry an average credit rating of AA+ by one or more major rating agency and continue to pay according to contractual terms. Included within MBS/ABS/CMBS, as defined in Note 3 – Fair Value Disclosures, are residential mortgage backed securities with fair values of $12,972,672 and $13,517,725 and commercial mortgage backed securities of $9,303,457 and $8,469,852 at March 3 1 , 201 8 and December 31, 2017 , respectively. ANALYSIS The following table is also used as part of the impairment analysis and displays the total value of securities that were in an unrealized loss position as of March 3 1 , 201 8 , and December 31, 201 7 . The table segregates the securities based on type, noting the fair value, cost (or amortized cost), and unrealized loss on each category of investment as well as in total. The table further classifies the securities based on the length of time they have been in an unrealized loss position. March 31, 2018 December 31, 2017 12 Months 12 Months < 12 Months & Greater Total < 12 Months & Greater Total U.S. Treasury Fair value $ 1,031,187 $ 292,839 $ 1,324,026 $ 1,038,297 $ 295,428 $ 1,333,725 Cost or Amortized cost 1,046,989 300,185 1,347,174 1,046,508 300,204 1,346,712 Unrealized Loss (15,802) (7,346) (23,148) (8,211) (4,776) (12,987) MBS/ABS/CMBS Fair value 14,678,987 7,002,941 21,681,928 9,754,119 7,445,071 17,199,190 Cost or Amortized cost 14,899,042 7,345,985 22,245,027 9,778,528 7,645,085 17,423,613 Unrealized Loss (220,055) (343,044) (563,099) (24,409) (200,014) (224,423) Corporate Fair value 14,186,545 1,257,693 15,444,238 5,583,942 2,023,856 7,607,798 Cost or Amortized cost 14,439,695 1,299,133 15,738,828 5,610,093 2,048,963 7,659,056 Unrealized Loss (253,150) (41,440) (294,590) (26,151) (25,107) (51,258) Municipal Fair value 4,515,983 844,120 5,360,103 478,019 1,171,520 1,649,539 Cost or Amortized cost 4,554,901 879,369 5,434,270 479,904 1,186,663 1,666,567 Unrealized Loss (38,918) (35,249) (74,167) (1,885) (15,143) (17,028) Subtotal, fixed income Fair value 34,412,702 9,397,593 43,810,295 16,854,377 10,935,875 27,790,252 Cost or Amortized cost 34,940,627 9,824,672 44,765,299 16,915,033 11,180,915 28,095,948 Unrealized Loss (527,925) (427,079) (955,004) (60,656) (245,040) (305,696) Common Stock Fair value 8,992,040 — 8,992,040 637,100 — 637,100 Cost or Amortized cost 9,796,340 — 9,796,340 654,800 — 654,800 Unrealized Loss (804,300) — (804,300) (17,700) — (17,700) Preferred Stock Fair value 65,725 — 65,725 842,530 520,710 1,363,240 Cost or Amortized cost 66,675 — 66,675 870,755 540,421 1,411,176 Unrealized Loss (950) — (950) (28,225) (19,711) (47,936) Total Fair value 43,470,467 9,397,593 52,868,060 18,334,007 11,456,585 29,790,592 Cost or amortized cost 44,803,642 9,824,672 54,628,314 18,440,588 11,721,336 30,161,924 Unrealized Loss $ (1,333,175) $ (427,079) $ (1,760,254) $ (106,581) $ (264,751) $ (371,332) As of March 31 , 201 8 , the Company held 204 common stock and preferred stock securities in an unrealized loss position. Of these 204 securiti es, none have been in an unrealized loss position for 12 consecutive months or longer . As of December 31, 2017 , the Company held 13 equity securities that were in unrea lized loss positions. Of these 1 3 securities, five were in an unrealized loss position for 12 consecutive months or longer and represented $19,711 in unrealized losses. The fixed income portfolio contained 110 securities in an unrealized loss position as of March 3 1 , 2018. Of these 110 securities, 26 have been in an unrealized loss position for 12 consecutive months or longer and represent $427,079 in unrealized losses. All fixed income securities in the investment portfolio continue to pay the expected coupon payments under the contractual terms of the securities. Credit-related impairments on fixed income securities that we do not plan to sell, and for which we are not more likely than not to be required to sell, are recognized in net earnings. Any non-credit related impairment is recognized in comprehensive earnings. Based on management’s analysis, the fixed income portfolio is of a high credit quality and it is believed it will recover the amortized cost basis of the fixed income securities. Management monitors the credit quality of the fixed income investments to assess if it is probable that the Company will receive its contractual or estimated cash flows in the form of principal and interest. There were no other-than-temporary impairment losses recognized in other comprehensive earnings in the periods presented. The securities in an unrealized loss position were not other-than-temporarily impaired at March 31, 2018 and December 31, 2017. Other Invested Assets Other invested assets include privately held investments, including membership in the Federal Home Loan Bank of Chicago (FHLBC), which occurred in February 2018 . Our investment in FHLBC stock is carried at cost. Due to the nature of our membership in the FHLBC, its carrying amount approximates fair value. As of March 31, 2018, there were no investments pledged as collateral with the FHLBC. There may be investments pledged as collateral with the FHLBC to ensure timely access to the secured lending facility that ownership of FHLBC stock provides. As of and during the three month period ending March 31, 2018, there were no outstanding borrowings with the FHLBC. |
Fair Value Disclosures
Fair Value Disclosures | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | 3. FAIR VALUE DISCLOSURES Fair value is defined as the price in the principal market that would be received for an asset to facilitate an orderly transaction between market participants on the measurement date. The fair value of certain financial instruments is determined based on their underlying characteristics and relevant transactions in the marketplace. GAAP guidance requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance also describes three levels of inputs that may be used to measure fair value. The following are the levels of the fair value hierarchy and a brief description of the type of valuation inputs that are used to establish each level: · Level 1 is applied to valuations based on readily available, unadjusted quoted prices in active markets for identical assets. · Level 2 is applied to valuations based upon quoted prices for similar assets in active markets, quoted prices for identical or similar assets in inactive markets; or valuations based on models where the significant inputs are observable (e.g. interest rates, yield curves, prepayment speeds, default rates, loss severities) or can be corroborated by observable market data. · Level 3 is applied to valuations that are derived from techniques in which one or more of the significant inputs are unobservable. Financial assets are classified based upon the lowest level of significant input that is used to determine fair value. As a part of the process to determine fair value, management utilizes widely recognized, third-party pricing sources to determine fair values. Management has obtained an understanding of the third-party pricing sources’ valuation methodologies and inputs. The following is a description of the valuation techniques used for financial assets that are measured at fair value, including the general classification of such assets pursuant to the fair value hierarchy. Corporate, Agencies, and Municipal Bonds— The pricing vendor employs a multi-dimensional model which uses standard inputs including (listed in order of priority for use) benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, market bids/offers and other reference data. The pricing vendor also monitors market indicators, as well as industry and economic events. All bonds valued using these techniques are classified as Level 2. All Corporate, Agencies, and Municipal securities are deemed Level 2. Mortgage-backed Securities (MBS)/Collateralized Mortgage Obligations (CMO) and Asset-backed Securities (ABS)— The pricing vendor evaluation methodology includes principally interest rate movements and new issue data. Evaluation of the tranches (non-volatile, volatile, or credit sensitivity) is based on the pricing vendors’ interpretation of accepted modeling and pricing conventions. This information is then used to determine the cash flows for each tranche, benchmark yields, pre-payment assumptions and to incorporate collateral performance. To evaluate CMO volatility, an option adjusted spread model is used in combination with models that simulate interest rate paths to determine market price information. This process allows the pricing vendor to obtain evaluations of a broad universe of securities in a way that reflects changes in yield curve, index rates, implied volatility, mortgage rates, and recent trade activity. MBS/CMO and ABS with corroborated and observable inputs are classified as Level 2. All MBS/CMO and ABS holdings are deemed Level 2. U.S. Treasury Bonds, Common Stocks and Exchange Traded Funds— U.S. treasury bonds and exchange traded equities have readily observable price levels and are classified as Level 1 (fair value based on quoted market prices). All common stock holdings are deemed Level 1. Preferred Stock— Preferred stocks do not have readily observable prices, but do have quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets in markets that are not active; and inputs other than quoted prices and are classified as Level 2. All preferred stock holdings are deemed Level 2. Due to the relatively short-term nature of cash, cash equivalents, and the mortgage on the home office, their carrying amounts are reasonable estimates of fair value. Reported in Note 4–Debt , the surplus notes, capital lease obligations, and other debt obligations are carried at face value and given that there is no readily available market for these to trade in, management believes that face value accurately reflects fair value. Cash and cash equivalents are classified as Level 1 of the hierarchy. Assets measured at fair value on a recurring basis as of March 3 1 , 201 8 , are as summarized below: Significant Quoted in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Total AFS securities Fixed maturity securities U.S. treasury $ 1,324,026 $ — $ — $ 1,324,026 MBS/ABS/CMBS — 34,779,944 — 34,779,944 Corporate — 31,717,913 — 31,717,913 Municipal — 22,220,382 — 22,220,382 Total fixed maturity securities 1,324,026 88,718,239 — 90,042,265 Equity securities Common stocks 12,467,829 — — 12,467,829 Preferred stocks — 65,725 — 65,725 Total equity securities 12,467,829 65,725 — 12,533,554 Total AFS securities $ 13,791,855 $ 88,783,964 $ — $ 102,575,819 Assets measured at fair value on a recurri ng basis as of December 31, 2017 , are as summarized below: Significant Quoted in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Total AFS securities Fixed maturity securities U.S. treasury $ 1,333,725 $ — $ — $ 1,333,725 MBS/ABS/CMBS — 31,518,662 — 31,518,662 Corporate — 31,989,174 — 31,989,174 Municipal — 24,763,512 — 24,763,512 Total fixed maturity securities 1,333,725 88,271,348 — 89,605,073 Equity securities Common stocks 8,534,109 — — 8,534,109 Preferred stocks — 3,867,429 — 3,867,429 Total equity securities 8,534,109 3,867,429 — 12,401,538 Total AFS securities $ 9,867,834 $ 92,138,777 $ — $ 102,006,611 As noted in the previous tables, the Company did not have any assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of March 3 1 , 201 8 , and December 31, 201 7 . Additionally, there were no securities transferred in or out of Levels 1 or 2 during the three -month period s ended March 3 1 , 201 8 and 201 7 . |
Debt
Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt [Abstract] | |
Debt | 4. DEBT As of March 3 1, 2018 and December 31, 201 7 , outstanding debt balances totaled $3,491,077 and $4,339,208 , respectively. The average rate on remaining debt was 3.7 % as of March 31, 2018 , compared to 3.9% as of December 31, 2017 . Long-term debt consists of the following as of the periods referenced below: March 31, December 31, 2018 2017 Capital lease obligation $ — $ 805,013 Debt obligation 3,491,077 3,534,195 Total $ 3,491,077 $ 4,339,208 Leasehold Obligation The Company entered into a sale leaseback arrangement in 2016 that was accounted for as a capital lease. Under the agreement, Bofi Federal Bank purchased electronic data processing software, vehicles, and other assets which are leased to the Company. These assets remain ed on the Company’s books due to provisions within the agreement that trigger capital lease accounting. To secure the lowest rate possible of 4.7% , the Company pledged bonds totaling $923,563 and $923,766 as of March 31, 2018 and December 31, 201 7 . There was no gain or loss recognized as part of this transaction. On March 2, 2018 and March 7, 2018, the Company paid $404,928 and $346,000 , respectively to Bofi. These disbursements were made to pay off the balances of the sale leaseback arrangements. Lease payments totaled $70,051 and $125,494 for the three months ended March 31, 2018 and 2017, respectively. The outstanding lease obligation was $805,013 at December 31, 201 7 . Debt Obligation ICC Holdings, Inc. secured a loan with American Bank & Trust in March 2017 in the amount of $3,500,000 and used the proceeds to repay ICC for the money borrowed by the ESOP. The term of the loan is five years bearing interest at 3.65% . The Company pledged the ESOP shares and $1.5 million of trust assets as collateral for the loan. Additionally, the Company entered into two debt agreements in 2016 with Bofi Federal Bank; one agreement for $500,000 and another debt agreement for $75,000 . The terms of the loans were 36 months, but the Company had the option to prepay the $500,000 loan after 12 months. The Company paid off the remaining balance of the $500,000 loan in September 2017. The $75,000 loan was paid off in March of 2018. The total balance of the debt agreements at March 3 1, 2018 and December 31, 2017 was $3,491,077 and $3,534,195 , respectively. Revolving Line of Credit We maintain a revolving line of credit with American Bank & Trust, which permits borrowing up to an aggregate principal amount of $1.75 million. This facility was initially entered into during 2013 and is renewed annually with a current expiration of August 1, 2018 . The line of credit is priced at 30 day LIBOR plus 2% with a floor of 3.5% . In order to secure the lowest rate possible, the Company pledged marketable securities not to exceed $5.0 million in the event the Company draws down on the line of credit. There was no interest paid on the line of credit during the three months ended March 3 1, 2018 and no interest paid on the line of credit during the three months ended March 31, 2017 . There are no financial covenants governing this agreement. |
Reinsurance
Reinsurance | 3 Months Ended |
Mar. 31, 2018 | |
Reinsurance [Abstract] | |
Reinsurance | 5. REINSURANCE In the ordinary course of business, the Company assumes and cedes premiums and selected insured risks with other insurance companies, known as reinsurance. A large portion of the reinsurance is put into effect under contracts known as treaties and, in some instances, by negotiation on each individual risk (known as facultative reinsurance). In addition, there are several types of treaties including quota share, excess of loss and catastrophe reinsurance contracts that protect against losses over stipulated amounts arising from any one occurrence or event. The arrangements allow the Company to pursue greater diversification of business and serve to limit the maximum net loss to a single event, such as a catastrophe. Through the quantification of exposed policy limits in each region and the extensive use of computer-assisted modeling techniques, management monitors the concentration of risks exposed to catastrophic events. Through the purchase of reinsurance, the Company also generally limits its net loss on any individual risk to a maximum of $ 500,000 , although certain treaties contain an annual aggregate deductible before reinsurance applies. Premiums, written and earned, along with losses and settlement expenses incurred for the periods presented is summarized as follows: Three-Month Periods Ended March 31, 2018 2017 WRITTEN Direct $ 14,387,670 $ 12,588,591 Reinsurance assumed 52,806 39,836 Reinsurance ceded (2,466,973) (1,976,230) Net $ 11,973,502 $ 10,652,197 EARNED Direct $ 13,487,121 $ 12,792,794 Reinsurance assumed 57,745 49,218 Reinsurance ceded (2,247,922) (2,003,906) Net $ 11,296,944 $ 10,838,106 LOSS AND SETTLEMENT EXPENSES INCURRED Direct $ 9,545,940 $ 7,869,502 Reinsurance assumed 36,131 42,432 Reinsurance ceded (1,586,222) (1,312,550) Net $ 7,995,849 $ 6,599,384 |
Unpaid Losses and Settlement Ex
Unpaid Losses and Settlement Expenses | 3 Months Ended |
Mar. 31, 2018 | |
Unpaid Losses and Settlement Expenses [Abstract] | |
Unpaid Losses and Settlement Expenses | 6. UNPAID LOSSES AND SETTLEMENT EXPENSES The following table is a reconciliation of the Company’s unpaid losses and settlement expenses: For the Three-Months Ended March 31, (In thousands) 2018 2017 Unpaid losses and settlement expense - beginning of the period: Gross $ 51,074 $ 52,817 Less: Ceded 10,030 12,115 Net 41,044 40,702 Increase (decrease) in incurred losses and settlement expense: Current year 6,767 6,893 Prior years 1,229 (294) Total incurred 7,996 6,599 Deduct: Loss and settlement expense payments for claims incurred: Current year 1,669 1,974 Prior years 5,691 4,936 Total paid 7,360 6,910 Net unpaid losses and settlement expense - end of the period 41,680 40,391 Plus: Reinsurance recoverable on unpaid losses 9,764 9,473 Gross unpaid losses and settlement expense - end of the period $ 51,444 $ 49,864 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Taxes [Abstract] | |
Income Taxes | 7. INCOME TAXES The Company’s effective tax rate for the three month period ended March 3 1, 2018 , was 19.6% , compared to 35.4% for the same period in 201 7 . Effective rates are dependent upon components of pretax earnings and the related tax effects. The Tax Cuts and Jobs Act of 2017 (the Tax Act) lowered the federal corporate tax rate to 21 percent effective January 1, 2018. I ncome tax expense for the three -month periods ended March 3 1, 2018 and 2017 , differed from the amounts computed by applying the U.S. federal tax rate of 21 % and 34% , respectively, to pretax income from continuing operations as demonstrated in the following tables: For the Three-Months Ended March 31, 2018 2017 Provision for income taxes at the statutory federal tax rates $ 176,615 $ 446,729 Increase (reduction) in taxes resulting from: Dividends received deduction (8,951) (9,104) Tax-exempt interest income (36,323) (40,338) 15% proration of tax exempt interest and dividends received deduction 11,079 7,416 Officer life insurance, net 3,229 5,003 Nondeductible expenses 14,423 8,811 Prior year true-up and other 5,126 46,347 Total $ 165,198 $ 464,864 The Company had historically recorded its deferred tax assets and liabilities using the statutory federal tax rate of 34%. As a result, the Company revalued deferred tax items as of December 31, 2017 to reflect the lower rate. Management believes it is more likely than not that all deferred tax assets will be recovered as the result of future operations, which will generate sufficient taxable income to realize the deferred tax asset. In addition, management believes that when these deferred items reverse in future years, taxable income will be taxed at an effective rate of 21 %. As of March 3 1 , 201 8 and December 31, 2017 , the Company does not have any capital or operating loss carryforwards. Periods still subject to Internal Revenue Service (IRS) audit include 201 4 through current year. There are currently no open tax exams. |
Employee Benefits
Employee Benefits | 3 Months Ended |
Mar. 31, 2018 | |
Employee Benefits [Abstract] | |
Employee Benefits | 8. EMPLOYEE BENEFITS ESOP In connection with our conversion and public offering, we establish ed an ESOP. The ESOP borrowed from the Company to purchase 350,000 shares in the offering. The issuance of the shares to the ESOP resulted in a contra account established in the shareholder’s equity section of the balance sheet for the unallocated shares at an amount equal to their $10.00 per share purchase price. The Company may make discretionary contributions to the ESOP and pay dividends on unallocated shares to the ESOP, the ESOP uses funds it receives to repay the loan. When loan payments are made, ESOP shares are allocated to participants based on relative compensation and expense is recorded. No contributions to the ESOP were made during the three months ended March 31, 2018 and 2017, respectively . A compensation expense charge is booked monthly during each year for the shares committed to be allocated to partic i pants that year, determined with reference to the fair market value of our stock at the time the commitment to allocate the shares is accrued and reco gnized. For the three months ended March 3 1 , 201 8 , we recognized compensation expense of $95,241 related to 5,795 shares of our common stock that are committed to be released to parti ci pant s’ accounts at December 31, 2018 . Of the 5,795 shares committed to be released, 1,996 shares were commi t ted on March 31 , 201 8 and had no impact on the weighted average common shares outstanding for the three months ended March 31, 2018 . For the three months ended March 31, 2017, we recognized compensation expense of $22,111 related to 1,433 shares of our common stock that were committed to be released to participants’ accounts at December 31, 2017. The commitment to release these shares was recognized on March 31, 2017 and had no impact on the weighted average common shares outstanding for the three months ended March 31, 2017. RESTRICTED STOCK UNITS RSUs were granted for the first time in February 2018. RSUs have a grant date value equal to the closing price of the Company’s stock on the dates the shares are granted. The RSUs vest 1/3 over three years from the date of grant. As of March 31, 2018, 11,700 RSUs have been granted at a fair market value of $15.10 . We recognized $6,292 of expense on these units in the first quarter of 2018. Total unrecognized compensation expense relating to outstanding and unvested RSUs was $170,338 , which will be recognized over the remainder of the three -year vesting period. |
Related Party
Related Party | 3 Months Ended |
Mar. 31, 2018 | |
Related Party [Abstract] | |
Related Party | 9 . RELATED PARTY Mr. John R. Klockau, a director of the Company, held two surplus notes from the Company totaling $1,150,000 which were converted into 115,000 shares of the Company’s common stock on March 17, 2017. John R. Klockau received a payment for interest on the surplus notes of $12,975 during the three months ended March 31, 2017. Additionally, Mr. Klockau is a claims consultant and was paid $3,180 and $2,470 as of March 3 1 , 201 8 and 201 7 , respectively, related to his services to the Company. Mr. Kevin Clinton is a director of the Company and owns more than 10% of the Company’s outstanding shares of common stock. Mr. Clinton was paid $0 and $420 as of March 31, 2018 and 2017, respectively for travel reimbursement costs. Mr. Scott T. Burgess is a director of the Company and a Senior Managing Director of Griffin Financial Group (Griffin). Mr. Burgess was paid $566 , and $841 as of March 3 1 , 201 8 and 201 7 , respectively. Griffin was paid $0 and $893,240 as of March 3 1, 2018 and 201 7 , respectively. Griffin and Stevens & Lee are affiliated. Stevens & Lee is a full-service law firm that was paid $42,796 and $0 as of March 3 1, 2018 and 201 7 , respectively. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 1 0 . SUBSEQUENT EVENTS Subsequent events have been evaluated through the date the financial statements were issued. As a result of paying off the leasehold obligations during the first quarter of 2018, the bonds pledged as collateral related to this debt were released in April 2018. |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Description of Business | A. DESCRIPTION OF BUSINESS ICC Holdings, Inc. is a Pennsylvania corporation that was organized in 2016. As used in this Form 10-Q, references to “the Company,” “we,” “us,” and “our” refer to the consolidated group for the period after the completion of the stock conversion and refer to Illinois Casualty Company ( ICC ) and its subsidiaries for the period prior to the stock conversion. On a stand-alone basis ICC Holdings, Inc . is referred to as the “Parent Company.” The consolidated group consists of the holding company, ICC Holdings, Inc. ; ICC Realty, LLC, a real estate services and holding company; ICC, an operating insurance company; and ICC’s two wholly-owned subsidiaries, Beverage Insurance Agency, Inc ., an inactive insurance agency; and Estrella Innovative Solutions, Inc., an outsourcing company. ICC is an Illinois domiciled company. ICC Holdings, Inc. was formed so that it could acquire all of the capital stock of ICC in a mutual-to-stock conversion. The plan of conversion was approved by ICC policyholders at a special meeting on March 17, 2017. Simultaneously, surplus notes totaling $1.65 million were converted into 165,000 shares of the Company’s common stock. The Company’s offering closed on March 24, 2017, and o ur Employee Stock Ownership Plan (ESOP) purchased 350,000 of the shares in the offering. On March 28, 2017, the Company’s stock began trading on the NASDAQ Capital Market under the “ICCH” ticker. The Company paid $1.0 million of underwriting fees to Griffin Financial Group, LLC. Proceeds received from the offering , net of offering costs and underwriting fees , was $28. 7 million. Prior to the conversion on March 24, 2017, ICC Holdings, Inc . did not engage in any operations. Since the conversion, ICC Holdings, Inc’s primary assets are the outstanding equity of ICC and ICC Realty, LLC and a portion of the net proceeds from the stock offering completed in connection with the mutual-to-stock conversion. On the effective date of the conversion, ICC became a wholly owned subsidiary of ICC Holdings, Inc. The mutual to stock conversion was accounted for as a change in corporate form with the historic basis of ICC’s assets, liabilities, and equity unchanged as a result. We are a specialty insurance carrier primarily underwriting commercial multi-peril, liquor liability, workers’ compensation, and umbrella liability coverages for the food and beverage industry through our subsidiary insurance company, ICC. ICC writes business in Colorado, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Ohio, and Wisconsin and markets through independent agents. Approximately 33.3% and 35.9% of the premium is written in Illinois for the three months ended March 3 1 , 201 8 and 2017 , respectively. ICC sold all of its real estate holdings held by ICC Realty, LLC to its parent, ICC Holdings, Inc.; via the sale of all of the outstanding equity of ICC Realty, LLC to ICC Holdings, Inc. during the fourth quarter of 2017. The Company operates as a single segment. |
Principles of Consolidation and Basis of Presentation | B. PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION The unaudited condensed consolidated interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial reporting and with the instructions to Form 10-Q. Accordingly, they do not include all of the disclosures required by GAAP for complete financial statements. As such, these unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (the “2017 10-K”) . Management believes that the disclosures are adequate to make the information presented not misleading, and all normal and recurring adjustments necessary to present fairly the financial position at March 3 1, 2018 , and the results of operations of the Company and its subsidiaries for all periods presented have been made. The results of operations for any interim period are not necessarily indicative of the operating results for a full year. The preparation of the unaudited condensed consolidated interim financial statements requires management to make estimates and assumptions relating to the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated interim financial statements, and the reported amounts of revenue and expenses during the period. These amounts are inherently subject to change and actual results could differ significantly from these estimates. |
Significant Accountnig Policies | C. SIGNIFICANT ACCOUNTING POLICIES The Company reported significant accounting policies in the 2017 10-K. The following are new or revised disclosures. STOCK-BASED COMPENSATION We have compensation plans under which stock-based awards may be granted to our employees as described in Note 8 – Employee Benefits . The Company recognizes the fair value of stock-based compensation ratably during each year through a charge to compensation expense and a corresponding entry to equity based on vesting criteria and other pertinent terms of the awards. Stock-based awards are accounted for as equity awards in instances where the awards’ vesting are linked to market, performance, or service condition. The Company granted Restricted Stock Units (RSUs) for the first time in February of 2018. Upon vesting of any outstanding RSUs, t he Company has the option to elect to pay cash or part cash and part Common Stock in lieu of delivering on shares of Common Stock for vested units. The Company’s intention is to settle vested units in Common Stock, and therefore the RSUs are accounted for as equity awards. Equity awards to employees are generally expensed based on the grant date fair value. EARNINGS PER SHARE Basic and diluted earnings per share (EPS) are calculated by dividing earnings available to common shareholders by the weighted average number of common shares outstanding during the period. The denominator for basic and diluted EPS includes ESOP shares committed to be released. Dilutive earnings per share includes the effect of all potentially dilutive instruments, such as restricted stock units (RSUs), outstanding during the period. |
Prospective Accounting Standards | D. PROSPECTIVE ACCOUNTING STANDARDS For information regarding accounting standards that the Company has not yet adopted, see the “Prospective Accounting Standards” in Note 1 – Summary of Significant Accounting Policies in the 2017 10-K. The Company maintains its status as an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). We have taken advantage of the extended transition period provided by Section 107 of the JOBS Act. We decided to comply with the effective dates for financial accounting standards applicable to emerging growth companies at a later date in compliance with the requirements in Sections 107(b)(2) and (3) of the JOBS Act. Such decision is irrevocable. |
Property and Equipment | E. PROPERTY AND EQUIPMENT Annually, the Company reviews the major asset classes of property and equipment held for impairment. For the periods ended March 31, 2018 and 2017, the Company recognized no impairments. Property and equipment are summarized as follows: As of March 31, December 31, 2018 2017 Automobiles $ 550,736 $ 794,959 Furniture and fixtures 426,852 425,825 Computer equipment and software 3,446,480 3,404,975 Home office 3,783,972 3,774,187 Total cost 8,208,040 8,399,946 Accumulated depreciation (4,691,231) (4,896,042) Net property and equipment $ 3,516,809 $ 3,503,904 |
Comprehensive Earnings | F. COMPREHENSIVE EARNINGS Comprehensive earnings include net earnings plus unrealized gains and losses on available-for-sale investment securities, net of tax. In reporting the components of comprehensive earnings on a net basis in the statement of earnings, the Company used a 21 % tax rate. The following table illustrates the components of other comprehensive earnings for each period presented in the condensed consolidated interim financial statements. Three-Month Periods Ended March 31, 2018 2017 Pre-tax Tax After-tax Pre-tax Tax After-tax Other comprehensive earnings (loss), net of tax Unrealized gains and losses on investments: Unrealized holding (losses) gains arising during the period $ (2,147,336) $ 450,942 $ (1,696,394) $ 527,327 $ (179,291) $ 348,036 Reclassification adjustment for (gains) losses included in net earnings (1,102,130) 231,447 (870,683) (444,781) 151,226 (293,555) Total other comprehensive (loss) earnings $ (3,249,466) $ 682,389 $ (2,567,077) $ 82,546 $ (28,065) $ 54,481 The following table provides the reclassifications out of accumulated other comprehensive earnings for the periods presented: Amounts Reclassified from Accumulated Other Comprehensive Earnings Details about Accumulated Other Three-Month Periods Ended March 31, Affected Line Item in the Statement Comprehensive Earnings Component 2018 2017 where Net Earnings is Presented Unrealized gains (losses) on AFS investments: $ (1,102,130) $ (444,781) Net realized investment gains 231,447 151,226 Income tax expense Total reclassification adjustment, net of tax $ (870,683) $ (293,555) |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Property, Plant and Equipment | As of March 31, December 31, 2018 2017 Automobiles $ 550,736 $ 794,959 Furniture and fixtures 426,852 425,825 Computer equipment and software 3,446,480 3,404,975 Home office 3,783,972 3,774,187 Total cost 8,208,040 8,399,946 Accumulated depreciation (4,691,231) (4,896,042) Net property and equipment $ 3,516,809 $ 3,503,904 |
Summary of Components of Other Comprehensive Earnings | Three-Month Periods Ended March 31, 2018 2017 Pre-tax Tax After-tax Pre-tax Tax After-tax Other comprehensive earnings (loss), net of tax Unrealized gains and losses on investments: Unrealized holding (losses) gains arising during the period $ (2,147,336) $ 450,942 $ (1,696,394) $ 527,327 $ (179,291) $ 348,036 Reclassification adjustment for (gains) losses included in net earnings (1,102,130) 231,447 (870,683) (444,781) 151,226 (293,555) Total other comprehensive (loss) earnings $ (3,249,466) $ 682,389 $ (2,567,077) $ 82,546 $ (28,065) $ 54,481 |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Earnins | Amounts Reclassified from Accumulated Other Comprehensive Earnings Details about Accumulated Other Three-Month Periods Ended March 31, Affected Line Item in the Statement Comprehensive Earnings Component 2018 2017 where Net Earnings is Presented Unrealized gains (losses) on AFS investments: $ (1,102,130) $ (444,781) Net realized investment gains 231,447 151,226 Income tax expense Total reclassification adjustment, net of tax $ (870,683) $ (293,555) |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments [Abstract] | |
Summary of Recognized Impairments, Proceeds, Maturities and Calls of Available-for-Sale Securities | For the Three-Months Ended March 31, Net realized Proceeds Gains Losses gain 2018 Fixed maturity securities $ 4,070,941 $ 48,118 $ (13,031) $ 35,087 Common stocks 8,593,328 1,086,389 (24,254) 1,062,135 Preferred stocks 3,861,722 86,862 (81,954) 4,908 2017 Fixed maturity securities $ 3,507,897 $ 29,328 $ (18) $ 29,310 Common stocks 1,955,715 415,471 — 415,471 Preferred stocks — — — — |
Summary of Amortized Cost and Fair Value of Securities by Contractual Maturity | Amortized Cost Fair Value Due in one year or less $ 1,061,657 $ 1,061,993 Due after one year through five years 23,542,852 23,690,082 Due after five years through 10 years 11,577,116 11,742,908 Due after 10 years 18,429,974 18,767,338 Asset and mortgage backed securities without a specific due date 35,266,105 34,779,944 Total fixed maturity securities $ 89,877,704 $ 90,042,265 |
Schedule of Cost or Amortized Cost and Estimated Fair Values of Investments | Cost or Gross Unrealized Amortized Cost Fair Value Gains Losses 2018 Fixed maturity securities: U.S. treasury $ 1,347,174 $ 1,324,026 $ — $ (23,148) MBS/ABS/CMBS 35,266,105 34,779,944 76,938 (563,099) Corporate 31,493,585 31,717,913 518,918 (294,590) Municipal 21,770,840 22,220,382 523,709 (74,167) Total fixed maturity securities 89,877,704 90,042,265 1,119,565 (955,004) Equity securities: Common stocks 13,061,832 12,467,829 210,297 (804,300) Preferred stocks 66,675 65,725 — (950) Total equity securities 13,128,507 12,533,554 210,297 (805,250) Total AFS securities $ 103,006,211 $ 102,575,819 $ 1,329,862 $ (1,760,254) Cost or Gross Unrealized Amortized Cost Fair Value Gains Losses 2017 Fixed maturity securities: U.S. treasury $ 1,346,712 $ 1,333,725 $ — $ (12,987) MBS/ABS/CMBS 31,584,141 31,518,662 158,944 (224,423) Corporate 31,038,526 31,989,174 1,001,906 (51,258) Municipal 23,803,668 24,763,512 976,872 (17,028) Total fixed maturity securities 87,773,047 89,605,073 2,137,722 (305,696) Equity securities: Common stocks 7,631,180 8,534,109 920,629 (17,700) Preferred stocks 3,783,311 3,867,429 132,054 (47,936) Total equity securities 11,414,491 12,401,538 1,052,683 (65,636) Total AFS securities $ 99,187,538 $ 102,006,611 $ 3,190,405 $ (371,332) |
Summary of Impairment Analysis and Value of Securities in an Unrealized Loss Position | March 31, 2018 December 31, 2017 12 Months 12 Months < 12 Months & Greater Total < 12 Months & Greater Total U.S. Treasury Fair value $ 1,031,187 $ 292,839 $ 1,324,026 $ 1,038,297 $ 295,428 $ 1,333,725 Cost or Amortized cost 1,046,989 300,185 1,347,174 1,046,508 300,204 1,346,712 Unrealized Loss (15,802) (7,346) (23,148) (8,211) (4,776) (12,987) MBS/ABS/CMBS Fair value 14,678,987 7,002,941 21,681,928 9,754,119 7,445,071 17,199,190 Cost or Amortized cost 14,899,042 7,345,985 22,245,027 9,778,528 7,645,085 17,423,613 Unrealized Loss (220,055) (343,044) (563,099) (24,409) (200,014) (224,423) Corporate Fair value 14,186,545 1,257,693 15,444,238 5,583,942 2,023,856 7,607,798 Cost or Amortized cost 14,439,695 1,299,133 15,738,828 5,610,093 2,048,963 7,659,056 Unrealized Loss (253,150) (41,440) (294,590) (26,151) (25,107) (51,258) Municipal Fair value 4,515,983 844,120 5,360,103 478,019 1,171,520 1,649,539 Cost or Amortized cost 4,554,901 879,369 5,434,270 479,904 1,186,663 1,666,567 Unrealized Loss (38,918) (35,249) (74,167) (1,885) (15,143) (17,028) Subtotal, fixed income Fair value 34,412,702 9,397,593 43,810,295 16,854,377 10,935,875 27,790,252 Cost or Amortized cost 34,940,627 9,824,672 44,765,299 16,915,033 11,180,915 28,095,948 Unrealized Loss (527,925) (427,079) (955,004) (60,656) (245,040) (305,696) Common Stock Fair value 8,992,040 — 8,992,040 637,100 — 637,100 Cost or Amortized cost 9,796,340 — 9,796,340 654,800 — 654,800 Unrealized Loss (804,300) — (804,300) (17,700) — (17,700) Preferred Stock Fair value 65,725 — 65,725 842,530 520,710 1,363,240 Cost or Amortized cost 66,675 — 66,675 870,755 540,421 1,411,176 Unrealized Loss (950) — (950) (28,225) (19,711) (47,936) Total Fair value 43,470,467 9,397,593 52,868,060 18,334,007 11,456,585 29,790,592 Cost or amortized cost 44,803,642 9,824,672 54,628,314 18,440,588 11,721,336 30,161,924 Unrealized Loss $ (1,333,175) $ (427,079) $ (1,760,254) $ (106,581) $ (264,751) $ (371,332) |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets Measured at Fai Value on a recurring Basis | Assets measured at fair value on a recurring basis as of March 3 1 , 201 8 , are as summarized below: Significant Quoted in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Total AFS securities Fixed maturity securities U.S. treasury $ 1,324,026 $ — $ — $ 1,324,026 MBS/ABS/CMBS — 34,779,944 — 34,779,944 Corporate — 31,717,913 — 31,717,913 Municipal — 22,220,382 — 22,220,382 Total fixed maturity securities 1,324,026 88,718,239 — 90,042,265 Equity securities Common stocks 12,467,829 — — 12,467,829 Preferred stocks — 65,725 — 65,725 Total equity securities 12,467,829 65,725 — 12,533,554 Total AFS securities $ 13,791,855 $ 88,783,964 $ — $ 102,575,819 Assets measured at fair value on a recurri ng basis as of December 31, 2017 , are as summarized below: Significant Quoted in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Total AFS securities Fixed maturity securities U.S. treasury $ 1,333,725 $ — $ — $ 1,333,725 MBS/ABS/CMBS — 31,518,662 — 31,518,662 Corporate — 31,989,174 — 31,989,174 Municipal — 24,763,512 — 24,763,512 Total fixed maturity securities 1,333,725 88,271,348 — 89,605,073 Equity securities Common stocks 8,534,109 — — 8,534,109 Preferred stocks — 3,867,429 — 3,867,429 Total equity securities 8,534,109 3,867,429 — 12,401,538 Total AFS securities $ 9,867,834 $ 92,138,777 $ — $ 102,006,611 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt [Abstract] | |
Schedule of Long-Term Debt | March 31, December 31, 2018 2017 Capital lease obligation $ — $ 805,013 Debt obligation 3,491,077 3,534,195 Total $ 3,491,077 $ 4,339,208 |
Reinsurance (Tables)
Reinsurance (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Reinsurance [Abstract] | |
Summary of the Effects of Reinsurance | Three-Month Periods Ended March 31, 2018 2017 WRITTEN Direct $ 14,387,670 $ 12,588,591 Reinsurance assumed 52,806 39,836 Reinsurance ceded (2,466,973) (1,976,230) Net $ 11,973,502 $ 10,652,197 EARNED Direct $ 13,487,121 $ 12,792,794 Reinsurance assumed 57,745 49,218 Reinsurance ceded (2,247,922) (2,003,906) Net $ 11,296,944 $ 10,838,106 LOSS AND SETTLEMENT EXPENSES INCURRED Direct $ 9,545,940 $ 7,869,502 Reinsurance assumed 36,131 42,432 Reinsurance ceded (1,586,222) (1,312,550) Net $ 7,995,849 $ 6,599,384 |
Unpaid Losses and Settlement 22
Unpaid Losses and Settlement Expenses (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Unpaid Losses and Settlement Expenses [Abstract] | |
Schedule of the Changes in the Reserves for Losses and Loss Adjustment Expense | For the Three-Months Ended March 31, (In thousands) 2018 2017 Unpaid losses and settlement expense - beginning of the period: Gross $ 51,074 $ 52,817 Less: Ceded 10,030 12,115 Net 41,044 40,702 Increase (decrease) in incurred losses and settlement expense: Current year 6,767 6,893 Prior years 1,229 (294) Total incurred 7,996 6,599 Deduct: Loss and settlement expense payments for claims incurred: Current year 1,669 1,974 Prior years 5,691 4,936 Total paid 7,360 6,910 Net unpaid losses and settlement expense - end of the period 41,680 40,391 Plus: Reinsurance recoverable on unpaid losses 9,764 9,473 Gross unpaid losses and settlement expense - end of the period $ 51,444 $ 49,864 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Income Taxes [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | For the Three-Months Ended March 31, 2018 2017 Provision for income taxes at the statutory federal tax rates $ 176,615 $ 446,729 Increase (reduction) in taxes resulting from: Dividends received deduction (8,951) (9,104) Tax-exempt interest income (36,323) (40,338) 15% proration of tax exempt interest and dividends received deduction 11,079 7,416 Officer life insurance, net 3,229 5,003 Nondeductible expenses 14,423 8,811 Prior year true-up and other 5,126 46,347 Total $ 165,198 $ 464,864 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Narrative) (Details) | Mar. 28, 2017USD ($) | Mar. 17, 2017USD ($)shares | Mar. 31, 2018USD ($)segmententity | Mar. 31, 2017USD ($) | Mar. 24, 2017shares |
Summary Of Significant Accounting Policies [Line Items] | |||||
Number of subsidiaries | entity | 2 | ||||
Impairment | $ 0 | $ 0 | |||
Federal tax rate | 21.00% | 34.00% | |||
Income tax (benefit) expense | $ 165,198 | $ 464,864 | |||
Employee stock ownership plan, shares | shares | 350,000 | ||||
Underwriting fees paid | $ 1,000,000 | ||||
Net proceeds received from issuance of shares of common stock and stock-based compensation expense | $ 28,700,000 | $ 96,535 | $ 29,136,900 | ||
Operating segments | segment | 1 | ||||
Illinois [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk | 33.30% | 35.90% | |||
Surplus Notes [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Notes converted | $ 1,650,000 | ||||
Debt converted, shares issued | shares | 165,000 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Summary of Property, Plant and Equipment) (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 8,208,040 | $ 8,399,946 |
Accumulated depreciation | (4,691,231) | (4,896,042) |
Net property and equipent | 3,516,809 | 3,503,904 |
Automobiles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 550,736 | 794,959 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 426,852 | 425,825 |
Computer Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 3,446,480 | 3,404,975 |
Home Office [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 3,783,972 | $ 3,774,187 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Summary of Components of Other Comprehensive Earnings) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | ||
Unrealized holding (losses) gains arising during the period, Pre-tax | $ (2,147,336) | $ 527,327 |
Reclassification adjustment for (gains) losses included in net earnings, Pre-tax | (1,102,130) | (444,781) |
Total other comprehensive (loss) earnings, Pre-tax | (3,249,466) | 82,546 |
Unrealized holding (losses) gains arising during the period, Tax | 450,942 | (179,291) |
Reclassification adjustment for (gains) losses included in net earnings, Tax | 231,447 | 151,226 |
Total other comprehensive (loss) earnings, Tax | 682,389 | (28,065) |
Unrealized holding (losses) gains arising during the period, After-tax | (1,696,394) | 348,036 |
Reclassification adjustment for (gains) losses included in net earnings, After-tax | (870,683) | (293,555) |
Total other comprehensive earnings | $ (2,567,077) | $ 54,481 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Schedule of Reclassification Out of Accumulated Other Comprehensive Earnings) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net realized investment gains | $ (1,102,130) | $ (444,781) |
Income tax expense | 165,198 | 464,864 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net income (loss) | (870,683) | (293,555) |
Unrealized Gains on AFS Investments [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net realized investment gains | (1,102,130) | (444,781) |
Income tax expense | $ 231,447 | $ 151,226 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018USD ($)item | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($)item | |
Schedule of Available-for-sale Securities [Line Items] | |||
Unrealized holding (losses) gains arising during the period, Pre-tax | $ (2,147,336) | $ 527,327 | |
Unrealized losses for 12 consecutive months or longer | 427,079 | $ 264,751 | |
OTTI losses recognized in other comprehensive earnings | 0 | 0 | |
Securities pledged | 0 | ||
FHLBC outstanding balance | 0 | ||
Property held for investment, accumulated depreciation | $ 150,200 | $ 50,948 | |
Common Equity And Preferred Stock Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Number of securities in an unrealized loss position | item | 204 | 13 | |
Number of securities in an unrealized loss position for 12 consecutive months or longer | item | 0 | 5 | |
Unrealized losses for 12 consecutive months or longer | $ 19,711 | ||
Common Stock [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Unrealized losses for 12 consecutive months or longer | |||
Fixed Maturity Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Number of securities in an unrealized loss position | item | 110 | ||
Number of securities in an unrealized loss position for 12 consecutive months or longer | item | 26 | ||
Unrealized losses for 12 consecutive months or longer | $ 427,079 | 245,040 | |
MBS/ABS/CMBS [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Unrealized losses for 12 consecutive months or longer | 343,044 | 200,014 | |
MBS/ABS/CMBS [Member] | Residential Mortgage Backed Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fair value | 12,972,672 | 13,517,725 | |
MBS/ABS/CMBS [Member] | Commercial Mortgage Backed Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fair value | 9,303,457 | $ 8,469,852 | |
Significant Unobservable Inputs (Level 3) | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fair value | $ 0 |
Investments (Summary of Recogni
Investments (Summary of Recognized Impairments) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Fixed Maturity Securities [Member] | ||
Proceeds | $ 4,070,941 | $ 3,507,897 |
Gains | 48,118 | 29,328 |
Losses | (13,031) | (18) |
Net realized gain | 35,087 | 29,310 |
Common Stock [Member] | ||
Proceeds | 8,593,328 | 1,955,715 |
Gains | 1,086,389 | 415,471 |
Losses | (24,254) | |
Net realized gain | 1,062,135 | 415,471 |
Preferred Stock [Member] | ||
Proceeds | 3,861,722 | |
Gains | 86,862 | |
Losses | (81,954) | |
Net realized gain | $ 4,908 |
Investments (Summary of Amortiz
Investments (Summary of Amortized Cost and Fair Value of Securities by Contractual Maturity) (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Investments [Abstract] | ||
Due in one year or less, amortized cost | $ 1,061,657 | |
Due after one year through five years, amortized cost | 23,542,852 | |
Due after five years through 10 years, amortized cost | 11,577,116 | |
Due after 10 years, amortized cost | 18,429,974 | |
Asset and mortgage backed securities without a specific due date, amortized cost | 35,266,105 | |
Fixed maturity securities, amortized cost | 89,877,704 | $ 87,773,047 |
Due in one year or less, fair value | 1,061,993 | |
Due after one year through five years, fair value | 23,690,082 | |
Due after five years through 10 years, fair value | 11,742,908 | |
Due after 10 years, fair value | 18,767,338 | |
Asset and mortgage backed securities witout a specific due date, fair value | 34,779,944 | |
Fixed maturity securities, fair value | $ 90,042,265 | $ 89,605,073 |
Investments (Schedule of Cost o
Investments (Schedule of Cost or Amortized Cost and Estimated Fair Values of Investments) (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed maturity securities, amortized cost | $ 89,877,704 | $ 87,773,047 |
Equity securities, amortized cost | 13,128,507 | 11,414,491 |
AFS securities, amortized cost | 103,006,211 | 99,187,538 |
Fixed maturity securities | 90,042,265 | 89,605,073 |
Equity securities | 12,533,554 | 12,401,538 |
AFS securities, fair value | 102,575,819 | 102,006,611 |
Fixed maturity securities, gross unrealized gains | 1,119,565 | 2,137,722 |
Equity securities, gross unrealized gains | 210,297 | 1,052,683 |
Total AFS securities, gross unrealized gains | 1,329,862 | 3,190,405 |
Fixed maturity securities, gross unrealized losses | (955,004) | (305,696) |
Equity securities, gross unrealized losses | (805,250) | (65,636) |
Total AFS securities, gross unrealized losses | (1,760,254) | (371,332) |
US Treasury [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed maturity securities, amortized cost | 1,347,174 | 1,346,712 |
Fixed maturity securities | 1,324,026 | 1,333,725 |
Fixed maturity securities, gross unrealized losses | (23,148) | (12,987) |
MBS/ABS/CMBS [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed maturity securities, amortized cost | 35,266,105 | 31,584,141 |
Fixed maturity securities | 34,779,944 | 31,518,662 |
Fixed maturity securities, gross unrealized gains | 76,938 | 158,944 |
Fixed maturity securities, gross unrealized losses | (563,099) | (224,423) |
Corporate [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed maturity securities, amortized cost | 31,493,585 | 31,038,526 |
Fixed maturity securities | 31,717,913 | 31,989,174 |
Fixed maturity securities, gross unrealized gains | 518,918 | 1,001,906 |
Fixed maturity securities, gross unrealized losses | (294,590) | (51,258) |
Municipal [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed maturity securities, amortized cost | 21,770,840 | 23,803,668 |
Fixed maturity securities | 22,220,382 | 24,763,512 |
Fixed maturity securities, gross unrealized gains | 523,709 | 976,872 |
Fixed maturity securities, gross unrealized losses | (74,167) | (17,028) |
Common Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity securities, amortized cost | 13,061,832 | 7,631,180 |
Equity securities | 12,467,829 | 8,534,109 |
Equity securities, gross unrealized gains | 210,297 | 920,629 |
Equity securities, gross unrealized losses | (804,300) | (17,700) |
Preferred Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity securities, amortized cost | 66,675 | 3,783,311 |
Equity securities | 65,725 | 3,867,429 |
Equity securities, gross unrealized gains | 132,054 | |
Equity securities, gross unrealized losses | $ (950) | $ (47,936) |
Investments (Summary of Impairm
Investments (Summary of Impairment Analysis and Value of Securities in an Unrealized Loss Position) (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | $ 43,470,467 | $ 18,334,007 |
Greater than 12 months, fair value | 9,397,593 | 11,456,585 |
Fair value | 52,868,060 | 29,790,592 |
Less than 12 months, Cost or Amortized cost | 44,803,642 | 18,440,588 |
Greater than 12 months, Cost or Amortized cost | 9,824,672 | 11,721,336 |
Cost or Amortized cost | 54,628,314 | 30,161,924 |
Less than 12 months, unrealized losses | (1,333,175) | (106,581) |
Greater than 12 months, unrealized losses | (427,079) | (264,751) |
Unrealized losses | (1,760,254) | (371,332) |
US Treasury [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 1,031,187 | 1,038,297 |
Greater than 12 months, fair value | 292,839 | 295,428 |
Fair value | 1,324,026 | 1,333,725 |
Less than 12 months, Cost or Amortized cost | 1,046,989 | 1,046,508 |
Greater than 12 months, Cost or Amortized cost | 300,185 | 300,204 |
Cost or Amortized cost | 1,347,174 | 1,346,712 |
Less than 12 months, unrealized losses | (15,802) | (8,211) |
Greater than 12 months, unrealized losses | (7,346) | (4,776) |
Unrealized losses | (23,148) | (12,987) |
MBS/ABS/CMBS [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 14,678,987 | 9,754,119 |
Greater than 12 months, fair value | 7,002,941 | 7,445,071 |
Fair value | 21,681,928 | 17,199,190 |
Less than 12 months, Cost or Amortized cost | 14,899,042 | 9,778,528 |
Greater than 12 months, Cost or Amortized cost | 7,345,985 | 7,645,085 |
Cost or Amortized cost | 22,245,027 | 17,423,613 |
Less than 12 months, unrealized losses | (220,055) | (24,409) |
Greater than 12 months, unrealized losses | (343,044) | (200,014) |
Unrealized losses | (563,099) | (224,423) |
Corporate [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 14,186,545 | 5,583,942 |
Greater than 12 months, fair value | 1,257,693 | 2,023,856 |
Fair value | 15,444,238 | 7,607,798 |
Less than 12 months, Cost or Amortized cost | 14,439,695 | 5,610,093 |
Greater than 12 months, Cost or Amortized cost | 1,299,133 | 2,048,963 |
Cost or Amortized cost | 15,738,828 | 7,659,056 |
Less than 12 months, unrealized losses | (253,150) | (26,151) |
Greater than 12 months, unrealized losses | (41,440) | (25,107) |
Unrealized losses | (294,590) | (51,258) |
Municipal [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 4,515,983 | 478,019 |
Greater than 12 months, fair value | 844,120 | 1,171,520 |
Fair value | 5,360,103 | 1,649,539 |
Less than 12 months, Cost or Amortized cost | 4,554,901 | 479,904 |
Greater than 12 months, Cost or Amortized cost | 879,369 | 1,186,663 |
Cost or Amortized cost | 5,434,270 | 1,666,567 |
Less than 12 months, unrealized losses | (38,918) | (1,885) |
Greater than 12 months, unrealized losses | (35,249) | (15,143) |
Unrealized losses | (74,167) | (17,028) |
Fixed Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 34,412,702 | 16,854,377 |
Greater than 12 months, fair value | 9,397,593 | 10,935,875 |
Fair value | 43,810,295 | 27,790,252 |
Less than 12 months, Cost or Amortized cost | 34,940,627 | 16,915,033 |
Greater than 12 months, Cost or Amortized cost | 9,824,672 | 11,180,915 |
Cost or Amortized cost | 44,765,299 | 28,095,948 |
Less than 12 months, unrealized losses | (527,925) | (60,656) |
Greater than 12 months, unrealized losses | (427,079) | (245,040) |
Unrealized losses | (955,004) | (305,696) |
Common Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 8,992,040 | 637,100 |
Greater than 12 months, fair value | ||
Fair value | 8,992,040 | 637,100 |
Less than 12 months, Cost or Amortized cost | 9,796,340 | 654,800 |
Greater than 12 months, Cost or Amortized cost | ||
Cost or Amortized cost | 9,796,340 | 654,800 |
Less than 12 months, unrealized losses | (804,300) | (17,700) |
Greater than 12 months, unrealized losses | ||
Unrealized losses | (804,300) | (17,700) |
Preferred Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 65,725 | 842,530 |
Greater than 12 months, fair value | 520,710 | |
Fair value | 65,725 | 1,363,240 |
Less than 12 months, Cost or Amortized cost | 66,675 | 870,755 |
Greater than 12 months, Cost or Amortized cost | 540,421 | |
Cost or Amortized cost | 66,675 | 1,411,176 |
Less than 12 months, unrealized losses | (950) | (28,225) |
Greater than 12 months, unrealized losses | (19,711) | |
Unrealized losses | $ (950) | $ (47,936) |
Fair Value Disclosures (Narrati
Fair Value Disclosures (Narrative) (Details) - USD ($) | Mar. 31, 2018 | Mar. 31, 2017 |
Fair Value Disclosures [Abstract] | ||
Securities transferred from level 1 to level 2 | $ 0 | $ 0 |
Securities transferred from level 2 to level 1 | $ 0 | $ 0 |
Fair Value Disclosures (Summary
Fair Value Disclosures (Summary of Assets Measured at Fai Value on a recurring Basis) (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | $ 0 | $ 0 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 102,575,819 | 102,006,611 |
Fair Value, Measurements, Recurring [Member] | US Treasury [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 1,324,026 | 1,333,725 |
Fair Value, Measurements, Recurring [Member] | MBS/ABS/CMBS [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 34,779,944 | 31,518,662 |
Fair Value, Measurements, Recurring [Member] | Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 31,717,913 | 31,989,174 |
Fair Value, Measurements, Recurring [Member] | Municipal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 22,220,382 | 24,763,512 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 90,042,265 | 89,605,073 |
Fair Value, Measurements, Recurring [Member] | Common Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 12,467,829 | 8,534,109 |
Fair Value, Measurements, Recurring [Member] | Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 65,725 | 3,867,429 |
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 12,533,554 | 12,401,538 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 13,791,855 | 9,867,834 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | US Treasury [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 1,324,026 | 1,333,725 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | MBS/ABS/CMBS [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | ||
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | ||
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | ||
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed Maturity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 1,324,026 | 1,333,725 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Common Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 12,467,829 | 8,534,109 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | ||
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 12,467,829 | 8,534,109 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 88,783,964 | 92,138,777 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | US Treasury [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | ||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | MBS/ABS/CMBS [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 34,779,944 | 31,518,662 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 31,717,913 | 31,989,174 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Municipal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 22,220,382 | 24,763,512 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Fixed Maturity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 88,718,239 | 88,271,348 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Common Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | ||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 65,725 | 3,867,429 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 65,725 | 3,867,429 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | ||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | US Treasury [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | ||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | MBS/ABS/CMBS [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | ||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | ||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Municipal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | ||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Fixed Maturity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | ||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Common Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | ||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | ||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | Mar. 07, 2018USD ($) | Mar. 02, 2018USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($)item |
Debt Instrument [Line Items] | |||||
Corporate debt | $ 3,491,077 | $ 4,339,208 | |||
Current interest rate | 3.70% | 3.90% | |||
Revolver | |||||
Debt Instrument [Line Items] | |||||
Interest expense | $ 0 | ||||
Interest rate | 0.00% | ||||
Debt maturity | Aug. 1, 2018 | ||||
Collateral | $ 5,000,000 | ||||
Maximum borrowing capacity | $ 1,750,000 | ||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Revolver | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate | 2.00% | ||||
London Interbank Offered Rate (LIBOR) [Member] | Maximum | Revolver | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate | 3.50% | ||||
Capital Lease Obligations [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 4.70% | ||||
Collateral | $ 923,563 | $ 923,766 | |||
Gain (loss) on capital lease | 0 | $ 0 | |||
Lease payments | $ 346,000 | $ 404,928 | $ 70,051 | 125,494 | |
Outstanding lease obligation | 805,013 | ||||
Debt Obligation [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt instrument | $ 3,500,000 | ||||
Interest rate | 3.65% | ||||
Debt | $ 3,491,077 | 3,534,195 | |||
Collateral | $ 1,500,000 | ||||
Term of debt instrument | 5 years | ||||
Debt Obligation [Member] | Bofi Federal Bank B [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt instrument | 500,000 | ||||
Debt Obligation [Member] | Bofi Federal Bank C [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt instrument | $ 75,000 | ||||
Debt Obligation [Member] | Bofi Federal Bank B & C [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt instrument | $ 500,000 | ||||
Number of debt agreements | item | 2 | ||||
Optional prepayment term | 12 months | ||||
Debt | $ 3,491,077 | $ 3,534,195 | |||
Term of debt instrument | 36 months |
Debt (Schedule of Long-Term Deb
Debt (Schedule of Long-Term Debt) (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Total | $ 3,491,077 | $ 4,339,208 |
Capital Lease Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Capital lease obligation | 805,013 | |
Debt Obligation [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 3,491,077 | $ 3,534,195 |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Reinsurance [Abstract] | |
Individual risk | $ 500,000 |
Reinsurance (Summary of the Eff
Reinsurance (Summary of the Effects of Reinsurance) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
WRITTEN | ||
Direct | $ 14,387,670 | $ 12,588,591 |
Reinsurance assumed | 52,806 | 39,836 |
Reinsurance ceded | (2,466,973) | (1,976,230) |
Net | 11,973,502 | 10,652,197 |
EARNED | ||
Direct | 13,487,121 | 12,792,794 |
Reinsurance assumed | 57,745 | 49,218 |
Reinsurance ceded | (2,247,922) | (2,003,906) |
Net | 11,296,944 | 10,838,106 |
LOSSES AND SETTLEMENT EXPENSES INCURRED | ||
Direct | 9,545,940 | 7,869,502 |
Reinsurance assumed | 36,131 | 42,432 |
Reinsurance ceded | (1,586,222) | (1,312,550) |
Net | $ 7,995,849 | $ 6,599,384 |
Unpaid Losses and Settlement 39
Unpaid Losses and Settlement Expenses (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Unpaid losses and settlement expense - beginning of the period: | ||
Gross | $ 51,074,126 | $ 52,817,000 |
Less: Ceded | 10,029,834 | 12,115,000 |
Net | 41,044,000 | 40,702,000 |
Increase (decrease) in incurred losses and settlement expense: | ||
Current year | 6,767,000 | 6,893,000 |
Prior years | 1,229,000 | (294,000) |
Net | 7,995,849 | 6,599,384 |
Deduct: Loss and settlement expense payments for claims incurred: | ||
Current year | 1,669,000 | 1,974,000 |
Prior years | 5,691,000 | 4,936,000 |
Total paid | 7,360,000 | 6,910,000 |
Net unpaid losses and settlement expense - end of the period | 41,680,000 | 40,391,000 |
Plus: Reinsurance recoverable on unpaid losses | 9,764,338 | 9,473,000 |
Gross unpaid losses and settlement expense - end of the period | $ 51,444,103 | $ 49,864,000 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Income Taxes [Abstract] | |||
Federal tax rate | 21.00% | 34.00% | |
Effective tax rate | 19.60% | 35.40% | |
Capital loss carryforward | $ 0 | $ 0 | |
Operating loss carryforward | $ 0 | $ 0 |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Taxes [Abstract] | ||
Provision for income taxes at the statutory federal tax rates | $ 176,615 | $ 446,729 |
Increase (reduction) in taxes resulting from: | ||
Dividends received deduction | (8,951) | (9,104) |
Tax-exempt interest income | (36,323) | (40,338) |
15% proration of tax exempt interest and dividends received decution | 11,079 | 7,416 |
Officer life insurance, net | 3,229 | 5,003 |
Nondeductible expenses | 14,423 | 8,811 |
Prior year true-up and other | 5,126 | 46,347 |
Total income tax expense | $ 165,198 | $ 464,864 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Employee stock ownership plan, shares | 350,000 | |
Employee stock ownership plan, share purchase price | $ 10 | |
Contributions to ESOP | $ 0 | $ 0 |
Impact on weighted average shares outstanding | 0 | |
Restricted Stock Units (RSUs) | ||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Shaes granted | 11,700 | |
Fair value of shares granted | $ 15.10 | |
Share compensation expense | $ 6,292 | |
Unrecognized compensation expense | $ 170,338 | |
Vesting period | 3 years | |
December 31, 2018 [Member] | ||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Compensation expense | $ 95,241 | |
Shares committed to be released | 5,795 | |
March 31, 2018 [Member] | ||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Shares committed to be released | 1,996 | |
December 31, 2017 [Member] | ||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Compensation expense | $ 22,111 | |
Shares committed to be released | 1,433 |
Related Party (Details)
Related Party (Details) | Mar. 17, 2017USD ($)loanshares | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) |
John R. Klockau [Member] | |||
Related Party Transaction [Line Items] | |||
Fees paid to related party | $ 3,180 | $ 2,470 | |
Kevin Clinton [Member] | |||
Related Party Transaction [Line Items] | |||
Fees paid to related party | 0 | 420 | |
Scott T. Burgess [Member] | |||
Related Party Transaction [Line Items] | |||
Fees paid to related party | 566 | 841 | |
Griffin Financial Group [Member] | |||
Related Party Transaction [Line Items] | |||
Fees paid to related party | 0 | 893,240 | |
Stevens & Lee [Member] | |||
Related Party Transaction [Line Items] | |||
Fees paid to related party | $ 42,796 | 0 | |
Surplus Notes [Member] | |||
Related Party Transaction [Line Items] | |||
Notes converted | $ 1,650,000 | ||
Debt converted, shares issued | shares | 165,000 | ||
Surplus Notes [Member] | John R. Klockau [Member] | |||
Related Party Transaction [Line Items] | |||
Number of notes held | loan | 2 | ||
Notes converted | $ 1,150,000 | ||
Debt converted, shares issued | shares | 115,000 | ||
Debt converted, interest payment | $ 12,975 |