0001140361-22-018619 | 10-Q | XBRL Viewer

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2022	Apr. 30, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity Registrant Name	ATLANTIC AMERICAN CORP
Entity Incorporation, State or Country Code	GA
Entity File Number	0-3722
Entity Tax Identification Number	58-1027114
Entity Address, Address Line One	4370 Peachtree Road, N.E.
Entity Address, City or Town	Atlanta
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30319
City Area Code	404
Local Phone Number	266-5500
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Small Business	true
Entity Common Stock, Shares Outstanding		20,403,576
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000008177
Title of 12(b) Security	Common Stock, par value $1.00 per share
Trading Symbol	AAME
Security Exchange Name	NASDAQ

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
ASSETS
Cash and cash equivalents	$ 15,612	$ 24,753
Investments:
Fixed maturities, available-for-sale, at fair value (amortized cost: $239,452 and $238,597)	240,038	260,986
Equity securities, at fair value (cost: $4,906 and $4,907)	21,316	19,124
Other invested assets (cost: $918 and $698)	420	198
Policy loans	1,814	1,858
Real estate	38	38
Investment in unconsolidated trusts	1,238	1,238
Total investments	264,864	283,442
Receivables:
Reinsurance	27,036	27,416
Insurance premiums and other (net of allowance for doubtful accounts: $185 and $188)	11,550	14,959
Deferred income taxes, net	5,447	1,755
Deferred acquisition costs	39,875	38,698
Other assets	8,103	8,719
Intangibles	2,544	2,544
Total assets	375,031	402,286
Insurance reserves and policyholder funds:
Future policy benefits	85,541	87,348
Unearned premiums	19,834	27,469
Losses and claims	85,235	85,620
Other policy liabilities	961	1,360
Total insurance reserves and policyholder funds	191,571	201,797
Accounts payable and accrued expenses	23,299	25,465
Junior subordinated debenture obligations, net	33,738	33,738
Total liabilities	248,608	261,000
Commitments and contingencies (Note 11)
Shareholders' equity:
Preferred stock, $1 par, 4,000,000 shares authorized; Series D preferred, 55,000 shares issued and outstanding; $5,500 redemption value	55	55
Common stock, $1 par, 50,000,000 shares authorized; shares issued: 22,400,894; shares outstanding: 20,403,576 and 20,378,576	22,401	22,401
Additional paid-in capital	57,443	57,441
Retained earnings	53,599	51,264
Accumulated other comprehensive income	463	17,688
Unearned stock grant compensation	(117)	(73)
Treasury stock, at cost, 1,997,318 and 2,022,318 shares	(7,421)	(7,490)
Total shareholders' equity	126,423	141,286
Total liabilities and shareholders' equity	$ 375,031	$ 402,286

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Investments:
Fixed maturities, cost	$ 239,452	$ 238,597
Equity securities, cost	4,906	4,907
Other invested assets, cost	918	698
Receivables:
Insurance premiums and other, allowance for doubtful accounts	$ 185	$ 188
Shareholders' equity:
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized (in shares)	4,000,000	4,000,000
Preferred stock, shares issued (in shares)	55,000	55,000
Preferred stock, shares outstanding (in shares)	55,000	55,000
Preferred stock, redemption value	$ 5,500	$ 5,500
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	22,400,894	22,400,894
Common stock, shares outstanding (in shares)	20,403,576	20,378,576
Treasury stock, at cost (in shares)	1,997,318	2,022,318

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenue:
Insurance premiums, net	$ 47,081	$ 46,090
Net investment income	2,340	2,113
Realized investment gains (losses), net	(10)	121
Unrealized gains on equity securities, net	2,193	744
Other income	4	7
Total revenue	51,608	49,075
Benefits and expenses:
Insurance benefits and losses incurred	31,169	33,272
Commissions and underwriting expenses	12,836	12,564
Interest expense	354	346
Other expense	3,453	3,440
Total benefits and expenses	47,812	49,622
Income (loss) before income taxes	3,796	(547)
Income tax expense (benefit)	954	(116)
Net Income (loss)	2,842	(431)
Preferred stock dividends	(99)	(99)
Net Income (loss) applicable to common shareholders	$ 2,743	$ (530)
Earnings (loss) per common share (basic) (in dollars per share)	$ 0.13	$ (0.03)
Earnings (loss) per common share (diluted) (in dollars per share)	$ 0.13	$ (0.03)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS [Abstract]
Net Income (loss)	$ 2,842	$ (431)
Available-for-sale fixed maturity securities:
Gross unrealized holding loss arising in the period	(21,813)	(13,747)
Related income tax effect	4,581	2,887
Subtotal	(17,232)	(10,860)
Less: reclassification adjustment for net realized (gains) losses included in net income (loss)	10	(121)
Related income tax effect	(3)	25
Subtotal	7	(96)
Total other comprehensive loss, net of tax	(17,225)	(10,956)
Total comprehensive loss	$ (14,383)	$ (11,387)

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income [Member]	Unearned Stock Grant Compensation [Member]	Treasury Stock [Member]	Total
Balance, beginning of period at Dec. 31, 2020	$ 55	$ 22,401	$ 57,437	$ 47,790	$ 25,000	$ (284)	$ (7,339)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (loss)				(431)				$ (431)
Other comprehensive loss, net of tax					(10,956)			(10,956)
Dividends on common stock				(408)
Dividends accrued on preferred stock				(99)
Restricted stock grants, net of forfeitures			0			0	0
Amortization of unearned compensation						67
Issuance of shares under stock plans			1				1
Balance, end of period at Mar. 31, 2021	55	$ 22,401	57,438	46,852	14,044	(217)	(7,338)	$ 133,235
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared on common stock per share (in dollars per share)								$ 0.02
Balance, beginning of period (in shares) at Dec. 31, 2020		20,415,243
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of shares under stock plans (in shares)		539
Restricted stock grants, net of forfeitures (in shares)		0
Balance, end of period (in shares) at Mar. 31, 2021		20,415,782
Balance, beginning of period at Dec. 31, 2021	55	$ 22,401	57,441	51,264	17,688	(73)	(7,490)	$ 141,286
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (loss)				2,842				2,842
Other comprehensive loss, net of tax					(17,225)			(17,225)
Dividends on common stock				(408)
Dividends accrued on preferred stock				(99)
Restricted stock grants, net of forfeitures			2			(71)	69
Amortization of unearned compensation						27
Issuance of shares under stock plans			0				0
Balance, end of period at Mar. 31, 2022	$ 55	$ 22,401	$ 57,443	$ 53,599	$ 463	$ (117)	$ (7,421)	$ 126,423
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared on common stock per share (in dollars per share)								$ 0.02
Balance, beginning of period (in shares) at Dec. 31, 2021		20,378,576						20,378,576
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of shares under stock plans (in shares)		0
Restricted stock grants, net of forfeitures (in shares)		25,000
Balance, end of period (in shares) at Mar. 31, 2022		20,403,576						20,403,576

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 2,842	$ (431)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
(Additions to) amortization of acquisition costs, net	(1,177)	1,513
Realized investment losses (gains), net	10	(121)
Unrealized gains on equity securities, net	(2,193)	(744)
Earnings from equity method investees	(2)	0
Compensation expense related to share awards	27	67
Depreciation and amortization	240	264
Deferred income tax expense (benefit)	886	(492)
Decrease in receivables, net	3,789	4,559
Decrease in insurance reserves and policyholder funds	(10,226)	(6,693)
Decrease in accounts payable and accrued expenses	(2,676)	(2,250)
Other, net	473	(1,716)
Net cash used in operating activities	(8,007)	(6,044)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from investments sold	44	13,266
Proceeds from investments matured, called or redeemed	3,875	4,506
Investments purchased	(5,052)	(10,564)
Additions to property and equipment	(1)	(39)
Net cash (used in) provided by investing activities	(1,134)	7,169
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from shares issued under stock plans	0	2
Net cash provided by financing activities	0	2
Net (decrease) increase in cash and cash equivalents	(9,141)	1,127
Cash and cash equivalents at beginning of period	24,753	19,319
Cash and cash equivalents at end of period	15,612	20,446
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	$ 346	$ 351

Basis of Presentation

3 Months Ended

Mar. 31, 2022

Basis of Presentation [Abstract]

Basis of Presentation

Note 1.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of Atlantic American Corporation (the “Parent”) and its subsidiaries (collectively with the Parent, the “Company”). The Parent’s primary operating subsidiaries, American Southern Insurance Company and American Safety Insurance Company (together known as “American Southern”) and Bankers Fidelity Life Insurance Company and Bankers Fidelity Assurance Company (together known as “Bankers Fidelity”), operate in two principal business units. American Southern operates in the property and casualty insurance market, while Bankers Fidelity operates in the life and health insurance market. All significant intercompany accounts and transactions have been eliminated in consolidation. The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for audited annual financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. The unaudited condensed consolidated financial statements included herein and these related notes should be read in conjunction with the Company’s consolidated financial statements, and the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 (the “2021 Annual Report”). The Company’s financial condition and results of operations and cash flows as of and for the three month period ended March 31, 2022 are not necessarily indicative of the financial condition or results of operations and cash flows that may be expected for the year ending December 31, 2022 or for any other future period.

The Company’s significant accounting policies have not changed materially from those set out in the 2021 Annual Report, except as noted below for the adoption of new accounting standards.

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates.

Recently Issued Accounting Standards

3 Months Ended

Mar. 31, 2022

Recently Issued Accounting Standards [Abstract]

Recently Issued Accounting Standards

Note 2.

Recently Issued Accounting Standards

Future Adoption of New Accounting Standards

For more information regarding accounting standards that the Company has not yet adopted, see the “Recently Issued Accounting Standards - Future Adoption of New Accounting Standards” section of Note 1 of Notes to Consolidated Financial Statements in the 2021 Annual Report.

- Definition

The entire disclosure for change in accounting principle. Includes, but is not limited to, nature, reason, and method of adopting amendment to accounting standards or other change in accounting principle.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 65
-Paragraph 1
-Subparagraph (g)(2)
-URI http://asc.fasb.org/extlink&oid=123338486&loc=SL49131195-203048

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-URI http://asc.fasb.org/topic&trid=2122394

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 105
-SubTopic 10
-Section 65
-Paragraph 6
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=124434974&loc=SL124442142-165695

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 65
-Paragraph 1
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123338486&loc=SL49131195-203048

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (e)(2)
-URI http://asc.fasb.org/extlink&oid=123459177&loc=SL121830611-158277

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section S99
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=122038215&loc=SL108384541-122693

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 20
-Section 65
-Paragraph 2
-Subparagraph (d)(1)
-URI http://asc.fasb.org/extlink&oid=124402435&loc=SL124402458-218513

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 65
-Paragraph 6
-Subparagraph (e)(2)
-URI http://asc.fasb.org/extlink&oid=123597120&loc=SL121967933-165497

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 65
-Paragraph 1
-Subparagraph (i)(2)
-URI http://asc.fasb.org/extlink&oid=123338486&loc=SL49131195-203048

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 65
-Paragraph 6
-Subparagraph (e)(1)
-URI http://asc.fasb.org/extlink&oid=123597120&loc=SL121967933-165497

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(iii)
-URI http://asc.fasb.org/extlink&oid=124501264&loc=SL117420844-207641

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(4)
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22499-107794

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(ii)
-URI http://asc.fasb.org/extlink&oid=124501264&loc=SL117420844-207641

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(i)
-URI http://asc.fasb.org/extlink&oid=124501264&loc=SL117420844-207641

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (e)(1)
-URI http://asc.fasb.org/extlink&oid=123459177&loc=SL121830611-158277

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (g)(1)
-URI http://asc.fasb.org/extlink&oid=121322162&loc=SL121327923-165333

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (e)(1)
-URI http://asc.fasb.org/extlink&oid=123482062&loc=SL123482106-238011

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 20
-Section 65
-Paragraph 2
-Subparagraph (d)(2)
-URI http://asc.fasb.org/extlink&oid=124402435&loc=SL124402458-218513

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 65
-Paragraph 1
-Subparagraph (j)
-URI http://asc.fasb.org/extlink&oid=123338486&loc=SL49131195-203048

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(iv)
-URI http://asc.fasb.org/extlink&oid=124501264&loc=SL117420844-207641

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 926
-SubTopic 20
-Section 65
-Paragraph 2
-Subparagraph (f)(1)
-URI http://asc.fasb.org/extlink&oid=120154821&loc=SL120154904-197079

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section S99
-Paragraph 5
-Subparagraph (SAB Topic 11.M.Q2)
-URI http://asc.fasb.org/extlink&oid=122038215&loc=d3e31137-122693

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 926
-SubTopic 20
-Section 65
-Paragraph 2
-Subparagraph (f)(2)
-URI http://asc.fasb.org/extlink&oid=120154821&loc=SL120154904-197079

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22499-107794

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 926
-SubTopic 20
-Section 65
-Paragraph 2
-Subparagraph (f)(3)
-URI http://asc.fasb.org/extlink&oid=120154821&loc=SL120154904-197079

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 65
-Paragraph 6
-Subparagraph (e)(3)
-URI http://asc.fasb.org/extlink&oid=123597120&loc=SL121967933-165497

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 10
-Section 65
-Paragraph 4
-Subparagraph (e)(1)
-URI http://asc.fasb.org/extlink&oid=122640432&loc=SL121648383-210437

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)(1)
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22499-107794

Reference 29: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (h)(2)
-URI http://asc.fasb.org/extlink&oid=124501264&loc=SL117420844-207641

Reference 30: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 10
-Section 65
-Paragraph 4
-Subparagraph (e)(2)
-URI http://asc.fasb.org/extlink&oid=122640432&loc=SL121648383-210437

Reference 31: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(1)
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22499-107794

Reference 32: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 848
-SubTopic 10
-Section 65
-Paragraph 1
-Subparagraph (e)(1)
-URI http://asc.fasb.org/extlink&oid=122150657&loc=SL122150809-237846

Reference 33: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (e)(3)
-URI http://asc.fasb.org/extlink&oid=123459177&loc=SL121830611-158277

Reference 34: http://www.xbrl.org/2003/role/disclosureRef
-Topic 848
-SubTopic 10
-Name Accounting Standards Codification
-Section 65
-Paragraph 2
-Publisher FASB
-Subparagraph (c)

+ Details

Investments

3 Months Ended

Mar. 31, 2022

Investments [Abstract]

Investments

Note 3.

Investments

The following tables set forth the estimated fair value, gross unrealized gains, gross unrealized losses and cost or amortized cost of the Company’s investments in fixed maturities and equity securities, aggregated by type and industry, as of March 31, 2022 and December 31, 2021.

Fixed maturities were comprised of the following:

	March 31, 2022
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Fixed maturities:
Bonds:
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	47,852	$	172	$	2,098	$	49,778
Obligations of states and political subdivisions		11,058		228		63		10,893
Corporate securities:
Utilities and telecom		27,051		955		695		26,791
Financial services		65,895		1,868		1,250		65,277
Other business – diversified		36,107		1,255		823		35,675
Other consumer – diversified		51,832		1,701		714		50,845
Total corporate securities		180,885		5,779		3,482		178,588
Redeemable preferred stocks:
Other consumer – diversified		243		50		—		193
Total redeemable preferred stocks		243		50		—		193
Total fixed maturities	$	240,038	$	6,229	$	5,643	$	239,452

	December 31, 2021
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Fixed maturities:
Bonds:
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	50,298	$	763	$	416	$	49,951
Obligations of states and political subdivisions		11,644		749		—		10,895
Corporate securities:
Utilities and telecom		29,717		2,961		44		26,800
Financial services		70,921		6,759		48		64,210
Other business – diversified		40,216		4,631		106		35,691
Other consumer – diversified		57,940		7,185		103		50,858
Total corporate securities		198,794		21,536		301		177,559
Redeemable preferred stocks:
Other consumer – diversified		250		58		—		192
Total redeemable preferred stocks		250		58		—		192
Total fixed maturities	$	260,986	$	23,106	$	717	$	238,597

Bonds having an amortized cost of $10,879 and $11,169 and included in the tables above were on deposit with insurance regulatory authorities as of March 31, 2022 and December 31, 2021, respectively, in accordance with statutory requirements. Additionally, bonds having an amortized cost of $4,762 and $5,371 and included in the tables above were pledged as collateral to the Federal Home Loan Bank of Atlanta (“FHLB”) at March 31, 2022 and December 31, 2021, respectively.

Equity securities were comprised of the following:

	March 31, 2022
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Equity securities:
Common and non-redeemable preferred stocks:
Financial services	$	878	$	605	$	—	$	273
Other business – diversified		20,438		15,805		—		4,633
Total equity securities	$	21,316	$	16,410	$	—	$	4,906

	December 31, 2021
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Equity securities:
Common and non-redeemable preferred stocks:
Financial services	$	799		525		—		274
Other business – diversified		18,325		13,692		—		4,633
Total equity securities	$	19,124	$	14,217	$	—	$	4,907

The carrying value and amortized cost of the Company’s investments in fixed maturities at March 31, 2022 and December 31, 2021 by contractual maturity were as follows. Actual maturities may differ from contractual maturities because issuers may call or prepay obligations with or without call or prepayment penalties.

	March 31, 2022				December 31, 2021
	Carrying Value		Amortized Cost		Carrying Value		Amortized Cost
Due in one year or less	$	1,407	$	1,403	$	1,734	$	1,730
Due after one year through five years		29,051		28,969		24,926		23,593
Due after five years through ten years		65,067		65,159		73,725		68,338
Due after ten years		107,568		105,175		122,045		106,181
Asset backed securities		36,945		38,746		38,556		38,755
Totals	$	240,038	$	239,452	$	260,986	$	238,597

The following tables present the Company’s unrealized loss aging for securities by type and length of time the security was in a continuous unrealized loss position as of March 31, 2022 and December 31, 2021.

	March 31, 2022
	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	33,399	$	1,555	$	5,041	$	543	$	38,440	$	2,098
Obligations of states and political subdivisions		3,394		63		—		—		3,394		63
Corporate securities		65,680		2,732		4,978		750		70,658		3,482
Total temporarily impaired securities	$	102,473	$	4,350	$	10,019	$	1,293	$	112,492	$	5,643

	December 31, 2021
	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	30,141	$	416	$	—	$	—	$	30,141	$	416
Corporate securities		3,326		49		4,761		252		8,087		301
Total temporarily impaired securities	$	33,467	$	465	$	4,761	$	252	$	38,228	$	717

The evaluation for an other than temporary impairment (“OTTI”) is a quantitative and qualitative process, which is subject to risks and uncertainties in the determination of whether declines in the fair value of investments are other than temporary. Potential risks and uncertainties include, among other things, changes in general economic conditions, an issuer’s financial condition or near term recovery prospects and the effects of changes in interest rates. In evaluating a potential impairment, the Company considers, among other factors, management’s intent and ability to hold the securities until price recovery, the nature of the investment and the expectation of prospects for the issuer and its industry, the status of an issuer’s continued satisfaction of its obligations in accordance with their contractual terms, and management’s expectation as to the issuer’s ability and intent to continue to do so, as well as ratings actions that may affect the issuer’s credit status.

There were no OTTI charges recorded during the three month periods ended March 31, 2022 and 2021.

As of March 31, 2022 and December 31, 2021, there were 141 and 61 securities, respectively, in an unrealized loss position which primarily included certain of the Company’s investments in fixed maturities within the utilities and telecom, financial services, other diversified business and other diversified consumer sectors. The increase in the number of securities in an unrealized loss position during the three month period ended March 31, 2022, was primarily attributable to a decline in market values in certain of the Company’s fixed maturity securities as a result of a rising interest rate environment. The Company does not currently intend to sell, nor does it expect to be required to sell, any of the securities in an unrealized loss position. Based upon the Company’s expected continuation of receipt of contractually required principal and interest payments and its intent and ability to retain the securities until price recovery, as well as the Company’s evaluation of other relevant factors, including those described above, the Company has deemed these securities to be temporarily impaired as of March 31, 2022.

The following table is a summary of realized investment gains (losses) for the three month period ended March 31, 2022 and 2021.

	Three Months Ended March 31, 2022
	Fixed Maturities			Equity Securities		Other Invested Assets		Total
Gains	$	—		$	—	$	—	$	—
Losses		(10	)		—		—		(10	)
Realized investment losses, net	$	(10	)	$	—	$	—	$	(10	)

	Three Months Ended March 31, 2021
	Fixed Maturities		Equity Securities		Other Invested Assets		Total
Gains	$	121	$	—	$	—	$	121
Losses		—		—		—		—
Realized investment gains, net	$	121	$	—	$	—	$	121

The following table presents the portion of unrealized gains related to equity securities still held for the three month period ended March 31, 2022 and 2021.

	Three Months Ended March 31,
	2022		2021
Net realized and unrealized gains recognized during the period on equity securities	$	2,193	$	744
Less: Net realized gains recognized during the period on equity securities sold during the period		—		—
Unrealized gains recognized during the reporting period on equity securities, net	$	2,193	$	744

Variable Interest Entities

The Company holds passive interests in a number of entities that are considered to be variable interest entities (“VIEs”) under GAAP guidance. The Company’s VIE interests principally consist of interests in limited partnerships and limited liability companies formed for the purpose of achieving diversified equity returns. The Company’s VIE interests, carried as a part of other invested assets, totaled $420 and $198 as of March 31, 2022 and December 31, 2021, respectively. The Company’s VIE interests, carried as a part of investment in unconsolidated trusts, totaled $1,238 as of March 31, 2022 and December 31, 2021.

The Company does not have power over the activities that most significantly impact the economic performance of these VIEs and thus is not the primary beneficiary. Therefore, the Company has not consolidated these VIEs. The Company’s involvement with each VIE is limited to its direct ownership interest in the VIE. The Company has no arrangements with any of the VIEs to provide other financial support to or on behalf of the VIE. The Company’s maximum loss exposure relative to these investments was limited to the carrying value of the Company’s investment in the VIEs, which amount to $1,658 and $1,436, as of March 31, 2022 and December 31, 2021, respectively. As of March 31, 2022 and December 31, 2021, the Company had outstanding commitments totaling $12,777 and $1,997, respectively, whereby the Company is committed to fund these investments and may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses.

Fair Values of Financial Instruments

3 Months Ended

Mar. 31, 2022

Fair Values of Financial Instruments [Abstract]

Fair Values of Financial Instruments

Note 4.

Fair Values of Financial Instruments

The estimated fair values have been determined by the Company using available market information from various market sources and appropriate valuation methodologies as of the respective dates. However, considerable judgment is necessary to interpret market data and to develop the estimates of fair value. Although management is not aware of any factors that would significantly affect the estimated fair value amounts, the estimates presented herein are not necessarily indicative of the amounts which the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

The following describes the fair value hierarchy and provides information as to the extent to which the Company uses fair value to measure the value of its financial instruments and information about the inputs used to value those financial instruments. The fair value hierarchy prioritizes the inputs in the valuation techniques used to measure fair value into three broad levels.

Level 1

Observable inputs that reflect quoted prices for identical assets or liabilities in active markets that the Company has the ability to access at the measurement date. The Company’s financial instruments valued using Level 1 criteria include cash equivalents and exchange traded common stocks.

Level 2

Observable inputs, other than quoted prices included in Level 1, for an asset or liability or prices for similar assets or liabilities. The Company’s financial instruments valued using Level 2 criteria include significantly most of its fixed maturities, which consist of U.S. Treasury securities, U.S. Government securities, obligations of states and political subdivisions, and certain corporate fixed maturities, as well as its non-redeemable preferred stocks. In determining fair value measurements of its fixed maturities and non-redeemable preferred stocks using Level 2 criteria, the Company utilizes data from outside sources, including nationally recognized pricing services and broker/dealers. Prices for the majority of the Company’s Level 2 fixed maturities and non-redeemable preferred stocks were determined using unadjusted prices received from pricing services that utilize 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

Valuations that are derived from techniques in which one or more of the significant inputs are unobservable (including assumptions about risk). Fair value is based on criteria that use assumptions or other data that are not readily observable from objective sources. With little or no observable market, the determination of fair values uses considerable judgment and represents the Company’s best estimate of an amount that could be realized in a market exchange for the asset or liability. The Company’s financial instruments valued using Level 3 criteria consist of two fixed maturity securities and one equity security. As of March 31, 2022 and December 31, 2021, the value of the fixed maturities valued using Level 3 criteria was $0 and $250, respectively. As of March 31, 2022 and December 31, 2021, the value of the equity security valued using Level 3 criteria was $156 and $157, respectively. The equity security is not traded and is valued at cost. The use of different criteria or assumptions regarding data may have yielded materially different valuations.

As of March 31, 2022, financial instruments carried at fair value were measured on a recurring basis as summarized below:

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Fixed maturities	$	—	$	240,038	$	—	$	240,038
Equity securities		21,160		—		156		21,316
Cash equivalents		11,534		—		—		11,534
Total	$	32,694	$	240,038	$	156	$	272,888

As of December 31, 2021, financial instruments carried at fair value were measured on a recurring basis as summarized below:

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Fixed maturities	$	250	$	260,486	$	250	$	260,986
Equity securities		18,967		—		157		19,124
Cash equivalents		12,713		—		—		12,713
Total	$	31,930	$	260,486	$	407	$	292,823

The following table sets forth the carrying amount, estimated fair value and level within the fair value hierarchy of the Company’s financial instruments as of March 31, 2022 and December 31, 2021.

			March 31, 2022				December 31, 2021
	Level in Fair Value Hierarchy ⁽¹⁾		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets:
Cash and cash equivalents	Level 1		$	15,612	$	15,612	$	24,753	$	24,753
Fixed maturities		⁽¹⁾		240,038		240,038		260,986		260,986
Equity securities		⁽¹⁾		21,316		21,316		19,124		19,124
Other invested assets	Level 3			420		420		198		198
Policy loans	Level 2			1,814		1,814		1,858		1,858
Investment in unconsolidated trusts	Level 2			1,238		1,238		1,238		1,238

Liabilities:
Junior subordinated debentures, net	Level 2			33,738		33,115		33,738		33,728

(1)	See the aforementioned information for a description of the fair value hierarchy as well as a disclosure of levels for classes of these financial assets.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Insurance Reserves for Losses and Claims

3 Months Ended

Mar. 31, 2022

Insurance Reserves for Losses and Claims [Abstract]

Insurance Reserves for Losses and Claims

Note 5.

Insurance Reserves for Losses and Claims

The roll-forward of insurance reserves for losses and claims for the three months ended March 31, 2022 and 2021 is as follows:

	Three Months Ended March 31,
	2022			2021
Beginning insurance reserves for losses and claims, gross	$	85,620		$	79,147
Less: Reinsurance recoverable on unpaid losses		(17,690	)		(17,600	)
Beginning insurance reserves for losses and claims, net		67,930			61,547

Incurred related to:
Current accident year		32,542			32,928
Prior accident year development ⁽¹⁾		(1,523	)⁽²⁾		475	⁽³⁾
Total incurred		31,019			33,403

Paid related to:
Current accident year		10,629			10,917
Prior accident years		19,966			20,984
Total paid		30,595			31,901
Ending insurance reserves for losses and claims, net		68,354			63,049
Plus: Reinsurance recoverable on unpaid losses		16,881			18,236
Ending insurance reserves for losses and claims, gross	$	85,235		$	81,285

(1)

In establishing property and casualty reserves, the Company initially reserves for losses at the higher end of the reasonable range if no other value within the range is determined to be more probable. Selection of such an initial loss estimate is an attempt by management to give recognition that initial claims information received generally is not conclusive with respect to legal liability, is generally not comprehensive with respect to magnitude of loss and generally, based on historical experience, will develop more adversely as time passes and more information becomes available. Accordingly, the Company generally experiences reserve redundancies when analyzing the development of prior year losses in a current period.

(2)	Prior years’ development was primarily the result of favorable development in both the life and health and the property and casualty operations.

(3)	Prior years’ development was primarily the result of unfavorable development in the loss and claim reserves for the Medicare supplement line of business in Bankers Fidelity. Partially offsetting the unfavorable development was favorable development in the property and casualty operations.

Following is a reconciliation of total incurred losses to total insurance benefits and losses incurred:

	Three Months Ended March 31,
	2022			2021
Total incurred losses	$	31,019		$	33,403
Cash surrender value and matured endowments		362			247
Benefit reserve changes		(212	)		(378	)
Total insurance benefits and losses incurred	$	31,169		$	33,272

Credit Arrangements

3 Months Ended

Mar. 31, 2022

Credit Arrangements [Abstract]

Credit Arrangements

Note 6.

Credit Arrangements

The Company is preparing for the expected discontinuation of LIBOR by identifying, assessing and monitoring risks associated with LIBOR transition. Preparation includes taking steps to update operational processes to support alternative reference rates and models, as well as evaluating legacy contracts for any changes that may be required, including the determination of applicable fallbacks.

Bank Debt

On May 12, 2021, the Company entered into a Revolving Credit Agreement (the “Credit Agreement”) with Truist Bank as the lender (the “Lender”). The Credit Agreement provides for an unsecured $10 million revolving credit facility that matures on April 12, 2024. Under the Credit Agreement, the Company will pay interest on the unpaid principal balance of outstanding revolving loans at the LIBOR Rate (as defined in the Credit Agreement) plus 2.00%, subject to a LIBOR floor rate of 1.00%.

The Credit Agreement requires the Company to comply with certain covenants, including a debt to capital ratio that restricts the Company from incurring consolidated indebtedness that exceeds 35% of the Company’s consolidated capitalization at any time. The Credit Agreement also contains customary representations and warranties and events of default. Events of default include, among others, (a) the failure by the Company to pay any amounts owed under the Credit Agreement when due, (b) the failure to perform and not timely remedy certain covenants, (c) a change in control of the Company and (d) the occurrence of bankruptcy or insolvency events. Upon an event of default, the Lender may, among other things, declare all obligations under the Credit Agreement immediately due and payable and terminate the revolving commitments. As of March 31, 2022, the Company does not have any outstanding borrowings under the Credit Agreement.

Junior Subordinated Debentures

The Company has two unconsolidated Connecticut statutory business trusts, which exist for the exclusive purposes of: (i) issuing trust preferred securities (“Trust Preferred Securities”) representing undivided beneficial interests in the assets of the trusts; (ii) investing the gross proceeds of the Trust Preferred Securities in junior subordinated deferrable interest debentures (“Junior Subordinated Debentures”) of Atlantic American; and (iii) engaging in those activities necessary or incidental thereto.

The financial structure of each of Atlantic American Statutory Trust I and II as of March 31, 2022 was as follows:

	Atlantic American Statutory Trust I		Atlantic American Statutory Trust II
JUNIOR SUBORDINATED DEBENTURES ^{(1) (2)}
Principal amount owed March 31, 2022	$	18,042	$	23,196
Less: Treasury debt ⁽³⁾		—		(7,500	)
Net balance March 31, 2022	$	18,042	$	15,696
Net balance December 31, 2021	$	18,042	$	15,696
Coupon rate	LIBOR + 4.00%		LIBOR + 4.10%
Interest payable	Quarterly		Quarterly
Maturity date	December 4, 2032		May 15, 2033
Redeemable by issuer	Yes		Yes
TRUST PREFERRED SECURITIES
Issuance date	December 4, 2002		May 15, 2003
Securities issued		17,500		22,500
Liquidation preference per security	$	1	$	1
Liquidation value	$	17,500	$	22,500
Coupon rate	LIBOR + 4.00%		LIBOR + 4.10%
Distribution payable	Quarterly		Quarterly
Distribution guaranteed by ⁽⁴⁾	Atlantic American Corporation		Atlantic American Corporation

(1)

For each of the respective debentures, the Company has the right at any time, and from time to time, to defer payments of interest on the Junior Subordinated Debentures for a period not exceeding 20 consecutive quarters up to the debentures’ respective maturity dates. During any such period, interest will continue to accrue and the Company may not declare or pay any cash dividends or distributions on, or purchase, the Company’s common stock nor make any principal, interest or premium payments on or repurchase any debt securities that rank equally with or junior to the Junior Subordinated Debentures. The Company has the right at any time to dissolve each of the trusts and cause the Junior Subordinated Debentures to be distributed to the holders of the Trust Preferred Securities.

(2)	The Junior Subordinated Debentures are unsecured and rank junior and subordinate in right of payment to all senior debt of the Parent and are effectively subordinated to all existing and future liabilities of its subsidiaries.

(3)	On August 4, 2014, the Company acquired $7,500 of the Junior Subordinated Debentures.

(4)	The Parent has guaranteed, on a subordinated basis, all of the obligations under the Trust Preferred Securities, including payment of the redemption price and any accumulated and unpaid distributions to the extent of available funds and upon dissolution, winding up or liquidation.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1E
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Earnings (Loss) Per Common Share

3 Months Ended

Mar. 31, 2022

Earnings (Loss) Per Common Share [Abstract]

Earnings (Loss) Per Common Share

Note 7.

Earnings (Loss) Per Common Share

A reconciliation of the numerator and denominator used in the earnings (loss) per common share calculations is as follows:

	Three Months Ended March 31, 2022
	Income			Weighted Average Shares (In thousands)		Per Share Amount
Basic Earnings Per Common Share:
Net income	$	2,842			20,380
Less preferred stock dividends		(99	)		—
Net income applicable to common shareholders		2,743			20,380	$	0.13
Diluted Earnings Per Common Share:
Effect of Series D preferred stock		99			1,378
Net income applicable to common shareholders	$	2,842			21,758	$	0.13

	Three Months Ended March 31, 2021
	Loss			Weighted Average Shares (In thousands)		Per Share Amount
Basic and Diluted Loss Per Common Share:
Net loss	$	(431	)		20,415
Less preferred stock dividends		(99	)		—
Net loss applicable to common shareholders	$	(530	)		20,415		(0.03	)

The assumed conversion of the Company’s Series D preferred stock was excluded from the loss per common share calculation for three month period ended March 31, 2021 since its impact would have been antidilutive.

Equity Incentive Plan	3 Months Ended
Equity Incentive Plan	Mar. 31, 2022
Equity Incentive Plan [Abstract]
Equity Incentive Plan	Note 8. Equity Incentive Plan On May 1, 2012, the Company’s shareholders approved the 2012 Equity Incentive Plan (the “2012 Plan”). The 2012 Plan authorizes the grant of up to 2,000,000 stock options, stock appreciation rights, restricted shares, restricted stock units, performance shares, performance units and other awards for the purpose of providing the Company’s non-employee directors, consultants, officers and other employees incentives and rewards for superior performance. During the three month period ended March 31, 2022, a total of 25,000 restricted shares, with an estimated fair value of $69 were issued under the 2012 Plan. During 2021, there were no restricted shares issued under the 2012 Plan. The estimated fair value of the restricted shares issued under the 2012 Plan for 2022 and 2021 was based on the common stock price at date of grant. Stock grants are generally issued from treasury shares. Vesting of restricted shares generally occurs after a one to three year period. The Company accounts for forfeitures as they occur. There were no stock options granted or outstanding under the 2012 Plan in 2022 or 2021. Shares available for future grant at March 31, 2022 and December 31, 2021 were 910,200 and 935,200, respectively.

Income Taxes

3 Months Ended

Mar. 31, 2022

Income Taxes [Abstract]

Income Taxes

Note 9.

Income Taxes

A reconciliation of the differences between income taxes computed at the federal statutory income tax rate and income tax expense (benefit) is as follows:

	Three Months Ended March 31,
	2022			2021
Federal income tax provision at statutory rate of 21%	$	797		$	(115	)
Dividends-received deduction		(6	)		(9	)
Meals and entertainment		10			4
Parking disallowance		4			4
Penalties and fines		149			—
Income tax expense (benefit)	$	954		$	(116	)

The components of income tax expense (benefit) were:

	Three Months Ended March 31,
		2022		2021
Current – Federal	$	68	$	376
Deferred – Federal		886		(492	)
Total	$	954	$	(116	)

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI http://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Leases

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Leases

Note 10.

Leases

The Company has two operating lease agreements, each for the use of office space in the ordinary course of business. The first lease renews annually on an automatic basis and based on original assumptions, management is reasonably certain to exercise the renewal option through 2026. The original term of the second lease was ten years and amended in January 2017 to provide for an additional seven years, with a termination date on September 30, 2026. The rate used in determining the present value of lease payments is based upon an estimate of the Company’s incremental secured borrowing rate commensurate with the term of the underlying lease.

These leases are accounted for as operating leases, whereby lease expense is recognized on a straight-line basis over the term of the lease. Lease expense reported for the three months ended March 31, 2022 and March 31, 2021 was $254.

Additional information regarding the Company’s real estate operating leases is as follows:

	Three Months Ended March 31,
Other information on operating leases:	2022			2021
Cash payments included in the measurement of lease liabilities reported in operating cash flows	$	255		$	251
Right-of-use assets included in other assets on the condensed consolidated balance sheet		3,963			4,664
Weighted average discount rate		6.8	%		6.8	%
Weighted average remaining lease term in years	4.6 years			5.6 years

The following table presents maturities and present value of the Company’s lease liabilities:

	Lease Liability
Remainder of 2022	$	776
2023		1,048
2024		1,065
2025		1,083
2026		942
Thereafter		—
Total undiscounted lease payments		4,914
Less: present value adjustment		717
Operating lease liability included in accounts payable and accrued expenses on the condensed consolidated balance sheet	$	4,197

As of March 31, 2022, the Company has no operating leases that have not yet commenced.

Commitments and Contingencies

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies [Abstract]

Commitments and Contingencies

Note 11.

Commitments and Contingencies

Litigation

From time to time, the Company is, and expects to continue to be, involved in various claims and lawsuits incidental to and in the ordinary course of its business. In the opinion of management, any such known claims are not expected to have a material effect on the financial condition or results of operations of the Company.

Regulatory Matters

Like all domestic insurance companies, the Company’s insurance subsidiaries are subject to regulation and supervision in the jurisdictions in which they do business. Statutes typically delegate regulatory, supervisory, and administrative powers to state insurance commissioners. From time to time, and in the ordinary course of business, the Company receives notices and inquiries from state insurance departments with respect to various matters.

In November 2021, the Company was made aware by a state regulatory authority of alleged violations relating to certain sales of insurance policies and that the Company may be subject to regulatory action, including fines. Subsequent to March 31, 2022, the Company agreed to settle the matter through a consent order which included a penalty that has been recorded as a liability in the financial statements as of March 31, 2022.

Segment Information

3 Months Ended

Mar. 31, 2022

Segment Information [Abstract]

Segment Information

Note 12.

Segment Information

The Parent’s primary insurance subsidiaries, American Southern and Bankers Fidelity, operate in two principal business units, each focusing on specific products. American Southern operates in the property and casualty insurance market, while Bankers Fidelity operates in the life and health insurance market. Each business unit is managed independently and is evaluated on its individual performance. The following sets forth the assets, revenue and income (loss) before income taxes for each business unit as of and for the periods ended 2022 and 2021.

Assets	March 31, 2022		December 31, 2021
American Southern	$	141,480	$	161,788
Bankers Fidelity		217,617		227,395
Corporate and Other		15,934		13,103
Total assets	$	375,031	$	402,286

	Three Months Ended March 31,
Revenues	2022		2021
American Southern	$	18,506	$	17,526
Bankers Fidelity		32,889		31,540
Corporate and Other		213		9
Total revenue	$	51,608	$	49,075

	Three Months Ended March 31,
Income (Loss) Before Income Taxes	2022			2021
American Southern	$	2,085		$	1,490
Bankers Fidelity		3,451			134
Corporate and Other		(1,740	)		(2,171	)
Income (loss) before income taxes	$	3,796		$	(547	)

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Recently Issued Accounting Standards (Policies)	3 Months Ended
Recently Issued Accounting Standards (Policies)	Mar. 31, 2022
Recently Issued Accounting Standards [Abstract]
Future Adoption of New Accounting Standards	Future Adoption of New Accounting Standards For more information regarding accounting standards that the Company has not yet adopted, see the “Recently Issued Accounting Standards - Future Adoption of New Accounting Standards” section of Note 1 of Notes to Consolidated Financial Statements in the 2021 Annual Report.

Investments (Tables)

3 Months Ended

Mar. 31, 2022

Investments [Abstract]

Investments Aggregated by Type and Industry

Fixed maturities were comprised of the following:

	March 31, 2022
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Fixed maturities:
Bonds:
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	47,852	$	172	$	2,098	$	49,778
Obligations of states and political subdivisions		11,058		228		63		10,893
Corporate securities:
Utilities and telecom		27,051		955		695		26,791
Financial services		65,895		1,868		1,250		65,277
Other business – diversified		36,107		1,255		823		35,675
Other consumer – diversified		51,832		1,701		714		50,845
Total corporate securities		180,885		5,779		3,482		178,588
Redeemable preferred stocks:
Other consumer – diversified		243		50		—		193
Total redeemable preferred stocks		243		50		—		193
Total fixed maturities	$	240,038	$	6,229	$	5,643	$	239,452

	December 31, 2021
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Fixed maturities:
Bonds:
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	50,298	$	763	$	416	$	49,951
Obligations of states and political subdivisions		11,644		749		—		10,895
Corporate securities:
Utilities and telecom		29,717		2,961		44		26,800
Financial services		70,921		6,759		48		64,210
Other business – diversified		40,216		4,631		106		35,691
Other consumer – diversified		57,940		7,185		103		50,858
Total corporate securities		198,794		21,536		301		177,559
Redeemable preferred stocks:
Other consumer – diversified		250		58		—		192
Total redeemable preferred stocks		250		58		—		192
Total fixed maturities	$	260,986	$	23,106	$	717	$	238,597

Equity securities were comprised of the following:

	March 31, 2022
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Equity securities:
Common and non-redeemable preferred stocks:
Financial services	$	878	$	605	$	—	$	273
Other business – diversified		20,438		15,805		—		4,633
Total equity securities	$	21,316	$	16,410	$	—	$	4,906

	December 31, 2021
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Equity securities:
Common and non-redeemable preferred stocks:
Financial services	$	799		525		—		274
Other business – diversified		18,325		13,692		—		4,633
Total equity securities	$	19,124	$	14,217	$	—	$	4,907

Amortized Cost and Carrying Value of Fixed Maturities by Contractual Maturity

	March 31, 2022				December 31, 2021
	Carrying Value		Amortized Cost		Carrying Value		Amortized Cost
Due in one year or less	$	1,407	$	1,403	$	1,734	$	1,730
Due after one year through five years		29,051		28,969		24,926		23,593
Due after five years through ten years		65,067		65,159		73,725		68,338
Due after ten years		107,568		105,175		122,045		106,181
Asset backed securities		36,945		38,746		38,556		38,755
Totals	$	240,038	$	239,452	$	260,986	$	238,597

Investment Securities with Continuous Unrealized Loss Position

	March 31, 2022
	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	33,399	$	1,555	$	5,041	$	543	$	38,440	$	2,098
Obligations of states and political subdivisions		3,394		63		—		—		3,394		63
Corporate securities		65,680		2,732		4,978		750		70,658		3,482
Total temporarily impaired securities	$	102,473	$	4,350	$	10,019	$	1,293	$	112,492	$	5,643

	December 31, 2021
	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	30,141	$	416	$	—	$	—	$	30,141	$	416
Corporate securities		3,326		49		4,761		252		8,087		301
Total temporarily impaired securities	$	33,467	$	465	$	4,761	$	252	$	38,228	$	717

Summary of Realized Investment Gains

The following table is a summary of realized investment gains (losses) for the three month period ended March 31, 2022 and 2021.

	Three Months Ended March 31, 2022
	Fixed Maturities			Equity Securities		Other Invested Assets		Total
Gains	$	—		$	—	$	—	$	—
Losses		(10	)		—		—		(10	)
Realized investment losses, net	$	(10	)	$	—	$	—	$	(10	)

	Three Months Ended March 31, 2021
	Fixed Maturities		Equity Securities		Other Invested Assets		Total
Gains	$	121	$	—	$	—	$	121
Losses		—		—		—		—
Realized investment gains, net	$	121	$	—	$	—	$	121

Unrealized Gains (Losses) on Equity Securities

The following table presents the portion of unrealized gains related to equity securities still held for the three month period ended March 31, 2022 and 2021.

	Three Months Ended March 31,
	2022		2021
Net realized and unrealized gains recognized during the period on equity securities	$	2,193	$	744
Less: Net realized gains recognized during the period on equity securities sold during the period		—		—
Unrealized gains recognized during the reporting period on equity securities, net	$	2,193	$	744

Fair Values of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2022

Fair Values of Financial Instruments [Abstract]

Financial Instruments Carried at Fair Value Measured on a Recurring Basis

As of March 31, 2022, financial instruments carried at fair value were measured on a recurring basis as summarized below:

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Fixed maturities	$	—	$	240,038	$	—	$	240,038
Equity securities		21,160		—		156		21,316
Cash equivalents		11,534		—		—		11,534
Total	$	32,694	$	240,038	$	156	$	272,888

As of December 31, 2021, financial instruments carried at fair value were measured on a recurring basis as summarized below:

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Fixed maturities	$	250	$	260,486	$	250	$	260,986
Equity securities		18,967		—		157		19,124
Cash equivalents		12,713		—		—		12,713
Total	$	31,930	$	260,486	$	407	$	292,823

Carrying Amount, Estimated Fair Value and Level within the Fair Value Hierarchy of Financial Instruments

The following table sets forth the carrying amount, estimated fair value and level within the fair value hierarchy of the Company’s financial instruments as of March 31, 2022 and December 31, 2021.

			March 31, 2022				December 31, 2021
	Level in Fair Value Hierarchy ⁽¹⁾		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets:
Cash and cash equivalents	Level 1		$	15,612	$	15,612	$	24,753	$	24,753
Fixed maturities		⁽¹⁾		240,038		240,038		260,986		260,986
Equity securities		⁽¹⁾		21,316		21,316		19,124		19,124
Other invested assets	Level 3			420		420		198		198
Policy loans	Level 2			1,814		1,814		1,858		1,858
Investment in unconsolidated trusts	Level 2			1,238		1,238		1,238		1,238

Liabilities:
Junior subordinated debentures, net	Level 2			33,738		33,115		33,738		33,728

(1)	See the aforementioned information for a description of the fair value hierarchy as well as a disclosure of levels for classes of these financial assets.

Insurance Reserves for Losses and Claims (Tables)

3 Months Ended

Mar. 31, 2022

Insurance Reserves for Losses and Claims [Abstract]

Roll-forward of Insurance Reserves for Losses and Claims

The roll-forward of insurance reserves for losses and claims for the three months ended March 31, 2022 and 2021 is as follows:

	Three Months Ended March 31,
	2022			2021
Beginning insurance reserves for losses and claims, gross	$	85,620		$	79,147
Less: Reinsurance recoverable on unpaid losses		(17,690	)		(17,600	)
Beginning insurance reserves for losses and claims, net		67,930			61,547

Incurred related to:
Current accident year		32,542			32,928
Prior accident year development ⁽¹⁾		(1,523	)⁽²⁾		475	⁽³⁾
Total incurred		31,019			33,403

Paid related to:
Current accident year		10,629			10,917
Prior accident years		19,966			20,984
Total paid		30,595			31,901
Ending insurance reserves for losses and claims, net		68,354			63,049
Plus: Reinsurance recoverable on unpaid losses		16,881			18,236
Ending insurance reserves for losses and claims, gross	$	85,235		$	81,285

(1)

(2)	Prior years’ development was primarily the result of favorable development in both the life and health and the property and casualty operations.

(3)	Prior years’ development was primarily the result of unfavorable development in the loss and claim reserves for the Medicare supplement line of business in Bankers Fidelity. Partially offsetting the unfavorable development was favorable development in the property and casualty operations.

Reconciliation of Total Incurred Losses to Total Insurance Benefits and Losses

Following is a reconciliation of total incurred losses to total insurance benefits and losses incurred:

	Three Months Ended March 31,
	2022			2021
Total incurred losses	$	31,019		$	33,403
Cash surrender value and matured endowments		362			247
Benefit reserve changes		(212	)		(378	)
Total insurance benefits and losses incurred	$	31,169		$	33,272

Credit Arrangements (Tables)

3 Months Ended

Mar. 31, 2022

Credit Arrangements [Abstract]

Financial Structure of Statutory Business Trusts

The financial structure of each of Atlantic American Statutory Trust I and II as of March 31, 2022 was as follows:

	Atlantic American Statutory Trust I		Atlantic American Statutory Trust II
JUNIOR SUBORDINATED DEBENTURES ^{(1) (2)}
Principal amount owed March 31, 2022	$	18,042	$	23,196
Less: Treasury debt ⁽³⁾		—		(7,500	)
Net balance March 31, 2022	$	18,042	$	15,696
Net balance December 31, 2021	$	18,042	$	15,696
Coupon rate	LIBOR + 4.00%		LIBOR + 4.10%
Interest payable	Quarterly		Quarterly
Maturity date	December 4, 2032		May 15, 2033
Redeemable by issuer	Yes		Yes
TRUST PREFERRED SECURITIES
Issuance date	December 4, 2002		May 15, 2003
Securities issued		17,500		22,500
Liquidation preference per security	$	1	$	1
Liquidation value	$	17,500	$	22,500
Coupon rate	LIBOR + 4.00%		LIBOR + 4.10%
Distribution payable	Quarterly		Quarterly
Distribution guaranteed by ⁽⁴⁾	Atlantic American Corporation		Atlantic American Corporation

(1)

(2)	The Junior Subordinated Debentures are unsecured and rank junior and subordinate in right of payment to all senior debt of the Parent and are effectively subordinated to all existing and future liabilities of its subsidiaries.

(3)	On August 4, 2014, the Company acquired $7,500 of the Junior Subordinated Debentures.

(4)	The Parent has guaranteed, on a subordinated basis, all of the obligations under the Trust Preferred Securities, including payment of the redemption price and any accumulated and unpaid distributions to the extent of available funds and upon dissolution, winding up or liquidation.

Earnings (Loss) Per Common Share (Tables)

3 Months Ended

Mar. 31, 2022

Earnings (Loss) Per Common Share [Abstract]

Reconciliation of Numerator and Denominator used in Earnings (Loss) per Common Share Calculations

A reconciliation of the numerator and denominator used in the earnings (loss) per common share calculations is as follows:

	Three Months Ended March 31, 2022
	Income			Weighted Average Shares (In thousands)		Per Share Amount
Basic Earnings Per Common Share:
Net income	$	2,842			20,380
Less preferred stock dividends		(99	)		—
Net income applicable to common shareholders		2,743			20,380	$	0.13
Diluted Earnings Per Common Share:
Effect of Series D preferred stock		99			1,378
Net income applicable to common shareholders	$	2,842			21,758	$	0.13

	Three Months Ended March 31, 2021
	Loss			Weighted Average Shares (In thousands)		Per Share Amount
Basic and Diluted Loss Per Common Share:
Net loss	$	(431	)		20,415
Less preferred stock dividends		(99	)		—
Net loss applicable to common shareholders	$	(530	)		20,415		(0.03	)

Income Taxes (Tables)

3 Months Ended

Mar. 31, 2022

Income Taxes [Abstract]

Reconciliation of Income Tax Expense (Benefit)

A reconciliation of the differences between income taxes computed at the federal statutory income tax rate and income tax expense (benefit) is as follows:

	Three Months Ended March 31,
	2022			2021
Federal income tax provision at statutory rate of 21%	$	797		$	(115	)
Dividends-received deduction		(6	)		(9	)
Meals and entertainment		10			4
Parking disallowance		4			4
Penalties and fines		149			—
Income tax expense (benefit)	$	954		$	(116	)

Components of Income Tax Expense

The components of income tax expense (benefit) were:

	Three Months Ended March 31,
		2022		2021
Current – Federal	$	68	$	376
Deferred – Federal		886		(492	)
Total	$	954	$	(116	)

Leases (Tables)

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Additional Information of Operating Leases

Additional information regarding the Company’s real estate operating leases is as follows:

	Three Months Ended March 31,
Other information on operating leases:	2022			2021
Cash payments included in the measurement of lease liabilities reported in operating cash flows	$	255		$	251
Right-of-use assets included in other assets on the condensed consolidated balance sheet		3,963			4,664
Weighted average discount rate		6.8	%		6.8	%
Weighted average remaining lease term in years	4.6 years			5.6 years

Maturities and Present Value of Lease Liabilities

The following table presents maturities and present value of the Company’s lease liabilities:

	Lease Liability
Remainder of 2022	$	776
2023		1,048
2024		1,065
2025		1,083
2026		942
Thereafter		—
Total undiscounted lease payments		4,914
Less: present value adjustment		717
Operating lease liability included in accounts payable and accrued expenses on the condensed consolidated balance sheet	$	4,197

Segment Information (Tables)

3 Months Ended

Mar. 31, 2022

Segment Information [Abstract]

Assets, Revenue Loss Before Income Taxes for Each Business Unit

The following sets forth the assets, revenue and income (loss) before income taxes for each business unit as of and for the periods ended 2022 and 2021.

Assets	March 31, 2022		December 31, 2021
American Southern	$	141,480	$	161,788
Bankers Fidelity		217,617		227,395
Corporate and Other		15,934		13,103
Total assets	$	375,031	$	402,286

	Three Months Ended March 31,
Revenues	2022		2021
American Southern	$	18,506	$	17,526
Bankers Fidelity		32,889		31,540
Corporate and Other		213		9
Total revenue	$	51,608	$	49,075

	Three Months Ended March 31,
Income (Loss) Before Income Taxes	2022			2021
American Southern	$	2,085		$	1,490
Bankers Fidelity		3,451			134
Corporate and Other		(1,740	)		(2,171	)
Income (loss) before income taxes	$	3,796		$	(547	)

Basis of Presentation (Details)	3 Months Ended
Basis of Presentation (Details)	Mar. 31, 2022 Segment
Basis of Presentation [Abstract]
Number of business units	2

Investments, Aggregated by Type and Industry (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Investments aggregated by type and industry [Abstract]
Estimated fair value	$ 240,038	$ 260,986
Amortized cost total	239,452	238,597
Estimated fair value	21,316	19,124
Cost	4,906	4,907
Amortized cost of bonds on deposit with insurance regulatory authorities	10,879	11,169
Amortized cost pledged as collateral to FHLB	4,762	5,371
Fixed Maturities [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	240,038	260,986
Gross unrealized gains	6,229	23,106
Gross unrealized losses	5,643	717
Amortized cost total	239,452	238,597
U.S. Treasury Securities and Obligations of U.S. Government Agencies and Authorities [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	47,852	50,298
Gross unrealized gains	172	763
Gross unrealized losses	2,098	416
Amortized cost total	49,778	49,951
Obligations of States and Political Subdivisions [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	11,058	11,644
Gross unrealized gains	228	749
Gross unrealized losses	63	0
Amortized cost total	10,893	10,895
Corporate Securities [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	180,885	198,794
Gross unrealized gains	5,779	21,536
Gross unrealized losses	3,482	301
Amortized cost total	178,588	177,559
Corporate Securities [Member] \| Utilities and Telecom [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	27,051	29,717
Gross unrealized gains	955	2,961
Gross unrealized losses	695	44
Amortized cost total	26,791	26,800
Corporate Securities [Member] \| Financial Services [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	65,895	70,921
Gross unrealized gains	1,868	6,759
Gross unrealized losses	1,250	48
Amortized cost total	65,277	64,210
Corporate Securities [Member] \| Other Business - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	36,107	40,216
Gross unrealized gains	1,255	4,631
Gross unrealized losses	823	106
Amortized cost total	35,675	35,691
Corporate Securities [Member] \| Other Consumer - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	51,832	57,940
Gross unrealized gains	1,701	7,185
Gross unrealized losses	714	103
Amortized cost total	50,845	50,858
Redeemable Preferred Stocks [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	243	250
Gross unrealized gains	50	58
Gross unrealized losses	0	0
Amortized cost total	193	192
Redeemable Preferred Stocks [Member] \| Other Consumer - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	243	250
Gross unrealized gains	50	58
Gross unrealized losses	0	0
Amortized cost total	193	192
Equity Securities [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	21,316	19,124
Gross unrealized gains	16,410	14,217
Gross unrealized losses	0	0
Cost	4,906	4,907
Common and Non-redeemable Preferred Stocks [Member] \| Financial Services [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	878	799
Gross unrealized gains	605	525
Gross unrealized losses	0	0
Cost	273	274
Common and Non-redeemable Preferred Stocks [Member] \| Other Business - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	20,438	18,325
Gross unrealized gains	15,805	13,692
Gross unrealized losses	0	0
Cost	$ 4,633	$ 4,633

Investments, Fixed Maturities by Contractual Maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Carrying Value [Abstract]
Due in one year or less	$ 1,407	$ 1,734
Due after one year through five years	29,051	24,926
Due after five years through ten years	65,067	73,725
Due after ten years	107,568	122,045
Asset backed securities	36,945	38,556
Carrying value total	240,038	260,986
Amortized Cost [Abstract]
Due in one year or less	1,403	1,730
Due after one year through five years	28,969	23,593
Due after five years through ten years	65,159	68,338
Due after ten years	105,175	106,181
Asset backed securities	38,746	38,755
Amortized cost total	$ 239,452	$ 238,597

Investments, Securities with Continuous Unrealized Loss Position (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($) Securities	Mar. 31, 2021 USD ($)	Dec. 31, 2021 USD ($) Securities
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	$ 102,473		$ 33,467
12 months or longer	10,019		4,761
Total	112,492		38,228
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	4,350		465
12 months or longer	1,293		252
Total	5,643		$ 717
Gross OTTI losses charged to realized gains	$ 0	$ 0
Number of securities in unrealized loss position \| Securities	141		61
U.S. Treasury Securities and Obligations of U.S. Government Agencies and Authorities [Member]
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	$ 33,399		$ 30,141
12 months or longer	5,041		0
Total	38,440		30,141
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	1,555		416
12 months or longer	543		0
Total	2,098		416
Obligations of States and Political Subdivisions [Member]
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	3,394
12 months or longer	0
Total	3,394
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	63
12 months or longer	0
Total	63
Corporate Securities [Member]
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	65,680		3,326
12 months or longer	4,978		4,761
Total	70,658		8,087
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	2,732		49
12 months or longer	750		252
Total	$ 3,482		$ 301

Investments, Summary of Realized Investment Gains (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Summary of realized investment gains [Abstract]
Gains	$ 0	$ 121
Losses	(10)	0
Realized investment Losses (gains), net	(10)	121
Fixed Maturities [Member]
Summary of realized investment gains [Abstract]
Gains	0	121
Losses	(10)	0
Realized investment Losses (gains), net	(10)	121
Equity Securities [Member]
Summary of realized investment gains [Abstract]
Gains	0	0
Losses	0	0
Realized investment Losses (gains), net	0	0
Other Invested Assets [Member]
Summary of realized investment gains [Abstract]
Gains	0	0
Losses	0	0
Realized investment Losses (gains), net	$ 0	$ 0

Investments, Unrealized Gains (Losses) on Equity Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Investments [Abstract]
Net realized and unrealized gains recognized during the period on equity securities	$ 2,193	$ 744
Less: Net realized gains recognized during the period on equity securities sold during the period	0	0
Unrealized gains recognized during the reporting period on equity securities, net	$ 2,193	$ 744

Investments, Variable Interest Entities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Variable Interest Entities [Abstract]
Carrying amount of interest	$ 420	$ 198
Investment in unconsolidated trusts	1,238	1,238
VIE, Not Primary Beneficiary [Member] \| Other Invested Assets [Member]
Variable Interest Entities [Abstract]
Carrying amount of interest	420	198
Investment in unconsolidated trusts	1,238	1,238
Maximum loss exposure	1,658	1,436
Outstanding commitments	$ 12,777	$ 1,997

Fair Values of Financial Instruments, Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	$ 240,038	$ 260,986
Equity securities	21,316	19,124
Recurring [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	240,038	260,986
Equity securities	21,316	19,124
Cash equivalents	11,534	12,713
Assets at fair value	272,888	292,823
Recurring [Member] \| Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	0	250
Equity securities	21,160	18,967
Cash equivalents	11,534	12,713
Assets at fair value	32,694	31,930
Recurring [Member] \| Significant Other Observable Inputs (Level 2) [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	240,038	260,486
Equity securities	0	0
Cash equivalents	0	0
Assets at fair value	240,038	260,486
Recurring [Member] \| Significant Unobservable Inputs (Level 3) [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	0	250
Equity securities	156	157
Cash equivalents	0	0
Assets at fair value	$ 156	$ 407

Fair Values of Financial Instruments, Estimated Fair Value and Level (Details) - USD ($)
$ in Thousands

Mar. 31, 2022

Dec. 31, 2021

Assets [Abstract]

Fixed maturities

$ 240,038

$ 260,986

Equity securities

21,316

19,124

Carrying Amount [Member]

Assets [Abstract]

Fixed maturities

^[1]

240,038

260,986

Equity securities

^[1]

21,316

19,124

Carrying Amount [Member] | Level 1 [Member]

Assets [Abstract]

Cash and cash equivalents

15,612

24,753

Carrying Amount [Member] | Level 2 [Member]

Assets [Abstract]

Policy loans

1,814

1,858

Investment in unconsolidated trusts

1,238

Liabilities [Abstract]

Junior subordinated debentures, net

33,738

Carrying Amount [Member] | Level 3 [Member]

Assets [Abstract]

Other invested assets

420

198

Estimated Fair Value [Member]

Assets [Abstract]

Fixed maturities

^[1]

240,038

260,986

Equity securities

^[1]

21,316

19,124

Estimated Fair Value [Member] | Level 1 [Member]

Assets [Abstract]

Cash and cash equivalents

15,612

24,753

Estimated Fair Value [Member] | Level 2 [Member]

Assets [Abstract]

Policy loans

1,814

1,858

Investment in unconsolidated trusts

1,238

Liabilities [Abstract]

Junior subordinated debentures, net

33,115

33,728

Estimated Fair Value [Member] | Level 3 [Member]

Assets [Abstract]

Other invested assets

$ 420

$ 198

[1]	See the aforementioned information for a description of the fair value hierarchy as well as a disclosure of levels for classes of these financial assets.

Insurance Reserves for Losses and Claims (Details) - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2022

Mar. 31, 2021

Insurance Reserves for Losses and Claims [Roll Forward]

Beginning insurance reserves for losses and claims, gross

$ 85,620

$ 79,147

Less: Reinsurance recoverable on unpaid losses

(17,690)

(17,600)

Beginning insurance reserves for losses and claims, net

67,930

61,547

Incurred related to [Abstract]

Current accident year

32,542

32,928

Prior accident year development

^[1]

(1,523)

^[2]

475

^[3]

Total incurred

31,019

33,403

Paid related to [Abstract]

Current accident year

10,629

10,917

Prior accident years

19,966

20,984

Total paid

30,595

31,901

Ending insurance reserves for losses and claims, net

68,354

63,049

Plus: Reinsurance recoverable on unpaid losses

16,881

18,236

Ending insurance reserves for losses and claims, gross

85,235

81,285

Reconciliation of total incurred claims to total insurance benefits and losses incurred [Abstract]

Total incurred losses

31,019

33,403

Cash surrender value and matured endowments

362

247

Benefit reserve changes

(212)

(378)

Total insurance benefits and losses incurred

$ 31,169

$ 33,272

[1]	In establishing property and casualty reserves, the Company initially reserves for losses at the higher end of the reasonable range if no other value within the range is determined to be more probable. Selection of such an initial loss estimate is an attempt by management to give recognition that initial claims information received generally is not conclusive with respect to legal liability, is generally not comprehensive with respect to magnitude of loss and generally, based on historical experience, will develop more adversely as time passes and more information becomes available. Accordingly, the Company generally experiences reserve redundancies when analyzing the development of prior year losses in a current period.
[2]	Prior years’ development was primarily the result of favorable development in both the life and health and the property and casualty operations.
[3]	Prior years’ development was primarily the result of unfavorable development in the loss and claim reserves for the Medicare supplement line of business in Bankers Fidelity. Partially offsetting the unfavorable development was favorable development in the property and casualty operations.

Credit Arrangements, Bank Debt (Details) - Revolving Credit Facility [Member]		3 Months Ended
	May 12, 2021 USD ($)	Mar. 31, 2022 USD ($)
Bank Debt [Abstract]
Unsecured credit facility	$ 10,000,000
Maturity date		Apr. 12, 2024
Outstanding borrowings		$ 0
Minimum [Member]
Bank Debt [Abstract]
Indebtedness capital ratio	0.35
LIBOR [Member]
Bank Debt [Abstract]
Basis spread on variable rate	2.00%
Interest rate floor	1.00%

Credit Arrangements, Junior Subordinated Debentures (Details)
$ / shares in Units, shares in Thousands, $ in Thousands

3 Months Ended

Mar. 31, 2022

USD ($)

Trust

Quarter

$ / shares

Debt Instruments [Abstract]

Number of Connecticut statutory business trusts | Trust

Financial structure of statutory business trusts [Abstract]

Net balance March 31, 2022

$ 33,738

Net balance December 31, 2021

$ 33,738

Junior Subordinated Debentures [Member]

Financial structure of statutory business trusts [Abstract]

Number of consecutive quarters for which interest payments can be deferred | Quarter

Atlantic American Statutory Trust I [Member] | Junior Subordinated Debentures [Member]

Financial structure of statutory business trusts [Abstract]

Principal amount owed March 31, 2022

$ 18,042

^[1],[2]

Less: Treasury debt

^[1],[2],[3]

Net balance March 31, 2022

18,042

^[1],[2]

Net balance December 31, 2021

$ 18,042

^[1],[2]

Coupon rate

LIBOR + 4.00%

^[1],[2]

Interest payable

Quarterly

^[1],[2]

Maturity date

Dec. 04, 2032

^[1],[2]

Redeemable by issuer

Yes

^[1],[2]

Atlantic American Statutory Trust I [Member] | Junior Subordinated Debentures [Member] | LIBOR [Member]

Financial structure of statutory business trusts [Abstract]

Basis spread on variable rate

4.00%

Atlantic American Statutory Trust I [Member] | Trust Preferred Securities [Member]

Financial structure of statutory business trusts [Abstract]

Coupon rate

LIBOR + 4.00%

Issuance date

Dec. 04, 2002

Securities issued (in shares) | shares

17,500

Liquidation preference per security (in dollars per share) | $ / shares

$ 1

Liquidation value

$ 17,500

Distribution payable

Quarterly

Distribution guaranteed by

Atlantic American Corporation

^[4]

Atlantic American Statutory Trust I [Member] | Trust Preferred Securities [Member] | LIBOR [Member]

Financial structure of statutory business trusts [Abstract]

Basis spread on variable rate

4.00%

Atlantic American Statutory Trust II [Member] | Junior Subordinated Debentures [Member]

Financial structure of statutory business trusts [Abstract]

Principal amount owed March 31, 2022

$ 23,196

^[1],[2]

Less: Treasury debt

(7,500)

^[1],[2],[3]

Net balance March 31, 2022

15,696

^[1],[2]

Net balance December 31, 2021

$ 15,696

^[1],[2]

Coupon rate

LIBOR + 4.10%

^[1],[2]

Interest payable

Quarterly

^[1],[2]

Maturity date

May 15, 2033

^[1],[2]

Redeemable by issuer

Yes

^[1],[2]

Atlantic American Statutory Trust II [Member] | Junior Subordinated Debentures [Member] | LIBOR [Member]

Financial structure of statutory business trusts [Abstract]

Basis spread on variable rate

4.10%

Atlantic American Statutory Trust II [Member] | Trust Preferred Securities [Member]

Financial structure of statutory business trusts [Abstract]

Coupon rate

LIBOR + 4.10%

Issuance date

May 15, 2003

Securities issued (in shares) | shares

22,500

Liquidation preference per security (in dollars per share) | $ / shares

$ 1

Liquidation value

$ 22,500

Distribution payable

Quarterly

Distribution guaranteed by

Atlantic American Corporation

^[4]

Atlantic American Statutory Trust II [Member] | Trust Preferred Securities [Member] | LIBOR [Member]

Financial structure of statutory business trusts [Abstract]

Basis spread on variable rate

4.10%

[1]	For each of the respective debentures, the Company has the right at any time, and from time to time, to defer payments of interest on the Junior Subordinated Debentures for a period not exceeding 20 consecutive quarters up to the debentures’ respective maturity dates. During any such period, interest will continue to accrue and the Company may not declare or pay any cash dividends or distributions on, or purchase, the Company’s common stock nor make any principal, interest or premium payments on or repurchase any debt securities that rank equally with or junior to the Junior Subordinated Debentures. The Company has the right at any time to dissolve each of the trusts and cause the Junior Subordinated Debentures to be distributed to the holders of the Trust Preferred Securities.
[2]	The Junior Subordinated Debentures are unsecured and rank junior and subordinate in right of payment to all senior debt of the Parent and are effectively subordinated to all existing and future liabilities of its subsidiaries.
[3]	On August 4, 2014, the Company acquired $7,500 of the Junior Subordinated Debentures.
[4]	The Parent has guaranteed, on a subordinated basis, all of the obligations under the Trust Preferred Securities, including payment of the redemption price and any accumulated and unpaid distributions to the extent of available funds and upon dissolution, winding up or liquidation.

Earnings (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Basic Earnings (Loss) Per Common Share [Abstract]
Net Income (loss)	$ 2,842	$ (431)
Less: preferred stock dividends	(99)	(99)
Net Income (loss) applicable to common shareholders	2,743	(530)
Diluted Earnings Per Common Share: [Abstract]
Effect of Series D preferred stock	99
Net income applicable to common shareholders	$ 2,842	$ (530)
Weighted Average Shares [Abstract]
Weighted average shares outstanding, Basic (in shares)	20,380	20,415
Effect of Series D preferred stock (in shares)	1,378
Weighted average shares outstanding, Diluted (in shares)	21,758	20,415
Per Share Amount [Abstract]
Net income (loss) applicable to common shareholders, Basic (in dollars per share)	$ 0.13	$ (0.03)
Net income (loss) applicable to common shareholders, Diluted (in dollars per share)	$ 0.13	$ (0.03)

Equity Incentive Plan (Details) - Plan 2012 [Member] - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Share Awards [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Abstract]
Number of shares authorized for issuance (in shares)	2,000,000
Shares available for future grant (in shares)	910,200	935,200
Stock Option [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Abstract]
Options granted (in shares)	0	0
Options outstanding (in shares)	0	0
Restricted Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Abstract]
Restricted shares issued (in shares)	25,000	0
Estimated fair value of shares issued	$ 69
Restricted Stock [Member] \| Minimum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Abstract]
Vesting period	1 year
Restricted Stock [Member] \| Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Abstract]
Vesting period	3 years

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Mar. 31, 2021
Reconciliation of income tax expense (benefit) [Abstract]
Federal income tax provision at statutory rate of 21%	$ 797	$ (115)
Dividends-received deduction	(6)	(9)
Meals and entertainment	10	4
Parking disallowance	4	4
Penalties and fines	149	0
Income tax expense (benefit)	$ 954	(116)
Federal statutory income tax rate	21.00%
Components of income tax expense (benefit) [Abstract]
Current - Federal	$ 68	376
Deferred - Federal	886	(492)
Income tax expense (benefit)	$ 954	$ (116)

Leases (Details) $ in Thousands	3 Months Ended
Leases (Details) $ in Thousands	Mar. 31, 2022 USD ($) Lease	Mar. 31, 2021 USD ($)
Lease description [Abstract]
Number of operating lease agreements \| Lease	2
Lease expense	$ 254	$ 254
Other information on operating leases [Abstract]
Cash payments included in the measurement of lease liabilities reported in operating cash flows	255	251
Right-of-use assets included in other assets on the consolidated balance sheet	$ 3,963	$ 4,664
Weighted average discount rate	6.80%	6.80%
Weighted average remaining lease term in years	4 years 7 months 6 days	5 years 7 months 6 days
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other Assets	Other Assets
Maturities and present value of lease liabilities [Abstract]
Remainder of 2022	$ 776
2022	1,048
2023	1,065
2024	1,083
2025	942
Thereafter	0
Total undiscounted lease payments	4,914
Less: present value adjustment	717
Operating lease liability included in accounts payable and accrued expenses on the condensed consolidated balance sheet	$ 4,197
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Accounts Payable and Accrued Liabilities
Second Lease [Member]
Lease description [Abstract]
Lease term	10 years
Renewal option period	7 years

Segment Information (Details) $ in Thousands	3 Months Ended
Segment Information (Details) $ in Thousands	Mar. 31, 2022 USD ($) Segment	Mar. 31, 2021 USD ($)	Dec. 31, 2021 USD ($)
Segment Information [Abstract]
Number of business units \| Segment	2
Assets, Revenue and Income (loss) before income taxes for each business unit [Abstract]
Assets	$ 375,031		$ 402,286
Revenues	51,608	$ 49,075
Income (loss) before income taxes	3,796	(547)
Operating Segments [Member] \| American Southern [Member]
Assets, Revenue and Income (loss) before income taxes for each business unit [Abstract]
Assets	141,480		161,788
Revenues	18,506	17,526
Income (loss) before income taxes	2,085	1,490
Operating Segments [Member] \| Bankers Fidelity [Member]
Assets, Revenue and Income (loss) before income taxes for each business unit [Abstract]
Assets	217,617		227,395
Revenues	32,889	31,540
Income (loss) before income taxes	3,451	134
Corporate and Other [Member]
Assets, Revenue and Income (loss) before income taxes for each business unit [Abstract]
Assets	15,934		$ 13,103
Revenues	213	9
Income (loss) before income taxes	$ (1,740)	$ (2,171)