Citizens Earnings 2019-06-30

CIA 10Q Quarterly Report

Balance Sheet	Income Statement	Cash Flow

10-Q 1 cia-201963010q.htm 10-Q Document

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2019

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from to

COMMISSION FILE NUMBER: 000-16509

CITIZENS, INC.

(Exact name of registrant as specified in its charter)



Colorado	84-0755371
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

2900 Esperanza Crossing, 2nd Floor
Austin, Texas	78758
(Address of principal executive offices)	(Zip Code)

(512) 837-7100	N/A
(Registrant's telephone number, including area code:)	(Former name, former address and former fiscal year, if changed since last report:)



Securities registered pursuant to Section 12(b) of the Act

Class A Common Stock	CIA	New York Stock Exchange
(Title of Each Class)	(Trading Symbol(s))	(Name of Each Exchange on Which Registered)



Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes o No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). x Yes o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act:
	Large accelerated filer o	Accelerated filer x	Non-accelerated filer o	Smaller reporting company o	Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). o Yes x No

As of August 2, 2019, the Registrant had 52,364,993 shares of Class A common stock, no par value, outstanding and 1,001,714 shares of Class B common stock, no par value, outstanding.

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TABLE OF CONTENTS



			Page Number
Part I. FINANCIAL INFORMATION

	Item 1.	Financial Statements

		Consolidated Statements of Financial Position, June 30, 2019 (Unaudited) and December 31, 2018	2

		Consolidated Statements of Comprehensive Income, Three Months Ended June 30, 2019 and 2018 (Unaudited)	4

		Consolidated Statements of Comprehensive Income, Six Months Ended June 30, 2019 and 2018 (Unaudited)	5

		Consolidated Statements of Stockholders' Equity, Six Months Ended June 30, 2019 and 2018 (Unaudited)	6

		Consolidated Statements of Cash Flows, Six Months Ended June 30, 2019 and 2018 (Unaudited)	7

		Notes to Consolidated Financial Statements (Unaudited)	9

	Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	29

	Item 3.	Quantitative and Qualitative Disclosures about Market Risk	53

	Item 4.	Controls and Procedures	54

Part II. OTHER INFORMATION

	Item 1.	Legal Proceedings	54

	Item 1A.	Risk Factors	55

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	57

	Item 3.	Defaults Upon Senior Securities	57

	Item 4.	Mine Safety Disclosures	57

	Item 5.	Other Information	57

	Item 6.	Exhibits	58

June 30, 2019 Form 10-Q 1

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES Consolidated Statements of Financial Position



(In thousands)	June 30, 2019		December 31, 2018
Assets	(Unaudited)
Investments:
Fixed maturities available-for-sale, at fair value (cost: $1,274,085 and $1,223,747 in 2019 and 2018, respectively)	$	1,341,339	1,231,039
Equity securities, at fair value	15,827		15,068
Mortgage loans on real estate	182		186
Policy loans	81,545		80,825
Real estate held for investment (less $1,284 accumulated depreciation in 2018)	—		5,718
Real estate held-for-sale (less $1,325 and $4,411 accumulated depreciation in 2019 and 2018, respectively)	2,571		1,483
Other long-term investments	22		22
Short-term investments	2,455		7,865
Total investments	1,443,941		1,342,206
Cash and cash equivalents	34,568		45,492
Accrued investment income	18,920		18,467
Reinsurance recoverable	3,456		3,664
Deferred policy acquisition costs	152,313		155,747
Cost of customer relationships acquired	14,169		15,225
Goodwill	12,624		12,624
Other intangible assets	954		956
Property and equipment, net	7,147		5,943
Due premiums, net (less $1,607 and $1,990 allowance for doubtful accounts in 2019 and 2018, respectively)	10,557		13,325
Prepaid expenses	1,472		284
Other assets	2,039		1,628
Total assets	$	1,702,160	1,615,561

See accompanying Notes to Consolidated Financial Statements.

June 30, 2019 Form 10-Q 2

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CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES Consolidated Statements of Financial Position, Continued


(In thousands, except share amounts)	June 30, 2019			December 31, 2018
Liabilities and Stockholders' Equity	(Unaudited)
Liabilities:
Policy liabilities:
Future policy benefit reserves:
Life insurance	$	1,200,277		1,179,946
Annuities	76,302			76,377
Accident and health	970			944
Dividend accumulations	27,668			26,250
Premiums paid in advance	43,795			48,553
Policy claims payable	7,747			7,614
Other policyholders' funds	15,655			10,760
Total policy liabilities	1,372,414			1,350,444
Commissions payable	2,191			1,901
Current federal income tax payable	48,426			41,281
Deferred federal income tax payable	9,803			5,709
Payable for securities in process of settlement	4,975			—
Other liabilities	27,919			28,493
Total liabilities	1,465,728			1,427,828
Commitments and contingencies (Note 7)
Stockholders' equity:
Class A, no par value, 100,000,000 shares authorized, 52,364,993 and 52,215,852 shares issued and outstanding in 2019 and 2018, respectively, including shares in treasury of 3,135,738 in 2019 and 2018	261,003			259,793
Class B, no par value, 2,000,000 shares authorized, 1,001,714 shares issued and outstanding in 2019 and 2018	3,184			3,184
Accumulated deficit	(77,966		)	(69,599	)
Accumulated other comprehensive income:
Net unrealized gains on securities, net of tax	61,222			5,366
Treasury stock, at cost	(11,011		)	(11,011	)
Total stockholders' equity	236,432			187,733
Total liabilities and stockholders' equity	$	1,702,160		1,615,561

See accompanying Notes to Consolidated Financial Statements.

June 30, 2019 Form 10-Q 3

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CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES Consolidated Statements of Comprehensive Income (Unaudited)

Three Months Ended June 30, (In thousands, except per share data)	2019			2018
Revenues:
Premiums:
Life insurance	$	42,313		44,631
Accident and health insurance	345			301
Property insurance	1,146			1,198
Net investment income	15,315			13,811
Realized investment losses, net	(2,869		)	(178	)
Other income	616			79
Total revenues	56,866			59,842
Benefits and Expenses:
Insurance benefits paid or provided:
Claims and surrenders	27,024			20,617
Increase in future policy benefit reserves	9,472			16,555
Policyholders' dividends	1,423			1,614
Total insurance benefits paid or provided	37,919			38,786
Commissions	8,384			8,669
Other general expenses	11,949			14,466
Capitalization of deferred policy acquisition costs	(5,412		)	(5,640	)
Amortization of deferred policy acquisition costs	6,931			7,200
Amortization of cost of customer relationships acquired	418			472
Total benefits and expenses	60,189			63,953
Income before federal income tax	(3,323		)	(4,111	)
Federal income tax expense (benefit)	1,242			(1,553	)
Net loss	(4,565		)	(2,558	)
Per Share Amounts:
Basic and diluted losses per share of Class A common stock	(0.09		)	(0.05	)
Basic and diluted losses per share of Class B common stock	(0.04		)	(0.03	)
Other Comprehensive Income (Loss):
Unrealized gains (losses) on available-for-sale debt securities:
Unrealized holding gains (losses) arising during period	31,220			(12,329	)
Reclassification adjustment for losses (gains) included in net income	(81		)	87
Unrealized gains (losses) on available-for-sale debt securities, net	31,139			(12,242	)
Income tax expense (benefit) on unrealized gains (losses) on available-for-sale debt securities	2,163			(2,571	)
Other comprehensive income (loss)	28,976			(9,671	)
Total comprehensive income (loss)	$	24,411		(12,229	)

See accompanying Notes to Consolidated Financial Statements.

June 30, 2019 Form 10-Q 4

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CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES Consolidated Statements of Comprehensive Income (Unaudited)

Six Months Ended June 30, (In thousands, except per share data)	2019			2018
Revenues:
Premiums:
Life insurance	$	83,293		87,160
Accident and health insurance	668			592
Property insurance	2,307			2,407
Net investment income	29,111			27,582
Realized investment gains (losses), net	3,092			(753	)
Other income	801			287
Total revenues	119,272			117,275
Benefits and Expenses:
Insurance benefits paid or provided:
Claims and surrenders	50,057			41,768
Increase in future policy benefit reserves	21,771			31,163
Policyholders' dividends	2,605			2,921
Total insurance benefits paid or provided	74,433			75,852
Commissions	16,268			17,628
Other general expenses	26,081			20,973
Capitalization of deferred policy acquisition costs	(10,240		)	(11,603	)
Amortization of deferred policy acquisition costs	13,208			14,806
Amortization of cost of customer relationships acquired	837			1,151
Total benefits and expenses	120,587			118,807
Income before federal income tax	(1,315		)	(1,532	)
Federal income tax expense	7,052			989
Net loss	(8,367		)	(2,521	)
Per Share Amounts:
Basic and diluted losses per share of Class A common stock	(0.17		)	(0.05	)
Basic and diluted losses per share of Class B common stock	(0.08		)	(0.03	)
Other Comprehensive Income (Loss):
Unrealized gains (losses) on available-for-sale debt securities:
Unrealized holding gains (losses) arising during period	60,021			(30,427	)
Reclassification adjustment for losses included in net income	23			346
Unrealized gains (losses) on available-for-sale debt securities, net	60,044			(30,081	)
Income tax expense (benefit) on unrealized gains (losses) on available-for-sale debt securities	4,188			(6,306	)
Other comprehensive income (loss)	55,856			(23,775	)
Total comprehensive income (loss)	$	47,489		(26,296	)

See accompanying Notes to Consolidated Financial Statements.

June 30, 2019 Form 10-Q 5

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CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES
Consolidated Statements of Stockholders' Equity
(Unaudited)

	Common Stock			Accumulated deficit		Accumulated other comprehensive income (loss)	Treasury stock		Total Stock-holders' equity
(In thousands)	Class A		Class B	Accumulated deficit		Accumulated other comprehensive income (loss)	Treasury stock		Total Stock-holders' equity

Balance at December 31, 2018	$	259,793	3,184	(69,599	)	5,366	(11,011	)	187,733
Comprehensive income:
Net loss	—		—	(3,802	)	—	—		(3,802	)
Unrealized investment gains, net	—		—	—		26,880	—		26,880
Total comprehensive income	—		—	(3,802	)	26,880	—		23,078
Stock-based compensation	1,083		—	—		—	—		1,083
Balance at March 31, 2019	260,876		3,184	(73,401	)	32,246	(11,011	)	211,894
Comprehensive income:
Net loss	—		—	(4,565	)	—	—		(4,565	)
Unrealized investment gains, net	—		—	—		28,976	—		28,976
Total comprehensive income	—		—	(4,565	)	28,976	—		24,411
Stock-based compensation	127		—	—		—	—		127
Balance at June 30, 2019	$	261,003	3,184	(77,966	)	61,222	(11,011	)	236,432



Balance at December 31, 2017	$	259,383	3,184	(54,375	)	26,332		(11,011	)	223,513
Accounting standards adopted January 1, 2018	—		—	(4,162	)	4,162		—		—
Balance at January 1, 2018	259,383		3,184	(58,537	)	30,494		(11,011	)	223,513
Comprehensive loss:
Net income	—		—	37		—		—		37
Unrealized investment losses, net	—		—	—		(14,104	)	—		(14,104	)
Total comprehensive loss	—		—	37		(14,104	)	—		(14,067	)
Balance at March 31, 2018	259,383		3,184	(58,500	)	16,390		(11,011	)	209,446
Comprehensive loss:
Net loss	—		—	(2,558	)	—		—		(2,558	)
Unrealized investment losses, net	—		—	—		(9,671	)	—		(9,671	)
Total comprehensive loss	—		—	(2,558	)	(9,671	)	—		(12,229	)
Stock-based compensation	213		—	—		—		—		213
Balance at June 30, 2018	$	259,596	3,184	(61,058	)	6,719		(11,011	)	197,430

See accompanying Notes to Consolidated Financial Statements.

June 30, 2019 Form 10-Q 6

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CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES Consolidated Statements of Cash Flows (Unaudited)

Six Months Ended June 30, (In thousands)	2019			2018
Cash flows from operating activities:
Net income (loss)	$	(8,367	)	(2,521	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Realized (gains) losses on sale of investments and other assets	(3,092		)	753
Net deferred policy acquisition costs	2,968			3,203
Amortization of cost of customer relationships acquired	837			1,151
Depreciation	848			708
Amortization of premiums and discounts on investments	7,288			8,332
Stock-based compensation	1,587			213
Deferred federal income tax benefit	(94		)	(2,869	)
Change in:
Accrued investment income	(453		)	(179	)
Reinsurance recoverable	208			(256	)
Due premiums	2,768			974
Future policy benefit reserves	21,629			31,665
Other policyholders' liabilities	1,688			4,420
Federal income tax payable	7,146			3,858
Commissions payable and other liabilities	(284		)	(6,062	)
Other, net	(3,271		)	(1,404	)
Net cash provided by operating activities	31,406			41,986
Cash flows from investing activities:
Purchase of fixed maturities, available-for-sale	(111,729		)	(76,003	)
Sale of fixed maturities, available-for-sale	10,414			—
Maturities and calls of fixed maturities, available-for-sale	48,568			37,646
Maturities and calls of fixed maturities, held-to-maturity	—			17,549
Purchase of equity securities	—			(9	)
Principal payments on mortgage loans	4			5
Increase in policy loans, net	(721		)	(3,842	)
Sale of other long-term investments and real estate	6,996			1
Purchase of property and equipment	(388		)	(211	)
Maturity of short-term investments	7,940			—
Purchase of short-term investments	(2,455		)	—
Net cash used in investing activities	(41,371		)	(24,864	)


See accompanying Notes to Consolidated Financial Statements.

June 30, 2019 Form 10-Q 7

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CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES Consolidated Statements of Cash Flows, Continued (Unaudited)

Six Months Ended June 30, (In thousands)	2019			2018
Cash flows from financing activities:
Annuity deposits	$	3,053		3,605
Annuity withdrawals	(3,635		)	(3,458	)
Other	(377		)	—
Net cash provided by (used in) financing activities	(959		)	147
Net increase (decrease) in cash and cash equivalents	(10,924		)	17,269
Cash and cash equivalents at beginning of year	45,492			46,064
Cash and cash equivalents at end of period	$	34,568		63,333

SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES:

During the six months ended June 30, 2019 and 2018, various fixed maturity issuers exchanged securities with book values of $11.9 million and $2.5 million, respectively, for securities of equal value.

The Company had net unsettled security trades of $5.0 million at June 30, 2019 and $0 at June 30, 2018.

See accompanying Notes to Consolidated Financial Statements.

June 30, 2019 Form 10-Q 8

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CITIZENS, INC.	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
		(Unaudited)

(1) FINANCIAL STATEMENTS

BASIS OF PRESENTATION AND CONSOLIDATION

The consolidated financial statements include the accounts and operations of Citizens, Inc. ("Citizens"), a Colorado corporation, and its wholly-owned subsidiaries, CICA Life Insurance Company of America ("CICA"), CICA Life Ltd. ("CICA Ltd."), Citizens National Life Insurance Company ("CNLIC"), Security Plan Life Insurance Company ("SPLIC"), Security Plan Fire Insurance Company ("SPFIC"), Magnolia Guaranty Life Insurance Company ("MGLIC") and Computing Technology, Inc. ("CTI"). All significant inter-company accounts and interactions have been eliminated. Citizens and its wholly-owned subsidiaries are collectively referred to as the "Company", "we", "us" or "our".

The consolidated statements of financial position as of June 30, 2019, the consolidated statements of comprehensive income and stockholders' equity for the three and six months ended June 30, 2019 and June 30, 2018 and the consolidated statements of cash flows for the six months ended June 30, 2019 and June 30, 2018 have been prepared by the Company without audit. In the opinion of management, all normal and recurring adjustments to present fairly the financial position, results of operations, and changes in cash flows at June 30, 2019 and for comparative periods have been made. The consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q adopted by the Securities and Exchange Commission ("SEC"). Accordingly, the consolidated financial statements do not include all the information and footnotes required for complete financial statements and should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period.

We provide primarily life insurance and a small amount of health insurance policies through our insurance subsidiaries - CICA, CICA Ltd., SPLIC, MGLIC and CNLIC. CICA Ltd. primarily issues endowment and ordinary whole-life policies to non-U.S. residents. SPLIC offers final expense and home service life insurance in Louisiana, Arkansas and Mississippi, and SPFIC, a wholly-owned subsidiary of SPLIC, writes a limited amount of property insurance in Louisiana. MGLIC provides industrial life policies through independent funeral homes in Mississippi.

CTI provides data processing systems and services to the Company.

USE OF ESTIMATES

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Significant estimates include those used in the evaluation of other-than-temporary impairments on debt and equity securities, actuarially determined assets and liabilities and assumptions, tests of goodwill impairment, valuation allowance on deferred tax assets, valuation of uncertain tax positions and contingencies relating to litigation and regulatory matters. Certain of these estimates are particularly sensitive to market conditions, and deterioration and/or volatility in the worldwide debt or equity markets could have a material impact on the consolidated financial statements.

SIGNIFICANT ACCOUNTING POLICIES

For a description of significant accounting policies, see Note 1. Summary of Significant Accounting Policies in the notes to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018, which should be read in conjunction with these accompanying consolidated financial statements.

June 30, 2019 Form 10-Q 9

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CITIZENS, INC.	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
		(Unaudited)

(2) ACCOUNTING PRONOUNCEMENTS

ACCOUNTING STANDARDS RECENTLY ADOPTED

In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842). The ASU requires organizations that lease assets, referred to as "lessees," to recognize on the consolidated statement of financial position the rights and obligations created by those leases. The ASU also requires disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the consolidated financial statements. The ASU on leases became effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018.

The Company has several lease agreements, such as district office locations related to our Home Service Insurance segment. The Company adopted this standard effective January 1, 2019 and recognizes these lease agreements on the consolidated statements of financial position as a right-of-use asset and a corresponding lease liability. See Note 9. Leases for further discussion.

In March 2017, the FASB issued ASU No. 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20). The amendments in this ASU shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The Company has a large portfolio of callable debt securities purchased at a premium. As such, the Company had already been amortizing the premium to the earliest call date (yield to worst), thus this guidance did not have a material impact on our consolidated financial statements. For public business entities, the amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018.

In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting. This ASU is intended to simplify aspects of share-based compensation issued to non-employees by making the guidance consistent with the accounting for employee share-based compensation. This ASU is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods, with early adoption permitted. We adopted the provisions of this ASU in the first quarter of 2019. This guidance did not have a material impact on our consolidated financial statements.

ACCOUNTING STANDARDS NOT YET ADOPTED

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326), with the main objective to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The ASU requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The income statement reflects the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. Credit losses on available-for-sale debt securities should be measured in a manner similar to current U.S. GAAP; however, the credit losses are recorded through an allowance for credit losses rather than as a write-down. This approach is an improvement to current U.S. GAAP because an entity will be able to record reversals of credit losses (in situations in which the estimate of credit losses declines) in current period net income, which in turn should align the income statement recognition of credit losses with the reporting period in which changes occur. Current U.S. GAAP prohibits reflecting those improvements in current-period earnings. For public business entities, the amendments in this ASU will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is evaluating the impact this guidance will have on our consolidated financial statements. This guidance could have a material impact on the Company's consolidated financial statements.

June 30, 2019 Form 10-Q 10

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CITIZENS, INC.	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
		(Unaudited)

In August 2018, the FASB issued ASU No. 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts. This ASU amends four key areas of the accounting and impacts disclosures for long-duration insurance and investment contracts:


•	Requires updated assumptions for liability measurement. Assumptions used to measure the liability for traditional insurance contracts, which are typically determined at contract inception, will now be reviewed at least annually, and, if there is a change, updated, with the effect recorded in net income;


•	Standardizes the liability discount rate. The liability discount rate will be a market-observable discount rate (upper-medium grade fixed-income instrument yield), with the effect of rate changes recorded in other comprehensive income;


•	Provides greater consistency in measurement of market risk benefits. The two previous measurement models have been reduced to one measurement model (fair value), resulting in greater uniformity across similar market-based benefits and better alignment with the fair value measurement of derivatives used to hedge capital market risk;


•	Simplifies amortization of deferred acquisition costs. Previous earnings-based amortization methods have been replaced with a more level amortization basis; and


•	Requires enhanced disclosures. The new disclosures include rollforwards and information about significant assumptions and the effects of changes in those assumptions.

For calendar-year public companies, the changes will be effective on January 1, 2021. In July 2019, the FASB tentatively agreed to defer the original effective date by one year. If finalized, the new guidance will be effective for annual and interim reporting periods beginning January 1, 2022. The Company is evaluating the impact this guidance will have on our consolidated financial statements. This new guidance is expected to have a material impact on our consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. This ASU will be effective for interim and annual reporting periods beginning after December 15, 2019; however, early adoption is permitted. Entities are also allowed to elect early adoption of the eliminated or modified disclosure requirements and delay adoption of the new disclosure requirements until their effective date. As this ASU only revises disclosure requirements, it is not expected to have a material impact on the Company’s consolidated financial statements.

In September 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This ASU requires an entity in a cloud computing arrangement (i.e., hosting arrangement) that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. Capitalized implementation costs should be presented in the same line item on the balance sheet as amounts prepaid for the hosted service, if any (generally as an "other asset"). The capitalized costs will be amortized over the term of the hosting arrangement, with the amortization expense being presented in the same income statement line item as the fees paid for the hosted service. This ASU will be effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted. We are evaluating the impact of this guidance on our limited cloud computing arrangements and our consolidated financial statements.

No other new accounting pronouncement issued or effective during the year had, or is expected to have, a material impact on our consolidated financial statements.

(3) SEGMENT INFORMATION

The Company has two reportable segments: Life Insurance and Home Service Insurance. The Life Insurance and

June 30, 2019 Form 10-Q 11

Table of Contents



CITIZENS, INC.	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
		(Unaudited)

Home Service Insurance portions of the Company constitute separate businesses. CICA, CICA Ltd. and CNLIC constitute the Life Insurance segment, and SPLIC, SPFIC and MGLIC constitute the Home Service Insurance segment. In addition to the Life Insurance and Home Service Insurance business, the Company also operates other non-insurance ("Other Non-Insurance Enterprises") portions of the Company, which primarily include the Company's IT and Corporate-support functions, and are included in the tables presented below to properly reconcile the segment information with the consolidated financial statements of the Company.

The accounting policies of the segments and Other Non-Insurance Enterprises are presented in accordance with U.S. GAAP and are the same as those used in the preparation of the consolidated financial statements. The Company evaluates profit and loss performance based on U.S. GAAP income before federal income taxes for its two reportable segments.

The Company's Other Non-Insurance Enterprises are the only reportable difference between segments and consolidated operations.



	Life Insurance			Home Service		Non-Insurance Enterprises		Consolidated
Three Months Ended June 30, 2019
(In thousands)

Revenues:
Premiums	$	32,140		11,664		—		43,804
Net investment income	11,612			3,325		378		15,315
Realized investment gains (losses), net	68			152		(3,089	)	(2,869	)
Other income	614			1		1		616
Total revenue	44,434			15,142		(2,710	)	56,866
Benefits and expenses:
Insurance benefits paid or provided:
Claims and surrenders	21,316			5,708		—		27,024
Increase in future policy benefit reserves	8,519			953		—		9,472
Policyholders' dividends	1,413			10		—		1,423
Total insurance benefits paid or provided	31,248			6,671		—		37,919
Commissions	4,676			3,708		—		8,384
Other general expenses	6,458			5,332		159		11,949
Capitalization of deferred policy acquisition costs	(4,020		)	(1,392	)	—		(5,412	)
Amortization of deferred policy acquisition costs	6,053			878		—		6,931
Amortization of cost of customer relationships acquired	138			280		—		418
Total benefits and expenses	44,553			15,477		159		60,189
Loss before income tax expense	$	(119	)	(335	)	(2,869	)	(3,323	)

June 30, 2019 Form 10-Q 12

Table of Contents



CITIZENS, INC.	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
		(Unaudited)



	Life Insurance			Home Service		Non-Insurance Enterprises		Consolidated
Six Months Ended June 30, 2019
(In thousands)

Revenues:
Premiums	$	63,054		23,214		—		86,268
Net investment income	21,781			6,411		919		29,111
Realized investment gains (losses), net	5,525			636		(3,069	)	3,092
Other income	797			2		2		801
Total revenue	91,157			30,263		(2,148	)	119,272
Benefits and expenses:
Insurance benefits paid or provided:
Claims and surrenders	38,478			11,579		—		50,057
Increase in future policy benefit reserves	19,832			1,939		—		21,771
Policyholders' dividends	2,585			20		—		2,605
Total insurance benefits paid or provided	60,895			13,538		—		74,433
Commissions	9,049			7,219		—		16,268
Other general expenses	12,663			10,402		3,016		26,081
Capitalization of deferred policy acquisition costs	(7,722		)	(2,518	)	—		(10,240	)
Amortization of deferred policy acquisition costs	11,494			1,714		—		13,208
Amortization of cost of customer relationships acquired	260			577		—		837
Total benefits and expenses	86,639			30,932		3,016		120,587
Income (loss) before federal income tax expense	$	4,518		(669	)	(5,164	)	(1,315	)

June 30, 2019 Form 10-Q 13

Table of Contents



CITIZENS, INC.	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
		(Unaudited)



	Life Insurance			Home Service		Non-Insurance Enterprises		Consolidated
Three Months Ended June 30, 2018
(In thousands)

Revenues:
Premiums	$	34,393		11,737		—		46,130
Net investment income	10,139			3,316		356		13,811
Realized investment losses, net	(24		)	(151	)	(3	)	(178	)
Other income	79			—		—		79
Total revenue	44,587			14,902		353		59,842
Benefits and expenses:
Insurance benefits paid or provided:
Claims and surrenders	15,019			5,598		—		20,617
Increase in future policy benefit reserves	15,383			1,172		—		16,555
Policyholders' dividends	1,605			9		—		1,614
Total insurance benefits paid or provided	32,007			6,779		—		38,786
Commissions	4,777			3,892		—		8,669
Other general expenses	6,908			5,392		2,166		14,466
Capitalization of deferred policy acquisition costs	(4,150		)	(1,490	)	—		(5,640	)
Amortization of deferred policy acquisition costs	6,240			960		—		7,200
Amortization of cost of customer relationships acquired	132			340		—		472
Total benefits and expenses	45,914			15,873		2,166		63,953
Loss before income tax expense	$	(1,327	)	(971	)	(1,813	)	(4,111	)

June 30, 2019 Form 10-Q 14

Table of Contents



CITIZENS, INC.	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
		(Unaudited)



	Life Insurance			Home Service		Non-Insurance Enterprises		Consolidated
Six Months Ended June 30, 2018
(In thousands)

Revenues:
Premiums	$	66,753		23,406		—		90,159
Net investment income	20,269			6,618		695		27,582
Realized investment losses, net	(209		)	(503	)	(41	)	(753	)
Other income (loss)	288			(1	)	—		287
Total revenue	87,101			29,520		654		117,275
Benefits and expenses:
Insurance benefits paid or provided:
Claims and surrenders	30,310			11,458		—		41,768
Increase in future policy benefit reserves	28,965			2,198		—		31,163
Policyholders' dividends	2,902			19		—		2,921
Total insurance benefits paid or provided	62,177			13,675		—		75,852
Commissions	10,005			7,623		—		17,628
Other general expenses⁽¹⁾	6,024			10,936		4,013		20,973
Capitalization of deferred policy acquisition costs	(8,790		)	(2,813	)	—		(11,603	)
Amortization of deferred policy acquisition costs	12,780			2,026		—		14,806
Amortization of cost of customer relationships acquired	284			867		—		1,151
Total benefits and expenses	82,480			32,314		4,013		118,807
Income (loss) before federal income tax expense	$	4,621		(2,794	)	(3,359	)	(1,532	)

June 30, 2019 Form 10-Q 15

Table of Contents



CITIZENS, INC.	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
		(Unaudited)

(4) EARNINGS PER SHARE

The following tables set forth the computation of basic and diluted earnings per share.



Three Months Ended June 30,	2019			2018
(In thousands, except per share amounts)	2019			2018

Basic and diluted earnings per share:
Numerator:
Net loss	$	(4,565	)	(2,558	)
Net loss allocated to Class A common stock	$	(4,519	)	(2,532	)
Net loss allocated to Class B common stock	(46		)	(26	)
Net loss	$	(4,565	)	(2,558	)

Denominator:
Weighted average shares of Class A outstanding - basic	49,229			49,080
Weighted average shares of Class A outstanding - diluted	49,280			49,109
Weighted average shares of Class B outstanding - basic and diluted	1,002			1,002
Basic and diluted loss per share of Class A common stock	$	(0.09	)	(0.05	)
Basic and diluted loss per share of Class B common stock	(0.04		)	(0.03	)



Six Months Ended June 30,	2019			2018
(In thousands, except per share amounts)	2019			2018

Basic and diluted earnings per share:
Numerator:
Net loss	$	(8,367	)	(2,521	)
Net loss allocated to Class A common stock	$	(8,283	)	(2,496	)
Net loss allocated to Class B common stock	(84		)	(25	)
Net loss	$	(8,367	)	(2,521	)

Denominator:
Weighted average shares of Class A outstanding - basic	49,229			49,080
Weighted average shares of Class A outstanding - diluted	49,280			49,109
Weighted average shares of Class B outstanding - basic and diluted	1,002			1,002
Basic and diluted loss per share of Class A common stock	$	(0.17	)	(0.05	)
Basic and diluted loss per share of Class B common stock	(0.08		)	(0.03	)

June 30, 2019 Form 10-Q 16

Table of Contents



CITIZENS, INC.	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
		(Unaudited)

(5) INVESTMENTS

The Company invests primarily in fixed maturity securities, which totaled 90.7% of total cash, cash equivalents and investments at June 30, 2019. The Company's cash, cash equivalents and investments are listed below.



Carrying Value (In thousands, except for %)	June 30, 2019				December 31, 2018
Carrying Value (In thousands, except for %)	Amount		%		Amount		%

Fixed maturity securities	$	1,341,339	90.7	%	$	1,231,039	88.7	%
Equity securities	15,827		1.1	%	15,068		1.1	%
Mortgage loans	182		—	%	186		—	%
Policy loans	81,545		5.5	%	80,825		5.8	%
Real estate and other long-term investments	2,593		0.2	%	7,223		0.5	%
Short-term investments	2,455		0.2	%	7,865		0.6	%
Cash and cash equivalents	34,568		2.3	%	45,492		3.3	%
Total cash, cash equivalents and investments	$	1,478,509	100.0	%	$	1,387,698	100.0	%

The following tables represent the cost or amortized cost, gross unrealized gains and losses and fair value of fixed maturities as of the dates indicated.



	Cost or Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
June 30, 2019
(In thousands)

Fixed maturities:
Available-for-sale:
U.S. Treasury securities	$	9,749	1,733	—	11,482
U.S. Government-sponsored enterprises	3,528		1,015	—	4,543
States and political subdivisions	651,598		25,193	351	676,440
Corporate	481,406		30,533	2,171	509,768
Commercial mortgage-backed	1,109		2	—	1,111
Residential mortgage-backed	116,364		11,280	2	127,642
Asset-backed	10,229		5	1	10,233
Foreign governments	102		18	—	120
Total fixed maturities	$	1,274,085	69,779	2,525	1,341,339

June 30, 2019 Form 10-Q 17

Table of Contents



CITIZENS, INC.	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
		(Unaudited)



	Cost or Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
December 31, 2018
(In thousands)

Fixed maturities:
Available-for-sale securities:
U.S. Treasury securities	$	9,864	1,410	—	11,274
U.S. Government-sponsored enterprises	3,540		740	—	4,280
States and political subdivisions	713,991		7,614	1,490	720,115
Corporate	384,817		6,725	9,746	381,796
Commercial mortgage-backed	39,694		386	66	40,014
Residential mortgage-backed	66,960		1,726	2	68,684
Asset-backed	4,764		1	8	4,757
Foreign governments	117		2	—	119
Total fixed maturities	$	1,223,747	18,604	11,312	1,231,039

Most of the Company's equity securities are diversified stock and bond mutual funds.



Fair Value (In thousands)	June 30, 2019		December 31, 2018

Equity securities:
Stock mutual funds	$	3,142	2,906
Bond mutual funds	12,255		11,774
Common stock	120		94
Non-redeemable preferred stock	310		294
Total equity securities	$	15,827	15,068

VALUATION OF INVESTMENTS

Available-for-sale securities are reported in the consolidated financial statements at fair value. Equity securities are measured at fair value with the change in fair value recorded through net income. The Company recognized net realized gains of $155,000 and $757,000 on equity securities held for the three and six months ended June 30, 2019 and losses of $86,000 and $388,000 for the same periods ended June 30, 2018, respectively. An impairment loss of $3.1 million was recorded during the second quarter of 2019 related to our Citizens Academy training facility property located near Austin, Texas. It was determined during the quarter that the property met the held-for-sale criteria. As a result, this investment was reclassified from real estate held for investment to real estate held-for-sale. This resulted in an impairment loss of $3.1 million as the carrying amount of the property was written down to the net realizable value. This investment is considered a Level 3 asset in the fair value hierarchy.

The Company monitors all debt securities on an on-going basis relative to changes in credit ratings, market prices, earnings trends and financial performance, in addition to specific region or industry reviews. The assessment of whether other-than-temporary impairments ("OTTI") have occurred is based on a case-by-case evaluation of underlying reasons for the decline in fair value. The Company determines OTTI by reviewing relevant evidence related to the specific security issuer as well as the Company's intent to sell the security, or if it is more likely than not that the Company would be required to sell a security before recovery of its amortized cost.

When an OTTI has occurred, the amount of the OTTI recognized in earnings depends on whether the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost

June 30, 2019 Form 10-Q 18

Table of Contents



CITIZENS, INC.	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
		(Unaudited)

basis. If the Company intends to sell the security or it is more likely that the Company will be required to sell the security before recovery of its amortized cost basis, the OTTI is recognized in earnings equal to the entire difference between the investment's amortized cost and its fair value at the balance sheet date. If the Company does not intend to sell the security and it is more likely than not that the Company will not be required to sell the security before recovery of its amortized cost basis, the OTTI is separated into the following: (a) the amount representing the credit loss; and (b) the amount related to all other factors. The amount of the total OTTI related to the credit loss is recognized in earnings. The amount of the total OTTI related to other factors is recognized in other comprehensive income, net of applicable taxes. The previous amortized cost basis less the OTTI recognized in earnings becomes the new amortized cost basis of the investment. The new amortized cost basis is not adjusted for subsequent recoveries in fair value.

The Company evaluates whether a credit impairment exists for fixed maturity securities by considering primarily the following factors: (a) changes in the financial condition of the security's underlying collateral; (b) whether the issuer is current on contractually obligated interest and principal payments; (c) changes in the financial condition, credit rating and near-term prospects of the issuer; (d) the length of time to which the fair value has been less than the amortized cost of the security; and (e) the payment structure of the security. The Company's best estimate of expected future cash flows used to determine the credit loss amount is a quantitative and qualitative process. Quantitative review includes information received from third party sources such as financial statements, pricing and rating changes, liquidity and other statistical information. Qualitative factors include judgments related to business strategies, economic impacts on the issuer and overall judgment related to estimates and industry factors. The Company's best estimate of future cash flows involves assumptions including, but not limited to, various performance indicators, such as historical and projected default and recovery rates, credit ratings, and current delinquency rates. These assumptions require the use of significant management judgment and include the probability of issuer default and estimates regarding timing and amount of expected recoveries, which may include estimating the underlying collateral value. In addition, projections of expected future debt security cash flows may change based upon new information regarding the performance of the issuer.

No fixed maturity investment impairments were recognized for the three and six months ended June 30, 2019 or the three months ended June 30, 2018. OTTI of $225,000 was recognized on one fixed maturity security issuer for the six months ended June 30, 2018.

The following tables present the fair values and gross unrealized losses of fixed maturity securities that have remained in a continuous unrealized loss position for the periods indicated.



June 30, 2019	Less than 12 months				Greater than 12 months			Total
(In thousands, except for # of securities)	Fair Value		Unrealized Losses	# of Securities	Fair Value	Unrealized Losses	# of Securities	Fair Value	Unrealized Losses	# of Securities

Fixed maturities:
Available-for-sale securities:
States and political subdivisions	$	44,983	198	39	24,021	153	33	69,004	351	72
Corporate	57,128		1,868	39	10,304	303	12	67,432	2,171	51
Residential mortgage-backed	—		—	—	94	2	4	94	2	4
Asset-backed	1,345		1	2	—	—	—	1,345	1	2
Total fixed maturities	$	103,456	2,067	80	34,419	458	49	137,875	2,525	129

June 30, 2019 Form 10-Q 19

Table of Contents



CITIZENS, INC.	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
		(Unaudited)



December 31, 2018	Less than 12 months				Greater than 12 months			Total
(In thousands, except for # of securities)	Fair Value		Unrealized Losses	# of Securities	Fair Value	Unrealized Losses	# of Securities	Fair Value	Unrealized Losses	# of Securities

Fixed maturities:
Available-for-sale securities:
States and political subdivisions	$	227,132	883	233	33,891	607	46	261,023	1,490	279
Corporate	230,030		8,770	191	9,936	976	8	239,966	9,746	199
Commercial mortgage-backed	14,992		66	11	—	—	—	14,992	66	11
Residential mortgage-backed	18		—	3	98	2	4	116	2	7
Asset-backed	3,747		8	4	—	—	—	3,747	8	4
Total fixed maturities	$	475,919	9,727	442	43,925	1,585	58	519,844	11,312	500

We have reviewed the securities in an unrealized loss position for the periods ended June 30, 2019 and December 31, 2018 and determined that no OTTI exists that have not been recognized based on our evaluation of the credit worthiness of the issuers and the fact that we do not intend to sell the investments nor is it likely that we will be required to sell the securities before recovery of their amortized cost bases which may be maturity. We continue to monitor all securities on an on-going basis and future information may become available which could result in other-than-temporary impairments being recorded.

The amortized cost and fair value of fixed maturity securities at June 30, 2019 by contractual maturity are shown in the table below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date have been reflected based upon final stated maturity.



June 30, 2019	Amortized Cost		Fair Value
(In thousands)	Amortized Cost		Fair Value
Fixed maturity securities:
Due in one year or less	$	102,787	103,200
Due after one year through five years	131,248		136,348
Due after five years through ten years	214,674		226,791
Due after ten years	825,376		875,000
Total fixed maturity securities	$	1,274,085	1,341,339

June 30, 2019 Form 10-Q 20

Table of Contents



CITIZENS, INC.	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
		(Unaudited)

The Company uses the specific identification method of the individual security to determine the cost basis used in the calculation of realized gains and losses related to security sales.



	Fixed Maturities, Available-for-Sale					Equity Securities
	Three Months Ended			Six Months Ended		Three Months Ended		Six Months Ended
	June 30,			June 30,		June 30,		June 30,
(In thousands)	2019		2018	2019	2018	2019	2018	2019	2018


Proceeds	$	2,755	—	10,414	—	—	—	—	—
Gross realized gains	$	107	—	109	—	—	—	—	—
Gross realized losses	$	182	—	365	—	—	—	—	—

There were sales of ten and twenty available-for-sale fixed maturity securities for the three and six months ended June 30, 2019, respectively. No available-for-sale fixed maturity securities were sold during the three and six months ended June 30, 2018. No equity securities were sold during the three and six months ended June 30, 2019 and 2018.

(6) FAIR VALUE MEASUREMENTS

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We hold available-for-sale fixed maturity securities, which are carried at fair value. We also report our equity securities at fair value with changes in fair value reported through the consolidated statements of comprehensive income.

Fair value measurements are generally based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our view of market assumptions in the absence of observable market information. We utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. All assets and liabilities carried at fair value are required to be classified and disclosed in one of the following three categories:


•	Level 1 - Quoted prices for identical instruments in active markets.


•	Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs or whose significant value drivers are observable.


•	Level 3 - Instruments whose significant value drivers are unobservable.

Level 1 primarily consists of financial instruments whose value is based on quoted market prices such as U.S. Treasury securities and actively traded mutual fund and stock investments.

Level 2 includes those financial instruments that are valued by independent pricing services or broker quotes. These models are primarily industry-standard models that consider various inputs, such as interest rates, credit spreads and foreign exchange rates for the underlying financial instruments. All significant inputs are observable or derived from observable information in the marketplace or are supported by observable levels at which transactions are executed in the marketplace. Financial instruments in this category primarily include corporate securities, U.S. Government-sponsored enterprise securities, municipal securities and certain mortgage and asset-backed securities.

Level 3 is comprised of financial instruments whose fair value is estimated based on non-binding broker prices utilizing significant inputs not based on or corroborated by readily available market information. There were no securities in this category at June 30, 2019.

June 30, 2019 Form 10-Q 21

Table of Contents



CITIZENS, INC.	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
		(Unaudited)

Closing Price ($)	Shares Out (MM)	Market Cap ($MM)
$6.84	50	$344

10-Q	2019-06-30	Quarter: 2019-06-30
10-Q	2019-03-31	Quarter: 2019-03-31
10-K	2018-12-31	Annual: 2018-12-31
10-Q	2018-09-30	Quarter: 2018-09-30
10-Q	2018-06-30	Quarter: 2018-06-30
10-Q	2018-03-31	Quarter: 2018-03-31
10-K	2017-12-31	Annual: 2017-12-31
10-Q	2017-09-30	Quarter: 2017-09-30
10-Q	2017-06-30	Quarter: 2017-06-30
10-Q	2017-03-31	Quarter: 2017-03-31
10-K	2016-12-31	Annual: 2016-12-31
10-Q	2016-09-30	Quarter: 2016-09-30
10-Q	2016-06-30	Quarter: 2016-06-30
10-Q	2016-03-31	Quarter: 2016-03-31
10-K	2015-12-31	Annual: 2015-12-31
10-Q	2015-09-30	Quarter: 2015-09-30
10-Q	2015-06-30	Quarter: 2015-06-30
10-Q	2015-03-31	Quarter: 2015-03-31
10-K	2014-12-31	Annual: 2014-12-31
10-Q	2014-09-30	Quarter: 2014-09-30
10-Q	2014-06-30	Quarter: 2014-06-30
10-Q	2014-03-31	Quarter: 2014-03-31
10-K	2013-12-31	Annual: 2013-12-31

8-K	2019-07-12	Other Events
8-K	2019-06-04	Shareholder Vote
8-K	2019-01-23	Officers, Exhibits
8-K	2019-01-23	Officers, Exhibits
8-K	2019-01-18	Officers, Exhibits
8-K	2018-08-22	Other Events
8-K	2018-08-16	Officers
8-K	2018-06-11	Officers, Exhibits
8-K	2018-06-05	Shareholder Vote, Exhibits
8-K	2018-05-29	Other Events, Exhibits
8-K	2018-04-25	Other Events
8-K	2018-01-22	Officers, Exhibits

UAL	United Continental Holdings	22,130
FLR	Fluor	4,190
CTB	Cooper Tire & Rubber	1,460
WTRE	Watford Holdings	564
MRUS	Merus	321
SD	Sandridge Energy	292
FFNW	First Financial Northwest	172
UG	United Guardian	87
EDR	Education Realty Trust	0
TLSRP	Telos	0

EX-31.1	cia-201963010qex311.htm
EX-31.2	cia-201963010qex312.htm
EX-32.1	cia-201963010qex321.htm
EX-32.2	cia-201963010qex322.htm