UNITED STATES | ||||||||||||||
SECURITIES AND EXCHANGE COMMISSION | ||||||||||||||
WASHINGTON, D.C. 20549 | ||||||||||||||
FORM | 10-Q |
☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||||||||||
For the Quarterly Period Ended | |||||||||||||||||
OR | |||||||||||||||||
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||||||||||
For the Transition Period from_______________________to_______________________ |
Commission File No. | 811-00002 |
AMERIPRISE CERTIFICATE COMPANY | ||
(Exact name of registrant as specified in its charter) |
Delaware | 41-6009975 | |||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
1099 Ameriprise Financial Center | Minneapolis | Minnesota | 55474 | |||||||||||||||||||||||
(Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: | (612) | 671-3131 |
Former name, former address and former fiscal year, if changed since last report: | Not Applicable |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||||||||
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||||||||
Common Stock (par value $10 per share) | None | None |
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. | Yes | ☒ | 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). | Yes | ☒ | No | ☐ |
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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 | ☐ | Accelerated Filer | ☐ | Non-accelerated Filer | ☒ | Smaller reporting company | ☐ | Emerging growth company | ☐ |
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. | ☐ |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). | Yes | ☐ | No | ☒ |
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. | ||||||||||||||
Class | Outstanding at | |||||||||||||
Common Stock (par value $10 per share) | 150,000 shares | |||||||||||||
THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTIONS H(1)(a) AND (b) OF FORM 10-Q AND IS THEREFORE FILING THIS FORM WITH THE REDUCED DISCLOSURE FORMAT. | ||||||||||||||
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Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Investment income | Investment income | $ | 129,909 | $ | 14,428 | Investment income | $ | 159,703 | $ | 20,997 | $ | 289,612 | $ | 35,425 | ||||||||||||||||||||||||||||||||
Investment expenses | Investment expenses | 12,109 | 6,145 | Investment expenses | 13,177 | 6,239 | 25,286 | 12,384 | ||||||||||||||||||||||||||||||||||||||
Net investment income before provision for certificate reserves and income taxes | Net investment income before provision for certificate reserves and income taxes | 117,800 | 8,283 | Net investment income before provision for certificate reserves and income taxes | 146,526 | 14,758 | 264,326 | 23,041 | ||||||||||||||||||||||||||||||||||||||
Net provision for certificate reserves | Net provision for certificate reserves | 82,933 | 1,331 | Net provision for certificate reserves | 109,380 | 2,053 | 192,313 | 3,384 | ||||||||||||||||||||||||||||||||||||||
Net investment income before income taxes | Net investment income before income taxes | 34,867 | 6,952 | Net investment income before income taxes | 37,146 | 12,705 | 72,013 | 19,657 | ||||||||||||||||||||||||||||||||||||||
Income tax expense | Income tax expense | 8,851 | 1,727 | Income tax expense | 9,385 | 3,168 | 18,236 | 4,895 | ||||||||||||||||||||||||||||||||||||||
Net investment income, after-tax | Net investment income, after-tax | 26,016 | 5,225 | Net investment income, after-tax | 27,761 | 9,537 | 53,777 | 14,762 | ||||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on investments before income taxes | Net realized gain (loss) on investments before income taxes | (635) | 18 | Net realized gain (loss) on investments before income taxes | (274) | (61) | (909) | (43) | ||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | Income tax expense (benefit) | (133) | 4 | Income tax expense (benefit) | (58) | (13) | (191) | (9) | ||||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on investments, after-tax | Net realized gain (loss) on investments, after-tax | (502) | 14 | Net realized gain (loss) on investments, after-tax | (216) | (48) | (718) | (34) | ||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 25,514 | $ | 5,239 | Net income | $ | 27,545 | $ | 9,489 | $ | 53,059 | $ | 14,728 | ||||||||||||||||||||||||||||||||
See Notes to Consolidated Financial Statements. | See Notes to Consolidated Financial Statements. | See Notes to Consolidated Financial Statements. |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 25,514 | $ | 5,239 | Net income | $ | 27,545 | $ | 9,489 | $ | 53,059 | $ | 14,728 | ||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax: | Other comprehensive income (loss), net of tax: | Other comprehensive income (loss), net of tax: | ||||||||||||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on securities: | Net unrealized gains (losses) on securities: | Net unrealized gains (losses) on securities: | ||||||||||||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on securities arising during the period | Net unrealized gains (losses) on securities arising during the period | 21,361 | (39,913) | Net unrealized gains (losses) on securities arising during the period | (28,648) | (40,611) | (7,287) | (80,524) | ||||||||||||||||||||||||||||||||||||||
Reclassification of net (gains) losses on securities included in net income | Reclassification of net (gains) losses on securities included in net income | 266 | (1) | Reclassification of net (gains) losses on securities included in net income | (9) | (5) | 257 | (6) | ||||||||||||||||||||||||||||||||||||||
Total other comprehensive income (loss), net of tax | Total other comprehensive income (loss), net of tax | 21,627 | (39,914) | Total other comprehensive income (loss), net of tax | (28,657) | (40,616) | (7,030) | (80,530) | ||||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) | Total comprehensive income (loss) | $ | 47,141 | $ | (34,675) | Total comprehensive income (loss) | $ | (1,112) | $ | (31,127) | $ | 46,029 | $ | (65,802) | ||||||||||||||||||||||||||||||||
See Notes to Consolidated Financial Statements. | See Notes to Consolidated Financial Statements. | See Notes to Consolidated Financial Statements. |
March 31, 2023 | December 31, 2022 | June 30, 2023 | December 31, 2022 | (in thousands, except share data) | ||||||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||
Qualified Assets | Qualified Assets | Qualified Assets | ||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 1,622,791 | $ | 1,180,868 | Cash and cash equivalents | $ | 1,188,556 | $ | 1,180,868 | ||||||||||||
Investments in unaffiliated issuers (allowance for credit losses: 2023, $1,767; 2022, $1,472) | 10,111,269 | 8,573,481 | ||||||||||||||||||||
Investments in unaffiliated issuers (allowance for credit losses: 2023, $1,471; 2022, $1,472) | Investments in unaffiliated issuers (allowance for credit losses: 2023, $1,471; 2022, $1,472) | 11,543,855 | 8,573,481 | |||||||||||||||||||
Receivables | Receivables | 32,549 | 24,937 | Receivables | 42,249 | 24,937 | ||||||||||||||||
Derivative assets | Derivative assets | 13,102 | 8,786 | Derivative assets | 19,566 | 8,786 | ||||||||||||||||
Total qualified assets | Total qualified assets | 11,779,711 | 9,788,072 | Total qualified assets | 12,794,226 | 9,788,072 | ||||||||||||||||
Deferred taxes, net | Deferred taxes, net | 31,808 | 37,892 | Deferred taxes, net | 40,594 | 37,892 | ||||||||||||||||
Taxes receivable from parent | Taxes receivable from parent | 279 | — | |||||||||||||||||||
Due from related party | Due from related party | 41,987 | — | Due from related party | 16,901 | — | ||||||||||||||||
Total assets | Total assets | $ | 11,853,506 | $ | 9,825,964 | Total assets | $ | 12,852,000 | $ | 9,825,964 | ||||||||||||
Liabilities and Shareholder’s Equity | Liabilities and Shareholder’s Equity | Liabilities and Shareholder’s Equity | ||||||||||||||||||||
Liabilities | Liabilities | Liabilities | ||||||||||||||||||||
Certificate reserves | Certificate reserves | $ | 11,101,907 | $ | 9,313,405 | Certificate reserves | $ | 12,068,871 | $ | 9,313,405 | ||||||||||||
Due to related party | Due to related party | 4,026 | 3,047 | Due to related party | 4,236 | 3,047 | ||||||||||||||||
Taxes payable to parent | Taxes payable to parent | 13,200 | 5,708 | Taxes payable to parent | 2,182 | 5,708 | ||||||||||||||||
Payables to brokers, dealers and clearing organizations | Payables to brokers, dealers and clearing organizations | 135,862 | 68,533 | Payables to brokers, dealers and clearing organizations | 146,480 | 68,533 | ||||||||||||||||
Derivative liabilities | Derivative liabilities | 9,106 | 6,649 | Derivative liabilities | 13,609 | 6,649 | ||||||||||||||||
Other liabilities | Other liabilities | 50,781 | 14,139 | Other liabilities | 53,110 | 14,139 | ||||||||||||||||
Total liabilities | Total liabilities | 11,314,882 | 9,411,481 | Total liabilities | 12,288,488 | 9,411,481 | ||||||||||||||||
Shareholder’s Equity | Shareholder’s Equity | Shareholder’s Equity | ||||||||||||||||||||
Common shares ($10 par value, 150,000 shares authorized and issued) | Common shares ($10 par value, 150,000 shares authorized and issued) | 1,500 | 1,500 | Common shares ($10 par value, 150,000 shares authorized and issued) | 1,500 | 1,500 | ||||||||||||||||
Additional paid-in capital | Additional paid-in capital | 558,667 | 481,667 | Additional paid-in capital | 584,667 | 481,667 | ||||||||||||||||
Retained earnings | Retained earnings | 72,175 | 46,661 | Retained earnings | 99,720 | 46,661 | ||||||||||||||||
Accumulated other comprehensive income (loss), net of tax | Accumulated other comprehensive income (loss), net of tax | (93,718) | (115,345) | Accumulated other comprehensive income (loss), net of tax | (122,375) | (115,345) | ||||||||||||||||
Total shareholder’s equity | Total shareholder’s equity | 538,624 | 414,483 | Total shareholder’s equity | 563,512 | 414,483 | ||||||||||||||||
Total liabilities and shareholder’s equity | Total liabilities and shareholder’s equity | $ | 11,853,506 | $ | 9,825,964 | Total liabilities and shareholder’s equity | $ | 12,852,000 | $ | 9,825,964 | See Notes to Consolidated Financial Statements. |
Number of Outstanding Shares | Common Shares | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss), Net of Tax | Total | Number of Outstanding Shares | Common Shares | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss), Net of Tax | Total | |||||||||||||||||||||||||||||||||||||||||
Appropriated for Pre-Declared Additional Credits and Interest | Appropriated for Additional Interest on Advance Payments | Un-appropriated | Appropriated for Pre-Declared Additional Credits and Interest | Appropriated for Additional Interest on Advance Payments | Un-appropriated | (in thousands, except share data) | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at April 1, 2023 | Balance at April 1, 2023 | 150,000 | $ | 1,500 | $ | 558,667 | $ | 19,951 | $ | 15 | $ | 52,209 | $ | (93,718) | $ | 538,624 | ||||||||||||||||||||||||||||||||||||
Net income | Net income | — | — | — | — | — | 27,545 | — | 27,545 | |||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | Other comprehensive income (loss), net of tax | — | — | — | — | — | — | (28,657) | (28,657) | |||||||||||||||||||||||||||||||||||||||||||
Transfer to unappropriated from appropriated, net | Transfer to unappropriated from appropriated, net | — | — | — | (3,793) | — | 3,793 | — | — | |||||||||||||||||||||||||||||||||||||||||||
Receipt of capital from parent | Receipt of capital from parent | — | — | 26,000 | — | — | — | — | 26,000 | |||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | Balance at June 30, 2023 | 150,000 | $ | 1,500 | $ | 584,667 | $ | 16,158 | $ | 15 | $ | 83,547 | $ | (122,375) | $ | 563,512 | ||||||||||||||||||||||||||||||||||||
Balance at April 1, 2022 | Balance at April 1, 2022 | 150,000 | $ | 1,500 | $ | 295,667 | $ | — | $ | 15 | $ | 1,051 | $ | (24,178) | $ | 274,055 | ||||||||||||||||||||||||||||||||||||
Net income | Net income | — | — | — | — | — | 9,489 | — | 9,489 | |||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | Other comprehensive income (loss), net of tax | — | — | — | — | — | — | (40,616) | (40,616) | |||||||||||||||||||||||||||||||||||||||||||
Transfer to appropriated from unappropriated, net | Transfer to appropriated from unappropriated, net | — | — | — | 370 | — | (370) | — | — | |||||||||||||||||||||||||||||||||||||||||||
Dividend to parent | Dividend to parent | — | — | — | — | — | (7,000) | — | (7,000) | |||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | Balance at June 30, 2022 | 150,000 | $ | 1,500 | $ | 295,667 | $ | 370 | $ | 15 | $ | 3,170 | $ | (64,794) | $ | 235,928 | ||||||||||||||||||||||||||||||||||||
Balance at January 1, 2023 | Balance at January 1, 2023 | 150,000 | $ | 1,500 | $ | 481,667 | $ | 15,960 | $ | 15 | $ | 30,686 | $ | (115,345) | $ | 414,483 | Balance at January 1, 2023 | 150,000 | $ | 1,500 | $ | 481,667 | $ | 15,960 | $ | 15 | $ | 30,686 | $ | (115,345) | $ | 414,483 | ||||||||||||||||||||
Net income | Net income | — | — | — | — | — | 25,514 | — | 25,514 | Net income | — | — | — | — | — | 53,059 | — | 53,059 | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | Other comprehensive income (loss), net of tax | — | — | — | — | — | — | 21,627 | 21,627 | Other comprehensive income (loss), net of tax | — | — | — | — | — | — | (7,030) | (7,030) | ||||||||||||||||||||||||||||||||||
Transfer to appropriated from unappropriated | — | — | — | 3,991 | — | (3,991) | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Transfer to appropriated from unappropriated, net | Transfer to appropriated from unappropriated, net | — | — | — | 198 | — | (198) | — | — | |||||||||||||||||||||||||||||||||||||||||||
Receipt of capital from parent | Receipt of capital from parent | — | — | 77,000 | — | — | — | — | 77,000 | Receipt of capital from parent | — | — | 103,000 | — | — | — | — | 103,000 | ||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | 150,000 | $ | 1,500 | $ | 558,667 | $ | 19,951 | $ | 15 | $ | 52,209 | $ | (93,718) | $ | 538,624 | |||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | Balance at June 30, 2023 | 150,000 | $ | 1,500 | $ | 584,667 | $ | 16,158 | $ | 15 | $ | 83,547 | $ | (122,375) | $ | 563,512 | ||||||||||||||||||||||||||||||||||||
Balance at January 1, 2022 | Balance at January 1, 2022 | 150,000 | $ | 1,500 | $ | 302,709 | $ | — | $ | 15 | $ | 70 | $ | 15,736 | $ | 320,030 | Balance at January 1, 2022 | 150,000 | $ | 1,500 | $ | 302,709 | $ | — | $ | 15 | $ | 70 | $ | 15,736 | $ | 320,030 | ||||||||||||||||||||
Net income | Net income | — | — | — | — | — | 5,239 | — | 5,239 | Net income | — | — | — | — | — | 14,728 | — | 14,728 | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | Other comprehensive income (loss), net of tax | — | — | — | — | — | — | (39,914) | (39,914) | Other comprehensive income (loss), net of tax | — | — | — | — | — | — | (80,530) | (80,530) | ||||||||||||||||||||||||||||||||||
Transfer to appropriated from unappropriated, net | Transfer to appropriated from unappropriated, net | — | — | — | 370 | — | (370) | — | — | |||||||||||||||||||||||||||||||||||||||||||
Dividend to parent | Dividend to parent | — | — | — | — | — | (4,258) | — | (4,258) | Dividend to parent | — | — | — | — | — | (11,258) | — | (11,258) | ||||||||||||||||||||||||||||||||||
Return of capital to parent | Return of capital to parent | — | — | (7,042) | — | — | — | — | (7,042) | Return of capital to parent | — | — | (7,042) | — | — | — | — | (7,042) | ||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | 150,000 | $ | 1,500 | $ | 295,667 | $ | — | $ | 15 | $ | 1,051 | $ | (24,178) | $ | 274,055 | |||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | Balance at June 30, 2022 | 150,000 | $ | 1,500 | $ | 295,667 | $ | 370 | $ | 15 | $ | 3,170 | $ | (64,794) | $ | 235,928 | ||||||||||||||||||||||||||||||||||||
See Notes to Consolidated Financial Statements. | See Notes to Consolidated Financial Statements. | See Notes to Consolidated Financial Statements. |
Three Months Ended March 31, | Six Months Ended June 30, | |||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | (in thousands) | ||||||||||||||||||
Cash Flows from Operating Activities | Cash Flows from Operating Activities | Cash Flows from Operating Activities | ||||||||||||||||||||
Net income | Net income | $ | 25,514 | $ | 5,239 | Net income | $ | 53,059 | $ | 14,728 | ||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | Adjustments to reconcile net income to net cash provided by (used in) operating activities: | Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||||||||||
Amortization of premiums, accretion of discounts, net | Amortization of premiums, accretion of discounts, net | (29,256) | 396 | Amortization of premiums, accretion of discounts, net | (60,839) | (521) | ||||||||||||||||
Deferred income tax expense (benefit) | Deferred income tax expense (benefit) | (769) | — | Deferred income tax expense (benefit) | (474) | — | ||||||||||||||||
Net realized (gain) loss on Available-for-Sale securities | Net realized (gain) loss on Available-for-Sale securities | 337 | (1) | Net realized (gain) loss on Available-for-Sale securities | 326 | (7) | ||||||||||||||||
Other net realized (gain) loss | Other net realized (gain) loss | 3 | 6 | Other net realized (gain) loss | 583 | 39 | ||||||||||||||||
Provision for credit losses | Provision for credit losses | 295 | (24) | Provision for credit losses | (1) | 11 | ||||||||||||||||
Changes in operating assets and liabilities: | Changes in operating assets and liabilities: | Changes in operating assets and liabilities: | ||||||||||||||||||||
Dividends and interest receivable | Dividends and interest receivable | 4,596 | (89) | Dividends and interest receivable | 33,589 | (3,197) | ||||||||||||||||
Certificate reserves, net | Certificate reserves, net | 6,498 | (1,065) | Certificate reserves, net | 13,175 | (1,908) | ||||||||||||||||
Deferred taxes, net | Deferred taxes, net | — | 316 | Deferred taxes, net | — | 502 | ||||||||||||||||
Taxes payable to/receivable from parent, net | Taxes payable to/receivable from parent, net | 7,492 | 1,122 | Taxes payable to/receivable from parent, net | (3,805) | 3,560 | ||||||||||||||||
Derivatives, net of collateral | Derivatives, net of collateral | (159) | (32) | Derivatives, net of collateral | (400) | 67 | ||||||||||||||||
Other liabilities | Other liabilities | 9,947 | 7,529 | Other liabilities | 10,960 | 2,109 | ||||||||||||||||
Other receivables | Other receivables | (187) | 46 | Other receivables | (426) | 114 | ||||||||||||||||
Payables to brokers, dealers and clearing organizations | 53,286 | — | ||||||||||||||||||||
Other, net | Other, net | (2,273) | (136) | Other, net | (2,331) | (25) | ||||||||||||||||
Net cash provided by (used in) operating activities | Net cash provided by (used in) operating activities | 75,324 | 13,307 | Net cash provided by (used in) operating activities | 43,416 | 15,472 | ||||||||||||||||
Cash Flows from Investing Activities | Cash Flows from Investing Activities | Cash Flows from Investing Activities | ||||||||||||||||||||
Available-for-Sale securities: | Available-for-Sale securities: | Available-for-Sale securities: | ||||||||||||||||||||
Sales | Sales | 111,726 | — | Sales | 111,727 | — | ||||||||||||||||
Maturities, redemptions, calls and other | Maturities, redemptions, calls and other | 706,635 | 1,022,546 | Maturities, redemptions, calls and other | 2,724,660 | 1,899,822 | ||||||||||||||||
Purchases | Purchases | (2,306,845) | (1,131,208) | Purchases | (5,748,558) | (2,159,280) | ||||||||||||||||
Syndicated loans and commercial mortgage loans: | Syndicated loans and commercial mortgage loans: | Syndicated loans and commercial mortgage loans: | ||||||||||||||||||||
Sales, maturities and repayments | Sales, maturities and repayments | 11,261 | 8,864 | Sales, maturities and repayments | 21,956 | 35,648 | ||||||||||||||||
Purchases and fundings | Purchases and fundings | (1,582) | — | Purchases and fundings | (1,976) | (18,218) | ||||||||||||||||
Certificate loans, net | Certificate loans, net | 3 | (1) | Certificate loans, net | 25 | (7) | ||||||||||||||||
Net cash provided by (used in) investing activities | Net cash provided by (used in) investing activities | (1,478,802) | (99,799) | Net cash provided by (used in) investing activities | (2,892,166) | (242,035) | ||||||||||||||||
Cash Flows from Financing Activities | Cash Flows from Financing Activities | Cash Flows from Financing Activities | ||||||||||||||||||||
Payments from certificate holders and other additions | Payments from certificate holders and other additions | 3,590,293 | 733,156 | Payments from certificate holders and other additions | 6,395,156 | 1,835,193 | ||||||||||||||||
Certificate maturities and cash surrenders | Certificate maturities and cash surrenders | (1,821,892) | (835,160) | Certificate maturities and cash surrenders | (3,641,718) | (1,849,700) | ||||||||||||||||
Capital contribution from parent | Capital contribution from parent | 77,000 | — | Capital contribution from parent | 103,000 | — | ||||||||||||||||
Dividend to parent | Dividend to parent | — | (4,258) | Dividend to parent | — | (11,258) | ||||||||||||||||
Return of capital to parent | Return of capital to parent | — | (7,042) | Return of capital to parent | — | (7,042) | ||||||||||||||||
Net cash provided by (used in) financing activities | Net cash provided by (used in) financing activities | 1,845,401 | (113,304) | Net cash provided by (used in) financing activities | 2,856,438 | (32,807) | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents | Net increase (decrease) in cash and cash equivalents | 441,923 | (199,796) | Net increase (decrease) in cash and cash equivalents | 7,688 | (259,370) | ||||||||||||||||
Cash and cash equivalents at beginning of period | Cash and cash equivalents at beginning of period | 1,180,868 | 689,792 | Cash and cash equivalents at beginning of period | 1,180,868 | 689,792 | ||||||||||||||||
Cash and cash equivalents at end of period | Cash and cash equivalents at end of period | $ | 1,622,791 | $ | 489,996 | Cash and cash equivalents at end of period | $ | 1,188,556 | $ | 430,422 | ||||||||||||
Supplemental disclosures including non-cash transactions: | Supplemental disclosures including non-cash transactions: | Supplemental disclosures including non-cash transactions: | ||||||||||||||||||||
Cash paid (received) for income taxes | Cash paid (received) for income taxes | $ | 1,687 | $ | 183 | Cash paid (received) for income taxes | $ | 21,780 | $ | 512 | ||||||||||||
Cash paid for interest | Cash paid for interest | 77,751 | 2,483 | Cash paid for interest | 182,832 | 5,118 | See Notes to Consolidated Financial Statements. |
March 31, 2023 | December 31, 2022 | June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||
Available-for-Sale securities: Fixed maturities, at fair value (allowance for credit losses: 2023 and 2022, nil; amortized cost: 2023, $10,042,369; 2022, $8,523,011) | $ | 9,916,753 | $ | 8,368,916 | ||||||||||||||||||||||||
Commercial mortgage loans and syndicated loans, at cost (allowance for credit losses: 2023, $1,767; 2022, $1,472; fair value: 2023, $186,888; 2022, $195,252) | 194,447 | 204,493 | ||||||||||||||||||||||||||
Available-for-Sale securities: Fixed maturities, at fair value (allowance for credit losses: 2023 and 2022, nil; amortized cost: 2023, $11,523,694; 2022, $8,523,011) | Available-for-Sale securities: Fixed maturities, at fair value (allowance for credit losses: 2023 and 2022, nil; amortized cost: 2023, $11,523,694; 2022, $8,523,011) | $ | 11,360,340 | $ | 8,368,916 | |||||||||||||||||||||||
Commercial mortgage loans and syndicated loans, at cost (allowance for credit losses: 2023, $1,471; 2022, $1,472; fair value: 2023, $176,080; 2022, $195,252) | Commercial mortgage loans and syndicated loans, at cost (allowance for credit losses: 2023, $1,471; 2022, $1,472; fair value: 2023, $176,080; 2022, $195,252) | 183,468 | 204,493 | |||||||||||||||||||||||||
Certificate loans — secured by certificate reserves, at cost, which approximates fair value | Certificate loans — secured by certificate reserves, at cost, which approximates fair value | 69 | 72 | Certificate loans — secured by certificate reserves, at cost, which approximates fair value | 47 | 72 | ||||||||||||||||||||||
Total | Total | $ | 10,111,269 | $ | 8,573,481 | Total | $ | 11,543,855 | $ | 8,573,481 |
Description of Securities | Description of Securities | March 31, 2023 | Description of Securities | June 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Description of Securities | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | Corporate debt securities | $ | 1,118,601 | $ | 2,257 | $ | (6,666) | $ | 1,114,192 | Corporate debt securities | $ | 1,504,939 | $ | 36 | $ | (14,473) | $ | 1,490,502 | ||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage backed securities | Residential mortgage backed securities | 2,729,961 | 5,598 | (103,342) | 2,632,217 | Residential mortgage backed securities | 3,168,231 | 4,592 | (118,831) | 3,053,992 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage backed securities | Commercial mortgage backed securities | 2,141,477 | 9,456 | (29,596) | 2,121,337 | Commercial mortgage backed securities | 2,096,907 | 5,514 | (28,355) | 2,074,066 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset backed securities | Asset backed securities | 1,937,435 | 4,403 | (8,355) | 1,933,483 | Asset backed securities | 2,406,859 | 2,449 | (10,480) | 2,398,828 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
State and municipal obligations | State and municipal obligations | 8,451 | — | (211) | 8,240 | State and municipal obligations | 8,450 | — | (170) | 8,280 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government and agency obligations | U.S. government and agency obligations | 2,106,444 | 904 | (64) | 2,107,284 | U.S. government and agency obligations | 2,338,308 | 127 | (3,763) | 2,334,672 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 10,042,369 | $ | 22,618 | $ | (148,234) | $ | 9,916,753 | Total | $ | 11,523,694 | $ | 12,718 | $ | (176,072) | $ | 11,360,340 |
Description of Securities | December 31, 2022 | |||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 800,596 | $ | 497 | $ | (8,151) | $ | 792,942 | ||||||||||||||||||||||||
Residential mortgage backed securities | 2,210,633 | 4,202 | (114,971) | 2,099,864 | ||||||||||||||||||||||||||||
Commercial mortgage backed securities | 1,976,401 | 872 | (28,521) | 1,948,752 | ||||||||||||||||||||||||||||
Asset backed securities | 1,463,147 | 2,599 | (10,474) | 1,455,272 | ||||||||||||||||||||||||||||
State and municipal obligations | 9,451 | — | (296) | 9,155 | ||||||||||||||||||||||||||||
U.S. government and agency obligations | 2,062,783 | 819 | (671) | 2,062,931 | ||||||||||||||||||||||||||||
Total | $ | 8,523,011 | $ | 8,989 | $ | (163,084) | $ | 8,368,916 |
Ratings | Ratings | March 31, 2023 | December 31, 2022 | Ratings | June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost | Fair Value | Percent of Total Fair Value | Amortized Cost | Fair Value | Percent of Total Fair Value | Amortized Cost | Fair Value | Percent of Total Fair Value | Amortized Cost | Fair Value | Percent of Total Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | (in thousands, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AAA | AAA | $ | 8,673,690 | $ | 8,553,996 | 87 | % | $ | 7,504,912 | $ | 7,361,766 | 88 | % | AAA | $ | 9,800,061 | $ | 9,651,311 | 85 | % | $ | 7,504,912 | $ | 7,361,766 | 88 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
AA | AA | 95,785 | 92,851 | 1 | 104,049 | 100,303 | 1 | AA | 62,351 | 60,863 | 1 | 104,049 | 100,303 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
A | A | 228,071 | 227,610 | 2 | 165,663 | 164,265 | 2 | A | 298,905 | 297,367 | 2 | 165,663 | 164,265 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BBB | BBB | 1,033,613 | 1,031,535 | 10 | 732,811 | 727,450 | 9 | BBB | 1,356,432 | 1,345,139 | 12 | 732,811 | 727,450 | 9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Below investment grade | Below investment grade | 11,210 | 10,761 | — | 15,576 | 15,132 | — | Below investment grade | 5,945 | 5,660 | — | 15,576 | 15,132 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total fixed maturities | Total fixed maturities | $ | 10,042,369 | $ | 9,916,753 | 100 | % | $ | 8,523,011 | $ | 8,368,916 | 100 | % | Total fixed maturities | $ | 11,523,694 | $ | 11,360,340 | 100 | % | $ | 8,523,011 | $ | 8,368,916 | 100 | % |
Description of Securities | Description of Securities | March 31, 2023 | Description of Securities | June 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Securities | Fair Value | Unrealized Losses | Number of Securities | Fair Value | Unrealized Losses | Number of Securities | Fair Value | Unrealized Losses | Number of Securities | Fair Value | Unrealized Losses | Number of Securities | Fair Value | Unrealized Losses | Number of Securities | Fair Value | Unrealized Losses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except number of securities) | (in thousands, except number of securities) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | Corporate debt securities | 54 | $ | 702,855 | $ | (6,002) | 3 | $ | 19,718 | $ | (664) | 57 | $ | 722,573 | $ | (6,666) | Corporate debt securities | 79 | $ | 1,398,040 | $ | (12,777) | 11 | $ | 79,044 | $ | (1,696) | 90 | $ | 1,477,084 | $ | (14,473) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage backed securities | Residential mortgage backed securities | 95 | 1,092,184 | (16,190) | 193 | 1,000,519 | (87,152) | 288 | 2,092,703 | (103,342) | Residential mortgage backed securities | 60 | 1,444,052 | (20,128) | 238 | 1,135,408 | (98,703) | 298 | 2,579,460 | (118,831) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage backed securities | Commercial mortgage backed securities | 35 | 760,602 | (7,645) | 44 | 662,184 | (21,951) | 79 | 1,422,786 | (29,596) | Commercial mortgage backed securities | 18 | 524,341 | (4,216) | 59 | 850,258 | (24,139) | 77 | 1,374,599 | (28,355) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset backed securities | Asset backed securities | 30 | 595,876 | (2,343) | 19 | 340,535 | (6,012) | 49 | 936,411 | (8,355) | Asset backed securities | 58 | 1,546,430 | (5,898) | 26 | 393,601 | (4,582) | 84 | 1,940,031 | (10,480) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
State and municipal obligations | State and municipal obligations | — | — | — | 7 | 8,240 | (211) | 7 | 8,240 | (211) | State and municipal obligations | — | — | — | 5 | 2,530 | (170) | 5 | 2,530 | (170) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government and agency obligations | U.S. government and agency obligations | 2 | 43,414 | (64) | — | — | — | 2 | 43,414 | (64) | U.S. government and agency obligations | 17 | 1,517,190 | (3,763) | — | — | — | 17 | 1,517,190 | (3,763) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | 216 | $ | 3,194,931 | $ | (32,244) | 266 | $ | 2,031,196 | $ | (115,990) | 482 | $ | 5,226,127 | $ | (148,234) | Total | 232 | $ | 6,430,053 | $ | (46,782) | 339 | $ | 2,460,841 | $ | (129,290) | 571 | $ | 8,890,894 | $ | (176,072) |
Description of Securities | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Securities | Fair Value | Unrealized Losses | Number of Securities | Fair Value | Unrealized Losses | Number of Securities | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except number of securities) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | 48 | $ | 598,028 | $ | (8,151) | — | $ | — | $ | — | 48 | $ | 598,028 | $ | (8,151) | |||||||||||||||||||||||||||||||||||||||||
Residential mortgage backed securities | 208 | 1,609,795 | (83,810) | 78 | 253,759 | (31,161) | 286 | 1,863,554 | (114,971) | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage backed securities | 64 | 1,396,001 | (16,637) | 21 | 379,588 | (11,884) | 85 | 1,775,589 | (28,521) | |||||||||||||||||||||||||||||||||||||||||||||||
Asset backed securities | 42 | 816,065 | (8,671) | 5 | 87,706 | (1,803) | 47 | 903,771 | (10,474) | |||||||||||||||||||||||||||||||||||||||||||||||
State and municipal obligations | 7 | 8,251 | (200) | 1 | 904 | (96) | 8 | 9,155 | (296) | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. government and agency obligations | 11 | 559,320 | (671) | — | — | — | 11 | 559,320 | (671) | |||||||||||||||||||||||||||||||||||||||||||||||
Total | 380 | $ | 4,987,460 | $ | (118,140) | 105 | $ | 721,957 | $ | (44,944) | 485 | $ | 5,709,417 | $ | (163,084) |
Net Unrealized Gains (Losses) on Securities | Deferred Income Tax | Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Gains (Losses) on Securities | Net Unrealized Gains (Losses) on Securities | Deferred Income Tax | Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Gains (Losses) on Securities | |||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||
Balance at April 1, 2023 | Balance at April 1, 2023 | $ | (125,616) | $ | 31,898 | $ | (93,718) | |||||||||||||||||||||||||||
Net unrealized gains (losses) on securities arising during the period (1) | Net unrealized gains (losses) on securities arising during the period (1) | (37,727) | 9,079 | (28,648) | ||||||||||||||||||||||||||||||
Reclassification of net (gains) losses on securities included in net income (2) | Reclassification of net (gains) losses on securities included in net income (2) | (11) | 2 | (9) | ||||||||||||||||||||||||||||||
Balance at June 30, 2023 | Balance at June 30, 2023 | $ | (163,354) | $ | 40,979 | $ | (122,375) | |||||||||||||||||||||||||||
Balance at April 1, 2022 | Balance at April 1, 2022 | $ | (34,007) | $ | 9,829 | $ | (24,178) | |||||||||||||||||||||||||||
Net unrealized gains (losses) on securities arising during the period (1) | Net unrealized gains (losses) on securities arising during the period (1) | (53,435) | 12,824 | (40,611) | ||||||||||||||||||||||||||||||
Reclassification of net (gains) losses on securities included in net income (2) | Reclassification of net (gains) losses on securities included in net income (2) | (6) | 1 | (5) | ||||||||||||||||||||||||||||||
Balance at June 30, 2022 | Balance at June 30, 2022 | $ | (87,448) | $ | 22,654 | $ | (64,794) | |||||||||||||||||||||||||||
Balance at January 1, 2023 | Balance at January 1, 2023 | $ | (154,094) | $ | 38,749 | $ | (115,345) | Balance at January 1, 2023 | $ | (154,094) | $ | 38,749 | $ | (115,345) | ||||||||||||||||||||
Net unrealized gains (losses) on securities arising during the period (1) | Net unrealized gains (losses) on securities arising during the period (1) | 28,141 | (6,780) | 21,361 | Net unrealized gains (losses) on securities arising during the period (1) | (9,586) | 2,299 | (7,287) | ||||||||||||||||||||||||||
Reclassification of net (gains) losses on securities included in net income (2) | Reclassification of net (gains) losses on securities included in net income (2) | 337 | (71) | 266 | Reclassification of net (gains) losses on securities included in net income (2) | 326 | (69) | 257 | ||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | (125,616) | $ | 31,898 | $ | (93,718) | ||||||||||||||||||||||||||||
Balance at June 30, 2023 | Balance at June 30, 2023 | $ | (163,354) | $ | 40,979 | $ | (122,375) | |||||||||||||||||||||||||||
Balance at January 1, 2022 | Balance at January 1, 2022 | $ | 18,509 | $ | (2,773) | $ | 15,736 | Balance at January 1, 2022 | $ | 18,509 | $ | (2,773) | $ | 15,736 | ||||||||||||||||||||
Net unrealized gains (losses) on securities arising during the period (1) | Net unrealized gains (losses) on securities arising during the period (1) | (52,515) | 12,602 | (39,913) | Net unrealized gains (losses) on securities arising during the period (1) | (105,950) | 25,426 | (80,524) | ||||||||||||||||||||||||||
Reclassification of net (gains) losses on securities included in net income (2) | Reclassification of net (gains) losses on securities included in net income (2) | (1) | — | (1) | Reclassification of net (gains) losses on securities included in net income (2) | (7) | 1 | (6) | ||||||||||||||||||||||||||
Balance at March 31, 2022 | $ | (34,007) | $ | 9,829 | $ | (24,178) | ||||||||||||||||||||||||||||
Balance at June 30, 2022 | Balance at June 30, 2022 | $ | (87,448) | $ | 22,654 | $ | (64,794) |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Gross realized investment gains | Gross realized investment gains | $ | 135 | $ | 1 | Gross realized investment gains | $ | 64 | $ | 6 | $ | 199 | $ | 7 | ||||||||||||||||||||||||||||||||
Gross realized investment losses | Gross realized investment losses | (472) | — | Gross realized investment losses | (53) | — | (525) | — | ||||||||||||||||||||||||||||||||||||||
Total | Total | $ | (337) | $ | 1 | Total | $ | 11 | $ | 6 | $ | (326) | $ | 7 |
Amortized Cost | Fair Value | Amortized Cost | Fair Value | (in thousands) | ||||||||||||||||||
Due within one year | Due within one year | $ | 2,494,713 | $ | 2,492,291 | Due within one year | $ | 2,933,698 | $ | 2,924,591 | ||||||||||||
Due after one year through five years | Due after one year through five years | 738,577 | 737,209 | Due after one year through five years | 917,793 | 908,653 | ||||||||||||||||
Due after five years through 10 years | Due after five years through 10 years | 206 | 216 | Due after five years through 10 years | 206 | 210 | ||||||||||||||||
3,233,496 | 3,229,716 | 3,851,697 | 3,833,454 | |||||||||||||||||||
Residential mortgage backed securities | Residential mortgage backed securities | 2,729,961 | 2,632,217 | Residential mortgage backed securities | 3,168,231 | 3,053,992 | ||||||||||||||||
Commercial mortgage backed securities | Commercial mortgage backed securities | 2,141,477 | 2,121,337 | Commercial mortgage backed securities | 2,096,907 | 2,074,066 | ||||||||||||||||
Asset backed securities | Asset backed securities | 1,937,435 | 1,933,483 | Asset backed securities | 2,406,859 | 2,398,828 | ||||||||||||||||
Total | Total | $ | 10,042,369 | $ | 9,916,753 | Total | $ | 11,523,694 | $ | 11,360,340 |
Commercial Loans | |||||
(in thousands) | |||||
Balance at January 1, 2023 | $ | 1,472 | |||
Provisions | |||||
Balance at | $ | ||||
Balance at January 1, 2022 | $ | 1,518 | |||
Provisions | |||||
Balance at | $ |
March 31, 2023 | June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan-to-Value Ratio | Loan-to-Value Ratio | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | Loan-to-Value Ratio | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
> 100% | > 100% | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 3,193 | $ | 3,193 | > 100% | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 3,175 | $ | 3,175 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
80% - 100% | 80% - 100% | — | 5,481 | — | — | — | — | 5,481 | 80% - 100% | — | 5,461 | — | — | — | — | 5,461 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
60% - 80% | 60% - 80% | — | — | 1,715 | — | — | 3,379 | 5,094 | 60% - 80% | — | — | 1,702 | — | — | — | 1,702 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
40% - 60% | 40% - 60% | 1,098 | — | 4,840 | 4,039 | 9,191 | 5,028 | 24,196 | 40% - 60% | 1,090 | — | 2,402 | 4,016 | 5,000 | 8,544 | 21,052 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
< 40% | < 40% | — | 1,591 | 4,429 | 3,000 | 4,947 | 48,605 | 62,572 | < 40% | — | 1,554 | 6,628 | 3,000 | 9,000 | 45,865 | 66,047 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 1,098 | $ | 7,072 | $ | 10,984 | $ | 7,039 | $ | 14,138 | $ | 60,205 | $ | 100,536 | Total | $ | 1,090 | $ | 7,015 | $ | 10,732 | $ | 7,016 | $ | 14,000 | $ | 57,584 | $ | 97,437 |
December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Loan-to-Value Ratio | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Total | |||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||||||
> 100% | $ | — | $ | — | $ | — | $ | — | $ | 3,211 | $ | — | $ | 3,211 | ||||||||||||||||||||||||||||||
80% - 100% | 5,500 | — | — | — | — | — | 5,500 | |||||||||||||||||||||||||||||||||||||
60% - 80% | — | 1,727 | — | — | — | 3,411 | 5,138 | |||||||||||||||||||||||||||||||||||||
40% - 60% | — | 4,963 | 4,062 | 10,630 | 2,570 | 8,299 | 30,524 | |||||||||||||||||||||||||||||||||||||
< 40% | 1,628 | 4,544 | 3,000 | 3,646 | 6,589 | 38,834 | 58,241 | |||||||||||||||||||||||||||||||||||||
Total | $ | 7,128 | $ | 11,234 | $ | 7,062 | $ | 14,276 | $ | 12,370 | $ | 50,544 | $ | 102,614 |
Loans | Percentage | Loans | Percentage | |||||||||||||||||||||||||||||||||||||||||||
March 31, 2023 | December 31, 2022 | March 31, 2023 | December 31, 2022 | June 30, 2023 | December 31, 2022 | June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
East North Central | East North Central | $ | 8,897 | $ | 9,116 | 9 | % | 9 | % | East North Central | $ | 8,675 | $ | 9,116 | 9 | % | 9 | % | ||||||||||||||||||||||||||||
East South Central | East South Central | 2,060 | 2,239 | 2 | 2 | East South Central | 1,880 | 2,239 | 2 | 2 | ||||||||||||||||||||||||||||||||||||
Middle Atlantic | Middle Atlantic | 15,497 | 14,640 | 15 | 14 | Middle Atlantic | 15,247 | 14,640 | 16 | 14 | ||||||||||||||||||||||||||||||||||||
Mountain | Mountain | 9,042 | 9,135 | 9 | 9 | Mountain | 8,947 | 9,135 | 9 | 9 | ||||||||||||||||||||||||||||||||||||
New England | New England | 6,484 | 6,542 | 6 | 6 | New England | 6,426 | 6,542 | 6 | 6 | ||||||||||||||||||||||||||||||||||||
Pacific | Pacific | 35,850 | 36,432 | 36 | 36 | Pacific | 35,263 | 36,432 | 36 | 36 | ||||||||||||||||||||||||||||||||||||
South Atlantic | South Atlantic | 11,871 | 12,003 | 12 | 12 | South Atlantic | 10,670 | 12,003 | 11 | 12 | ||||||||||||||||||||||||||||||||||||
West North Central | West North Central | 4,016 | 4,215 | 4 | 4 | West North Central | 3,815 | 4,215 | 4 | 4 | ||||||||||||||||||||||||||||||||||||
West South Central | West South Central | 6,819 | 8,292 | 7 | 8 | West South Central | 6,514 | 8,292 | 7 | 8 | ||||||||||||||||||||||||||||||||||||
100,536 | 102,614 | 100 | % | 100 | % | 97,437 | 102,614 | 100 | % | 100 | % | |||||||||||||||||||||||||||||||||||
Less: allowance for credit losses | Less: allowance for credit losses | 384 | 451 | Less: allowance for credit losses | 368 | 451 | ||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 100,152 | $ | 102,163 | Total | $ | 97,069 | $ | 102,163 |
Loans | Percentage | Loans | Percentage | |||||||||||||||||||||||||||||||||||||||||||
March 31, 2023 | December 31, 2022 | March 31, 2023 | December 31, 2022 | June 30, 2023 | December 31, 2022 | June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Apartments | Apartments | $ | 29,435 | $ | 29,969 | 29 | % | 29 | % | Apartments | $ | 28,897 | $ | 29,969 | 30 | % | 29 | % | ||||||||||||||||||||||||||||
Industrial | Industrial | 25,021 | 25,668 | 25 | 25 | Industrial | 24,550 | 25,668 | 25 | 25 | ||||||||||||||||||||||||||||||||||||
Mixed use | Mixed use | 10,526 | 10,658 | 11 | 11 | Mixed use | 10,391 | 10,658 | 11 | 11 | ||||||||||||||||||||||||||||||||||||
Office | Office | 16,069 | 16,293 | 16 | 16 | Office | 15,844 | 16,293 | 16 | 16 | ||||||||||||||||||||||||||||||||||||
Retail | Retail | 17,111 | 17,592 | 17 | 17 | Retail | 15,441 | 17,592 | 16 | 17 | ||||||||||||||||||||||||||||||||||||
Other | Other | 2,374 | 2,434 | 2 | 2 | Other | 2,314 | 2,434 | 2 | 2 | ||||||||||||||||||||||||||||||||||||
100,536 | 102,614 | 100 | % | 100 | % | 97,437 | 102,614 | 100 | % | 100 | % | |||||||||||||||||||||||||||||||||||
Less: allowance for credit losses | Less: allowance for credit losses | 384 | 451 | Less: allowance for credit losses | 368 | 451 | ||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 100,152 | $ | 102,163 | Total | $ | 97,069 | $ | 102,163 |
March 31, 2023 | June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Internal Risk Rating | Internal Risk Rating | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | Internal Risk Rating | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk 5 | Risk 5 | $ | — | $ | 1,135 | $ | — | $ | — | $ | — | $ | 1,694 | $ | 2,829 | Risk 5 | $ | — | $ | 1,135 | $ | — | $ | — | $ | — | $ | 412 | $ | 1,547 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk 4 | Risk 4 | — | — | — | 1,211 | 1,934 | — | 3,145 | Risk 4 | — | — | — | 1,207 | 1,931 | 1,280 | 4,418 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk 3 | Risk 3 | — | — | 2,785 | 717 | 3,131 | 9,671 | 16,304 | Risk 3 | — | — | 2,773 | 713 | 1,925 | 10,295 | 15,706 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk 2 | Risk 2 | — | 3,835 | 8,678 | 4,072 | 5,049 | 17,679 | 39,313 | Risk 2 | — | 3,754 | 7,772 | 3,983 | 5,038 | 13,875 | 34,422 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk 1 | Risk 1 | 396 | 2,347 | 4,316 | 2,551 | 4,678 | 19,799 | 34,087 | Risk 1 | 1,824 | 2,332 | 4,249 | 2,545 | 4,649 | 15,811 | 31,410 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 396 | $ | 7,317 | $ | 15,779 | $ | 8,551 | $ | 14,792 | $ | 48,843 | $ | 95,678 | Total | $ | 1,824 | $ | 7,221 | $ | 14,794 | $ | 8,448 | $ | 13,543 | $ | 41,673 | $ | 87,503 |
December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Internal Risk Rating | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Total | |||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Risk 5 | $ | 1,132 | $ | — | $ | — | $ | — | $ | 337 | $ | — | $ | 1,469 | ||||||||||||||||||||||||||||||
Risk 4 | — | — | — | 1,937 | — | 1,786 | 3,723 | |||||||||||||||||||||||||||||||||||||
Risk 3 | — | 3,561 | 717 | 3,058 | 4,740 | 6,859 | 18,935 | |||||||||||||||||||||||||||||||||||||
Risk 2 | 2,948 | 7,993 | 5,387 | 6,813 | 5,284 | 16,242 | 44,667 | |||||||||||||||||||||||||||||||||||||
Risk 1 | 3,342 | 4,423 | 2,556 | 3,467 | 7,880 | 12,889 | 34,557 | |||||||||||||||||||||||||||||||||||||
Total | $ | 7,422 | $ | 15,977 | $ | 8,660 | $ | 15,275 | $ | 18,241 | $ | 37,776 | $ | 103,351 |
March 31, 2023 | June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | (in thousands) | ||||||||||||||||||||||||||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||||||||||||||||||||||||||
Cash equivalents | Cash equivalents | $ | 308,960 | $ | 1,295,847 | $ | — | $ | 1,604,807 | Cash equivalents | $ | 198,361 | $ | 971,744 | $ | — | $ | 1,170,105 | ||||||||||||||||||||||||||||
Available-for-Sale securities: | Available-for-Sale securities: | Available-for-Sale securities: | ||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | Corporate debt securities | — | 1,099,441 | 14,751 | 1,114,192 | Corporate debt securities | — | 1,477,099 | 13,403 | 1,490,502 | ||||||||||||||||||||||||||||||||||||
Residential mortgage backed securities | Residential mortgage backed securities | — | 2,632,217 | — | 2,632,217 | Residential mortgage backed securities | — | 3,053,992 | — | 3,053,992 | ||||||||||||||||||||||||||||||||||||
Commercial mortgage backed securities | Commercial mortgage backed securities | — | 2,121,337 | — | 2,121,337 | Commercial mortgage backed securities | — | 2,074,066 | — | 2,074,066 | ||||||||||||||||||||||||||||||||||||
Asset backed securities | Asset backed securities | — | 1,929,668 | 3,815 | 1,933,483 | Asset backed securities | — | 2,396,529 | 2,299 | 2,398,828 | ||||||||||||||||||||||||||||||||||||
State and municipal obligations | State and municipal obligations | — | 8,240 | — | 8,240 | State and municipal obligations | — | 8,280 | — | 8,280 | ||||||||||||||||||||||||||||||||||||
U.S. government and agency obligations | U.S. government and agency obligations | 2,107,284 | — | — | 2,107,284 | U.S. government and agency obligations | 1,944,907 | 389,765 | — | 2,334,672 | ||||||||||||||||||||||||||||||||||||
Total Available-for-Sale securities | Total Available-for-Sale securities | 2,107,284 | 7,790,903 | 18,566 | 9,916,753 | Total Available-for-Sale securities | 1,944,907 | 9,399,731 | 15,702 | 11,360,340 | ||||||||||||||||||||||||||||||||||||
Equity derivative contracts | Equity derivative contracts | 75 | 13,027 | — | 13,102 | Equity derivative contracts | 76 | 19,490 | — | 19,566 | ||||||||||||||||||||||||||||||||||||
Total assets at fair value | Total assets at fair value | $ | 2,416,319 | $ | 9,099,777 | $ | 18,566 | $ | 11,534,662 | Total assets at fair value | $ | 2,143,344 | $ | 10,390,965 | $ | 15,702 | $ | 12,550,011 | ||||||||||||||||||||||||||||
Liabilities | Liabilities | Liabilities | ||||||||||||||||||||||||||||||||||||||||||||
Stock market certificate embedded derivatives | Stock market certificate embedded derivatives | $ | — | $ | 6,128 | $ | — | $ | 6,128 | Stock market certificate embedded derivatives | $ | — | $ | 9,080 | $ | — | $ | 9,080 | ||||||||||||||||||||||||||||
Equity derivative contracts | Equity derivative contracts | — | 9,106 | — | 9,106 | Equity derivative contracts | — | 13,609 | — | 13,609 | ||||||||||||||||||||||||||||||||||||
Total liabilities at fair value | Total liabilities at fair value | $ | — | $ | 15,234 | $ | — | $ | 15,234 | Total liabilities at fair value | $ | — | $ | 22,689 | $ | — | $ | 22,689 |
December 31, 2022 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash equivalents | $ | — | $ | 1,159,470 | $ | — | $ | 1,159,470 | |||||||||||||||
Available-for-Sale securities: | |||||||||||||||||||||||
Corporate debt securities | — | 783,289 | 9,653 | 792,942 | |||||||||||||||||||
Residential mortgage backed securities | — | 2,099,864 | — | 2,099,864 | |||||||||||||||||||
Commercial mortgage backed securities | — | 1,948,752 | — | 1,948,752 | |||||||||||||||||||
Asset backed securities | — | 1,450,381 | 4,891 | 1,455,272 | |||||||||||||||||||
State and municipal obligations | — | 9,155 | — | 9,155 | |||||||||||||||||||
U.S. government and agency obligations | 2,062,931 | — | — | 2,062,931 | |||||||||||||||||||
Total Available-for-Sale securities | 2,062,931 | 6,291,441 | 14,544 | 8,368,916 | |||||||||||||||||||
Equity derivative contracts | — | 8,786 | — | 8,786 | |||||||||||||||||||
Total assets at fair value | $ | 2,062,931 | $ | 7,459,697 | $ | 14,544 | $ | 9,537,172 | |||||||||||||||
Liabilities | |||||||||||||||||||||||
Stock market certificate embedded derivatives | $ | — | $ | 3,572 | $ | — | $ | 3,572 | |||||||||||||||
Equity derivative contracts | 8 | 6,641 | — | 6,649 | |||||||||||||||||||
Total liabilities at fair value | $ | 8 | $ | 10,213 | $ | — | $ | 10,221 |
Available-for-Sale Securities | |||||||||||||||||||||||||||||||||||
Corporate Debt Securities | Asset Backed Securities | Total | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Balance at April 1, 2023 | $ | 14,751 | $ | 3,815 | $ | 18,566 | |||||||||||||||||||||||||||||
Total gains (losses) included in: | |||||||||||||||||||||||||||||||||||
Net income | 51 | 67 | 118 | (1) | |||||||||||||||||||||||||||||||
Other comprehensive income (loss) | (31) | (33) | (64) | ||||||||||||||||||||||||||||||||
Settlements | (1,368) | (1,550) | (2,918) | ||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | $ | 13,403 | $ | 2,299 | $ | 15,702 | |||||||||||||||||||||||||||||
Changes in unrealized gains (losses) in net income relating to assets held at June 30, 2023 | $ | 51 | $ | 67 | $ | 118 | (1) | ||||||||||||||||||||||||||||
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at June 30, 2023 | $ | (31) | $ | (33) | $ | (64) |
Available-for-Sale Securities | ||||||||||||||||||||||||||||||||||||||
Corporate Debt Securities | Asset Backed Securities | Total | ||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||
Balance at April 1, 2022 | $ | 3 | $ | 4,891 | $ | 4,894 | ||||||||||||||||||||||||||||||||
Total gains (losses) included in: | ||||||||||||||||||||||||||||||||||||||
Net income | — | 5 | 5 | (1) | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | (5) | (5) | |||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | 3 | $ | 4,891 | $ | 4,894 | ||||||||||||||||||||||||||||||||
Changes in unrealized gains (losses) in net income relating to assets held at June 30, 2022 | $ | — | $ | 5 | $ | 5 | (1) | |||||||||||||||||||||||||||||||
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at June 30, 2022 | $ | — | $ | (5) | $ | (5) |
Available-for-Sale Securities | Available-for-Sale Securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate Debt Securities | Asset Backed Securities | Total | Corporate Debt Securities | Asset Backed Securities | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2023 | Balance at January 1, 2023 | $ | 9,653 | $ | 4,891 | $ | 14,544 | Balance at January 1, 2023 | $ | 9,653 | $ | 4,891 | $ | 14,544 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total gains (losses) included in: | Total gains (losses) included in: | Total gains (losses) included in: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | 26 | 21 | 47 | (1) | Net income | 77 | 88 | 165 | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | Other comprehensive income (loss) | 39 | 3 | 42 | Other comprehensive income (loss) | 8 | (30) | (22) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases | Purchases | 5,033 | — | 5,033 | Purchases | 5,033 | — | 5,033 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlements | Settlements | — | (1,100) | (1,100) | Settlements | (1,368) | (2,650) | (4,018) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | 14,751 | $ | 3,815 | $ | 18,566 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | Balance at June 30, 2023 | $ | 13,403 | $ | 2,299 | $ | 15,702 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in unrealized gains (losses) in net income relating to assets held at March 31, 2023 | $ | 26 | $ | (25) | $ | 1 | (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at March 31, 2023 | $ | 39 | $ | 3 | $ | 42 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in unrealized gains (losses) in net income relating to assets held at June 30, 2023 | Changes in unrealized gains (losses) in net income relating to assets held at June 30, 2023 | $ | 77 | $ | 88 | $ | 165 | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at June 30, 2023 | Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at June 30, 2023 | $ | 8 | $ | (30) | $ | (22) |
Available-for-Sale Securities | ||||||||||||||||||||||||||||||||||||||
Corporate Debt Securities | Asset Backed Securities | Total | ||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2022 | 6,004 | 4,891 | $ | 10,895 | ||||||||||||||||||||||||||||||||||
Total gains (losses) included in: | ||||||||||||||||||||||||||||||||||||||
Net income | — | 17 | 17 | (1) | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | (1) | (17) | (18) | |||||||||||||||||||||||||||||||||||
Settlements | (6,000) | — | (6,000) | |||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | $ | 3 | $ | 4,891 | $ | 4,894 | ||||||||||||||||||||||||||||||||
Changes in unrealized gains (losses) in net income relating to assets held at March 31, 2022 | $ | — | $ | 17 | $ | 17 | (1) | |||||||||||||||||||||||||||||||
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at March 31, 2022 | $ | — | $ | (17) | $ | (17) |
Available-for-Sale Securities | ||||||||||||||||||||||||||||||||||||||
Corporate Debt Securities | Asset Backed Securities | Total | ||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2022 | $ | 6,004 | $ | 4,891 | $ | 10,895 | ||||||||||||||||||||||||||||||||
Total gains (losses) included in: | ||||||||||||||||||||||||||||||||||||||
Net income | — | 22 | 22 | (1) | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | (1) | (22) | (23) | |||||||||||||||||||||||||||||||||||
Settlements | (6,000) | — | (6,000) | |||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | 3 | $ | 4,891 | $ | 4,894 | ||||||||||||||||||||||||||||||||
Changes in unrealized gains (losses) in net income relating to assets held at June 30, 2022 | $ | — | $ | 22 | $ | 22 | (1) | |||||||||||||||||||||||||||||||
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at June 30, 2022 | $ | — | $ | (22) | $ | (22) |
March 31, 2023 | June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Range | Weighted Average | Fair Value | Valuation Technique | Unobservable Input | Range | Weighted Average | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities (private placements) | Corporate debt securities (private placements) | $ | 14,748 | Discounted cash flow | Yield/spread to U.S. Treasuries | 1.0% | 1.0% | Corporate debt securities (private placements) | $ | 13,400 | Discounted cash flow | Yield/spread to U.S. Treasuries | 1.0% | 1.0% |
December 31, 2022 | |||||||||||||||||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Range | Weighted Average | |||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Corporate debt securities (private placements) | $ | 9,650 | Discounted cash flow | Yield/spread to U.S. Treasuries | 1.1% | 1.1% |
March 31, 2023 | June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | (in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets | Financial Assets | Financial Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Syndicated loans | Syndicated loans | $ | 94,295 | $ | — | $ | 92,084 | $ | — | $ | 92,084 | Syndicated loans | $ | 86,399 | $ | — | $ | 83,685 | $ | 1,252 | $ | 84,937 | ||||||||||||||||||||||||||||||||||||
Commercial mortgage loans | Commercial mortgage loans | 100,152 | — | — | 94,804 | 94,804 | Commercial mortgage loans | 97,069 | — | — | 91,143 | 91,143 | ||||||||||||||||||||||||||||||||||||||||||||||
Certificate loans | Certificate loans | 69 | — | 69 | — | 69 | Certificate loans | 47 | — | 47 | — | 47 | ||||||||||||||||||||||||||||||||||||||||||||||
Financial Liabilities | Financial Liabilities | Financial Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Certificate reserves | Certificate reserves | $ | 11,095,779 | $ | — | $ | — | $ | 11,032,894 | $ | 11,032,894 | Certificate reserves | $ | 12,059,791 | $ | — | $ | — | $ | 11,986,365 | $ | 11,986,365 |
December 31, 2022 | |||||||||||||||||||||||||||||
Carrying Value | Fair Value | ||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||||||||
Syndicated loans | $ | 102,330 | $ | — | $ | 96,552 | $ | 3,024 | $ | 99,576 | |||||||||||||||||||
Commercial mortgage loans | 102,163 | — | — | 95,676 | 95,676 | ||||||||||||||||||||||||
Certificate loans | 72 | — | 72 | — | 72 | ||||||||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||||||||
Certificate reserves | $ | 9,309,833 | $ | — | $ | — | $ | 9,253,304 | $ | 9,253,304 |
March 31, 2023 | June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheets | Amounts of Assets Presented in the Consolidated Balance Sheets | Gross Amounts Not Offset in the Consolidated Balance Sheets | Net Amount | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheets | Amounts of Assets Presented in the Consolidated Balance Sheets | Gross Amounts Not Offset in the Consolidated Balance Sheets | Net Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments (1) | Cash Collateral | Financial Instruments (1) | Cash Collateral | (in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives: | Derivatives: | Derivatives: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTC | OTC | $ | 13,027 | $ | — | $ | 13,027 | $ | (9,106) | $ | (3,593) | $ | 328 | OTC | $ | 19,490 | $ | — | $ | 19,490 | $ | (13,609) | $ | (5,313) | $ | 568 | ||||||||||||||||||||||||||||||||||||||||||||
Exchange-traded | Exchange-traded | 75 | — | 75 | — | — | 75 | Exchange-traded | 76 | — | 76 | — | — | 76 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 13,102 | $ | — | $ | 13,102 | $ | (9,106) | $ | (3,593) | $ | 403 | Total | $ | 19,566 | $ | — | $ | 19,566 | $ | (13,609) | $ | (5,313) | $ | 644 |
December 31, 2022 | |||||||||||||||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheets | Amounts of Assets Presented in the Consolidated Balance Sheets | Gross Amounts Not Offset in the Consolidated Balance Sheets | Net Amount | |||||||||||||||||||||||||||||||
Financial Instruments (1) | Cash Collateral | ||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||||
OTC | $ | 8,786 | $ | — | $ | 8,786 | $ | (6,641) | $ | (1,893) | $ | 252 | |||||||||||||||||||||||
Total | $ | 8,786 | $ | — | $ | 8,786 | $ | (6,641) | $ | (1,893) | $ | 252 |
March 31, 2023 | |||||||||||||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Consolidated Balance Sheets | Amounts of Liabilities Presented in the Consolidated Balance Sheets | Gross Amounts Not Offset in the Consolidated Balance Sheets | Net Amount | |||||||||||||||||||||||||||||||
Financial Instruments (1) | Cash Collateral | ||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||||
OTC | $ | 9,106 | $ | — | $ | 9,106 | $ | (9,106) | $ | — | $ | — | |||||||||||||||||||||||
Total | $ | 9,106 | $ | — | $ | 9,106 | $ | (9,106) | $ | — | $ | — |
December 31, 2022 | |||||||||||||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Consolidated Balance Sheets | Amounts of Liabilities Presented in the Consolidated Balance Sheets | Gross Amounts Not Offset in the Consolidated Balance Sheets | Net Amount | |||||||||||||||||||||||||||||||
Financial Instruments (1) | Cash Collateral | ||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||||
OTC | $ | 6,641 | $ | — | $ | 6,641 | $ | (6,641) | $ | — | $ | — | |||||||||||||||||||||||
Exchange-traded | 8 | — | 8 | — | — | 8 | |||||||||||||||||||||||||||||
Total | $ | 6,649 | $ | — | $ | 6,649 | $ | (6,641) | $ | — | $ | 8 |
June 30, 2023 | |||||||||||||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Consolidated Balance Sheets | Amounts of Liabilities Presented in the Consolidated Balance Sheets | Gross Amounts Not Offset in the Consolidated Balance Sheets | Net Amount | |||||||||||||||||||||||||||||||
Financial Instruments (1) | Cash Collateral | ||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||||
OTC | $ | 13,609 | $ | — | $ | 13,609 | $ | (13,609) | $ | — | $ | — | |||||||||||||||||||||||
Total | $ | 13,609 | $ | — | $ | 13,609 | $ | (13,609) | $ | — | $ | — |
December 31, 2022 | |||||||||||||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Consolidated Balance Sheets | Amounts of Liabilities Presented in the Consolidated Balance Sheets | Gross Amounts Not Offset in the Consolidated Balance Sheets | Net Amount | |||||||||||||||||||||||||||||||
Financial Instruments (1) | Cash Collateral | ||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||||
OTC | $ | 6,641 | $ | — | $ | 6,641 | $ | (6,641) | $ | — | $ | — | |||||||||||||||||||||||
Exchange-traded | 8 | — | 8 | — | — | 8 | |||||||||||||||||||||||||||||
Total | $ | 6,649 | $ | — | $ | 6,649 | $ | (6,641) | $ | — | $ | 8 |
March 31, 2023 | December 31, 2022 | June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional | Gross Fair Value | Notional | Gross Fair Value | Notional | Gross Fair Value | Notional | Gross Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity contracts (1) | Equity contracts (1) | $ | 272,401 | $ | 13,102 | $ | 9,106 | $ | 283,681 | $ | 8,786 | $ | 6,649 | Equity contracts (1) | $ | 262,314 | $ | 19,566 | $ | 13,609 | $ | 283,681 | $ | 8,786 | $ | 6,649 | ||||||||||||||||||||||||||||||||||||||||||||
Embedded derivatives | Embedded derivatives | Embedded derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock market certificates (2) | Stock market certificates (2) | N/A | — | 6,128 | N/A | — | 3,572 | Stock market certificates (2) | N/A | — | 9,080 | N/A | — | 3,572 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total derivatives | Total derivatives | $ | 272,401 | $ | 13,102 | $ | 15,234 | $ | 283,681 | $ | 8,786 | $ | 10,221 | Total derivatives | $ | 262,314 | $ | 19,566 | $ | 22,689 | $ | 283,681 | $ | 8,786 | $ | 10,221 |
Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Location of Gain (Loss) on Derivatives Recognized in Income | Amount of Gain (Loss) on Derivatives Recognized in Income | Derivatives not designated as hedging instruments | Location of Gain (Loss) on Derivatives Recognized in Income | Amount of Gain (Loss) on Derivatives Recognized in Income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | Derivatives not designated as hedging instruments | Location of Gain (Loss) on Derivatives Recognized in Income | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity contracts | Equity contracts | Equity contracts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock market certificates | Stock market certificates | Net provision for certificate reserves | $ | 960 | $ | (42) | Stock market certificates | Net provision for certificate reserves | $ | 1,805 | $ | (413) | $ | 2,765 | $ | (455) | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock market certificates embedded derivatives | Stock market certificates embedded derivatives | Net provision for certificate reserves | (1,930) | 7 | Stock market certificates embedded derivatives | Net provision for certificate reserves | (1,853) | 416 | (3,783) | 423 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | (970) | $ | (35) | Total | $ | (48) | $ | 3 | $ | (1,018) | $ | (32) |
Exhibit | Description | ||||
Amended and Restated Certificate of Incorporation of American Express Certificate Company, dated August 1, 2005, filed electronically on or about March 10, 2006 as Exhibit 3(a) to Registrant’s Form 10-K is incorporated by reference. | |||||
By-Laws of Ameriprise Certificate Company, filed electronically on or about November 5, 2010 as Exhibit 3(b) to Registrant’s Form 10-Q, are incorporated herein by reference. | |||||
31.1* | Certification of Abu M. Arif pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended. | ||||
31.2* | Certification of James R. Hill pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended. | ||||
32* | Certification of Abu M. Arif and James R. Hill pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||
* Filed electronically herewithin. |
AMERIPRISE CERTIFICATE COMPANY | |||||||||||
(Registrant) |
Date: | By: | /s/ Abu M. Arif | |||||||||
Abu M. Arif | |||||||||||
Chief Executive Officer |
Date: | By: | /s/ James R. Hill | |||||||||
James R. Hill | |||||||||||
Chief Financial Officer |