• Filing Date: 2019-03-08
  • Form Type: 10-K
  • Description: Annual report
v3.10.0.1
Investments
12 Months Ended
Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]  
Investments
Note 5 — Investments
a) 
Available-for-Sale
 Fixed-Maturity Securities
The Company holds investments in fixed-maturity securities that are classified as 
available-for-sale.
 At December 31, 2018 and 2017, the cost or amortized cost, gross unrealized gains and losses, and estimated fair value of the Company’s 
available-for-sale
 securities by security type were as follows:
 
 
 
 
Cost or
Amortized
Cost
 
 
Gross
Unrealized
Gain
 
 
Gross
Unrealized
Loss
 
 
Estimated
Fair

Value
 
As of December 
31
2018
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and U.S. government agencies
 
$
61,979
 
 
$
24
 
 
$
(206
)
 
$
61,797
 
Corporate bonds
 
 
103,580
 
 
 
134
 
 
 
(1,809
)
 
 
101,905
 
State, municipalities, and political subdivisions
 
 
10,567
 
 
 
98
 
 
 
(3
)
 
 
10,662
 
Exchange-traded debt
 
 
8,426
 
 
 
82
 
 
 
(261
)
 
 
8,247
 
Redeemable preferred stock
 
 
118
 
 
 
 
 
 
(6
)
 
 
112
 
Total
 
$
184,670
 
 
$
338
 
 
$
(2,285
)
 
$
182,723
 
As of December 
31
2017
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and U.S. government agencies
 
$
42,313
 
 
$
1
 
 
$
(287
)
 
$
42,027
 
Corporate bonds
 
 
106,897
 
 
 
1,110
 
 
 
(904
)
 
 
107,103
 
State, municipalities, and political subdivisions
 
 
78,954
 
 
 
1,816
 
 
 
(75
)
 
 
80,695
 
Exchange-traded debt
 
 
7,469
 
 
 
197
 
 
 
(7
)
 
 
7,659
 
Total
 
$
235,633
 
 
$
3,124
 
 
$
(1,273
)
 
$
237,484
 
 
Expected maturities will differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties. The scheduled contractual maturities of fixed-maturity securities at December 31, 2018 and 2017 are as follows:

 
 
 
December 31,
 
 
 
2018
 
 
2017
 
 
 
Cost or

Amortized

Cost
 
 
Estimated

Fair

Value
 
 
Cost or

Amortized

Cost
 
 
Estimated

Fair

Value
 
Available-for-sale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Due in one year or less
 
$
50,659
 
 
$
50,574
 
 
$
35,386
 
 
$
35,364
 
Due after one year through five years
 
 
117,826
 
 
 
116,498
 
 
 
116,378
 
 
 
115,766
 
Due after five years through ten years
 
 
11,602
 
 
 
11,253
 
 
 
57,415
 
 
 
58,984
 
Due after ten years
 
 
4,583
 
 
 
4,398
 
 
 
26,454
 
 
 
27,370
 
 
 
$
184,670
 
 
$
182,723
 
 
$
235,633
 
 
$
237,484
 
Sales of Available-for-Sale Fixed-Maturity Securities
Proceeds received, and the gross realized gains and losses from sales of available-for-sale fixed-maturity securities, for the years ended December 31, 2018, 2017 and 2016 were as follows:

 
 
 
Proceeds
 
 
Gross

Realized

Gains
 
 
Gross

Realized

Losses
 
Year ended December 31, 2018
 
$
81,809
 
 
$
1,293
 
 
$
(570
)
Year ended December 31, 2017
 
$
31,759
 
 
$
2,176
 
 
$
(181
)
Year ended December 31, 2016
 
$
40,454
 
 
$
604
 
 
$
(79
)
 
Other-than-temporary Impairment
The Company regularly reviews its individual investment securities for other-than-temporary impairment. The Company considers various factors in determining whether each individual security is other-than-temporarily impaired, including-
 
  
the financial condition and near-term prospects of the issuer, including any specific events that may affect its operations or earnings;
 
  
the length of time and the extent to which the market value of the security has been below its cost or amortized cost;
 
  
general market conditions and industry or sector specific factors and other qualitative factors;
 
  
nonpayment by the issuer of its contractually obligated interest and principal payments; and
 
  
the Company’s intent and ability to hold the investment for a period of time sufficient to allow for the recovery of costs.
 
For the year ended December 31, 2018, the Company recognized $80 of impairment loss on one fixed-maturity security in the consolidated statement of income. For the year ended December 31, 2017, the Company recognized impairment losses of $428 related to the sale of four intent-to-sell fixed-maturity securities. For the year ended December 31, 2016, the Company recognized $1,565 of impairment losses on four fixed-maturity securities, representing $1,335 of additional losses recorded during the period and $230 of the net change recorded in other comprehensive income.
 
The following table presents a rollforward of the cumulative credit losses in other-than-temporary impairments recognized in income for available-for-sale fixed-maturity securities:

 
 
 
2017
 
 
2016
 
Balance at January 1
 
$
475
 
 
$
111
 
Credit impairments on impaired securities
 
 
 
 
 
475
 
Additional credit impairments on previously impaired securities
 
 
 
 
 
293
 
Credit impaired security fully disposed of for which there was no prior intent or requirement to sell
 
 
(475
)
 
 
(385
)
Reduction due to increase in expected cash flows recognized over the remaining life of the previously impaired security
 
 
 
 
 
(19
)
Balance at December 31
 
$
 
 
$
475
 
There was no activity related to cumulative credit losses during 2018. During 2017, the Company sold
two
fixed-maturity securities with cumulative credit losses totaling $475. The decision to sell these securities before their maturity was primarily driven by the impact of the Tax Cut and Jobs Act signed into law in 2017. Of two fixed-maturity securities with credit related losses existing at January 1, 2016, one matured with full payment of principal and interest and one was sold due to uncertainties surrounding the issuer’s restructuring plan during 2016.
Securities with gross unrealized loss positions at December 31, 2018 and 2017, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows:

 
 
 
Less Than 
Twelve
Months
 
 
Twelve Months 
or
Longer
 
 
Total
 
As of December 31, 2018
 
Gross

Unrealized

Loss
 
 
Estimated

Fair

Value
 
 
Gross

Unrealized

Loss
 
 
Estimated

Fair

Value
 
 
Gross

Unrealized

Loss
 
 
Estimated

Fair

Value
 
U.S. Treasury and U.S. government agencies
 
$
(59
)
 
$
21,031
 
 
$
(147
)
 
$
35,393
 
 
$
(206
)
 
$
56,424
 
Corporate bonds
 
 
(542
)
 
 
19,932
 
 
 
(1,267
)
 
 
36,682
 
 
 
(1,809
)
 
 
56,614
 
State, municipalities, and political subdivisions
 
 
(3
)
 
 
715
 
 
 
 
 
 
 
 
 
(3
)
 
 
715
 
Exchange-traded debt
 
 
(261
)
 
 
5,275
 
 
 
 
 
 
 
 
 
(261
)
 
 
5,275
 
Redeemable preferred stock
 
 
(6
)
 
 
112
 
 
 
 
 
 
 
 
 
(6
)
 
 
112
 
Total available-for-sale securities
 
$
(871
)
 
$
47,065
 
 
$
(1,414
)
 
$
72,075
 
 
$
(2,285
)
 
$
119,140
 
At December 31, 2018, there were 82 securities in an unrealized loss position. Of these securities, 35 securities had been in an unrealized loss position for 12 months or longer.

 
 
 
Less Than 
Twelve
Months
 
 
Twelve Months 
or
Longer
 
 
Total
 
As of December 31, 2017
 
Gross

Unrealized

Loss
 
 
Estimated

Fair

Value
 
 
Gross

Unrealized

Loss
 
 
Estimated

Fair

Value
 
 
Gross

Unrealized

Loss
 
 
Estimated

Fair

Value
 
U.S. Treasury and U.S. government agencies
 
$
(246
)
 
$
40,587
 
 
$
(41
)
 
$
1,938
 
 
$
(287
)
 
$
42,525
 
Corporate bonds
 
 
(174
)
 
 
40,627
 
 
 
(730
)
 
 
30,563
 
 
 
(904
)
 
 
71,190
 
State, municipalities, and political subdivisions
 
 
(30
)
 
 
9,775
 
 
 
(45
)
 
 
2,297
 
 
 
(75
)
 
 
12,072
 
Exchange-traded debt
 
 
(6
)
 
 
2,481
 
 
 
(1
)
 
 
36
 
 
 
(7
)
 
 
2,517
 
Total available-for-sale securities
 
$
(456
)
 
$
93,470
 
 
$
(817
)
 
$
34,834
 
 
$
(1,273
)
 
$
128,304
 
At December 31, 2017, there were 77 securities in an unrealized loss position. Of these securities, 15 securities had been in an unrealized loss position for 12 months or longer.
b) Equity Securities
The Company holds investments in equity securities measured at fair values which are readily determinable. At December 31, 2018 and 2017, the cost, gross unrealized gains and losses, and estimated fair value of the Company’s equity securities were as follows:

 
 
 
Cost
 
 
Gross

Unrealized

Gain
 
 
Gross

Unrealized

Loss
 
 
Estimated

Fair

Value
 
December 31, 2018
 
$
45,671
 
 
$
1,059
 
 
$
(5,587
)
 
$
41,143
 
December 31, 2017
 
$
54,282
 
 
$
6,383
 
 
$
(709
)
 
$
59,956
 
The table below presents the portion of unrealized gains and losses in the Company’s consolidated statement of income for the periods related to equity securities still held.

 
 
 
Year
Ended

December 31,

2018
 
Net losses recognized
 
$
(4,811
)
Less: Net realized gains recognized for securities sold
 
 
5,391
 
Net unrealized losses recognized*
 
$
(10,202
)
 
*
Unrealized holding gains and losses for the comparative years in 2017 and 2016 were reported in accumulated other comprehensive income. See
Adoption of New Accounting Standards
in Note 2 — “Summary of Significant Accounting Policies” for additional information.
 
Sales of Equity Securities
Proceeds received, and the gross realized gains and losses from sales of equity securities, for the years ended December 31, 2018 and 2017 were as follows:

 
 
 
Proceeds
 
 
Gross

Realized

Gains
 
 
Gross

Realized

Losses
 
Year ended December 31, 2018
 
$
66,439
 
 
$
7,324
 
 
$
(1,933
)
Year ended December 31, 2017
 
$
45,282
 
 
$
3,993
 
 
$
(1,642
)
Year ended December 31, 2016
 
$
23,127
 
 
$
2,656
 
 
$
(580
)
 
Other-than-temporary Impairment before 2018
Prior to the adoption of ASU 
2016-01
 as described in Note 2 — “Summary of Significant Accounting Policies,” equity securities classified as 
available-for-sale
 were evaluated for other-than-temporary impairment. When the impairment existed, an impairment loss was recognized in the consolidated statement of income. For the years ended December 31, 2017 and 2016, the Company recognized impairment losses of $1,039 and $917, respectively, related to 
available-for-sale
 equity securities.
c) Limited Partnership Investments
The Company has interests in limited partnerships that are not registered or readily tradeable on a securities exchange. These partnerships are private equity funds managed by general partners who make decisions with regard to financial policies and operations. As such, the Company is not the primary beneficiary and does not consolidate these partnerships. In February 2018, the Company entered into a subscription agreement to invest $5,000 with a limited partnership specializing in real estate private equity funds and portfolios. Subsequently, in September 2018, the Company increased its aggregate investment commitment with this limited partnership to $10,000. The following table provides information related to the Company’s investments in limited partnerships:
 
 
 
December 31, 2018
 
 
December 31, 2017
 
Investment Strategy
 
Carrying

Value
 
 
Unfunded

Balance
 
 
(%)
(a)
 
 
Carrying

Value
 
 
Unfunded

Balance
 
 
(%)
(a)
 
Primarily in senior secured loans and, to a limited extent, in other debt and equity securities of private U.S. lower-middle-market companies. (b)(c)(e)
 
$
10,169
 
 
$
2,577
 
 
 
15.37
 
 
$
7,276
 
 
$
5,505
 
 
 
15.37
 
Value creation through active distressed debt investing primarily in bank loans, public and private corporate bonds, asset-backed securities, and equity securities received in connection with debt restructuring. (b)(d)(e)
 
 
9,219
 
 
 
 
 
 
1.76
 
 
 
7,951
 
 
 
1,745
 
 
 
1.76
 
High returns and long-term capital appreciation through investments in the power, utility and energy industries, and in the infrastructure sector. (b)(f)(g)
 
 
9,023
 
 
 
2,329
 
 
 
0.18
 
 
 
7,509
 
 
 
2,512
 
 
 
0.18
 
Value-oriented investments in less liquid and mispriced senior and junior debts of private equity-backed companies. (b)(h)(i)
 
 
1,156
 
 
 
3,706
 
 
 
0.47
 
 
 
448
 
 
 
4,566
 
 
 
0.47
 
Value-oriented investments in mature real estate private equity funds and portfolios globally. (b)(j)
 
 
2,726
 
 
 
7,692
 
 
 
3.28
 
 
 
 
 
 
 
 
 
 
Total
 
$
32,293
 
 
$
16,304
 
 
 
 
 
 
$
23,184
 
 
$
14,328
 
 
 
 
 
 
(a)
Represents the Company’s percentage investment in the fund at each balance sheet date.
(b)
Except under certain circumstances, withdrawals from the funds or any assignments are not permitted. Distributions, except income from late admission of a new limited partner, will be received when underlying investments of the funds are liquidated. 
(c)
Expected to have a ten-year term and the capital commitment is expected to expire on September 3, 2019. 
(d)
Expected to have a three-year term from June 30, 2018. Although the capital commitment period already ended, the general partner could still request an additional funding of approximately $843 under certain circumstances.
(e)
At the fund manager’s discretion, the term of the fund may be extended for up to two additional one-year periods. 
(f)
Expected to have a ten-year term and the capital commitment is expected to expire on June 30, 2020. 
(g)
With the consent of a supermajority of partners, the term of the fund may be extended for up to three additional one-year periods. 
(h)
Expected to have a six-year term from the commencement date, which can be extended for up to two additional one-year periods with the consent of either the advisory committee or a majority of limited partners. 
(i)
Unless extended or terminated for reasons specified in the agreement, the capital commitment is expected to expire on December 1, 2019. 
(j)
Expected to have an eight-year term after the final fund closing date, which has yet to be determined. 
The following is the aggregated summarized unaudited financial information of limited partnerships included in the investment strategy table above, which in certain cases is presented on a three-month lag due to the unavailability of information at the Company’s respective balance sheet dates. In applying the equity method of accounting, the Company uses the most recently available financial information provided by the general partner of each of these partnerships. The financial statements of these limited partnerships are audited annually.

 
 
 
Years Ended December 31,
 
 
 
2018
 
 
2017
 
 
2016
 
Operating results:
 
 
 
 
 
 
 
 
 
 
 
 
Total income
 
$
1,821,935
 
 
$
409,169
 
 
$
310,998
 
Total expenses
 
 
146,079
 
 
 
105,281
 
 
 
185,126
 
Net income (loss)
 
$
1,675,856
 
 
$
303,888
 
 
$
125,872
 
 
 
 
December 31,
 
 
 
2018
 
 
2017
 
Balance Sheet:
 
 
 
 
 
 
 
 
Total assets
 
$
6,689,792
 
 
$
4,381,321
 
Total liabilities
 
$
394,029
 
 
$
382,310
 
For the years ended December 31, 2018, 2017 and 2016, the Company recognized net investment income of $4,430, $2,334 and $1,207, respectively, for these investments. At December 31, 2018 and 2017, the Company’s cumulative contributed capital to the partnerships existing at each respective balance sheet date totaled $28,354 and $21,172, respectively, and the Company’s maximum exposure to loss aggregated $32,293 and $23,184, respectively.
During the year ended December 31, 2018, the Company received in cash a return on investment of $2,345 and a return of capital of $158. During the year ended December 31, 2017, the Company received total cash distributions of $12,639, representing $11,758 of returned capital and $881 of return on investment. Included in the return of capital was $11,626 from one limited partnership the Company withdrew from in February 2017. During the year ended December 31, 2016, the Company received in cash $544 of return on investment.
For the years ended December 31, 2018, 2017 and 2016, the Company recognized its share of earnings or losses based on the respective partnership’s statement of income. The carrying value of these investments approximates the amount the Company expected to recover at December 31, 2018 and 2017.
d) Investment in Unconsolidated Joint Venture
Melbourne FMA, LLC, a wholly owned subsidiary, currently has a 90% equity interest in FMKT Mel JV, LLC (“FMJV”), a Florida limited liability company treated as a joint venture under U.S. GAAP. FMJV is deemed a variable interest entity due to its lack of sufficient equity to finance its operations without direct or indirect additional financial support from parties to the joint venture. Although Melbourne FMA holds a majority interest in FMJV, certain major economic decisions specified in the agreement are not under Melbourne FMA’s control. As a result, Melbourne FMA is not the primary beneficiary and is not required to consolidate FMJV.
In January 2016, FMJV sold a portion of its outparcel land for gross proceeds of $829, of which $515 was used to repay a portion of the construction loan obtained for its real estate development project. FMJV recognized a $404 gain on the outparcel sale of which $383 was allocated to the Company in accordance with the profit allocation specified in the operating agreement. On December 15, 2016, FMJV distributed its entire equity interest in FMKT Mel Manager, LLC (“FMKT MGA”), its wholly owned subsidiary, to Melbourne FMA and the other member, each of which received 90% and 10%, respectively. In addition to operating a retail shopping center business, FMKT MGA owned land which included two outparcels. Melbourne FMA accounted for this transaction as a business step acquisition using the fair value method and, as a result, recognized a $4,005 gain on remeasurement of previously held interest. The gain represented the difference between the fair value of the 90% equity interest and its carrying value under the equity method. The fair value of the equity interest was comprised of the fair value of FMKT MGA’s underlying assets primarily determined by an independent appraiser offset by the fair value of liabilities assumed on the date of distribution. Inputs used by the appraiser included, but were not limited to, information about market and surrounding environments, demographics, and the sale or rent of similar types of property within the vicinity. Due to their short-term nature, the carrying value of current assets and assumed liabilities, including a variable interest rate revolving credit line, approximated fair value. See
 
Pineda Landings -
 
Melbourne, Florida
 
in Note 7 — “Business Acquisitions” for additional information.
In March 2017, FMJV sold a portion of its outparcel land for gross proceeds of $825 and recognized a $331 gain on sale of which $199 was allocated to the Company in accordance with the profit allocation specified in the operating agreement. During 2017, FMKT MGA was merged with Melbourne FMA, LLC. In June 2018, FMJV sold one of its outparcels for $849 and recognized a gain of $438.
At December 31, 2018 and 2017, the Company’s maximum exposure to loss relating to the variable interest entity was $845 and $1,304, respectively, representing the carrying value of the investment. At December 31, 2018 and 2017, there was no undistributed income from this equity method investment. There was an undistributed loss, after an equity distribution, of $25 at December 31, 2016, the amounts of which were included in the Company’s consolidated retained income.
For the year ended December 31, 2018, the Company received a cash distribution of $763, representing a combined distribution of $68 in earnings and $695 in capital. For the year ended December 31, 2017, the Company received a cash distribution of $564, representing a combined distribution of $147 in earnings and $417 in capital. The limited liability company members received no cash distributions during 2016. The following tables provide FMJV’s summarized unaudited financial results and the unaudited financial positions:
 
 
 
Years Ended December 31,
 
 
 
2018
 
 
2017
 
 
2016
 
Operating results:
 
 
 
 
 
 
 
 
 
 
 
 
Total revenues
 
$
438
 
 
$
331
 
 
$
 
Total expenses
 
 
100
 
 
 
483
 
 
 
 
Net income (loss)
 
$
338
 
 
$
(152
)
 
$
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Company’s share of net income (loss) (a)
 
$
304
 
 
$
(234
)
 
$
 
 
(a)
Included in net investment income in the Company’s consolidated statements of income. Gain from the sale of the outparcel during 2017 was allocated in accordance with the method specified in the operating agreement.
 
 
 
December 31,
 
 
 
2018
 
 
2017
 
Balance Sheet:
 
 
 
 
 
 
 
 
Construction in progress—real estate
 
$
 
 
$
27
 
Property and equipment, net
 
 
787
 
 
 
1,199
 
Cash
 
 
149
 
 
 
236
 
Other
 
 
5
 
 
 
5
 
Total assets
 
$
941
 
 
$
1,467
 
 
 
 
 
 
 
 
 
 
Other liabilities
 
$
3
 
 
$
18
 
Members’ capital
 
 
938
 
 
 
1,449
 
Total liabilities and members’ capital
 
$
941
 
 
$
1,467
 
 
 
 
 
 
 
 
 
 
Investment in unconsolidated joint venture, at equity*
 
$
845
 
 
$
1,304
 
 
*
Included the 90% share of FMKT Mel JV’s operating results.
In 2017, FMJV decided to terminate its development plan for nearby land, thereby expensing $382 of deferred costs associated with the land feasibility study. FMJV’s assets at December 31, 2018 and 2017 included primarily outparcels for sale or lease which have increased in value since the adjacent retail shopping center was completed. The Company determined that there was no impairment loss associated with these assets for the years ended December 31, 2018 and 2017.
e) Assets Held for Sale
On November 5, 2018, Greenleaf Capital, LLC, the Company’s wholly-owned subsidiary, listed its 10-acre waterfront property in Treasure Island, Florida for sale. The property primarily consists of land, commercial and marina buildings. This property, which is owned by the real estate division, was reclassified from real estate investments to assets held for sale in the Company’s consolidated balance sheet. The recording of depreciation on the buildings ceased November 5, 2018 resulting in a $34 decrease in depreciation expense in 2018 compared with 2017.
f) Real Estate Investments
Real estate investments include buildings with office and retail space for lease, outparcels, and one marina. Real estate investments consist of the following as of December 31, 2018 and 2017:
 
 
 
December 31,
 
 
 
2018
 
 
2017
 
Land
 
$
23,884
 
 
$
26,315
 
Land improvements
 
 
8,717
 
 
 
9,904
 
Building
 
 
19,201
 
 
 
21,284
 
Tenant and leasehold improvements
 
 
1,261
 
 
 
1,204
 
Other
 
 
5,266
 
 
 
3,050
 
Total, at cost
 
 
58,329
 
 
 
61,757
 
Less: accumulated depreciation and amortization
 
 
(3,839
)
 
 
(3,399
)
Real estate investments
 
$
54,490
 
 
$
58,358
 
In November 2018, the Company reclassified a net carrying value of $9,810 from real estate investments to assets held for sale.
 
On June 13, 2018, the Company, through a wholly owned subsidiary, acquired commercial real estate in Clearwater, Florida, including assumed liabilities of $35, for a purchase price of $6,766. The real estate consisted of land, one 
in-place
 lease agreement which was recorded in intangible assets, and commercial structures that are currently under renovation. This transaction was accounted for as an asset acquisition.
On October 17, 2017, the Company, through a wholly owned subsidiary, acquired commercial real estate in Tampa, Florida for a purchase price of $9,100. The acquired assets primarily consisted of land, building and 
in-place
 lease agreements. The Company incurred approximately $115 of acquisition-related costs and accounted for this transaction as an asset acquisition in accordance with ASU 
2017-01
 which the Company early adopted in the fourth quarter of 2017. As a result, all transaction-related costs were allocated among the assets acquired.
Depreciation and amortization expense related to real estate investments was $1,536, $1,447 and $531, respectively, for the years ended December 31, 2018, 2017 and 2016.
g) Consolidated Variable Interest Entity
The Company has a commercial property in Riverview, Florida which was developed by a limited liability company treated under U.S. GAAP as a joint venture. On January 26, 2018, the Company gained full ownership of this limited liability company by acquiring the noncontrolling interest for $539 which was reported in the Company’s consolidated statement of stockholders’ equity. Prior to the acquisition date, the Company already consolidated this limited liability company as its primary beneficiary. As a result, the acquisition was accounted for as an equity transaction. No gain or loss was recognized as there was no change in control. Real estate investments owned by this limited liability company primarily include a retail strip center with 8,400 square feet of net rentable space and an adjacent parcel of land which is currently leased in its entirety to a large gas station and convenience store chain. The following table summarizes the assets and liabilities related to this variable interest entity which are included in the accompanying consolidated balance sheets as of December 31, 2017.
 
Real estate investments
 
$
4,680
 
Other assets
 
$
152
 
Accrued expenses
 
$
21
 
Other liabilities
 
$
160
 
 
h) Net Investment Income
Net investment income (loss), by source, is summarized as follows:

 
 
 
Years Ended December 31,
 
 
 
2018
 
 
2017
 
 
2016
 
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
 
Fixed-maturity securities
 
$
5,104
 
 
$
5,689
 
 
$
4,589
 
Equity securities
 
 
2,124
 
 
 
3,318
 
 
 
3,452
 
Investment expense
 
 
(581
)
 
 
(726
)
 
 
(651
)
Limited partnership investments
 
 
4,430
 
 
 
2,334
 
 
 
1,207
 
Real estate investments
 
 
340
 
 
 
(1,018
)
 
 
(592
)
Income (loss) from unconsolidated joint venture
 
 
304
 
 
 
(234
)
 
 
 
Cash and cash equivalents
 
 
3,485
 
 
 
2,069
 
 
 
1,036
 
Short-term investments
 
 
1,375
 
 
 
 
 
 
 
Other
 
 
 
 
 
7
 
 
 
46
 
Net investment income
 
$
16,581
 
 
$
11,439
 
 
$
9,087
 
At December 31, 2018, $180,508 or 75.4% of the Company’s cash and cash equivalents were deposited at three national banks and included $73,511 in two custodial accounts. At December 31, 2017, $87,092 or 34.1% of the Company’s cash and cash equivalents were deposited at three national banks and included $38,543 in three custodial accounts. At December 31, 2018 and 2017, the Company’s cash deposits at any one bank generally exceed the Federal Deposit Insurance Corporation’s $250 coverage limit for insured deposit accounts.