Table of Contents CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES Notes to Consolidated Financial Statements, Continued Level 3 is comprised of financial instruments whose fair value is estimated based on non-binding broker prices utilizing significant inputs not based on, or corroborated by, readily available market information. We have no securities in this category as of or during the year ended December 31, 2018. The following table sets forth our assets and liabilities that are measured at fair value on a recurring basis as of the date indicated. 95 December 31, 2018 Financial assets Level 1 Level 2 Level 3 Total Fair Value (In thousands) Available-for-sale investments: Fixed maturities: U.S. Treasury and U.S. Government-sponsored enterprises $ 11,274 4,280 — 15,554 States and political subdivisions — 720,115 — 720,115 Corporate 47 381,749 — 381,796 Commercial mortgage-backed — 40,014 — 40,014 Residential mortgage-backed — 68,684 — 68,684 Asset-backed — 4,757 — 4,757 Foreign governments — 119 — 119 Total fixed maturities available-for-sale 11,321 1,219,718 — 1,231,039 Equity securities: Stock mutual funds 2,906 — — 2,906 Bond mutual funds 11,774 — — 11,774 Common stock 94 — — 94 Non-redeemable preferred stock 294 — — 294 Total equity securities 15,068 — — 15,068 Total financial assets $ 26,389 1,219,718 — 1,246,107