In addition to the preceding disclosures on assets recorded at fair value in the consolidated balance sheets, FASB guidance also requires the disclosure of fair values for certain other financial instruments for which it is practicable to estimate fair value, whether or not such values are recognized in the consolidated balance sheets. Non-financial instruments such as real estate, property and equipment, other assets, deferred income taxes and intangible assets, and certain financial instruments such as policy reserve liabilities are excluded from the fair value disclosures. Therefore, the fair value amounts cannot be aggregated to determine the underlying economic value of the Company. The following methods, assumptions and inputs were used to estimate the fair value of each class of financial instrument: Limited partnerships: The Company accounts for investments in limited partnerships using the equity method of accounting, which requires an investor in a limited partnership to carry the investment at its proportionate share of the limited partnership's equity. The underlying assets of the Company's investments in limited partnerships are carried primarily at fair value, and, therefore, the Company's carrying value of limited partnerships approximates fair value. As these investments are not actively traded and the corresponding inputs are based on data provided by the investees, they are classified as Level 3. Commercial mortgage loans: Commercial mortgage loans are carried primarily at amortized cost along with a valuation allowance for losses when necessary. These investments represent interests in commercial mortgage loans originated and serviced by a third party of which the Company shares, on a pro-rata basis, in all related cash flows of the underlying mortgage loans. The fair value of the Company’s investment in these commercial mortgage loans is based on expected future cash flows discounted at the current interest rate for origination of similar quality loans, adjusted for specific loan risk. These investments are classified as Level 3. Short-term borrowings: The fair value of the Company's short-term borrowings is based on quoted market prices for the same or similar debt, or, if no quoted market prices are available, on the current market interest rates available to the Company for debt of similar terms and remaining maturities. A summary of the carrying value and fair value by level of financial instruments not recorded at fair value on the Company's consolidated balance sheets at December 31, 2018 and 2017 is as follows: Quarterly results of operations are as follows: - 68 - Note O - Quarterly Results of Operations (Unaudited) 2018 2017 1st 2nd 3rd 4th 1st 2nd 3rd 4th Net premiums earned $ 105,462 $ 111,940 $ 96,807 $ 118,671 $ 73,974 $ 67,996 $ 89,100 $ 97,075 Net investment income 4,636 5,796 5,578 6,038 3,692 4,716 4,027 5,661 Net realized and unrealized gains (losses) on investments (4,533 ) (3,435 ) 2,373 (20,096 ) 6,294 3,296 5,944 4,152 Losses and loss expenses incurred 72,298 77,488 94,540 101,537 48,599 71,754 60,673 66,492 Net income (loss) 330 2,487 (12,325 ) (24,567 ) 6,756 (12,343 ) 7,434 16,476 Net income (loss) per share $ 0.02 $ 0.17 $ (0.82 ) $ (1.65 ) $ 0.45 $ (0.82 ) $ 0.49 $ 1.10 2018: Carrying Fair Value Value Level 1 Level 2 Level 3 Total Assets: Limited partnerships $ 55,044 $ – $ – $ 55,044 $ 55,044 Commercial mortgage loans 6,672 – – 6,672 6,672 Liabilities: Short-term borrowings 20,000 – 20,000 – 20,000 2017: Assets: Limited partnerships $ 70,806 $ – $ – $ 70,806 $ 70,806 Commercial mortgage loans – – – – – Liabilities: Short-term borrowings 20,000 – 20,000 – 20,000