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Stockholders' Equity and Restrictions
 6 Months Ended
Jun. 30, 2024
Earnings Per Share [Abstract]  
Stockholders' Equity Note Disclosure STOCKHOLDERS' EQUITY AND RESTRICTIONS
STOCK

Our Restated and Amended Articles of Incorporation authorize the issuance of 127,000,000 shares, of which 100,000,000 shares shall be Class A common stock, 2,000,000 shares shall be Class B common stock, and 25,000,000 shall be preferred stock. Both authorized classes of common stock are equal in all respects, except (a) each share of Class A common stock is entitled to receive twice the cash dividends paid on a per share basis to the
Class B common stock, if any; and (b) the holders of the Class B common stock have the exclusive right to elect a simple majority of the Board of Directors of Citizens. Citizens currently has no outstanding preferred stock or Class B common stock other than that held in treasury.

A summary of the change in the number of shares of Class A common stock and treasury stock issued is as follows:

Six Months Ended June 30,20242023
(In thousands)
Common Stock Class A
Treasury Stock
Common Stock Class ATreasury Stock
Balance at beginning of year53,883 5,330 53,758 4,937 
Stock issued for compensation163 — 106 — 
Acquisition of Class A shares— — — 325 
Balance at end of period54,046 5,330 53,864 5,262 

EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share.
Three Months Ended June 30,20242023
(In thousands, except per share amounts)
Basic and diluted earnings per share:
  
Numerator:  
Net income
$3,959 6,126 
Net income allocated to Class A common stock
$3,959 6,126 
Denominator:  
Weighted average shares of Class A outstanding - basic49,639 49,758 
Weighted average shares of Class A outstanding - diluted50,809 50,552 
Basic and diluted earnings per share of Class A common stock
$0.08 0.12 

Six Months Ended June 30,20242023
(In thousands, except per share amounts)
Basic and diluted earnings per share:
Numerator:
Net income
$8,501 10,998 
Net income allocated to Class A common stock
$8,501 10,998 
Denominator:
Weighted average shares of Class A outstanding - basic49,606 49,791 
Weighted average shares of Class A outstanding - diluted50,775 50,584 
Basic and diluted earnings per share of Class A common stock
$0.17 0.22 

STATUTORY CAPITAL AND SURPLUS

Each of our regulated insurance subsidiaries is required to meet stipulated regulatory capital requirements. These include capital requirements imposed by the U.S. National Association of Insurance Commissioners ("NAIC") and
the Bermuda Monetary Authority ("BMA"). All domestic insurance subsidiaries exceeded the minimum capital requirements at June 30, 2024. On March 27, 2024, Citizens and the Colorado Division of Insurance entered into a capital maintenance agreement that specifies that Citizens will infuse capital as needed to ensure that CICA Domestic's RBC remains above 350%. As CICA Domestic's RBC exceeded 350% at June 30, 2024, no capital contribution was necessary.

CICA International is a Puerto Rico domiciled company. The Insurance Code of Puerto Rico does not specifically set forth minimum capital and surplus standards, but rather requires that an insurer submit a business plan for approval to the Office of the Commissioner of Insurance ("OIC") that includes proposed minimum capital and surplus. CICA International is required to maintain a minimum of $750,000 in capital and maintain a premium to surplus ratio of 7 to 1. CICA International began issuing new business as of January 1, 2023 and received the transfer of all of CICA Bermuda's in force insurance business as of August 31, 2023. On that date, Citizens entered into a Keep Well Agreement with CICA International to replace the Keep Well Agreement that had been in place between Citizens and CICA Bermuda. The Keep Well Agreement, which expires on August 31, 2024, requires Citizens to contribute up to $10 million in capital to CICA International as necessary to ensure that CICA International maintains at least either (i) 112% of its required ratio of premiums to capital and surplus, or (ii) 200% of the minimum capital and surplus requirement, whichever is higher. Since CICA International's capital exceeds both of the metrics, Citizens is not required to make a capital contribution. Any capital that Citizens is required to contribute could negatively impact the Company's capital resources and liquidity.