Investments (Tables)

3 Months Ended

Mar. 31, 2014

The following table summarizes, by type, our investments as of March 31, 2014 and December 31, 2013.

	March 31, 2014					December 31, 2013
	Carrying Amount		Percent of Total			Carrying Amount		Percent of Total
	(Dollars in Thousands)
Debt securities, at market:
United States government obligations and authorities	$	33,655		13.71	%	$	27,209		12.33	%
Obligations of states and political subdivisions		58,149		23.68	%		52,064		23.59	%
Corporate		100,086		40.77	%		91,941		41.66	%
International		8,449		3.44	%		3,698		1.68	%
		200,339		81.60	%		174,912		79.26	%
Debt securities, at amortized cost:
United States government obligations and authorities		4,187		1.71	%		4,630		2.10	%
Corporate		2,908		1.18	%		2,475		1.12	%
International		228		0.09	%		109		0.05	%
		7,323		2.98	%		7,214		3.27	%
Total debt securities		207,662		84.58	%		182,126		82.53	%

Equity securities, at market:		37,857		15.42	%		38,584		17.47	%
Total investments	$	245,519		100.00	%	$	220,710		100.00	%

Realized gains (losses) for debt and equity securities

The following table shows the realized gains (losses) for debt and equity securities for the three months ended March 31, 2014 and 2013.

	Three Months Ended March 31,
	2014					2013
	Gains (Losses)			Fair Value at Sale		Gains (Losses)			Fair Value at Sale
	(Dollars in Thousands)

Debt securities	$	135		$	9,668	$	1,133		$	22,601
Equity securities		1,610			4,815		189			1,079
Total realized gains		1,745			14,483		1,322			23,680

Debt securities		(70	)		3,699		(409	)		16,476
Equity securities		(344	)		1,338		(100	)		623
Total realized losses		(414	)		5,037		(509	)		17,099

Net realized gains on investments	$	1,331		$	19,520	$	813		$	40,779

Summary of the amortized cost, estimated fair value and gross unrealized gains and losses of debt and equity securities

A summary of the amortized cost, estimated fair value and gross unrealized gains and losses of debt and equity securities at March 31, 2014 and December 31, 2013 is as follows.

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(Dollars in Thousands)
March 31, 2014
Debt Securities - Available-For-Sale:
United States government obligations and authorities	$	33,631	$	237	$	213	$	33,655
Obligations of states and political subdivisions		57,742		471		64		58,149
Corporate		98,794		1,615		323		100,086
International		8,427		40		18		8,449
	$	198,594	$	2,363	$	618	$	200,339

Debt Securities - Held-To-Maturity:
United States government obligations and authorities	$	4,187	$	33	$	255	$	3,965
Corporate		2,908		32		6		2,934
International		228		-		1		227
	$	7,323	$	65	$	262	$	7,126

Equity securities - common stocks	$	29,160	$	8,868	$	171	$	37,857

December 31, 2013
Debt Securities - Available-For-Sale:
United States government obligations and authorities	$	27,422	$	186	$	399	$	27,209
Obligations of states and political subdivisions		51,883		303		122		52,064
Corporate		91,475		1,233		767		91,941
International		3,731		5		38		3,698
	$	174,511	$	1,727	$	1,326	$	174,912

Debt Securities - Held-To-Maturity:
United States government obligations and authorities	$	4,630	$	32	$	326	$	4,336
Corporate		2,475		22		17		2,480
International		109		-		1		108
	$	7,214	$	54	$	344	$	6,924

Equity securities - common stocks	$	29,423	$	9,436	$	275	$	38,584

Continuous unrealized loss position

The table below reflects our unrealized investment losses by investment class, aged for length of time in a continuous unrealized loss position as of March 31, 2014.

	Unrealized Losses		Less than 12 months		12 months or longer
	(Dollars in Thousands)
Debt securities:
United States government obligations and authorities	$	213	$	207	$	6
Obligations of states and political subdivisions		64		64		-
Corporate		323		316		7
International		18		18		-
		618		605		13
Equity securities:
Common stocks		171		166		5

Total debt and equity securities	$	789	$	771	$	18

The table below reflects our unrealized investment losses by investment class, aged for length of time in a continuous unrealized loss position as of December 31, 2013.

	Unrealized Losses		Less than 12 months		12 months or longer
	(Dollars in Thousands)
Debt securities:
United States government obligations and authorities	$	399	$	391	$	8
Obligations of states and political subdivisions		122		122		-
Corporate		767		761		6
International		38		38		-
		1,326		1,312		14
Equity securities:
Common stocks		275		148		127

Total debt and equity securities	$	1,601	$	1,460	$	141

Investments classified by contractual maturity date

Below is a summary of debt securities at March 31, 2014 and December 31, 2013, by contractual or expected maturity periods. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	March 31, 2014				December 31, 2013
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
	(Dollars in Thousands)

Due in one year or less	$	10,785	$	10,819	$	5,161	$	5,181
Due after one through five years		125,918		126,961		113,027		113,561
Due after five through ten years		68,323		68,781		62,656		62,220
Due after ten years		891		904		881		874

Total	$	205,917	$	207,465	$	181,725	$	181,836

Investment income

The table below sets forth investment results for the three months ended March 31, 2014 and 2013.

	Three Months Ended March 31,
	2014		2013
	(Dollars in Thousands)

Interest on debt securities	$	895	$	714
Dividends on equity securities		111		80
Interest on cash and cash equivalents		1		-

Total investment income	$	1,007	$	794

Net realized gains	$	1,331	$	813

Net realized and unrealized investment gains

The table below sets forth a summary of net realized and unrealized investment gains during the three months ended March 31, 2014 and 2013.

	Three Months Ended March 31,
	2014		2013
	(Dollars in Thousands)
Net realized gains
Debt securities	$	65	$	724
Equity securities		1,266		89

Total	$	1,331	$	813

Net unrealized gains
Debt securities	$	1,745	$	3,275
Equity securities		8,697		4,431

Total	$	10,442	$	7,706

- Definition

Tabular disclosure of the realized and unrealized gains and losses reported in the statement of income which have resulted from the sale and holding of marketable securities, respectively, as well as the sale or disposal of cost method investments. Such amounts would include realized gains and losses on the sale or disposal of trading, available-for-sale, and held-to-maturity securities, unrealized gains and losses on trading securities, unrealized gains and losses on available-for-sale and held-to-maturity securities transferred to the trading securities category, realized gains and losses on the sale or disposal of cost method investments, and losses recognized for other than temporary impairments (OTTI) of such investments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 115

-Paragraph 21

-Subparagraph d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Principles Board Opinion (APB)

-Number 18

-Paragraph 5

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

-SubTopic 10

-Section 25

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=7534914&loc=d3e22054-111558

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

-SubTopic 10

-Section 50

-Paragraph 9

-Subparagraph (c)-(e)

-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

-SubTopic 10

-Section 50

-Paragraph 10

-Subparagraph (c)

-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27405-111563

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SAB TOPIC 5.M)

-URI http://asc.fasb.org/extlink&oid=6784337&loc=d3e87990-122713

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 115

-Paragraph 7, 13, 16, 22

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 115

-Paragraph 12

-Subparagraph a, b

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Staff Accounting Bulletin (SAB)

-Number Topic 5

-Section M

+ Details

- Definition

Tabular disclosure of marketable securities. This may consist of investments in certain debt and equity securities, short-term investments and other assets.

+ References+ Details