Investments

The cost or amortized cost, gross unrealized gain or loss, and estimated fair value of the investments in securities classified as available for sale at September 30, 2017 and December 31, 2016, were as follows (dollars in thousands):



	September 30, 2017
	Cost or Amortized Cost		Gross Unrealized					Estimated Fair Value
			Gains		Losses
Fixed Maturity Securities:
U.S. Government obligations	$	9,252	$	26	$	(43	)	$	9,235
State and local government	16,009		246		(53		)	16,202
Corporate debt	40,219		279		(162		)	40,336
Commercial mortgage-backed and other asset-backed	56,434		156		(480		)	56,110
Total fixed maturity securities available for sale	121,914		707		(738		)	121,883
Equity Securities	9,386		923		(152		)	10,157
Total securities available for sale	$	131,300	$	1,630	$	(890	)	$	132,040



	December 31, 2016
	Cost or Amortized Cost		Gross Unrealized					Estimated Fair Value
			Gains		Losses
Fixed Maturity Securities:
U.S. Government obligations	$	5,908	$	31	$	(36	)	$	5,903
State and local government	13,618		106		(205		)	13,519
Corporate debt	34,105		205		(254		)	34,056
Commercial mortgage-backed and other asset-backed	60,284		132		(731		)	59,685
Total fixed maturity securities available for sale	113,915		474		(1,226		)	113,163
Equity Securities	4,283		366		(70		)	4,579
Total securities available for sale	$	118,198	$	840	$	(1,296	)	$	117,742

The following table summarizes the aggregate fair value and gross unrealized losses, by security type, of the available-for-sale securities in unrealized loss positions. The table segregates the holdings based on the length of time that individual securities have been in a continuous unrealized loss position, as follows (dollars in thousands):



	September 30, 2017
	Less than 12 months						Greater than 12 months						Total
	No. of Issues	Fair Value of Investments with Unrealized Losses		Gross Un realized Losses			No. of Issues	Fair Value of Investments with Unrealized Losses		Gross Un realized Losses			No. of Issues	Fair Value of Investments with Unrealized Losses		Gross Un realized Losses
Fixed Maturity Securities:
U.S. Government obligations	10	$	6,177	$	(37	)	4	$	914	$	(6	)	14	$	7,091	$	(43	)
State and local government	23	6,108		(35		)	3	506		(18		)	26	6,614		(53		)
Corporate debt	13	7,568		(143		)	5	2,037		(19		)	18	9,605		(162		)
Commercial mortgage and asset-backed	42	31,653		(424		)	6	1,656		(56		)	48	33,309		(480		)
Total fixed maturity securities available for sale	88	51,506		(639		)	18	5,113		(99		)	106	56,619		(738		)
Equity Securities:
Common stocks	19	1,087		(141		)	1	33		(11		)	20	1,120		(152		)
Total equity securities available for sale	19	1,087		(141		)	1	33		(11		)	20	1,120		(152		)
Total securities	107	$	52,593	$	(780	)	19	$	5,146	$	(110	)	126	$	57,739	$	(890	)



	December 31, 2016
	Less than 12 months						Greater than 12 months						Total
	No. of Issues	Fair Value of Investments with Unrealized Losses		Gross Un realized Losses			No. of Issues	Fair Value of Investments with Unrealized Losses		Gross Un realized Losses			No. of Issues	Fair Value of Investments with Unrealized Losses		Gross Un realized Losses
Fixed Maturity Securities:
U.S. Government obligations	15	$	4,539	$	(36	)	—	$	—	$	—		15	$	4,539	$	(36	)
State and local government	29	8,217		(202		)	1	104		(3		)	30	8,321		(205		)
Corporate debt	22	9,031		(239		)	7	3,369		(15		)	29	12,400		(254		)
Commercial mortgage and asset-backed	59	38,048		(722		)	5	802		(9		)	64	38,850		(731		)
Total fixed maturity securities available for sale	125	59,835		(1,199		)	13	4,275		(27		)	138	64,110		(1,226		)
Equity Securities:
Common stock	76	2,472		(61		)	2	66		(9		)	78	2,538		(70		)
Total equity securities available for sale	76	2,472		(61		)	2	66		(9		)	78	2,538		(70		)
Total securities	201	$	62,307	$	(1,260	)	15	$	4,341	$	(36	)	216	$	66,648	$	(1,296	)

The Company analyzed its investment portfolio in accordance with its other-than-temporary impairment ("OTTI") review procedures and determined the Company did not need to record a credit-related OTTI loss in net income, nor recognize a non-credit related OTTI loss in other comprehensive income for the nine months ended September 30, 2017 and 2016.

The Company’s sources of net investment income are as follows (dollars in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Fixed maturity securities	$	733		$	616		$	2,030		$	1,772
Equity securities	44			23			94			75
Cash and short-term investments	64			7			91			13
Total investment income	841			646			2,215			1,860
Investment expenses	(73		)	(86		)	(207		)	(235		)
Net investment income	$	768		$	560		$	2,008		$	1,625

The following table summarizes the gross realized gains and losses from sales or maturities of available-for-sale fixed maturity and equity securities (dollars in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Fixed maturity securities:
Gross realized gains	$	29		$	7		$	29		$	524
Gross realized losses	(1		)	—			(8		)	(22		)
Total fixed maturity securities	28			7			21			502
Equity securities:
Gross realized gains	11			79			40			230
Gross realized losses	—			(15		)	(30		)	(128		)
Total equity securities	11			64			10			102
Total realized gains (losses)	$	39		$	71		$	31		$	604

Proceeds from the sales of debt and equity securities available for sale, maturities and other redemptions (primarily the return of capital) were $19.5 million and $40.9 million for the nine months ended September 30, 2017 and 2016, respectively.

The table below summarizes the amortized cost and fair value of available-for-sale fixed maturity securities by contractual maturity at September 30, 2017. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties (dollars in thousands):



	Amortized Cost		Estimated Fair Value
Due in one year or less	$	11,122	$	11,136
Due after one year through five years	34,171		34,327
Due after five years through ten years	11,255		11,392
Due after ten years	8,932		8,918
Securities with contractual maturities	65,480		65,773
Commercial mortgage and asset backed	56,434		56,110
Total Fixed maturity securities	$	121,914	$	121,883

At September 30, 2017 and December 31, 2016, the Insurance Company Subsidiaries had an aggregate of $8.2 million and $9.6 million respectively, on deposit in trust accounts to meet the deposit requirements of various state insurance departments. At September 30, 2017 and December 31, 2016, the Company had $12.8 million and $10.3 million held in trust accounts to meet collateral requirements with other third-party insurers, relating to various fronting arrangements. There are withdrawal and other restrictions on these deposits, including the type of investments that may be held, however, the Company may generally invest in high-grade bonds and short-term investments and earn interest on the funds.