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 June 30, 2019 and December 31, 2018, were as follows (dollars in thousands):



	June 30, 2019
	Cost or Amortized Cost		Gross Unrealized					Estimated Fair Value
			Gains		Losses
Debt Securities:
U.S. Government	$	14,787	$	51	$	(18	)	$	14,820
State and local government	14,467		461		(4		)	14,924
Corporate debt	32,281		600		(23		)	32,858
Asset-backed securities	21,718		73		(75		)	21,716
Mortgage-backed securities	32,409		85		(481		)	32,013
Commercial mortgage-backed securities	4,673		113		(9		)	4,777
Collateralized mortgage obligations	2,989		21		—			3,010
Total debt securities available for sale	$	123,324	$	1,404	$	(610	)	$	124,118



	December 31, 2018
	Cost or Amortized Cost		Gross Unrealized					Estimated Fair Value
			Gains		Losses
Debt Securities:
U.S. Government	$	15,360	$	3	$	(178	)	$	15,185
State and local government	15,847		115		(174		)	15,788
Corporate debt	30,423		74		(651		)	29,846
Asset-backed securities	24,468		24		(208		)	24,284
Mortgage-backed securities	30,377		18		(1,155		)	29,240
Commercial mortgage-backed securities	4,025		5		(77		)	3,953
Collateralized mortgage obligations	2,178		9		(43		)	2,144
Total debt securities available for sale	$	122,678	$	248	$	(2,486	)	$	120,440

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):



	June 30, 2019
	Less than 12 months						Greater than 12 months						Total
	No. of Issues	Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses			No. of Issues	Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses			No. of Issues	Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses
Debt Securities:
U.S. Government	—	$	—	$	—		11	$	7,534	$	(18	)	11	$	7,534	$	(18	)
State and local government	1	238		(1		)	4	412		(3		)	5	650		(4		)
Corporate debt	—	—		—			10	4,901		(23		)	10	4,901		(23		)
Asset-backed securities	8	7,205		(22		)	17	7,707		(53		)	25	14,912		(75		)
Mortgage-backed securities	4	485		(1		)	35	23,702		(480		)	39	24,187		(481		)
Commercial mortgage-backed securities	1	118		—			3	1,441		(9		)	4	1,559		(9		)
Collateralized mortgage obligations	1	19		—			1	30		—			2	49		—
Total debt securities available for sale	15	$	8,065	$	(24	)	81	$	45,727	$	(586	)	96	$	53,792	$	(610	)



	December 31, 2018
	Less than 12 months						Greater than 12 months						Total
	No. of Issues	Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses			No. of Issues	Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses			No. of Issues	Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses
Debt Securities:
U.S. Government	1	$	2,470	$	(24	)	16	$	11,725	$	(154	)	17	$	14,195	$	(178	)
State and local government	21	4,935		(40		)	16	4,273		(134		)	37	9,208		(174		)
Corporate debt	36	12,096		(140		)	25	11,993		(511		)	61	24,089		(651		)
Asset-backed securities	25	17,743		(148		)	9	4,166		(60		)	34	21,909		(208		)
Mortgage-backed securities	20	5,474		(138		)	30	21,715		(1,017		)	50	27,189		(1,155		)
Commercial mortgage-backed securities	4	1,082		(12		)	3	2,632		(65		)	7	3,714		(77		)
Collateralized mortgage obligations	4	116		(1		)	6	1,587		(42		)	10	1,703		(43		)
Total debt securities available for sale	111	$	43,916	$	(503	)	105	$	58,091	$	(1,983	)	216	$	102,007	$	(2,486	)

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 three and six months ended June 30, 2019 and 2018.

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



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Debt securities	$	998		$	868		$	1,855		$	1,694
Equity securities	35			38			75			65
Cash, cash equivalents and short-term investments	116			13			186			36
Total investment income	1,149			919			2,116			1,795
Investment expenses	(98		)	(81		)	(155		)	(156		)
Net investment income	$	1,051		$	838		$	1,961		$	1,639

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



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Debt securities:
Gross realized gains	$	204		$	—		$	223		$	2
Gross realized losses	(3		)	(10		)	(52		)	(15		)
Total debt securities	201			(10		)	171			(13		)
Equity securities:
Gross realized gains	539			36			588			206
Gross realized losses	(25		)	(14		)	(25		)	(20		)
Total equity securities	514			22			563			186
Total net realized investment gains (losses)	$	715		$	12		$	734		$	173

Proceeds from the sales of available-for-sale debt securities were $10.3 million and $5.0 million for the six months ended June 30, 2019 and 2018, respectively.

The Company carries other equity investments that do not have a readily determinable fair value at cost, less impairment or observable changes in price. We review these investments for impairment during each reporting period. There was no impairment or observable changes in price recorded during 2019 related to the Company's equity securities without readily determinable fair value. These investments are a component of Other Assets in the Consolidated Balance Sheets.

The table below summarizes the amortized cost and fair value of available-for-sale debt securities by contractual maturity at June 30, 2019. 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	$	9,812	$	9,809
Due after one year through five years	30,418		30,848
Due after five years through ten years	12,301		12,659
Due after ten years	9,004		9,286
Securities with contractual maturities	61,535		62,602
Asset-backed securities	21,718		21,716
Mortgage-backed securities	32,409		32,013
Commercial mortgage-backed securities	4,673		4,777
Collateralized mortgage obligations	2,989		3,010
Total debt securities	$	123,324	$	124,118

At June 30, 2019 and December 31, 2018, the Insurance Company Subsidiaries had an aggregate of $8.6 million and $8.5 million, respectively, on deposit in trust accounts to meet the deposit requirements of various state insurance departments. At June 30, 2019 and December 31, 2018, the Company had $47.7 million and $45.4 million, respectively, 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.