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Investments
3 Months Ended
Mar. 31, 2022
Investments  
Investments

3. Investments

The following table provides the Company’s investment income, and realized gains on investments:

Three Months Ended March 31, 

2022

Investment income, net of investment expenses

$

265

Realized gains on investments

2

Realized losses on investments

(70)

Investment income and realized gains, net of investment expenses

$

197

The Company did not have significant investment income during the three months ended March 31, 2021.

The following table provides the amortized cost, fair value and unrealized gains and (losses) of the Company’s investment securities:

March 31, 2022

Gross Unrealized

    

Amortized Cost

    

Gains

    

Losses

    

Fair Value

U.S. Treasuries

$

3,653

$

1

$

(135)

$

3,519

Obligations of states, municipalities and political subdivisions

9,997

(584)

9,413

Corporate bonds

 

30,283

 

3

 

(1,234)

 

29,052

Residential and commercial mortgage-backed securities

15,237

27

(617)

14,647

Other loan-backed and structured securities

8,931

2

(237)

8,696

Total debt securities

$

68,101

$

33

$

(2,807)

$

65,327

December 31, 2021

Gross Unrealized

    

Amortized Cost

    

Gains

    

Losses

    

Fair Value

U.S. Treasuries

$

5,452

$

1

$

(36)

$

5,417

Obligations of states, municipalities and political subdivisions

8,913

21

(84)

8,850

Corporate bonds

 

31,491

 

89

 

(155)

 

31,425

Residential and commercial mortgage-backed securities

14,387

34

(139)

14,282

Other loan-backed and structured securities

7,637

5

(41)

7,601

Total debt securities

$

67,880

$

150

$

(455)

$

67,575

The amortized cost and fair value of securities at March 31, 2022, by contractual maturity, are shown in the following table. Actual 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, 2022

Remaining Time to Maturity

    

Amortized Cost

    

Fair Value

Due in one year or less

$

6,425

$

6,388

Due after one year through five years

20,771

19,914

Due after five years through ten years

13,700

12,820

Due after ten years

 

3,037

 

2,862

Residential and commercial mortgage-backed securities

15,237

14,647

Other loan-backed and structured securities

8,931

8,696

Total

$

68,101

$

65,327

Other-than-temporary Impairment

The Company regularly reviews its individual investment securities for other-than-temporarily impairment. The Company considers various factors in determining whether each individual security is other-than-temporarily impaired, including:

-the financial condition and near-term prospects of the issuer, including any specific events that may affect its operations or earnings;
-the length of time and the extent to which the market value of the security has been below its cost or amortized cost;
-general market conditions and industry or sector-specific factors;
-nonpayment by the issuer of its contractually obligated interest and principal payments; and
-the Company’s intent and ability to hold the investment for a period of time sufficient to allow for the recovery of costs.

Securities with gross unrealized loss position, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows:

Less Than Twelve Months

Twelve Months or Greater

Total

Gross

Gross

Gross

Unrealized

Fair

Unrealized

Fair

Unrealized

Fair

At March 31, 2022

Loss

Value

    

Loss

Value

    

Loss

Value

U.S. Treasuries

$

(135)

$

3,204

$

$

$

(135)

$

3,204

Obligations of states, municipalities and political subdivisions

(584)

9,361

(584)

9,361

Corporate bonds

(1,234)

21,104

(1,234)

21,104

Residential and commercial mortgage-backed securities

(617)

13,816

(617)

13,816

Other loan-backed and structured securities

(237)

8,035

(237)

8,035

Total securities

$

(2,807)

$

55,520

$

$

$

(2,807)

$

55,520

Less Than Twelve Months

Twelve Months or Greater

Total

Gross

Gross

Gross

Unrealized

Fair

Unrealized

Fair

Unrealized

Fair

At December 31, 2021

Loss

Value

    

Loss

Value

    

Loss

Value

U.S. Treasuries

$

(36)

$

5,007

$

$

$

(36)

$

5,007

Obligations of states, municipalities and political subdivisions

(84)

4,292

(84)

4,292

Corporate bonds

(155)

15,446

(155)

15,446

Residential and commercial mortgage-backed securities

(139)

9,687

(139)

9,687

Other loan-backed and structured securities

(41)

6,818

(41)

6,818

Total securities

$

(455)

$

41,250

$

$

$

(455)

$

41,250

At March 31, 2022, and December 31, 2021, there were 448 and 358 securities, respectively, in an unrealized loss position. Of these securities, none had been in an unrealized loss position for 12 months or longer.

The Company believes there were no fundamental issues such as credit losses or other factors with respect to any of its available-for-sale securities. The unrealized losses on investments in fixed-maturity securities were caused primarily by interest rate changes. It is expected that the securities would not be settled at a price less than par value of the investments. Because the declines in fair value are attributable to changes in interest rates or market conditions and not credit quality, and because the Company has the ability and intent to hold its available-for-sale investments until a market price recovery or maturity, the Company does not consider any of its investments to be other-than-temporarily impaired at March 31, 2022.