Investments (Tables)

6 Months Ended

Jun. 30, 2014

Investments [Abstract]

Schedule of Amortized Cost and Aggregate Fair Values of Investments in Available-for-Sale Securities

The amortized cost and aggregate fair values of investments in available-for-sale securities as of December 31, 2013 are as follows (dollars in thousands):

Available-for-sale securities:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Corporate debt securities	$	35,831	$	1,698	$	713	$	36,816
Trust preferred securities	538		33		—		571
Mortgage backed securities	7,622		75		557		7,140
Private label mortgage backed securities	2,152		38		4		2,186
Obligations of states and political subdivisions	16,412		524		195		16,741
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	16,519		169		708		15,980
Total fixed maturities	79,074		2,537		2,177		79,434
Equity securities	2,420		2,365		411		4,374
Total	$	81,494	$	4,902	$	2,588	$	83,808

The amortized cost and aggregate fair values of investments in available-for-sale securities as of June 30, 2014 are as follows (dollars in thousands):

Available-for-sale securities:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Corporate debt securities	$	37,728	$	2,315	$	127	$	39,916
Mortgage backed securities	10,146		169		194		10,121
Private label mortgage backed securities	1,626		60		1		1,685
Obligations of states and political subdivisions	15,410		820		60		16,170
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	17,074		375		249		17,200
Total fixed maturities	81,984		3,739		631		85,092
Equity securities	2,420		2,688		220		4,888
Total	$	84,404	$	6,427	$	851	$	89,980

Schedule of Amortized Cost and Aggregate Fair Values of Investments in Held-to-Maturity Securities

The amortized cost and aggregate fair values of investments in held-to-maturity securities as of June 30, 2014 are as follows (dollars in thousands):

Held-to-maturity securities:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Mortgage backed securities	$	648	$	51	$	—	$	699
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	80		4		—		84
Total	$	728	$	55	$	—	$	783

The amortized cost and aggregate fair values of investments in held-to-maturity securities as of December 31, 2013 are as follows (dollars in thousands):

Held-to-maturity securities:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Mortgage backed securities	$	706	$	34	$	—	$	740
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	106		7		—		113
Total	$	812	$	41	$	—	$	853

Schedule of Amortized Cost and Aggregate Fair Value of Debt Securities, by Contractual Maturity

The amortized cost and aggregate fair value of debt securities at June 30, 2014, by contractual maturity, are presented in the following table (dollars in thousands).  Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	(Dollars in Thousands)
	Amortized Cost		Fair Value
Available-for-sale securities:
Due in one year or less	$	1,379	$	1,421
Due after one year through five years	16,015		17,320
Due after five years through ten years	29,227		30,207
Due after ten years	35,363		36,144
Total	$	81,984	$	85,092
Held-to-maturity securities:
Due in one year or less	$	—	$	—
Due after one year through five years	201		212
Due after five years through ten years	154		167
Due after ten years	373		404
Total	$	728	$	783

Schedule of Securities Available-for-Sale with Unrealized Losses

A summary of securities available-for-sale with unrealized losses as of June 30, 2014, along with the related fair value, aggregated by the length of time that investments have been in a continuous unrealized loss position, is as follows (dollars in thousands):

	Less than 12 months				12 months or longer				Total
June 30, 2014	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Total Securities in a Loss Position
Fixed maturities
Corporate debt securities	$	2,354	$	22	$	4,206	$	105	$	6,560	$	127	12
Mortgage backed securities	1,162		8		3,025		186		4,187		194		14
Private label mortgage backed securities	—		—		129		1		129		1		1
Obligations of state and political subdivisions	222		3		1,550		57		1,772		60		5
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	2,106		45		4,262		204		6,368		249		12
Equity securities	—		—		1,066		220		1,066		220		1
	$	5,844	$	78	$	14,238	$	773	$	20,082	$	851	45

A summary of securities available-for-sale with unrealized losses as of December 31, 2013, along with the related fair value, aggregated by the length of time that investments have been in a continuous unrealized loss position, is as follows (dollars in thousands):

	Less than 12 months				12 months or longer				Total
December 31, 2013	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Total Securities in a Loss Position
Fixed maturities
Corporate debt securities	$	10,589	$	600	$	1,548	$	113	$	12,137	$	713	26
Mortgage backed securities	3,215		427		1,796		130		5,011		557		18
Private label mortgage backed securities	472		4		—		—		472		4		3
Obligations of state and political subdivisions	3,545		165		325		30		3,870		195		11
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	11,534		600		390		108		11,924		708		21
Equity securities	—		—		875		411		875		411		1
	$	29,355	$	1,796	$	4,934	$	792	$	34,289	$	2,588	80

Summary of Major Categories of Investment Income

Major categories of investment income are summarized as follows (dollars in thousands):

	Three months ended June 30,					Six months ended June 30,
	2014		2013			2014		2013
Fixed maturities	$	857	$	815		$	1,716	$	1,640
Equity securities	29		45			58		73
Mortgage loans on real estate	3		6			7		13
Investment real estate	1		2			3		3
Policy loans	28		26			55		50
Company owned life insurance change in surrender value	108		(198		)	138		(148		)
Other, principally short-term investments	74		50			128		208
	1,100		746			2,105		1,839
Less: Investment expenses	70		57			127		105
Net investment income	$	1,030	$	689		$	1,978	$	1,734

Schedule of Realized Investments Gains (Losses)

Major categories of investment gains and losses are summarized as follows (dollars in thousands):

	Three months ended June 30,					Six months ended June 30,
	2014		2013			2014		2013
Fixed maturities	$	159	$	104		$	249	$	127
Equity securities	—		928			—		928
Trading securities	—		—			—		—
Other, principally real estate	153		(2		)	151		2
Other-than-temporary impairments	—		—			—		—
Net realized investment gains	$	312	$	1,030		$	400	$	1,057

Schedule of Net Change in Unrealized Appreciation

An analysis of the net change in unrealized appreciation on available-for-sale securities follows (dollars in thousands):

	June 30, 2014			December 31, 2013
Net change in unrealized appreciation on available-for-sale securities before deferred tax	$	3,262		$	(4,243	)
Deferred income tax	(1,109		)	1,442
Net change in unrealized appreciation on available-for-sale securities	$	2,153		$	(2,801	)