INVESTMENTS

The amortized cost and aggregate fair values of investments in available-for-sale securities as of March 31, 2015 are as follows (dollars in thousands):



Available-for-sale securities:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Corporate debt securities	$	36,570	$	1,904	$	311	$	38,163
Mortgage backed securities	11,998		297		132		12,163
Private label mortgage backed securities	5,111		42		73		5,080
Obligations of states and political subdivisions	14,885		1,043		4		15,924
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	17,890		727		46		18,571
Total fixed maturities	86,454		4,013		566		89,901
Equity securities	2,420		2,690		146		4,964
Total	$	88,874	$	6,703	$	712	$	94,865

The amortized cost and aggregate fair values of investments in held-to-maturity securities as of March 31, 2015 are as follows (dollars in thousands):



Held-to-maturity securities:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Mortgage backed securities	$	2,708	$	134	$	—	$	2,842
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	59		4		—		63
Total	$	2,767	$	138	$	—	$	2,905

The amortized cost and aggregate fair values of investments in available-for-sale securities as of December 31, 2014 are as follows (dollars in thousands):



Available-for-sale securities:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Corporate debt securities	$	37,299	$	1,773	$	405	$	38,667
Mortgage backed securities	12,691		214		153		12,752
Private label mortgage backed securities	1,261		38		3		1,296
Obligations of states and political subdivisions	14,919		993		13		15,899
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	17,854		525		107		18,272
Total fixed maturities	84,024		3,543		681		86,886
Equity securities	2,420		2,745		170		4,995
Total	$	86,444	$	6,288	$	851	$	91,881

The amortized cost and aggregate fair values of investments in held-to-maturity securities as of December 31, 2014 are as follows (dollars in thousands):



Held-to-maturity securities:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Mortgage backed securities	$	2,818	$	69	$	—	$	2,887
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	290		5		—		295
Total	$	3,108	$	74	$	—	$	3,182

The amortized cost and aggregate fair value of debt securities at March 31, 2015, 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	$	1,209	$	1,220
Due after one year through five years	17,042		18,112
Due after five years through ten years	29,435		30,121
Due after ten years	38,768		40,448
Total	$	86,454	$	89,901

Held-to-maturity securities:
Due in one year or less	$	—	$	—
Due after one year through five years	134		141
Due after five years through ten years	129		141
Due after ten years	2,504		2,623
Total	$	2,767	$	2,905

A summary of securities available-for-sale with unrealized losses as of March 31, 2015, 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
March 31, 2015	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	$	4,612	$	304	$	865	$	7	$	5,477	$	311	11
Mortgage backed securities	153		2		1,225		130		1,378		132		6
Private label mortgage backed securities	3,924		70		91		3		4,015		73		7
Obligations of state and political subdivisions	—		—		338		4		338		4		1
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	—		—		2,492		46		2,492		46		4
Equity securities	—		—		1,140		146		1,140		146		1
	$	8,689	$	376	$	6,151	$	336	$	14,840	$	712	30

There were no securities held-to-maturity with unrealized losses as of March 31, 2015.

A summary of securities available-for-sale with unrealized losses as of December 31, 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
December 31, 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	$	6,306	$	364	$	1,843	$	41	$	8,149	$	405	18
Mortgage backed securities	1,386		4		1,855		149		3,241		153		12
Private label mortgage backed securities	—		—		97		3		97		3		1
Obligations of state and political subdivisions	—		—		651		13		651		13		2
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	1,475		6		3,499		101		4,974		107		10
Equity securities	—		—		1,116		170		1,116		170		1
	$	9,167	$	374	$	9,061	$	477	$	18,228	$	851	44

There were no securities held-to-maturity with unrealized losses as of December 31, 2014.

The Company conducts periodic reviews to identify and evaluate securities in an unrealized loss position in order to identify other-than-temporary impairments. For securities in an unrealized loss position, the Company assesses whether the Company has the intent to sell the security or more-likely-than-not will be required to sell the security before the anticipated recovery. If either of these conditions is met, the Company is required to recognize an other-than-temporary impairment with the entire unrealized loss reported in earnings. For securities in an unrealized loss position that do not meet these conditions, the Company assesses whether the impairment of a security is other-than-temporary. If the impairment is determined to be other-than-temporary, the Company is required to separate the other-than-temporary impairments into two components: the amount representing the credit loss and the amount related to all other factors. The credit loss is the portion of the amortized book value in excess of the net present value of the projected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment. The credit loss component of other-than-temporary impairments is reported in earnings, whereas the amount relating to factors other than credit losses are recorded in other comprehensive income, net of taxes.

Management has evaluated each security in a significant unrealized loss position. The Company has no material exposure to sub-prime mortgage loans and less than 3.69% of the fixed income investment portfolio is rated below investment grade. In evaluating whether or not the equity loss positions were other-than-temporary impairments, Management evaluated financial information on each company and where available, reviewed analyst reports from at least two independent sources. Based on a review of the available financial information, the prospect for future earnings of each company and consideration of the Company’s intent and ability to hold the securities until market values recovered, it was determined that the securities in an accumulated loss position in the portfolio were temporary impairments.

For the three months ended March 31, 2015 and year ended December 31, 2014, the Company realized no other-than-temporary impairments.

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



	Three months ended March 31,
	2015		2014
Fixed maturities	$	894	$	859
Equity securities	30		29
Mortgage loans on real estate	4		4
Investment real estate	2		2
Policy loans	29		27
Company owned life insurance change in surrender value	44		30
Other	42		54
	1,045		1,005
Less: Investment expenses	71		57
Net investment income	$	974	$	948

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



	Three months ended March 31,
	2015		2014
Fixed maturities	$	142	$	90
Other, principally real estate	—		(2		)
Net realized investment gains	$	142	$	88

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



	March 31, 2015			December 31, 2014
Net change in unrealized appreciation on available-for-sale securities before deferred tax	$	553		$	3,123
Deferred income tax	(188		)	(1,062		)
Net change in unrealized appreciation on available-for-sale securities	$	365		$	2,061