INVESTMENTS

The amortized cost and aggregate fair values of investments in available-for-sale securities as of June 30, 2015 are as follows (dollars in thousands):



Available-for-sale securities:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Corporate debt securities	$	32,203	$	1,100	$	464	$	32,839
Mortgage backed securities	12,037		182		169		12,050
Private label mortgage backed securities	6,629		32		94		6,567
Obligations of states and political subdivisions	15,146		829		50		15,925
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	18,941		482		156		19,267
Total fixed maturities	84,956		2,625		933		86,648
Equity securities	2,420		2,568		149		4,839
Total	$	87,376	$	5,193	$	1,082	$	91,487

The amortized cost and aggregate fair values of investments in held-to-maturity securities as of June 30, 2015 are as follows (dollars in thousands):



Held-to-maturity securities:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Mortgage backed securities	$	2,595	$	71	$	—	$	2,666
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	54		4		—		58
Total	$	2,649	$	75	$	—	$	2,724

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 June 30, 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	$	808	$	813
Due after one year through five years	13,319		14,014
Due after five years through ten years	28,913		29,116
Due after ten years	41,916		42,705
Total	$	84,956	$	86,648

Held-to-maturity securities:
Due in one year or less	$	—	$	—
Due after one year through five years	117		122
Due after five years through ten years	120		132
Due after ten years	2,412		2,470
Total	$	2,649	$	2,724

A summary of securities available-for-sale with unrealized losses as of June 30, 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
June 30, 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	$	10,343	$	315	$	2,582	$	149	$	12,925	$	464	27
Mortgage backed securities	4,364		55		1,135		114		5,499		169		14
Private label mortgage backed securities	4,526		92		84		2		4,610		94		7
Obligations of state and political subdivisions	865		38		330		12		1,195		50		3
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	4,264		82		2,442		74		6,706		156		13
Equity securities	—		—		1,137		149		1,137		149		1
	$	24,362	$	582	$	7,710	$	500	$	32,072	$	1,082	65

There were no securities held-to-maturity with unrealized losses as of June 30, 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 2.84% 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 six months ended June 30, 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 June 30,					Six months ended June 30,
	2015			2014		2015			2014
Fixed maturities	$	868		$	857	$	1,762		$	1,716
Equity securities	30			29		60			58
Mortgage loans on real estate	4			3		8			7
Investment real estate	2			1		4			3
Policy loans	30			28		59			55
Company owned life insurance change in surrender value	(96		)	108		(52		)	138
Other	33			74		75			128
	871			1,100		1,916			2,105
Less: Investment expenses	87			70		158			127
Net investment income	$	784		$	1,030	$	1,758		$	1,978

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



	Three months ended June 30,					Six months ended June 30,
	2015			2014		2015			2014
Fixed maturities	$	250		$	159	$	392		$	249
Other, principally real estate	(5		)	153		(5		)	151
Net realized investment gains	$	245		$	312	$	387		$	400

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



	June 30, 2015			December 31, 2014
Net change in unrealized appreciation on available-for-sale securities before deferred tax	$	(1,326	)	$	3,123
Deferred income tax	451			(1,062		)
Net change in unrealized appreciation on available-for-sale securities	$	(875	)	$	2,061