INVESTMENTS

The amortized cost and aggregate fair values of investments in available-for-sale securities as of March 31, 2016 are as follows (dollars in thousands):



Available-for-sale securities:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Corporate debt securities	$	38,378	$	1,157	$	1,173	$	38,362
Mortgage backed securities	14,212		370		103		14,479
Private label asset backed securities	8,866		40		631		8,275
Obligations of states and political subdivisions	13,933		938		3		14,868
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	18,601		744		10		19,335
Total fixed maturities	93,990		3,249		1,920		95,319
Equity securities	2,420		2,747		110		5,057
Total	$	96,410	$	5,996	$	2,030	$	100,376

The amortized cost and aggregate fair values of investments in held-to-maturity securities as of March 31, 2016 are as follows (dollars in thousands):



Held-to-maturity securities:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Mortgage backed securities	$	2,332	$	102	$	—	$	2,434
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	38		3		—		41
Total	$	2,370	$	105	$	—	$	2,475

The amortized cost and aggregate fair values of investments in available-for-sale securities as of December 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	$	38,245	$	747	$	1,728	$	37,264
Mortgage backed securities	15,324		157		224		15,257
Private label asset backed securities	6,029		24		380		5,673
Obligations of states and political subdivisions	14,654		869		47		15,476
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	17,825		413		96		18,142
Total fixed maturities	92,077		2,210		2,475		91,812
Equity securities	2,420		2,590		113		4,897
Total	$	94,497	$	4,800	$	2,588	$	96,709

The amortized cost and aggregate fair values of investments in held-to-maturity securities as of December 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	$	2,395	$	62	$	—	$	2,457
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	44		3		—		47
Total	$	2,439	$	65	$	—	$	2,504

The amortized cost and aggregate fair value of debt securities at March 31, 2016, 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	$	2,038	$	2,069
Due after one year through five years	15,799		16,127
Due after five years through ten years	34,131		33,956
Due after ten years	42,022		43,167
Total	$	93,990	$	95,319

Held-to-maturity securities:
Due in one year or less	$	—	$	—
Due after one year through five years	66		69
Due after five years through ten years	99		108
Due after ten years	2,205		2,298
Total	$	2,370	$	2,475

A summary of securities available-for-sale with unrealized losses as of March 31, 2016, 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, 2016	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	$	8,769	$	284	$	4,349	$	889	$	13,118	$	1,173	25
Mortgage backed securities	2,393		79		710		24		3,103		103		11
Private label asset backed securities	4,985		414		1,790		217		6,775		631		10
Obligations of state and political subdivisions	—		—		339		3		339		3		1
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	995		3		352		7		1,347		10		3
Equity securities	—		—		1,176		110		1,176		110		1
	$	17,142	$	780	$	8,716	$	1,250	$	25,858	$	2,030	51

There were no securities held-to-maturity with unrealized losses as of March 31, 2016.

A summary of securities available-for-sale with unrealized losses as of December 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
December 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	$	18,205	$	821	$	3,783	$	907	$	21,988	$	1,728	44
Mortgage backed securities	9,069		161		675		63		9,744		224		20
Private label asset backed securities	4,962		379		84		1		5,046		380		10
Obligations of state and political subdivisions	1,920		36		331		11		2,251		47		5
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	6,131		70		1,452		26		7,583		96		12
Equity securities	—		—		1,173		113		1,173		113		1
	$	40,287	$	1,467	$	7,498	$	1,121	$	47,785	$	2,588	92

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

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 5.14% 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, 2016 and year ended December 31, 2015, the Company realized no other-than-temporary impairments. At March 31, 2016, the single largest loss not realized as an impairment was in the bond portfolio and totaled $247,000. The second largest loss position was in the bond portfolio and totaled $245,000. The third largest loss position was in the bond portfolio and totaled $196,000. At December 31, 2015, the single largest loss not realized as an impairment was in the bond portfolio and totaled $252,000. The second largest loss position was in the bond portfolio and totaled $211,000. The third largest loss position was in the bond portfolio and totaled $186,000.

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



	Three months ended March 31,
	2016		2015
Fixed maturities	$	901	$	894
Equity securities	28		30
Mortgage loans on real estate	1		4
Investment real estate	2		2
Policy loans	32		29
Company owned life insurance change in surrender value	34		44
Other	49		42
	1,047		1,045
Less: Investment expenses	56		43
Net investment income	$	991	$	1,002

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



	Three months ended March 31,
	2016			2015
Fixed maturities	$	17		$	142
Other, principally real estate	(10		)	—
Net realized investment gains	$	7		$	142

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



	March 31, 2016			December 31, 2015
Net change in unrealized appreciation on available-for-sale securities before deferred tax	$	1,754		$	(3,225	)
Deferred income tax	(596		)	1,097
Net change in unrealized appreciation on available-for-sale securities	$	1,158		$	(2,128	)