INVESTMENTS

The amortized cost and aggregate fair values of investments in available-for-sale securities as of March 31, 2017 are as follows (dollars in thousands):



Available-for-sale securities:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Corporate debt securities	$	39,724	$	952	$	747	$	39,929
Mortgage backed securities	10,431		110		233		10,308
Private label asset backed securities	10,032		53		63		10,022
Obligations of states and political subdivisions	14,745		524		100		15,169
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	17,340		188		259		17,269
Total fixed maturities	92,272		1,827		1,402		92,697
Equity securities	2,343		2,652		—		4,995
Total	$	94,615	$	4,479	$	1,402	$	97,692

The amortized cost and aggregate fair values of investments in held-to-maturity securities as of March 31, 2017 are as follows (dollars in thousands):



Held-to-maturity securities:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Mortgage backed securities	$	1,795	$	32	$	—	$	1,827
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	7		1		—		8
Total	$	1,802	$	33	$	—	$	1,835

The amortized cost and aggregate fair values of investments in available-for-sale securities as of December 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	$	40,533	$	748	$	878	$	40,403
Mortgage backed securities	10,970		134		173		10,931
Private label asset backed securities	7,910		29		165		7,774
Obligations of states and political subdivisions	14,806		507		147		15,166
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	18,618		208		308		18,518
Total fixed maturities	92,837		1,626		1,671		92,792
Equity securities	2,343		2,628		28		4,943
Total	$	95,180	$	4,254	$	1,699	$	97,735

The amortized cost and aggregate fair values of investments in held-to-maturity securities as of December 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	$	1,863	$	38	$	—	$	1,901
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	27		2		—		29
Total	$	1,890	$	40	$	—	$	1,930

The amortized cost and aggregate fair value of debt securities at March 31, 2017, 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	$	2,830	$	2,873
Due after one year through five years	14,979		14,933
Due after five years through ten years	33,246		33,644
Due after ten years	41,217		41,247
Total	$	92,272	$	92,697

Held-to-maturity securities:
Due in one year or less	$	13	$	13
Due after one year through five years	9		9
Due after five years through ten years	75		82
Due after ten years	1,705		1,731
Total	$	1,802	$	1,835

A summary of securities available-for-sale with unrealized losses as of March 31, 2017, 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, 2017	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	$	12,090	$	262	$	2,587	$	485	$	14,677	$	747	28
Mortgage backed securities	2,864		107		937		126		3,801		233		15
Private label asset backed securities	3,100		50		674		13		3,774		63		6
Obligations of state and political subdivisions	3,609		100		—		—		3,609		100		8
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	11,109		238		272		21		11,381		259		17
	$	32,772	$	757	$	4,470	$	645	$	37,242	$	1,402	74

There were no securities held-to-maturity with unrealized losses as of March 31, 2017.

A summary of securities available-for-sale with unrealized losses as of December 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
December 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	$	14,036	$	396	$	2,594	$	482	$	16,630	$	878	33
Mortgage backed securities	4,235		84		847		89		5,082		173		16
Private label asset backed securities	1,774		53		3,261		112		5,035		165		11
Obligations of state and political subdivisions	4,154		147		—		—		4,154		147		9
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	11,421		294		291		14		11,712		308		16
Equity securities	—		—		1,258		28		1,258		28		1
	$	35,620	$	974	$	8,251	$	725	$	43,871	$	1,699	86

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

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 approximately 6.78% 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, 2017 and year ended December 31, 2016, the Company realized no other-than-temporary impairments. At December 31, 2016, the single largest loss not realized as an impairment was in the bond portfolio and totaled $344,000. The second largest loss position was in the bond portfolio and totaled $100,000. The third largest loss position was in the bond portfolio and totaled $83,000. At December 31, 2016, the single largest loss not realized as an impairment was in the bond portfolio and totaled $340,000. The second largest loss position was in the bond portfolio and totaled $85,000. The third largest loss position was in the bond portfolio and totaled $66,000.

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



	Quarter ended March 31,
	2017		2016
Fixed maturities	$	817	$	901
Equity securities	24		28
Mortgage loans on real estate	2		1
Investment real estate	2		2
Policy loans	33		32
Company owned life insurance change in surrender value	43		34
Other	45		49
	966		1,047
Less: Investment expenses	40		56
Net investment income	$	926	$	991

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



	Quarter ended March 31,
	2017		2016
Fixed maturities	$	160	$	17
Other, principally real estate	—		(10		)
Net realized investment gains	$	160	$	7

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



	March 31, 2017			December 31, 2016
Net change in unrealized appreciation on available-for-sale securities before deferred tax	$	522		$	343
Deferred income tax	(178		)	(117		)
Net change in unrealized appreciation on available-for-sale securities	$	344		$	226