INVESTMENTS (Tables)

6 Months Ended

Jun. 30, 2019

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 June 30, 2019 are as follows (dollars in thousands):



Available-for-sale securities:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Government corporations and agencies	$	4,164	$	128	$	19	$	4,273
Agency mortgage backed securities	31,662		1,101		119		32,644
Asset backed securities	11,176		37		170		11,043
Private label mortgage backed securities	7,164		456		—		7,620
Corporate bonds	37,035		1,321		248		38,108
States, municipalities and political subdivisions	8,071		133		2		8,202
Foreign governments	812		42		—		854
Total fixed maturities	100,084		3,218		558		102,744
Equity securities	1,849		2,616		—		4,465
Total	$	101,933	$	5,834	$	558	$	107,209

The amortized cost and aggregate fair values of investments in available-for-sale securities as of December 31, 2018 are as follows (dollars in thousands):



Available-for-sale securities:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Government corporations and agencies	$	4,820	$	31	$	107	$	4,744
Agency mortgage backed securities	27,492		159		545		27,106
Asset backed securities	10,901		7		248		10,660
Private label mortgage backed securities	5,869		105		27		5,947
Corporate bonds	36,935		407		1,551		35,791
States, municipalities and political subdivisions	10,059		105		91		10,073
Foreign governments	801		3		—		804
Total fixed maturities	96,877		817		2,569		95,125
Equity securities	1,842		2,464		—		4,306
Total	$	98,719	$	3,281	$	2,569	$	99,431

Schedule of Held-to-Maturity Securities

The amortized cost and aggregate fair values of investments in held-to-maturity securities as of June 30, 2019 are as follows (dollars in thousands):



Held-to-maturity securities:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Agency mortgage backed securities	$	1,388	$	54	$	—	$	1,442
Total	$	1,388	$	54	$	—	$	1,442

The amortized cost and aggregate fair values of investments in held-to-maturity securities as of December 31, 2018 are as follows (dollars in thousands):



Held-to-maturity securities:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Agency mortgage backed securities	$	1,449	$	16	$	22	$	1,443
Total	$	1,449	$	16	$	22	$	1,443

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, 2019, by contractual maturity, are presented in the following table (dollars in thousands). Expected maturities will differ from contractual maturities because issuers 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	$	1,878	$	1,890
Due after one year through five years	17,029		17,432
Due after five years through ten years	27,236		27,764
Due after ten years	53,941		55,658
Total	$	100,084	$	102,744

Held-to-maturity securities:
Due in one year or less	$	—	$	—
Due after one year through five years	36		38
Due after five years through ten years	4		5
Due after ten years	1,348		1,399
Total	$	1,388	$	1,442

Schedule of Securities with Unrealized Losses

A summary of securities available-for-sale with unrealized losses as of June 30, 2019, 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, 2019	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Total Securities in a Loss Position
U.S. Government corporations and agencies	$	—	$	—	$	500	$	19	$	500	$	19	1
Agency mortgage backed securities	1,032		11		4,895		108		5,927		119		15
Asset backed securities	3,282		65		4,908		105		8,190		170		12
Corporate bonds	2,188		61		6,297		187		8,485		248		15
States, municipalities and political subdivisions	—		—		520		2		520		2		1
	$	6,502	$	137	$	17,120	$	421	$	23,622	$	558	44

There were no securities held-to-maturity with unrealized losses as of June 30, 2019.

A summary of securities available-for-sale with unrealized losses as of December 31, 2018, 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, 2018	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Total Securities in a Loss Position
U.S. Government corporations and agencies	$	—	$	—	$	3,209	$	107	$	3,209	$	107	6
Agency mortgage backed securities	5,504		45		10,969		500		16,473		545		38
Asset backed securities	5,824		146		2,741		102		8,565		248		12
Private label mortgage backed securities	1,348		27		—		—		1,348		27		2
Corporate bonds	16,583		709		9,823		842		26,406		1,551		51
States, municipalities and political subdivisions	1,242		10		4,420		81		5,662		91		11
	$	30,501	$	937	$	31,162	$	1,632	$	61,663	$	2,569	120

A summary of securities held-to-maturity with unrealized losses as of December 31, 2018 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:



	Less than 12 months				12 months or longer				Total
December 31, 2018	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Total Securities in a Loss Position
Agency mortgage backed securities	$	1,026	$	22	$	—	$	—	$	1,026	$	22	2
	$	1,026	$	22	$	—	$	—	$	1,026	$	22	2

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,
	2019		2018		2019		2018
Fixed maturities	$	934	$	963	$	1,871	$	1,854
Equity securities	20		20		47		40
Mortgage loans on real estate	2		2		4		4
Investment real estate	1		—		3		1
Policy loans	35		35		69		70
Other	4		7		7		15
	996		1,027		2,001		1,984
Less: Investment expenses	39		32		82		69
Net investment income	$	957	$	995	$	1,919	$	1,915

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,
	2019		2018			2019		2018
Realized gains on fixed maturities	$	5	$	48		$	15	$	129
Gains (losses) on trading securities	5		—			8		—
Change in fair value of equity securities	26		(163		)	152		(369		)
Change in surrender value of company owned life insurance	81		3			270		(136		)
Realized gain on company owned life insurance	—		—			1,792		—
Other, principally real estate	—		(88		)	—		(88		)
Net investment gains (losses)	$	117	$	(200	)	$	2,237	$	(464	)

Schedule of Net Change in Unrealized Appreciation

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



	June 30, 2019			December 31, 2018
Fixed maturities	$	4,412		$	(3,042	)
Deferred income tax	(926		)	638
Change in net unrealized gains (losses) on available-for-sale securities	$	3,486		$	(2,404	)