Our investment in available-for-sale securities, which are reported at fair value, includes fixed maturity securities and equity securities. Net unrealized gains or losses on fixed maturities are reported after-tax as a component of other comprehensive income. Changes in fair value of equity securities are reported in investment gains/losses as a component of net income.


($ in thousands) Available-for-sale securities:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Government corporations and agencies	$	5,170	$	219	$	8	$	5,381


Agency mortgage backed securities	19,587		432		164		19,855
Asset backed securities	5,933		99		4		6,028
Private label mortgage backed securities	2,954		19		19		2,954
Corporate bonds	50,327		3,017		369		52,975

States, municipalities and political subdivisions	8,622		154		49		8,727

Total Fixed Maturities	92,593		3,940		613		95,920
Equity securities	1,761		3,076		—		4,837
Total	$	94,354	$	7,016	$	613	$	100,757


($ in thousands) Held-to-maturity securities:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value

Agency mortgage backed securities	$	632	$	50	$	—	$	682



Total	$	632	$	50	$	—	$	682


($ in thousands) Available-for-sale securities:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Government corporations and agencies	$	4,300	$	323	$	9	$	4,614
Agency mortgage backed securities	19,773		919		63		20,629
Asset backed securities	8,233		137		27		8,343
Private label mortgage backed securities	1,418		50		55		1,413
Corporate bonds	35,930		3,771		50		39,651
States, municipalities and political subdivisions	6,587		189		27		6,749

Total Fixed Maturities	76,241		5,389		231		81,399
Equity securities	1,918		2,832		—		4,750
Total	$	78,159	$	8,221	$	231	$	86,149


($ in thousands) Held-to-maturity securities:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Agency mortgage backed securities	$	873	$	73	$	—	$	946



Total	$	873	$	73	$	—	$	946

The amortized cost and aggregate fair value of debt securities at September 30, 2021, by contractual maturity, are presented in the following table. 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.



($ in thousands)	Amortized Cost		Fair Value
Available-for-sale securities:
Due in one year or less	$	1,702	$	1,725
Due after one year through five years	22,218		23,293
Due after five years through ten years	22,800		23,741
Due after ten years	45,873		47,161
Total	$	92,593	$	95,920

Held-to-maturity securities:

Due after one year through five years	$	10	$	10
Due after five years through ten years	3		3
Due after ten years	619		669
Total	$	632	$	682

A summary of securities available-for-sale with unrealized losses as of September 30, 2021, 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:


($ in thousands)	Less than 12 months				12 months or longer				Total
September 30, 2021	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	$	1,821	$	8	$	—	$	—	$	1,821	$	8	2
Agency mortgage backed securities	8,272		164		—		—		8,272		164		16
Asset backed securities	2,156		4		—		—		2,156		4		3
Private label mortgage backed securities	2,019		19		—		—		2,019		19		2
Corporate bonds	8,690		369		—		—		8,690		369		14



States, municipalities and political subdivisions	2,225		32		789		17		3,014		49		4



	$	25,183	$	596	$	789	$	17	$	25,972	$	613	41

A summary of securities available-for-sale with unrealized losses as of December 31, 2020, 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:


($ in thousands)	Less than 12 months				12 months or longer				Total
December 31, 2020	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	$	666	$	9	$	—	$	—	$	666	$	9	1
Agency mortgage backed securities	2,264		56		2		7		2,266		63		8
Asset backed securities	1,737		27		—		—		1,737		27		2
Private label mortgage backed securities	891		55		—		—		891		55		1
Corporate bonds	2,467		45		495		5		2,962		50		5



States, municipalities and political subdivisions	1,713		27		—		—		1,713		27		3



	$	9,738	$	219	$	497	$	12	$	10,235	$	231	20

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 in the fixed maturity investment portfolio. The Company has no material exposure to sub-prime mortgage loans and approximately 7% of the fixed income investment portfolio is rated below investment grade. 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 nine months ended September 30, 2021, the Company realized no other-than-temporary impairments. For the year ended December 31, 2020, the Company realized $180,000 other-than-temporary impairments. At September 30, 2021, the three largest losses not realized as an impairment in the fixed maturity portfolio totaled $105,000, $44,000 and $42,000. After evaluation by management, it was determined that each of these losses were driven by changes in market interest rates. Management currently has the intent and ability to hold these investments until recovery so no other-than-temporary impairments were recognized. At December 31, 2020, the three largest losses not realized as an impairment in the fixed maturity portfolio totaled $55,000, $37,000 and $27,000.


($ in thousands)	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Fixed maturities	$	824	$	824	$	2,414	$	2,696
Equity securities	21		30		91		102
Mortgage loans on real estate	1		1		5		5
Investment real estate	—		—		—		1
Policy loans	34		36		103		108

Other	8		28		23		6
	888		919		2,636		2,918
Less: Investment expenses	36		35		113		109
Net investment income	$	852	$	884	$	2,523	$	2,809


($ in thousands)	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Realized gains on fixed maturities	$	—	$	1,091	$	106	$	1,107
Realized gains on equity securities	—		—		357		—
Gains (losses) on trading securities	—		5		13		(1)
Change in fair value of equity securities	46		223		244		(272)
Change in surrender value of company owned life insurance	(35)		125		26		165

Other gains (losses) principally real estate	—		(14)		6		(11)

Net investment gains	$	11	$	1,430	$	752	$	988


($ in thousands)	September 30, 2021		September 30, 2020
Fixed maturities	$	(1,830)	$	1,277
Deferred income tax	384		(268)
Change in net unrealized gains (losses) on available-for-sale securities	$	(1,446)	$	1,009