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INVESTMENTS
 12 Months Ended
Dec. 31, 2021
Investments [Abstract]  
INVESTMENTS INVESTMENTS
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 (loss). Changes in fair value of equity securities are reported in investment gains/losses as a component of net income.

The amortized cost and aggregate fair values of investments in available-for-sale securities as of December 31, 2021 are as follows:
($ in thousands)

Available-for-sale securities:
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
U.S. Government corporations and agencies$5,171 $173 $19 $5,325 
Agency mortgage backed securities18,407 333 217 18,523 
Asset backed securities4,710 63 17 4,756 
Private label mortgage backed securities2,878 17 38 2,857 
Corporate bonds51,391 2,635 418 53,608 
States, municipalities and political subdivisions9,629 131 86 9,674 
Total Fixed Maturities92,186 3,352 795 94,743 
Equity securities1,609 2,368 — 3,977 
Total$93,795 $5,720 $795 $98,720 
The amortized cost and aggregate fair values of investments in held-to-maturity securities as of December 31, 2021 are as follows:
($ in thousands)

Held-to-maturity securities:
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
Agency mortgage backed securities$608 $42 $— $650 
Total$608 $42 $— $650 


The amortized cost and aggregate fair values of investments in available-for-sale securities as of December 31, 2020 are as follows:

($ 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 securities19,773 919 63 20,629 
Asset backed securities8,233 137 27 8,343 
Private label mortgage backed securities1,418 50 55 1,413 
Corporate bonds35,930 3,771 50 39,651 
States, municipalities and political subdivisions6,587 189 27 6,749 
Total Fixed Maturities76,241 5,389 231 81,399 
Equity securities1,918 2,832 — 4,750 
Total$78,159 $8,221 $231 $86,149 

The amortized cost and aggregate fair values of investments in held-to-maturity securities as of December 31, 2020 are as follows:
($ 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 December 31, 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$3,002 $3,032 
Due after one year through five years22,179 23,092 
Due after five years through ten years21,780 22,543 
Due after ten years45,225 46,076 
Total$92,186 $94,743 
Held-to-maturity securities:  
Due after one year through five years$8 $8 
Due after five years through ten years3 3 
Due after ten years597 639 
Total$608 $650 


A summary of securities available-for-sale with unrealized losses as of December 31, 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 months12 months or longerTotal
December 31, 2021Fair
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$1,814 $19 $— $— $1,814 $19 2
Agency mortgage backed securities10,129 217 — — 10,129 217 19
Asset backed securities1,501 17 — — 1,501 17 3
Private label mortgage backed securities1,963 38 — — 1,963 38 2
Corporate bonds11,121 418 — — 11,121 418 18
States, municipalities and political subdivisions3,629 77 798 9 4,427 86 7
 $30,157 $786 $798 $9 $30,955 $795 51

There were no securities held-to-maturity with unrealized losses as of December 31, 2021.

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 months12 months or longerTotal
December 31, 2020Fair
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 securities2,264 56 2 7 2,266 63 8
Asset backed securities1,737 27 — — 1,737 27 2
Private label mortgage backed securities891 55 — — 891 55 1
Corporate bonds2,467 45 495 5 2,962 50 5
States, municipalities and political subdivisions1,713 27 — — 1,713 27 3
 $9,738 $219 $497 $12 $10,235 $231 20

There were no securities held-to-maturity with unrealized losses as of December 31, 2020.

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 (loss), 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 6% 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 year ended December 31, 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 December 31, 2021, the three largest losses not realized as an impairment in the fixed maturity portfolio totaled $105,000, $44,000 and $39,000. 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 $27,000.
Major categories of investment income are summarized as follows:
($ in thousands)Year ended
December 31,
20212020
Fixed maturities$3,222 $3,482 
Equity securities114 128 
Mortgage loans on real estate7 7 
Investment real estate— 1 
Policy loans137 143 
Other47 15 
3,527 3,776 
Less: Investment expenses144 143 
Net investment income$3,383 $3,633 

Major categories of investment gains (losses) are summarized as follows:
($ in thousands)Year ended
December 31,
20212020
Realized gains on fixed maturities$111 $1,361 
Realized gains on equity securities1,237 426 
Gains on trading securities3 13 
Change in fair value of equity securities(464)(344)
Change in surrender value of company owned life insurance71 343 
Other gains (losses) principally real estate(73)4 
Other-than-temporary impairments— (180)
Net investment gains$885 $1,623 


An analysis of the net change in unrealized gains (losses) on available-for-sale securities follows:
($ in thousands)December 31,
2021		December 31,
2020
Fixed maturities$(2,599)$2,000 
Deferred income tax546 (420)
Change in net unrealized gains (losses) on available-for-sale securities$(2,053)$1,580