Note 3 — Investments

The Company holds investments in both fixed-maturity securities and equity securities classified as available-for-sale. At March 31, 2014 and December 31, 2013, the amortized cost, gross unrealized gains and losses, and estimated fair value of the Company’s available-for-sale securities by security type were as follows:


	Cost or Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss			Estimated Fair Value
*As of March 31, 2014*
Fixed-maturity securities
U.S. Treasury and U.S. government agencies	$	4,351	$	103	$	(1	)	$	4,453
Corporate bonds		30,062		781		(71	)		30,772
Commercial mortgage-backed securities		10,867		470		(59	)		11,278
State, municipalities, and political subdivisions		80,877		2,234		(66	)		83,045
Redeemable preferred stock		3,523		46		(4	)		3,565

Total		129,680		3,634		(201	)		133,113
Equity securities		22,174		1,113		(415	)		22,872

Total available-for-sale securities	$	151,854	$	4,747	$	(616	)	$	155,985


*As of December 31, 2013*
Fixed-maturity securities
U.S. Treasury and U.S. government agencies	$	4,549	$	37	$	(22	)	$	4,564
Corporate bonds		25,139		484		(219	)		25,404
Commercial mortgage-backed securities		10,929		499		(96	)		11,332
State, municipalities, and political subdivisions		69,715		917		(181	)		70,451
Redeemable preferred stock		406		5		(11	)		400

Total		110,738		1,942		(529	)		112,151
Equity securities		17,248		920		(519	)		17,649

Total available-for-sale securities	$	127,986	$	2,862	$	(1,048	)	$	129,800

At March 31, 2014 and December 31, 2013, $108 and $105, respectively, of U.S. Treasury securities relate to a statutory deposit held in trust with the Treasurer of Alabama.

Expected maturities will differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties. The scheduled contractual maturities of fixed-maturity securities at March 31, 2014 and December 31, 2013 are as follows:


	Amortized Cost		Estimated Fair Value
*As of March 31, 2014*
Available-for-sale
Due in one year or less	$	3,347	$	3,402
Due after one year through five years		31,570		32,140
Due after five years through ten years		69,097		70,901
Due after ten years		14,799		15,392
Commercial mortgage-backed securities		10,867		11,278

	$	129,680	$	133,113


*As of December 31, 2013*
Available-for-sale
Due in one year or less	$	2,366	$	2,381
Due after one year through five years		24,829		25,145
Due after five years through ten years		59,083		59,582
Due after ten years		13,531		13,711
Commercial mortgage-backed securities		10,929		11,332

	$	110,738	$	112,151

Investment Sales

Proceeds received, and the gross realized gains and losses, from sales of available-for-sale securities for the three months ended March 31, 2014 and 2013 were as follows:


	Proceeds		Gross Realized Gains		Gross Realized Losses
Three months ended March 31, 2014
Fixed-maturity securities	$	1,691	$	65	$	(9	)

Equity securities	$	2,764	$	75	$	(127	)


Three months ended March 31, 2013
Fixed-maturity securities	$	1,037	$	32	$	—

Equity securities	$	361	$	20	$	(32	)

Other-than-temporary Impairment (“OTTI”)

The Company regularly reviews its individual investment securities for OTTI. The Company considers various factors in determining whether each individual security is other-than-temporarily-impaired, including:

•

the financial condition and near-term prospects of the issuer, including any specific events that may affect its operations or earnings;

•

the length of time and the extent to which the market value of the security has been below its cost or amortized cost;

•

general market conditions and industry or sector specific factors;

•

nonpayment by the issuer of its contractually obligated interest and principal payments; and

•

the Company’s intent and ability to hold the investment for a period of time sufficient to allow for the recovery of costs.

Securities with gross unrealized loss positions at March 31, 2014 and December 31, 2013, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows:


	Less Than Twelve Months					Twelve Months or Greater					Total
As of March 31, 2014	Gross Unrealized Loss			Estimated Fair Value		Gross Unrealized Loss			Estimated Fair Value		Gross Unrealized Loss			Estimated Fair Value

Fixed-maturity securities
U.S. treasury and U.S. government agencies	$	(1	)	$	310	$	—		$	—	$	(1	)	$	310
Corporate bonds		(67	)		3,232		(4	)		230		(71	)		3,462
Commercial mortgage-backed securities		(37	)		1,957		(22	)		338		(59	)		2,295
State, municipalities, and political subdivisions		(36	)		6,071		(30	)		193		(66	)		6,264
Redeemable preferred stock		(4	)		483		—			—		(4	)		483

Total fixed-maturity securities		(145	)		12,053		(56	)		761		(201	)		12,814
Equity securities		(202	)		10,266		(213	)		1,090		(415	)		11,356

Total available-for-sale securities	$	(347	)	$	22,319	$	(269	)	$	1,851	$	(616	)	$	24,170


	Less Than Twelve Months					Twelve Months or Greater					Total
As of December 31, 2013	Gross Unrealized Loss			Estimated Fair Value		Gross Unrealized Loss			Estimated Fair Value		Gross Unrealized Loss			Estimated Fair Value

Fixed-maturity securities
U.S. treasury and U.S. government agencies	$	(22	)	$	3,291	$	—		$	—	$	(22	)	$	3,291
Corporate bonds		(212	)		9,502		(7	)		230		(219	)		9,732
Commercial mortgage-backed securities		(96	)		2,179		—			—		(96	)		2,179
State, municipalities, and political subdivisions		(181	)		20,233		—			—		(181	)		20,233
Redeemable preferred stock		(11	)		239		—			—		(11	)		239

Total fixed-maturity securities		(522	)		35,444		(7	)		230		(529	)		35,674
Equity securities		(273	)		10,742		(246	)		1,069		(519	)		11,811

Total available-for-sale securities	$	(795	)	$	46,186	$	(253	)	$	1,299	$	(1,048	)	$	47,485

The Company believes there were no fundamental issues such as credit losses or other factors with respect to any of its available-for-sale securities. The unrealized losses on investments in fixed-maturity securities were caused primarily by interest rate changes. It is expected that the securities would not be settled at a price less than the par value of the investments. In determining whether equity securities are other than temporarily impaired, the Company considers its intent and ability to hold a security for a period of time sufficient to allow for the recovery of cost. Because the declines in fair value are attributable to changes in interest rates or market conditions and not credit quality, and because the Company has the ability and intent to hold its available-for-sale investments until a market price recovery or maturity, the Company does not consider any of its investments to be other than temporarily impaired at March 31, 2014.

Other Investments

Other investments consist of the following as of March 31, 2014 and December 31, 2013:


	March 31, 2014			December 31, 2013
Land	$	11,476		$	11,299
Land improvements		1,399			1,351
Buildings		3,097			3,022
Other		1,281			1,262

Total, at cost		17,253			16,934
Less: accumulated depreciation and amortization		(803	)		(706	)

Other investments	$	16,450		$	16,228

Depreciation and amortization expense related to other investments was $98 and $95, respectively, for the three months ended March 31, 2014 and 2013.