Investments

The cost or amortized cost, gross unrealized gain or loss, and estimated fair value of the investments in securities classified as available-for-sale at September 30, 2016 and December 31, 2015 were as follows (dollars in thousands):



	September 30, 2016
	Cost or Amortized Cost		Gross Unrealized					Estimated Fair Value
			Gains		Losses
Fixed Maturity Securities:
U.S. Government obligations	$	5,862	$	55	$	(1	)	$	5,916
State and local government	11,472		469		(10		)	11,931
Corporate debt	34,261		441		(33		)	34,669
Commercial mortgage-backed and other asset-backed	60,665		671		(11		)	61,325
Total fixed maturity securities available for sale	112,260		1,636		(55		)	113,841
Equity Securities:
Common stocks - Public Utilities	172		37		—			209
Common stocks - Banks, Trusts and Insurance Companies	455		164		(1		)	618
Common stocks - Industrial, miscellaneous and all other	2,744		963		(34		)	3,673
Total equity securities available for sale	3,371		1,164		(35		)	4,500
Total securities available for sale	$	115,631	$	2,800	$	(90	)	$	118,341



	December 31, 2015
	Cost or Amortized Cost		Gross Unrealized					Estimated Fair Value
			Gains		Losses
Fixed Maturity Securities:
U.S. Government obligations	$	5,474	$	47	$	(13	)	$	5,508
State and local government	14,391		398		(6		)	14,783
Corporate debt	39,183		84		(483		)	38,784
Commercial mortgage-backed and other asset-backed	48,165		164		(311		)	48,018
Total fixed maturity securities available for sale	107,213		693		(813		)	107,093
Equity Securities:
Common stocks - Public Utilities	122		20		(1		)	141
Common stocks - Banks, Trusts and Insurance Companies	503		150		(7		)	646
Common stocks - Industrial, miscellaneous and all other	2,716		836		(99		)	3,453
Total equity securities available for sale	3,341		1,006		(107		)	4,240
Total securities available for sale	$	110,554	$	1,699	$	(920	)	$	111,333

The following table summarizes the aggregate fair value and gross unrealized losses, by security type, of the available-for-sale securities in unrealized loss positions. The table segregates the holdings based on the length of time that individual securities have been in a continuous unrealized loss position, as follows (dollars in thousands):



	September 30, 2016
	Less than 12 months						Greater than 12 months						Total
	# of Issues	Fair Value of Investments with Unrealized Losses		Gross Un realized Losses			# of Issues	Fair Value of Investments with Unrealized Losses		Gross Un realized Losses			# of Issues	Fair Value of Investments with Unrealized Losses		Gross Un realized Losses
Fixed Maturity Securities:
U.S. Government obligations	5	$	1,569	$	(1	)	—	$	—	$	—		5	$	1,569	$	(1	)
State and local government	3	540		(10		)	—	—		—			3	540		(10		)
Corporate debt	7	2,275		(10		)	9	3,989		(23		)	16	6,264		(33		)
Commercial mortgage and asset-backed	7	2,206		(8		)	5	998		(3		)	12	3,204		(11		)
Total fixed maturity securities available for sale	22	6,590		(29		)	14	4,987		(26		)	36	11,577		(55		)
Equity Securities:
Common stocks	22	338		(24		)	5	189		(11		)	27	527		(35		)
Total equity securities available for sale	22	338		(24		)	5	189		(11		)	27	527		(35		)
Total securities	44	$	6,928	$	(53	)	19	$	5,176	$	(37	)	63	$	12,104	$	(90	)



	December 31, 2015
	Less than 12 months						Greater than 12 months						Total
	# of Issues	Fair Value of Investments with Unrealized Losses		Gross Un realized Losses			# of Issues	Fair Value of Investments with Unrealized Losses		Gross Un realized Losses			# of Issues	Fair Value of Investments with Unrealized Losses		Gross Un realized Losses
Fixed Maturity Securities:
U.S. Government obligations	7	$	2,580	$	(7	)	2	$	679	$	(6	)	9	$	3,259	$	(13	)
State and local government	8	2,688		(6		)	—	—		—			8	2,688		(6		)
Corporate debt	80	21,760		(438		)	12	3,618		(45		)	92	25,378		(483		)
Commercial mortgage and asset-backed	67	32,539		(258		)	5	2,175		(53		)	72	34,714		(311		)
Total fixed maturity securities available for sale	162	59,567		(709		)	19	6,472		(104		)	181	66,039		(813		)
Equity Securities:
Common stock	86	782		(72		)	3	79		(35		)	89	861		(107		)
Total equity securities available for sale	86	782		(72		)	3	79		(35		)	89	861		(107		)
Total securities	248	$	60,349	$	(781	)	22	$	6,551	$	(139	)	270	$	66,900	$	(920	)

The Company analyzed its investment portfolio in accordance with its other-than-temporary impairment ("OTTI") review procedures and determined the Company did not need to record a credit related OTTI loss, nor recognize a non-credit related OTTI loss in other comprehensive income for the three and nine months ended September 30, 2016 and 2015.

The Company’s sources of net investment income are as follows (dollars in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Fixed maturity securities	$	616		$	551		$	1,772		$	1,614
Equity securities	23			24			75			69
Cash and short-term investments	7			—			13			4
Total investment income	646			575			1,860			1,687
Investment expenses	(86		)	(70		)	(235		)	(227		)
Net investment income	$	560		$	505		$	1,625		$	1,460

The following table summarizes the gross realized gains and losses from sales or maturities of available-for-sale fixed maturity and equity securities (dollars in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Fixed maturity securities:
Gross realized gains	$	7		$	6		$	524		$	74
Gross realized losses	—			(1		)	(22		)	(5		)
Total fixed maturity securities	7			5			502			69
Equity securities:
Gross realized gains	79			30			230			233
Gross realized losses	(15		)	(29		)	(128		)	(64		)
Total equity securities	64			1			102			169
Total realized gains	$	71		$	6		$	604		$	238

Proceeds from the sales of debt and equity securities available for sale were $28.6 million and $6.8 million for the nine months ended September 30, 2016 and 2015, respectively.

The table below summarizes the amortized cost and fair value of available-for-sale fixed maturity securities by contractual maturity at September 30, 2016. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties (dollars in thousands):



	Amortized Cost		Estimated Fair Value
Due in one year or less	$	8,237	$	8,241
Due after one year through five years	30,306		30,644
Due after five years through ten years	6,672		7,067
Due after ten years	6,380		6,564
Securities with contractual maturities	51,595		52,516
Commercial mortgage and asset backed	60,665		61,325
Total Fixed maturity securities	$	112,260	$	113,841

At September 30, 2016 and December 31, 2015, the insurance companies had an aggregate of $9.3 million and $8.9 million, respectively, on deposit in trust accounts to meet the deposit requirements of various state insurance departments. There are withdrawal and other restrictions on these deposits, including the type of investments that may be held, however, the Company may generally invest in high-grade bonds and short-term investments and earn interest on the funds.