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 March 31, 2017 and December 31, 2016, were as follows (dollars in thousands):



	March 31, 2017
	Cost or Amortized Cost		Gross Unrealized					Estimated Fair Value
			Gains		Losses
Fixed Maturity Securities:
U.S. Government obligations	$	6,894	$	35	$	(35	)	$	6,894
State and local government	13,319		163		(163		)	13,319
Corporate debt	37,672		232		(235		)	37,669
Commercial mortgage-backed and other asset-backed	56,832		132		(760		)	56,204
Total fixed maturity securities available for sale	114,717		562		(1,193		)	114,086
Equity Securities:
Common stocks - Public Utilities	103		33		—			136
Common stocks - Banks, Trusts and Insurance Companies	586		88		(6		)	668
Common stocks - Industrial, miscellaneous and all other	3,602		440		(73		)	3,969
Total equity securities available for sale	4,291		561		(79		)	4,773
Total securities available for sale	$	119,008	$	1,123	$	(1,272	)	$	118,859



	December 31, 2016
	Cost or Amortized Cost		Gross Unrealized					Estimated Fair Value
			Gains		Losses
Fixed Maturity Securities:
U.S. Government obligations	$	5,908	$	31	$	(36	)	$	5,903
State and local government	13,618		106		(205		)	13,519
Corporate debt	34,105		205		(254		)	34,056
Commercial mortgage-backed and other asset-backed	60,284		132		(731		)	59,685
Total fixed maturity securities available for sale	113,915		474		(1,226		)	113,163
Equity Securities:
Common stocks - Public Utilities	159		25		(1		)	183
Common stocks - Banks, Trusts and Insurance Companies	681		85		(9		)	757
Common stocks - Industrial, miscellaneous and all other	3,443		256		(60		)	3,639
Total equity securities available for sale	4,283		366		(70		)	4,579
Total securities available for sale	$	118,198	$	840	$	(1,296	)	$	117,742

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):



	March 31, 2017
	Less than 12 months						Greater than 12 months						Total
	No. of Issues	Fair Value of Investments with Unrealized Losses		Gross Un realized Losses			No. of Issues	Fair Value of Investments with Unrealized Losses		Gross Un realized Losses			No. of Issues	Fair Value of Investments with Unrealized Losses		Gross Un realized Losses
Fixed Maturity Securities:
U.S. Government obligations	12	$	4,439	$	(35	)	—	$	—	$	—		12	$	4,439	$	(35	)
State and local government	19	6,319		(161		)	1	99		(2		)	20	6,418		(163		)
Corporate debt	19	10,521		(227		)	3	1,021		(8		)	22	11,542		(235		)
Commercial mortgage and asset-backed	47	40,285		(754		)	4	547		(6		)	51	40,832		(760		)
Total fixed maturity securities available for sale	97	61,564		(1,177		)	8	1,667		(16		)	105	63,231		(1,193		)
Equity Securities:
Common stocks	21	1,041		(73		)	2	71		(6		)	23	1,112		(79		)
Total equity securities available for sale	21	1,041		(73		)	2	71		(6		)	23	1,112		(79		)
Total securities	118	$	62,605	$	(1,250	)	10	$	1,738	$	(22	)	128	$	64,343	$	(1,272	)



	December 31, 2016
	Less than 12 months						Greater than 12 months						Total
	No. of Issues	Fair Value of Investments with Unrealized Losses		Gross Un realized Losses			No. of Issues	Fair Value of Investments with Unrealized Losses		Gross Un realized Losses			No. of Issues	Fair Value of Investments with Unrealized Losses		Gross Un realized Losses
Fixed Maturity Securities:
U.S. Government obligations	15	$	4,539	$	(36	)	—	$	—	$	—		15	$	4,539	$	(36	)
State and local government	29	8,217		(202		)	1	104		(3		)	30	8,321		(205		)
Corporate debt	22	9,031		(239		)	7	3,369		(15		)	29	12,400		(254		)
Commercial mortgage and asset-backed	59	38,048		(722		)	5	802		(9		)	64	38,850		(731		)
Total fixed maturity securities available for sale	125	59,835		(1,199		)	13	4,275		(27		)	138	64,110		(1,226		)
Equity Securities:
Common stock	76	2,472		(61		)	2	66		(9		)	78	2,538		(70		)
Total equity securities available for sale	76	2,472		(61		)	2	66		(9		)	78	2,538		(70		)
Total securities	201	$	62,307	$	(1,260	)	15	$	4,341	$	(36	)	216	$	66,648	$	(1,296	)

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 in net income, nor recognize a non-credit related OTTI loss in other comprehensive income for the three months ended March 31, 2017 and 2016.

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



	Three Months Ended March 31,
	2017			2016
Fixed maturity securities	$	601		$	586
Equity securities	25			26
Cash and short-term investments	11			2
Total investment income	637			614
Investment expenses	(60		)	(77		)
Net investment income	$	577		$	537

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 March 31,
	2017			2016
Fixed maturity securities:
Gross realized gains	$	—		$	16
Gross realized losses	(7		)	(6		)
Total fixed maturity securities	(7		)	10
Equity securities:
Gross realized gains	29			56
Gross realized losses	(30		)	(74		)
Total equity securities	(1		)	(18		)
Total realized losses	$	(8	)	$	(8	)

Proceeds from the sales of debt and equity securities available for sale were $7.2 million and $2.6 million for the three months ended March 31, 2017 and 2016, respectively.

The table below summarizes the amortized cost and fair value of available-for-sale fixed maturity securities by contractual maturity at March 31, 2017. 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	$	9,657	$	9,664
Due after one year through five years	29,272		29,349
Due after five years through ten years	11,494		11,531
Due after ten years	7,462		7,338
Securities with contractual maturities	57,885		57,882
Commercial mortgage and asset backed	56,832		56,204
Total Fixed maturity securities	$	114,717	$	114,086

At March 31, 2017 and December 31, 2016, the Insurance Company Subsidiaries had an aggregate of $9.1 million and $9.6 million, respectively, on deposit in trust accounts to meet the deposit requirements of various state insurance departments. At March 31, 2017 and December 31, 2016, the Company had $10.4 million and $10.3 million held in trust accounts to meet collateral requirements with other third-party insurers, relating to various fronting arrangements. 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.