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Investments
 12 Months Ended
Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]  
Investments
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 December 31, 2018 and 2017 were as follows (dollars in thousands):
 
December 31, 2018
 
Cost or
Amortized
Cost
Gross Unrealized
Estimated
Fair Value 
 
 
Gains
 
Losses
Debt securities:
 
 
 
 
 
 
 
U.S. Government
$
15,360

 
$
3

 
$
(178
)
 
$
15,185

State and local government
15,847

 
115

 
(174
)
 
15,788

Corporate debt
30,423

 
74

 
(651
)
 
29,846

Asset-backed securities
24,468

 
24

 
(208
)
 
24,284

Mortgage-backed securities
30,377

 
18

 
(1,155
)
 
29,240

Commercial mortgage-backed securities
4,025

 
5

 
(77
)
 
3,953

Collateralized mortgage obligations
2,178

 
9

 
(43
)
 
2,144

Total debt securities available for sale
$
122,678

 
$
248

 
$
(2,486
)
 
$
120,440

 
December 31, 2017
 
Cost or
Amortized
Cost
Gross Unrealized
Estimated
Fair Value 
 
Gains
 
Losses
Debt securities:
 
 
 
 
 
 
 
U.S. Government
$
17,179

 
$
10

 
$
(99
)
 
$
17,090

State and local government
17,302

 
255

 
(54
)
 
17,503

Corporate debt
38,947

 
170

 
(209
)
 
38,908

Asset-backed securities
23,539

 
36

 
(35
)
 
23,540

Mortgage-backed securities
33,942

 
38

 
(522
)
 
33,458

Commercial mortgage-backed securities
3,532

 
3

 
(44
)
 
3,491

Collateralized mortgage obligations
2,563

 
19

 
(36
)
 
2,546

Total debt securities available for sale
137,004

 
531

 
(999
)
 
136,536

Equity Securities (1)
8,629

 
1,240

 
(182
)
 
9,687

Total securities available for sale
$
145,633

 
$
1,771

 
$
(1,181
)
 
$
146,223



(1) Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, equity securities are no longer classified as available-for-sale. Prior periods have not been recast to conform to the current presentation. Refer to Note 1 ~ Summary of Significant Accounting Policies for further details.
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 (dollars in thousands):  
 
December 31, 2018
 
Less than 12 months
 
Greater than 12 months
 
Total
 
No.
of
Issues
Fair Value of
Investments
with
Unrealized
Losses
Gross
Unrealized
Losses
 
No.
of
Issues
Fair Value of
Investments
with
Unrealized
Losses
Gross
Unrealized
Losses
 
No.
of
Issues
Fair Value of
Investments
with
Unrealized
Losses
Gross
Unrealized
Losses
Debt securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. Government
1

$
2,470

$
(24
)
 
16

$
11,725

$
(154
)
 
17

$
14,195

$
(178
)
State and local government
21

4,935

(40
)
 
16

4,273

(134
)
 
37

9,208

(174
)
Corporate debt
36

12,096

(140
)
 
25

11,993

(511
)
 
61

24,089

(651
)
Asset-backed securities
25

17,743

(148
)
 
9

4,166

(60
)
 
34

21,909

(208
)
Mortgage-backed securities
20

5,474

(138
)
 
30

21,715

(1,017
)
 
50

27,189

(1,155
)
Commercial mortgage-backed securities
4

1,082

(12
)
 
3

2,632

(65
)
 
7

3,714

(77
)
Collateralized mortgage obligations
4

116

(1
)
 
6

1,587

(42
)
 
10

1,703

(43
)
Total debt securities available for sale
111

$
43,916

$
(503
)
 
105

$
58,091

$
(1,983
)
 
216

$
102,007

$
(2,486
)
 
December 31, 2017
 
Less than 12 months
 
Greater than 12 months
 
Total
 
No.
of
Issues
Fair Value of
Investments with
Unrealized Losses
Gross
Unrealized
Losses
 
No.
of
Issues
Fair Value of
Investments with
Unrealized Losses
Gross
Unrealized
Losses
 
No.
of
Issues
Fair Value of
Investments with
Unrealized Losses
Gross
Unrealized
Losses
Debt securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. Government
12

$
11,555

$
(64
)
 
7

$
2,207

$
(35
)
 
19

$
13,762

$
(99
)
State and local government
10

3,511

(20
)
 
7

1,424

(34
)
 
17

4,935

(54
)
Corporate debt
38

15,236

(46
)
 
10

6,555

(163
)
 
48

21,791

(209
)
Asset-backed securities
20

13,948

(29
)
 
3

915

(6
)
 
23

14,863

(35
)
Mortgage-backed securities
6

4,935

(19
)
 
26

24,939

(503
)
 
32

29,874

(522
)
Commercial mortgage-backed securities
3

2,026

(12
)
 
2

722

(32
)
 
5

2,748

(44
)
Collateralized mortgage obligations
8

1,870

(36
)
 
—

—

—

 
8

1,870

(36
)
Total debt securities available for sale
97

53,081

(226
)
 
55

36,762

(773
)
 
152

89,843

(999
)
Equity Securities (1)
13

436

(75
)
 
4

266

(107
)
 
17

702

(182
)
Total securities
110

$
53,517

$
(301
)
 
59

$
37,028

$
(880
)
 
169

$
90,545

$
(1,181
)

 (1) Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, equity securities are no longer classified as available-for-sale. Prior periods have not been recast to conform to the current presentation. Refer to Note 1 ~ Summary of Significant Accounting Policies for further details.
The Company analyzed its investment portfolio in accordance with its 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 years ended December 31, 2018, 2017, and 2016.

The Company’s sources of net investment income are as follows (dollars in thousands):
 
 
 December 31,
 
2018
 
2017
 
2016
Debt securities
$
3,419

 
$
2,757

 
$
2,370

Equity securities
129

 
124

 
98

Cash and short-term investments
85

 
122

 
21

Total investment income
3,633

 
3,003

 
2,489

Investment expenses
(297
)
 
(275
)
 
(316
)
Net investment income
$
3,336

 
$
2,728

 
$
2,173


The following table summarizes the gross realized gains and losses from sales or maturities of available-for-sale debt securities and equity securities, as follows (dollars in thousands):
 
 December 31,
 
2018
 
2017
 
2016
Debt securities:
 
 
 
 
 
Gross realized gains
$
54

 
$
32

 
$
587

Gross realized losses
(256
)
 
(8
)
 
(24
)
Total debt securities
(202
)
 
24

 
563

Equity securities:
 
 
 
 
 
Gross realized gains
337

 
76

 
1,198

Gross realized losses
(74
)
 
(30
)
 
(396
)
Total equity securities
263

 
46

 
802

Total net investment realized gains
$
61

 
$
70

 
$
1,365


Proceeds from the sales of available-for-sale securities were $14.6 million, $1.8 million and $30.8 million for the years ended December 31, 2018, 2017 and 2016, respectively.
Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, equity securities are no longer classified as available-for-sale with unrealized gains and losses recognized in other comprehensive income; rather, all changes in fair value of equity securities are now recognized in net income. The change in fair value of equity securities included in net income as of December 31, 2018 was a $121,000 gain. Prior periods have not been recast for the adoption of this guidance.
The Company carries other equity investments that do not have a readily determinable fair value at cost, less impairment or observable changes in price. We review these investments for impairment during each reporting period. There was no impairment or observable changes in price recorded during 2018 related to the Company's equity securities without readily determinable fair value. These investments are a component of Other Assets in the Consolidated Balance Sheets.
The table below summarizes the amortized cost and fair value of available-for-sale debt securities by contractual maturity at December 31, 2018. 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
$
9,206

 
$
9,153

Due after one year through five years
33,028

 
32,667

Due after five years through ten years
11,568

 
11,279

Due after ten years
7,828

 
7,720

Securities with contractual maturities
61,630

 
60,819

Asset-backed securities
24,468

 
24,284

Mortgage-backed securities
30,377

 
29,240

Commercial mortgage-backed securities
4,025

 
3,953

Collateralized mortgage obligations
2,178

 
2,144

Total debt securities
$
122,678

 
$
120,440


 At December 31, 2018 and 2017, the Insurance Companies Subsidiaries had an aggregate of $8.5 million and $8.2 million, respectively, on deposit in trust accounts to meet the deposit requirements of various state insurance departments. At December 31, 2018 and 2017, the Company had $45.4 million and $18.4 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.