Investments

9 Months Ended

Sep. 30, 2024

Note 3. Investments

The following table summarizes investment income and realized gains and losses on investments during the periods presented.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Investment income, net of investment expenses	$	3,645	$	2,515	$	10,884	$	4,618
Realized gains on investments	172		61		213		72
Realized losses on investments	(30)		(91)		(140)		(198)
Investment income and realized gains, net of investment expenses	$	3,787	$	2,485	$	10,957	$	4,492

The following tables summarize the amortized cost, fair value, and unrealized gains and losses of investment securities.


	September 30, 2024
	Amortized Cost		Gross Unrealized				Fair Value
			Gains		Losses
U.S. Treasuries	$	28,000	$	130	$	(214)	$	27,916
Obligations of states, municipalities and political subdivisions	16,021		152		(611)		15,562
Corporate bonds	75,723		1,047		(1,281)		75,489
Residential and commercial mortgage-backed securities	66,445		724		(751)		66,418
Other loan-backed and structured securities	12,474		97		(178)		12,393
Total investment securities	$	198,663	$	2,150	$	(3,035)	$	197,778


	December 31, 2023
	Amortized Cost		Gross Unrealized				Fair Value
			Gains		Losses
U.S. Treasuries	$	43,931	$	95	$	(330)	$	43,696
Obligations of states, municipalities and political subdivisions	18,281		100		(961)		17,420
Corporate bonds	51,678		430		(2,067)		50,041
Residential and commercial mortgage-backed securities	25,452		153		(1,004)		24,601
Other loan-backed and structured securities	3,694		13		(289)		3,418
Total investment securities	$	143,036	$	791	$	(4,651)	$	139,176

The amortized cost and fair value of securities at September 30, 2024, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	September 30, 2024
Remaining Time to Maturity	Amortized Cost		Fair Value
Due in one year or less	$	24,618	$	24,592
Due after one year through five years	46,019		45,972
Due after five years through ten years	35,226		34,659
Due after ten years	13,881		13,744
Residential and commercial mortgage-backed securities	66,445		66,418
Other loan-backed and structured securities	12,474		12,393
Total	$	198,663	$	197,778

Investments as of September 30, 2024, include $31.8 million of investments held by our captive reinsurance businesses as collateral for the benefit of HOA. Of this amount, $6.1 million is classified as short-term investments, and $25.7 million is classified as long-term investments.

Securities with gross unrealized loss position, 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 September 30, 2024	Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value
U.S. Treasuries	$	(177)	$	3,737	$	(37)	$	296	$	(214)	$	4,033
Obligations of states, municipalities and political subdivisions	(531)		6,518		(80)		1,201		(611)		7,719
Corporate bonds	(1,089)		17,070		(192)		3,745		(1,281)		20,815
Residential and commercial mortgage-backed securities	(466)		9,314		(285)		2,524		(751)		11,838
Other loan-backed and structured securities	(172)		3,237		(6)		51		(178)		3,288
Total securities	$	(2,435)	$	39,876	$	(600)	$	7,817	$	(3,035)	$	47,693


	Less Than Twelve Months				Twelve Months or Greater				Total
As of December 31, 2023	Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value
U.S. Treasuries	$	(280)	$	12,345	$	(50)	$	515	$	(330)	$	12,860
Obligations of states, municipalities and political subdivisions	(813)		8,445		(148)		1,639		(961)		10,084
Corporate bonds	(1,698)		21,104		(369)		4,677		(2,067)		25,781
Residential and commercial mortgage-backed securities	(621)		8,673		(383)		3,072		(1,004)		11,745
Other loan-backed and structured securities	(281)		2,790		(8)		52		(289)		2,842
Total securities	$	(3,693)	$	53,357	$	(958)	$	9,955	$	(4,651)	$	63,312

At September 30, 2024, and December 31, 2023, there were 345 and 410 securities, respectively, in an unrealized loss position. Of these securities, 68 had been in an unrealized loss position for 12 months or longer as of September 30, 2024.

We believe there were no fundamental issues such as credit losses or other factors with respect to any of our available-for-sale securities. The unrealized losses on investments in fixed-maturity securities were caused primarily by interest rate changes. We expect that the securities will not be settled at a price less than par value of the investments. Because the declines in fair value are attributable to changes in interest rates or market conditions and not credit quality, and because we have the ability and intent to hold our available-for-sale investments until a market price recovery or maturity, we do not consider any of our investments to have any decline in fair value due to expected credit losses at September 30, 2024.