INVESTMENT SECURITIES

The following is a summary of the securities portfolios by major classification:



	Successor Company
	December 31, 2012
	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
Securities available for sale:
Residential mortgage-backed securities	$	76,249	$	574	$	46	$	76,777
Commercial mortgage-backed securities	6,612		273		—		6,885
Municipal bonds - non-taxable	15,492		709		—		16,201
Municipal bonds - taxable	2,583		142		—		2,725
Corporate bonds	30,861		1,697		50		32,508
Other debt securities	1,083		74		—		1,157
Marketable equity securities	37		21		—		58
Total securities available for sale	$	132,917	$	3,490	$	96	$	136,311

Securities held to maturity:
Corporate bonds	$	180	$	230	$	—	$	410



	Predecessor Company
	December 31, 2011
	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
Securities available for sale:
Residential mortgage-backed securities	$	121,816	$	459	$	374	$	121,901
Municipal bonds - non-taxable	13,281		263		30		13,514
Municipal bonds - taxable	1,464		168		—		1,632
Corporate bonds	28,042		39		115		27,966
Other debt securities	3,916		88		—		4,004
Marketable equity securities	520		50		4		566
Total securities available for sale	$	169,039	$	1,067	$	523	$	169,583

Securities held to maturity:
Corporate bonds	$	421	$	—	$	—	$	421

All residential mortgage-backed securities in the Company’s portfolio at December 31, 2012 and 2011 were backed by government sponsored enterprises (“GSEs”).

The following tables summarize gross unrealized losses and fair values, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, at December 31, 2012 and 2011:



	Successor Company
	December 31, 2012
	Less Than 12 Months				12 Months or More				Total
	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Securities available for sale:
Residential mortgage-backed securities	$	28,802	$	46	$	—	$	—	$	28,802	$	46
Corporate bonds	2,013		50		—		—		2,013		50
Total available for sale securities	$	30,815	$	96	$	—	$	—	$	30,815	$	96



	Predecessor Company
	December 31, 2011
	Less Than 12 Months				12 Months or More				Total
	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Securities available for sale:
Residential mortgage-backed securities	$	79,444	$	374	$	—	$	—	$	79,444	$	374
Municipal bonds - non-taxable	2,637		30		—		—		2,637		30
Corporate bonds	13,539		115		—		—		13,539		115
Marketable equity securities	37		4		—		—		37		4
Total available for sale securities	$	95,657	$	523	$	—	$	—	$	95,657	$	523

Unrealized losses on investment securities as of December 31, 2012 related to nine GSE residential mortgage-backed securities and two investment grade corporate bonds. As of December 31, 2012, none of the Company's securities had been in an unrealized loss position for more than a twelve month period. Unrealized losses on investment securities as of December 31, 2011 related to twelve GSE residential mortgage-backed securities, three municipal securities, seven investment grade corporate bonds and one marketable equity security.

The securities in an unrealized loss position as of December 31, 2012 continue to perform and are expected to perform through maturity, and the issuers have not experienced significant adverse events that would call into question their ability to repay these debt obligations according to contractual terms. Further, because the Company does not intend to sell these investments and does not believe that it will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider unrealized losses on such securities to represent other-than-temporary impairment as of December 31, 2012.

As of December 31, 2012 and 2011, investment securities with carrying values of $50,685 and $51,717, respectively, were pledged to secure public deposits, borrowings and for other purposes required or permitted by law.

The amortized cost and fair values of securities available for sale as of December 31, 2012 and 2011, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.



	Successor Company				Predecessor Company
	2012				2011
	Amortized cost		Fair value		Amortized cost		Fair value
Securities available for sale:
Due within one year	$	13,327	$	13,420	$	8,819	$	8,869
Due after one year through five years	78,671		81,064		50,874		50,424
Due after five years through ten years	24,039		24,669		76,275		75,909
Due after ten years	16,843		17,100		32,551		33,808
Other equity securities	37		58		520		573
	$	132,917	$	136,311	$	169,039	$	169,583
Securities held to maturity:
Due after five years through ten years	$	180	$	410	$	421	$	421

For each period presented, securities gains (losses) include the following:



	Successor Company			Predecessor Company
	February 1 to December 31, 2012			January 1 to January 31, 2012		Year Ended December 31,
	February 1 to December 31, 2012			January 1 to January 31, 2012		2011

Gross gains on sales of securities available for sale	$	1,335		$	—	$	114
Gross losses on sales of securities available for sale	(84		)	—		(152		)
Total securities gains (losses)	$	1,251		$	—	$	(38	)