INVESTMENT SECURITIES

12 Months Ended

Dec. 31, 2013

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

INVESTMENT SECURITIES

Components of investment securities are as follows (in thousands):

	December 31,
	2013		2012
Available-for-sale securities	$	7,522	$	5,211
Trading securities	317		5,365
Total investment securities, at fair value	$	7,839	$	10,576

Available-for-sale securities.  The following table discloses the pre-tax unrealized gains (losses) relating to the Company’s investments in available-for-sale securities (in thousands):

	Cost or Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
December 31, 2013:
CLO securities	$	5,971	$	1,315	$	(196	)	$	7,090
Equity securities	208		232		(8		)	432
Total	$	6,179	$	1,547	$	(204	)	$	7,522
December 31, 2012:
CLO securities	$	3,712	$	1,290	$	—		$	5,002
Equity securities	109		100		—			209
Total	$	3,821	$	1,390	$	—		$	5,211

CLO securities.  The CLO securities represent the Company’s retained equity interest in ten and five CLO issuers that CVC Credit Partners has sponsored and manages at December 31, 2013 and 2012, respectively.  The fair value of these retained interests is impacted by the fair value of the investments held by the respective CLO issuers, which are sensitive to interest rate fluctuations and credit quality determinations. The Company is required to maintain a minimum investment of $2.0 million (par value) in the subordinated notes of one of the CLO issuers, Apidos CLO II.

Equity securities.  The Company holds 18,972 shares of TBBK common stock.  This investment is pledged as collateral for one of the Company’s secured corporate credit facilities. During the three months ended March 31, 2013, the Company purchased 10,000 shares of RREDX for $100,000.

Trading securities. The Company had net realized gains from sales of trading securities of $6.3 million and $1.2 million as well as unrealized losses totaling $1.1 million and unrealized gains totaling $1.3 million during 2013 and 2012, respectively, which were included in Financial Fund Management Revenues on the consolidated statements of operations.

Unrealized losses along with the related fair value and aggregated by the length of time the investments were in a continuous unrealized loss position, are as follows (in thousands, except number of securities):

	Less than 12 Months						More than 12 Months
	Fair Value		Unrealized Losses			Number of Securities	Fair Value		Unrealized Losses		Number of Securities
December 31, 2013:
CLO securities	$	2,312	$	(196	)	3	$	—	$	—	—
Equity securities	92		(8		)	1	—		—		—
Total	$	2,404	$	(204	)	4	$	—	$	—	—

Other-than-temporary impairment losses.  In 2013, 2012 and 2011, the Company recorded charges of $214,000, $74,000 and $0, respectively, for the other-than-temporary impairment of certain of its investments in CLOs, primarily those with investments in bank loans.

As of December 31, 2010, the Company held 103,494 shares of TBBK common stock, valued at $1.1 million, in a Rabbi Trust for the Supplemental Employment Retirement Plan ("SERP") for its former Chief Executive Officer. During 2012 and 2011, the SERP sold 6,992 and 96,502 shares and recognized net gains of $5,000 and $179,000, respectively. The SERP no longer holds any shares of TBBK.