Note 7.—Other Assets
Other Assets
Other assets consisted of the following:
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
2011 |
|
2010 |
|
Deferred charge (See Note 1) |
|
$ |
11,974 |
|
$ |
13,144 |
|
Mortgage servicing rights |
|
|
4,141 |
|
|
1,439 |
|
Investment in limited partnership |
|
|
3,580 |
|
|
4,259 |
|
Accounts receivable |
|
|
3,096 |
|
|
2,550 |
|
Premises and equipment, net |
|
|
2,958 |
|
|
3,227 |
|
Prepaid expenses |
|
|
1,493 |
|
|
2,834 |
|
Other |
|
|
3,951 |
|
|
3,760 |
|
|
|
|
|
|
|
Total other assets |
|
$ |
31,193 |
|
$ |
31,213 |
|
|
|
|
|
|
|
Mortgage Servicing Rights
The Company recognizes as assets the rights to service mortgage loans based on the estimated fair value of the mortgage servicing rights (MSRs) when the loans are sold and the associated servicing rights are retained. MSRs are derived from the net positive cash flows associated with the servicing contracts. The Company receives servicing fees, less subservicing costs, on the unpaid principal balances (UPB) of the loans. The servicing fees are collected from the monthly payments made by the mortgagors or when the underlying real estate is foreclosed upon and liquidated. The Company generally receives other remuneration from rights to various mortgagor-contracted fees such as late charges, collateral reconveyance charges, nonsufficient fund fees and the Company is generally entitled to retain the interest earned on funds held pending remittance (or float) related to its collection of mortgagor principal, interest, tax and insurance payments.
As of December 31, 2011 and 2010, the Company serviced approximately $605.4 million and $173.9 million, respectively, in UPB of loans with the following characteristics:
|
|
|
|
|
|
|
|
|
|
Outstanding Principal
Balance |
|
|
|
2011 |
|
2010 |
|
Government |
|
$ |
102,869 |
|
$ |
45,161 |
|
Conventional |
|
|
435,103 |
|
|
128,742 |
|
Other |
|
|
67,449 |
|
|
- |
|
|
|
|
|
|
|
Total loans serviced |
|
$ |
605,421 |
|
$ |
173,903 |
|
|
|
|
|
|
|
Investment in Limited Partnership
The investment in limited partnership represents an investment the Company made in a non-affiliated limited partnership fund that invests primarily in mortgage and mortgage-related financial institutions. The investment is accounted for using the equity method of accounting. The Company records its share of the profits and losses based upon its relative ownership percentage. The carrying value of the investment in limited partnership is based upon information received from the fund manager and approximates fair value. The limited partnership agreement has a term of five years. The general partner has the option to extend the term for two consecutive one-year periods. The second year of the extended term ends in May 2013. As of December 31, 2011, there are no outstanding commitments to fund the investment.
Premises and Equipment, net
Premises and equipment are stated at cost, less accumulated depreciation or amortization. Depreciation on premises and equipment is recorded using the straight-line method over the estimated useful lives of individual assets, typically three to twenty years. Premises and equipment and accumulated depreciation were as follows as of the dates indicated:
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
2011 |
|
2010 |
|
Premises and equipment |
|
$ |
12,732 |
|
$ |
11,938 |
|
Less: Accumulated depreciation |
|
|
(9,774 |
) |
|
(8,711 |
) |
|
|
|
|
|
|
Total premises and equipment, net |
|
$ |
2,958 |
|
$ |
3,227 |
|
|
|
|
|
|
|
|