Accrued Interest Receivable and Other Assets

The following table provides the details of accrued interest receivable and other assets:



	At December 31,
(Dollars in thousands)	2015		2014
Other real estate owned	$	1,276	$	955
Accrued interest receivable	7,463		6,086
Accrued income and other receivables	2,725		2,655
Fair market value of derivative financial instruments	1,089		788
Other prepaid expenses	10,880		13,963
Federal Reserve Bank stock, Federal Home Loan Bank stock and other not readily marketable equity securities	8,880		4,487
Net federal deferred tax assets	10,521		10,756
Total accrued interest and other assets	$	42,834	$	39,690

At December 31, 2015 and 2014, the Bank held $6.6 million and $3.3 million, respectively, in Federal Reserve Bank stock as required by the Federal Reserve Bank. In the first quarter of 2015, the Bank purchased an additional $2.3 million of Federal Reserve Bank stock due to the increase of capital in conjunction with the acquisition of Valley Green Bank. The Bank is a member of the FHLB, and as such, is required to hold FHLB stock as a condition of membership as determined by the FHLB. The Bank is required to hold additional stock in the FHLB in relation to the level of outstanding borrowings. The Bank held FHLB stock of $2.2 million and $1.1 million at December 31, 2015 and 2014, respectively. Additionally, the FHLB might require its members to increase its capital stock requirements. Changes in the credit ratings of the U.S. government and federal agencies, including the FHLB, could increase the borrowing costs of the FHLB and possibly have a negative impact on its operations and long-term performance. It is possible this could have an adverse effect on the value of the Corporation’s investment in the FHLB stock. The Corporation determined there was no other-than-temporary impairment of its investment in FHLB stock at December 31, 2015. Therefore, at December 31, 2015, the FHLB stock is recorded at cost.