Note 8. 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)	2013		2012
Other real estate owned	$	1,650	$	1,607
Accrued interest receivable		6,262		6,747
Accrued income and other receivables		3,539		2,105
Fair market value of derivative financial instruments		346		1,547
Prepaid FDIC insurance assessments		—		2,426
Other prepaid expenses		9,624		6,004
Federal Reserve Bank stock, Federal Home Loan Bank stock and other not readily marketable equity securities		6,632		7,469
Net federal deferred tax assets		12,335		11,650
Other		—		624

Total accrued interest receivable and other assets	$	40,388	$	40,179

At December 31, 2013 and 2012, the Bank held $3.3 million in Federal Reserve Bank stock as required by the Federal Reserve 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 $3.2 million and $4.1 million at December 31, 2013 and 2012, respectively. Additionally, the FHLB might require its members to increase its capital stock requirement. 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, 2013. Therefore, at December 31, 2013, the FHLB stock is recorded at cost.