Note 5 - Equity Method Investment

9 Months Ended

Sep. 30, 2014

Notes

Note 5 - Equity Method Investment

Note 5 – Equity Method Investment

The Company has one investment accounted for using the equity method of accounting.  On November 1, 2013, the Company invested $10.0 million in Meritage Capital, Centennial Absolute Return Fund, L.P. (the "Fund").  An additional $15.0 million was invested on April 1, 2014.  The Company has no investment commitments to the Fund.  The carrying value of this investment was $26.3 million and $10.2 million as of September 30, 2014 and December 31, 2013, respectively.  The Company's equity in earnings of the Fund were $1.1 million during the nine months ended September 30, 2014 and is included in Other Revenue in the Condensed Consolidated Statements of Income and Retained Earnings.  Withdrawal of funds may be done at the end of any calendar quarter with a 60 day notice.  The Company's ownership interest in the Fund was 25.78% and 12.14% at August 31, 2014 (the latest available data) and December 31, 2013, respectively.

Condensed financial statement information of the equity method investment is as follows:

	August 31, 2014	December 31,2013
Company's equity method investment	$ 26,149,480	$ 10,211,635
Partnership assets	$ 105,165,819	$ 88,602,340
Partnership liabilities	$ 2,301,339	$ 2,873,918
Partnership net income	$ 5,347,248	$ 7,983,103