Note 5 - Equity Method Investment

6 Months Ended

Jun. 30, 2015

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 carrying value of this investment was $26.2 million and $26.1 million as of June 30, 2015 and December 31, 2014, respectively.  The Company earned $.1 million and $.2 million from this investment during the three- and six-month periods ended June 30, 2015, respectively, compared to $.3 million and $.8 million during the same comparable periods a year ago.  The income was recorded in other revenue on the Company's consolidated statements of income and retained earnings.  With at least 60 days notice, the Company has the ability to redeem its investment in the Fund at the end of any calendar quarter.  The Company has no investment commitments to the Fund.

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

	June 30, 2015	December 31, 2014
Company's equity method investment	$ 26,245,202	$ 26,059,579
Partnership assets	$ 105,396,510	$ 104,677,496
Partnership liabilities	$ 2,325,021	$ 2,667,002
Partnership net income	$ 1,173,781(a)	$ 4,560,544(b)

               Note  (a)  Represents 6 months of net income.

                        (b)  Represents 12 months of net income.