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Receivables
 3 Months Ended
Mar. 31, 2012
Receivables [Abstract]  
Receivables

Note 8—Receivables

Receivables consists of:

 

                 
    First
Quarter-
End
2012		     Year-End
2011		  
    (In thousands)  

Non-performing loan

   $ 20,666     $ 20,666  

Notes receivable, average interest rates of 7.50% at first quarter-end 2012 and 7.16% at year-end 2011

     1,594       1,817  

Receivables and accrued interest

     2,258       860  
   

 

 

    

 

 

  
      24,518       23,343  

Allowance for bad debts

     (62 )      (62 ) 
   

 

 

    

 

 

  
    $ 24,456     $ 23,281  
   

 

 

    

 

 

  

At first quarter-end 2012, we have $20,666,000 invested in a non-performing loan acquired from a financial institution in 2011. The loan matured in February 2010 and the outstanding balance is about $35,464,000 at first quarter-end 2012. The loan is secured by a lien on 900 acres of developed and undeveloped real estate located near Houston designated for single-family residential and commercial development. Through first quarter-end 2012, we have not recorded any accretable yield due the non-performing status of the loan and our inability to estimate future cash flows as the borrower has been in bankruptcy. On March 13, 2012, the bankruptcy court approved a plan of reorganization of the borrower which became effective in second quarter 2012. The reorganization established a principal amount of $33,800,000 maturing in April 2017. Interest will accrue at 9 percent the first three years escalating to 10 percent in year four and 12 percent in year five, subject to interest rate reductions if the loan is prepaid by certain dates.

Notes receivable generally are secured by a deed of trust and generally due within three years.

Receivables and accrued interest principally include miscellaneous operating receivables arising in the normal course of business.