Note 8 — Receivables

Receivables consist of:


	Second
	Quarter-End			Year-End
	2011			2010
	(In thousands)
Non-performing loan	$	21,137		$	—
Notes receivable, average interest rates of 7.56% at second quarter-end 2011 and 7.93% at year-end 2010		1,974			1,057
Due from qualified intermediary		—			1,347
Receivables and accrued interest		332			615

		23,443			3,019
Allowance for bad debts		(61	)		(144	)

	$	23,382		$	2,875

In second quarter 2011, we acquired a non-performing loan from a financial institution for $21,137,000. The original loan commitment was $38,000,000 and the current principal balance outstanding is about $31,600,000. The loan matured in February 2010. The note is secured by a lien on 900 acres of developed and undeveloped real estate located near Houston, Texas designated for single-family residential and commercial development. We are not currently accruing interest and did not record any accretable yield at acquisition due to the non-performing status of the loan. We cannot estimate the anticipated future cash flows because the borrower is in bankruptcy.

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.