Other Related Party Transactions

12 Months Ended

Dec. 31, 2011

Other Related Party Transactions

Other Related Party Transactions

20. Other Related Party Transactions

        The Company has contracted with the Acquisition Partnerships and certain other related parties as a third-party loan servicer. Servicing fees and due diligence fees (included in other income) derived from these affiliates approximated $10.2 million in 2011 and $8.0 million in 2010.

        Through a series of related party transactions in 2008, FirstCity (through a majority-owned Mexican subsidiary) acquired a loan portfolio in Mexico. The final funding for this transaction involved two FirstCity majority-owned Mexican subsidiaries and an unconsolidated Mexican affiliated entity, and resulted in an affiliated note payable and an affiliated loan receivable being recorded to the Company's consolidated balance sheet. At December 31, 2011, the carrying values of this affiliated loan receivable and affiliated note payable both approximated $5.1 million (including accrued interest), and are respectively included in "Assets held for sale" and "Liabilities associated with assets held for sale" on our consolidated balance sheet (see Note 4). At December 31, 2010, the affiliated loan receivable had a carrying amount of $7.6 million (included in "Loans receivable—affiliates" on the Company's consolidated balance sheet), and accrued interest of $4.0 million (included in "Other assets" on the Company's consolidated balance sheet). At December 31, 2010, the affiliated note payable had a carrying amount of $7.6 million (reported as "Notes payable to affiliates" on the Company's consolidated balance sheet), and accrued interest of $4.0 million (included in "Other liabilities" on the Company's consolidated balance sheet). Should the note payable be forgiven at some future date (prior to the Company's disposition of this debt instrument), the corresponding loan receivable would be forgiven as well.

        The Company owns 80% of FirstCity Denver—a special situations investment platform that was formed for the purpose of investing primarily in middle-market private companies through flexible capital structuring arrangements. The other 20% interest in FirstCity Denver is owned by Crestone Capital LLC, a Colorado limited liability company that is owned by Richard Horrigan and Stephen Schmeltekopf. Mr. Horrigan, President of FirstCity Denver, and Mr. Schmeltekopf, Senior Vice President of FirstCity Denver, are also employees of FirstCity Denver and have employment contracts with FirstCity Denver.