Note 7 - Mortgages and Other Financing Receivables

6 Months Ended

Jun. 30, 2013

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

7. Mortgages and Other Financing Receivables:

The Company has various mortgages and other financing receivables which consist of loans acquired and loans originated by the Company. The Company reviews payment status to identify performing versus non-performing loans. Interest income on performing loans is accrued as earned. A non-performing loan is placed on non-accrual status when it is probable that the borrower may be unable to meet interest payments as they become due. Generally, loans 90 days or more past due are placed on non-accrual status unless there is sufficient collateral to assure collectability of principal and interest. Upon the designation of non-accrual status, all unpaid accrued interest is reserved against through current income. Interest income on non-performing loans is generally recognized on a cash basis. The following table presents performing and non-performing loans as of June 30, 2013 (in thousands):

	Number of Loans		Amount
Performing Loans		24	$	50,770
Non-Performing Loans		1		23,318
Total		25	$	74,088

As of June 30, 2013, the Company had one loan aggregating $23.3 million which was in default for nonpayment of principal and interest. The Company has placed this loan on non-accrual status with respect to the recognition of interest income starting from the loan’s nonperformance date in April 2008. The Company assessed this loan and determined that the estimated fair value of the underlying collateral exceeded its carrying value as of June 30, 2013. During June 2013, the Company commenced foreclosure proceedings on the underlying collateral of 427 acres of land located in Brantford, Ontario Canada relating to this loan.

During the six months ended June 30, 2013 the Company foreclosed on a $1.3 million loan that had been non-performing and as such acquired the 59.24 acres of undeveloped land located in Westbrook, Maine which was the collateral under the loan.