Note 10. Other Assets

Other assets at June 30, 2011 and December 31, 2010, are summarized in the following table.

Other Assets


(In Thousands)	June 30, 2011		December 31, 2010
REO	$	9,880	$	14,481
Fixed assets and leasehold improvements		3,221		3,692
Derivative margin posted, net		23,913		16,233
Investment receivable		832		883
Income tax receivables		4,737		1,243
Prepaid expenses		722		1,973
Other		158		157
Total Other Assets	$	43,463	$	38,662

REO consists of foreclosed properties received in full satisfaction of defaulted real estate loans. The carrying value of REO at June 30, 2011 was $10 million, which includes the net effect of $6 million related to transfers into REO during the first six months of 2011, offset by $10 million of REO liquidations and less than $1 million of negative market valuation adjustments. At June 30, 2011, there were 66 REO properties recorded on our balance sheet, of which 64 were owned at Sequoia and two were owned at Redwood. At December 31, 2010, there were 83 REO properties recorded on our balance sheet, of which 81 were owned at Sequoia and two were owned at Redwood. Properties located in Michigan, Georgia, Ohio, and California accounted for 52% of our REO properties at June 30, 2011.

Derivative margin posted, net, was $24 million at June 30, 2011, resulting from margin calls from our swap counterparties that required us to post collateral.