Note 10. Other Assets

Other assets at June 30, 2013 and December 31, 2012, are summarized in the following table.

Other Assets


(In Thousands)	June 30, 2013		December 31, 2012
Margin receivable	$	55,926	$	63,424
Investment receivable		12,076		153
Other pledged collateral		5,000		-
REO		3,965		4,245
Prepaid expenses		1,219		1,684
Fixed assets and leasehold improvements		859		494
Income tax receivables		306		4,762
Other		1,032		618

Total Other Assets	$	80,383	$	75,380

REO consists of foreclosed properties received in satisfaction of defaulted real estate loans. The carrying value of REO at June 30, 2013, was $4 million, which includes the net effect of $3 million related to transfers into REO during the first half of 2013, offset by $2 million of REO liquidations, and less than $1 million of negative market valuation adjustments. At June 30, 2013 and December 31, 2012, there were 21 and 24 REO properties, respectively, recorded on our consolidated balance sheets, all of which were owned at consolidated Sequoia entities. Properties located in Ohio, Florida, Georgia, Illinois, and Michigan accounted for 76% of our REO properties at June 30, 2013.

Margin receivable resulted from margin calls from our swap, master repurchase agreements, and warehouse facility counterparties that required us to post collateral.