Note 10. Other Assets

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

Other Assets


(In Thousands)	September 30, 2013		December 31, 2012
Margin receivable	$	46,970	$	63,424
Investment receivable		1,821		153
Other pledged collateral		5,000		–
REO		4,050		4,245
Prepaid expenses		2,206		1,684
Fixed assets and leasehold improvements		1,065		494
Income tax receivables		895		4,762
Other		1,080		618

Total Other Assets	$	63,087	$	75,380

REO consists of foreclosed properties received in satisfaction of defaulted real estate loans. The carrying value of REO at September 30, 2013, was $4 million, which includes the net effect of $3 million related to transfers into REO during the first nine months of 2013, offset by $3 million of REO liquidations, and less than $1 million of negative market valuation adjustments. At September 30, 2013 and December 31, 2012, there were 22 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, and Alabama accounted for 64% of our REO properties at September 30, 2013.

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