Annual report pursuant to section 13 and 15(d)

Investments, Deposits And Other Assets

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Investments, Deposits And Other Assets
12 Months Ended
Sep. 30, 2011
Investments, Deposits And Other Assets [Abstract]  
Investments, Deposits And Other Assets

Note 4. Investments, deposits and other assets

Investments, deposits and other assets consist of the following:

 

(dollars in thousands)    September 30, 2011      September 30, 2010  
     Current      Non-current      Total      Current      Non-current      Total  

Certificates of deposit

   $ 989       $ 120       $ 1,109       $ 1,439       $ 119       $ 1,558   

Loan origination fees

     —           1,075         1,075         —           1,231         1,231   

Stock in agricultural cooperatives

     —           560         560         —           374         374   

Deposits

     —           263         263         —           102         102   

Water Permits

     —           162         162         —           72         72   

Tax certificates

     —           2         2         —           164         164   

Cooperative retains receivable, net (a)

     —           —           —           —           1,454         1,454   

Escrowed funds

     —           —           —           —           150         150   

Other

     —           38         38         —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 989       $ 2,220       $ 3,209       $ 1,439       $ 3,666       $ 5,105   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(a) During the second quarter of 2011, the Company fully reserved $1.7 million in cooperative allocated surplus it had recorded based on its patronage allocation with Farm Credit.

As an agricultural credit cooperative, Farm Credit is owned by the member-borrowers who purchase stock and earn participation certificates which represent each members-borrowers respective share of the allocated surplus in the cooperative. Allocations of the surplus are made to members on an annual basis according to the proportionate amount of interest paid by each member. Allocations are made in cash and non-cash participation certificates.

Farm Credit did not make any distributions of allocated surplus during 2010 and subsequently announced in 2011 the indefinite suspension of any future distributions of members' allocated surplus; therefore, the Company determined that the entire amount was uncollectible as no future revolvement plan has been established. The full reserve of the $1.7 million is included in interest and investment income, net, in the accompanying consolidated statements of operations.

Realized gains and losses on the disposition of securities and recognition of the full reserve of the patronage allocation with Farm Credit were charged to interest and investment income and include the following:

 

(dollars in thousands)    Fiscal year ended September 30  
     2011     2010     2009  

Realized gains

   $ 139      $ 281      $ 16   

Realized losses

     (1,685     (40     (930
  

 

 

   

 

 

   

 

 

 

Net (loss) gain

   $ (1,546   $ 241      $ (914