Capital Crossing Preferred Corp. Series (CCPCN, Financial) filed Annual Report for the period ended 2011-12-31.
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Realized and unrealized gains and losses primarily reflects fair value adjustments to our investment and loan portfolios. Realized and unrealized gains on loans held for sale decreased $6.4 million, or 98.5%, to $0.1 million in 2011 from $6.5 million in 2010. There were positive valuation adjustments on the loan portfolio in both 2011 and 2010, however, the amount of the valuation adjustment was less in 2011. The valuation methodology was consistent for both periods. During 2011 there was a negative valuation adjustment on the investment portfolio of $0.3 million with no corresponding transaction in 2010. Valuations of these assets were determined or established based on quotes received from third parties along with pricing and cash flow models with numerous inputs. As non-cash components of our Statements of Operations, valuation adjustments to our investment and loan portfolios were excluded from the determination of income required to be distributed to meet REIT requirements under the IRC.
The decrease in interest income from the year ended December 31, 2010 compared to the year ended December 31, 2009 is a result of a decrease in the average balance of loans and a decrease in the yield of loans. The average balance of our loans for 2010 totaled $37.8 million compared to $46.2 million for 2009. This decrease is primarily attributable to loan payments. For the year ended December 31, 2010, the yield on our loan portfolio decreased to 5.35% compared to 6.62% for 2009. For the year ended December 31, 2010, interest and fee income recognized on loan payoffs decreased $171,000, or 50%, to $173,000 from $344,000 for 2009. The level of interest and fee income recognized on loan payoffs varies for numerous reasons, as further discussed below. The yield from regularly scheduled interest and accretion income decreased to 4.89% for the year ended December 31, 2010 from 5.87% for the same period in 2009 primarily due to a reduction in average balances.
The average balance of our interest-bearing deposits increased $10.1 million or 21.4% to $57.6 million for the year ended December 31, 2010, compared to $47.5 million for 2009. The changes in the average balances of interest-bearing deposits are the result of dividend payments offset by cash flows from loan repayments. The rate earned on interest-bearing deposits has remained unchanged since its decrease in July 2009 from 1.75% to 0.30%, resulting in a decrease in interest income and yield for the year ended December 31, 2010.
Other general and administrative expenses decreased $193,000, or 25.5% to $565,000 in 2010 from $758,000 in 2009. The decrease in 2011 was primarily attributable to decreases in legal fees and external audit expenses.
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Highlight of Business Operations:
The decrease in interest and fee income on loans was due to a decrease in the average balance of loans and a decrease in the yield of loans. The average unpaid principal balance of our loans for 2011 totaled $27.2 million compared to $37.8 million for 2010. This decrease is primarily attributable to loan payments. For the year ended December 31, 2011, the yield on our loan portfolio decreased to 4.73% compared to 5.35% for 2010. For the year ended December 31, 2011, interest and fee income recognized on loan payoffs increased $97,000 or 56% to $270,000 from $173,000 for 2010. The level of interest and fee income recognized on loan payoffs varies for numerous reasons, as further discussed below. The yield from regularly scheduled interest and accretion income decreased to 3.74% for the year ended December 31, 2011 from 4.89% for the same period in 2010 primarily due to a reduction in average balances.Realized and unrealized gains and losses primarily reflects fair value adjustments to our investment and loan portfolios. Realized and unrealized gains on loans held for sale decreased $6.4 million, or 98.5%, to $0.1 million in 2011 from $6.5 million in 2010. There were positive valuation adjustments on the loan portfolio in both 2011 and 2010, however, the amount of the valuation adjustment was less in 2011. The valuation methodology was consistent for both periods. During 2011 there was a negative valuation adjustment on the investment portfolio of $0.3 million with no corresponding transaction in 2010. Valuations of these assets were determined or established based on quotes received from third parties along with pricing and cash flow models with numerous inputs. As non-cash components of our Statements of Operations, valuation adjustments to our investment and loan portfolios were excluded from the determination of income required to be distributed to meet REIT requirements under the IRC.
The decrease in interest income from the year ended December 31, 2010 compared to the year ended December 31, 2009 is a result of a decrease in the average balance of loans and a decrease in the yield of loans. The average balance of our loans for 2010 totaled $37.8 million compared to $46.2 million for 2009. This decrease is primarily attributable to loan payments. For the year ended December 31, 2010, the yield on our loan portfolio decreased to 5.35% compared to 6.62% for 2009. For the year ended December 31, 2010, interest and fee income recognized on loan payoffs decreased $171,000, or 50%, to $173,000 from $344,000 for 2009. The level of interest and fee income recognized on loan payoffs varies for numerous reasons, as further discussed below. The yield from regularly scheduled interest and accretion income decreased to 4.89% for the year ended December 31, 2010 from 5.87% for the same period in 2009 primarily due to a reduction in average balances.
The average balance of our interest-bearing deposits increased $10.1 million or 21.4% to $57.6 million for the year ended December 31, 2010, compared to $47.5 million for 2009. The changes in the average balances of interest-bearing deposits are the result of dividend payments offset by cash flows from loan repayments. The rate earned on interest-bearing deposits has remained unchanged since its decrease in July 2009 from 1.75% to 0.30%, resulting in a decrease in interest income and yield for the year ended December 31, 2010.
Other general and administrative expenses decreased $193,000, or 25.5% to $565,000 in 2010 from $758,000 in 2009. The decrease in 2011 was primarily attributable to decreases in legal fees and external audit expenses.
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