During the fourth quarter, we took the opportunity to sell two large subordinate loan legacy positions, continuing our reducing exposure to those bonds of the financial crisis. Although we believed that these loans would be collectable, they were subordinated to much larger loans and exposed as to potential binary risk. So we considered it prudent to pay back such positions and focus our capital on new investments.
In viewing though, we took a loss of $14 million, but maintained a book value within 1% of where it was last quarter. We also added general reserves of $2 million and have approximately $11 million balance in general reserve at yearend. Dave Bryant, will comment more about this, as we move forward from here. But in general loan credit, we see a stable and improving situation.
The fourth quarter of 2010 was marked by many positive events, including the following:
First, we are in $0.33 of adjusted net income. Far in excess of our $0.25 dividend and did this with over $200 million, yet $200 million of cash on hand to invest. We lowered our exposure to legacy real estate risk substantially, through the sale of $39 million of subordinate possessions. Third, we continue to maintain significant liquidity.Fourth, in the first quarter of 2011, we made new investments of over $60 million into commercial real estate loans, our syndicated bank loan business and commercial finance, all areas where we were able to achieve pretax projected returns of 12% to 25% or new dollars invested. And finally, number five. We put into overdrive. Our newly restarted commercial business and have started to put out the math of cash balances, we have been carrying those a lot a year or two. Read the rest of this transcript for free on seekingalpha.com