As of December 31, 2000, CMOs represent approximately 95% of the Company's mortgage-backed securities. The CMOs in the Company's portfolio have been modeled and subjected to detailed, comprehensive analysis by the Company's investment staff. The overall structure of the CMO as well as the individual tranche being considered for purchase have been evaluated to ensure that the security fits appropriately within the Company's investment philosophy and asset/liability management parameters. The Company's investment mix between mortgage-backed securities and other fixed income securities helps effectively balance prepayment, extension, and credit risks.
The Company monitors the conditions and market values of these properties on a regular basis. The Company makes repairs and capital improvements to keep the properties in good condition and will continue this maintenance as needed. During 2000 the Company recorded a $420,000 realized investment loss for the writedown in value of an office building that is currently for sale. No realized losses were recognized in 1999 due to declines in values of real estate properties.
Although the $14,125,000 settlement was paid by National Western on January 13, 1999, the settlement payment was reflected in the accompanying financial statements as a loss from discontinued operations in 1998. Any additional losses will depend on the results of The City Colleges lawsuit filed against National Western on March 28, 1994, for alleged federal or state securities law "control person" violations relating to Westcap, and which is pending in the United States District Court, Western District of Texas, as more fully described in Item 3, Legal Proceedings. As described in detail in Item 3, there have been recent rulings favorable to National Western relating to Westcap bankruptcy claims. As a result, the Company has now filed with the United States District Court a motion for summary judgment and dismissal of the suit. Regardless of the outcome of the motion for summary judgment, National Western believes it has reasonable and adequate defenses to this suit and, accordingly, no amounts have been accrued in National Western's financial statements for potential losses relating to such suit. Additionally, as a result of the favorable rulings regarding the Westcap bankruptcy claims, National Western will be entitled to recover a portion of the settlement of the Westcap bankruptcy, but not to exceed $600,000. The Company anticipates the recovery amount will be determined and paid during 2001 and will be reflected in the Company's financial statements at such time.
Actual universal life insurance deposits collected for the years ended December 31, 2000, 1999, and 1998 are detailed below. Deposits collected on these nontraditional products are not reflected as revenues in the Company's statements of earnings, as they are recorded directly to policyholder liabilities upon receipt, in accordance with generally accepted accounting principles.
The Company relies on stockholders' equity for its capital resources, as there has been no long-term debt outstanding in 2000 or recent years. The Company does not anticipate the need for any long-term debt in the near future. There are also no current or anticipated material commitments for capital expenditures in 2001.