REAL ESTATE OWNED

3 Months Ended

Mar. 31, 2013

REAL ESTATE OWNED

REAL ESTATE OWNED

4.  REAL ESTATE OWNED

Activity in real estate owned was as follows:

	Three Months Ended
	2013			2012
	(in thousands)
Beginning of year	$	4,168		$	8,296
Additions	82			1,520
Sales	(28		)	(447		)
Additions to valuation allowance, net	—			4
Recovery from sale in valuation allowance	—			24
End of period	$	4,222		$	9,397

Activity in the valuation allowance was as follows:

	Three Months Ended
	2013		2012
	(in thousands)
Beginning of year	$	1,668	$	1,516
Additions charged to expense, net	—		(4		)
Recovery from sale	—		(24		)
End of period	$	1,668	$	1,488

Expenses related to foreclosed assets include:

	Three Months Ended
	2013			2012
	(in thousands)
Net loss (gain) on sales	$	(5	)	$	30
Provision for unrealized losses, net	—			(4		)
Operating expenses (receipts), net of rental income	67			333
End of period	$	62		$	359