OTHER REAL ESTATE OWNED

12 Months Ended

Dec. 31, 2012

OTHER REAL ESTATE OWNED

OTHER REAL ESTATE OWNED

Note 6. OTHER REAL ESTATE OWNED

The following schedule reflects the components of OREO at December 31, 2012 and 2011:

	December 31,
(in thousands)	2012		2011
Land / Lots	$	2,929	$	4,443
Commercial Real Estate	1,054		1,695
Residential Real Estate	—		820
Total Other Real Estate Owned	$	3,983	$	6,958

The following table reflects the activity in OREO for the years ended December 31, 2012, 2011 and 2010:

	For the Years Ended December 31,
(in thousands)	2012			2011			2010
Balance, beginning of year	$	6,958		$	9,633		$	11,184
Additions	1,586			3,995			9,928
Write-downs	(1,206		)	(2,318		)	(5,906		)
Carrying value of OREO sold	(3,355		)	(4,352		)	(5,573		)
Balance, end of year	$	3,983		$	6,958		$	9,633

The following table details the components of net expense of OREO for the years ended December 31, 2012, 2011 and 2010:

	For the Years Ended December 31,
(in thousands)	2012		2011		2010
Insurance	$	65	$	58	$	72
Legal fees	66		235		138
Maintenance	147		63		273
Losses from the operation of foreclosed properties	24		22		685
Professional Fees	211		250		25
Real estate taxes	287		724		385
Utilities	21		48		25
Impairment charges	1,206		2,318		5,906
Other	—		2		12
Total	$	2,027	$	3,720	$	7,521