Note 7 - Other Real Estate Owned

3 Months Ended

Mar. 31, 2013

Real Estate Owned [Text Block]

Note 7 – Other Real Estate Owned

The Company owned $21.3 million and $25.1 million in other real estate owned (“OREO”) at March 31, 2013 and December 31, 2012, respectively.  In 2012, the Company acquired $16.1 million in OREO through the merger with Citizens South. Approximately $6.7 million of this OREO is covered under the loss share agreements with the FDIC. In 2011, the Company acquired $7.8 million in OREO through the merger with Community Capital.  During the three-month periods ended March 31, 2013 and 2012, transfers into OREO (excluding OREO acquired through merger) totaled $3.2 million and $4.4 million, respectively.

Transactions in OREO for the three months ended March 31, 2013 and 2012 are summarized below (dollars in thousands):

	Three months ended
	March 31,			March 31,
	2013			2012
Beginning balance	$	25,073		$	14,403
Additions		3,157			4,400
Sales		(6,751	)		(1,881	)
Writedowns		(228	)		(248	)
Ending balance	$	21,251		$	16,674

The following is a summary of information relating to analysis of OREO at March 31, 2013 and December 31, 2012 (dollars in thousands):

	March 31,		December 31,
	2013		2012
Non-covered OREO:
CRE - owner-occupied	$	38	$	1,077
CRE - investor income producing		-		1,348
AC&D		11,667		14,527
Residential mortgage		1,892		1,062
Residential construction		-		413
OREO covered by FDIC loss share agreements		7,654		6,646
	$	21,251	$	25,073