NOTE G - OTHER REAL ESTATE OWNED

9 Months Ended

Sep. 30, 2011

Real Estate Owned [Text Block]

NOTE G – OTHER REAL ESTATE OWNED

The Company had $20,888,000 and $25,784,000 in other real estate owned (“OREO”) at September 30, 2011 and December 31, 2010, respectively. Below is a table with details of the changes in OREO (in thousands):

Balance, December 31, 2010	$	25,784
Properties transferred in		7,891
Sales of property		(10,785	)
Loss on sale or writedown of property		(2,002	)
Balance at September 30, 2011	$	20,888

The following table presents the components of OREO expense for the periods ended September 30, 2011 and 2010 (in thousands):

	Three months ended September 30,					Nine months ended September 30,
	2011		2010			2011		2010
Operating expenses	$	121	$	192		$	504	$	465
Provision for losses		459		3,082			1,890		4,928
Net, loss/(gain) on disposal		297		(33	)		112		(49	)
Total other real estate owned expense	$	877	$	3,241		$	2,506	$	5,344