NOTE 5 - OTHER REAL ESTATE OWNED

9 Months Ended

Sep. 30, 2012

Real Estate Owned [Text Block]

NOTE 5 – OTHER REAL ESTATE OWNED

The Company had $21,689,000 and $20,106,000 in other real estate owned (“OREO”) at September 30, 2012 and December 31, 2011, respectively. Below is a table with details of the changes in OREO (in thousands):

	September 30,			December 31,
	2012			2011
Beginning balance	$	20,106		$	25,784
Properties transferred in		7,484			10,454
Sales of property		(4,414	)		(12,036	)
Loss on sale or writedown of property		(1,487	)		(4,096	)
Total	$	21,689		$	20,106

The following table presents the components of OREO expense (in thousands):

	Three months ended September 30,					Nine months ended September 30,
	2012			2011		2012		2011
Operating expenses	$	79		$	121	$	306	$	504
Provision for losses		749			459		1,310		1,890
Net, (gain)loss on disposal		(11	)		297		177		112
Total OREO expense	$	817		$	877	$	1,793	$	2,506