NOTE 6 - OTHER REAL ESTATE OWNED

12 Months Ended

Dec. 31, 2012

Real Estate Owned [Text Block]

6. OTHER REAL ESTATE OWNED

The table shows the changes in other real estate owned (OREO) during the years ended December 31 as follows (in thousands):

	2012			2011			2010
Balance, beginning of year	$	20,106		$	25,784		$	12,377
Properties transferred in		12,239			10,454			29,716
Sales of property		(6,889	)		(12,036	)		(10,574	)
Loss on sale or writedown of property		(3,033	)		(4,096	)		(5,735	)
Balance, end of year	$	22,423		$	20,106		$	25,784

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

	As of December 31,
	2012		2011		2010
Operating expenses	$	523	$	708	$	787
Provision for losses		2,638		4,002		5,575
Net, loss on disposal		395		94		160
Total OREO expense	$	3,556	$	4,804	$	6,522