NOTE 5 - OTHER REAL ESTATE OWNED

6 Months Ended

Jun. 30, 2013

Other Real Estate [Abstract]

OTHER REAL ESTATE OWNED

NOTE 5 – OTHER REAL ESTATE OWNED

The Company had $16,324,000 and $22,423,000 in other real estate owned (“OREO”) at June 30, 2013 and December 31, 2012, respectively. Below is a table with details of the changes in OREO (in thousands):

	June 30,			December 31,
	2013			2012
Beginning Balance	$	22,423		$	20,106
Properties transferred in		777			12,239
Sales of property		(5,744	)		(6,889	)
Loss on sale or writedown of property		(1,132	)		(3,033	)
Total	$	16,324		$	22,423

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

	Three months ended June 30,				Six months ended June 30,
	2013		2012		2013		2012
Operating expenses	$	92	$	72	$	234	$	227
Provision for losses		623		165		884		561
Net, loss on disposal		275		105		248		188
Total other real estate owned expense	$	990	$	342	$	1,366	$	976