Other Real Estate Owned

6 Months Ended

Jun. 30, 2012

Other Real Estate Owned

Other Real Estate Owned

Note 5 – Other Real Estate Owned

Details related to the activity in the other real estate owned (“OREO”) portfolio, net of valuation reserve, for the periods presented are itemized in the following table:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
Other real estate owned	2012		2011		2012		2011
Balance at beginning of period	$	101,680	$	85,570	$	93,290	$	75,613
Property additions	3,432		11,062		19,350		30,513
Development improvements	197		145		515		2,167
Less:
Property disposals, net of gains/losses	10,342		10,057		15,688		19,180
Period valuation adjustments	5,296		4,109		7,796		6,502
Balance at end of period	$	89,671	$	82,611	$	89,671	$	82,611

Activity in the valuation allowance was as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2012		2011		2012		2011
Balance at beginning of period	$	23,994	$	21,883	$	23,462	$	22,220
Provision for unrealized losses	5,127		4,109		7,627		6,434
Reductions taken on sales	(1,821)		(4,488)		(3,789)		(7,218)
Other adjustments	169		-		169		68
Balance at end of period	$	27,469	$	21,504	$	27,469	$	21,504

Expenses related to foreclosed assets, net of lease revenue includes:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2012		2011		2012		2011
Gain on sales, net	$	(355)	$	(402)	$	(378)	$	(636)
Provision for unrealized losses	5,127		4,109		7,627		6,434
Operating expenses	1,661		1,842		3,815		4,831
Less:
Lease revenue	911		957		2,090		1,477
	$	5,522	$	4,592	$	8,974	$	9,152