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OTHER REAL ESTATE OWNED
 12 Months Ended
Dec. 31, 2012
OTHER REAL ESTATE OWNED [Abstract]  
OTHER REAL ESTATE OWNED
NOTE 5 – OTHER REAL ESTATE OWNED

During 2012 and 2011 we foreclosed on certain loans secured by real estate and transferred approximately $14.3 million and $18.6 million to other real estate in each of those years, respectively. At the time of acquisition amounts were charged-off against the allowance for loan losses to bring the carrying amount of these properties to their estimated fair values, less estimated costs to sell. During 2012 and 2011 we sold other real estate with book balances of approximately $18.2 million and $17.7 million, respectively. Gains or losses on the sale of other real estate are included in non-interest expense on the Consolidated Statements of Operations.

We periodically review our real estate owned properties and establish valuation allowances on these properties if values have declined since the date of acquisition. An analysis of our valuation allowance for other real estate owned follows:

 
 
2012
 
 
2011
 
 
2010
 
 
 
(In thousands)
 
Balance at beginning of year
 
$
14,655
 
 
$
10,876
 
 
$
6,498
 
Additions charged to expense
 
 
3,769
 
 
 
6,563
 
 
 
6,883
 
Direct write-downs upon sale
 
 
(12,466
)
 
 
(2,784
)
 
 
(2,505
)
Balance at end of year
 
$
5,958
 
 
$
14,655
 
 
$
10,876
 

Other real estate and repossessed assets totaling $26.1 million and $34.0 million at December 31, 2012 and 2011, respectively are presented net of valuation allowance.