OTHER REAL ESTATE OWNED

12 Months Ended

Dec. 31, 2011

OTHER REAL ESTATE OWNED [Abstract]

OTHER REAL ESTATE OWNED

9. OTHER REAL ESTATE OWNED

For the years ended December 31, 2011 and 2010, the total of OREO was $453,000 and $220,000, respectively.  OREO is reflected in other assets in our consolidated balance sheet.

For the year ended December 31, 2011, the gain on sale of OREO was $34,000.  For the years ended December 31, 2010 and 2009, losses on impairment or sale of OREO were $173,000 and $781,000, respectively.

For the years ended December 31, 2011, 2010 and 2009, OREO operating expense exceeded income by $29,000, $157,000 and $141,000, respectively.