Other Real Estate Owned

12 Months Ended

Dec. 31, 2011

Other Real Estate Owned [Abstract]

Other Real Estate Owned

NOTE 7 – OTHER REAL ESTATE OWNED

The following table shows the carrying amount for other real estate owned at December 31, 2011 and 2010:

	Other Real Estate Owned			Other Real Estate Owned, Covered
(dollars in thousands)
Balance, January 1, 2011	$	5,591		$	0
Acquired		9,072			33,320
Additions		11,127			1,537
Sales		(17,398	)		(4,414	)
Charge-offs		(896	)		0
Change in residential properties		(313	)		0
Change in repossessed personal property		(64	)		0
Balance, December 31, 2011	$	7,119		$	30,443

Covered OREO expenses and valuation write-downs are recorded in the noninterest expense section of the consolidated statements of income. Under the loss sharing agreements, the FDIC will reimburse the Company for 80% of expenses and valuation write-downs related to covered assets up to $275.0 million, losses in excess of $275.0 million up to $467.2 million at 0%, and 80% of losses in excess of $467.2 million. The reimbursable portion of these expenses is recorded in the FDIC indemnification asset. Changes in the FDIC indemnification asset are recorded in the noninterest income section of the consolidated statements of income.