Other Real Estate Owned

9 Months Ended

Sep. 30, 2012

Other Real Estate Owned [Abstract]

Other Real Estate Owned

Note E – Other Real Estate Owned

(In Thousands)

The following table provides details of the Company’s other real estate owned (“OREO”) covered and not covered under a loss-share agreement, net of valuation allowances and direct write-downs as of the dates presented:

	Covered OREO		Not Covered OREO		Total OREO
September 30, 2012
Residential real estate	$	7,169	$	8,068	$	15,237
Commercial real estate		7,079		9,268		16,347
Residential land development		5,635		25,013		30,648
Commercial land development		21,732		6,219		27,951
Total	$	41,615	$	48,568	$	90,183
December 31, 2011
Residential real estate	$	11,110	$	15,364	$	26,474
Commercial real estate		8,211		11,479		19,690
Residential land development		4,441		36,105		40,546
Commercial land development		19,394		7,131		26,525
Total	$	43,156	$	70,079	$	113,235

Changes in the Company’s OREO covered and not covered under a loss-share agreement were as follows:

	Covered OREO			Not Covered OREO			Total OREO
Balance at January 1, 2012	$	43,156		$	70,079		$	113,235
Transfers of loans		27,056			7,161			34,217
Capitalized improvements		—			508			508
Impairments (1)		(7,507	)		(3,689	)		(11,196	)
Dispositions		(21,076	)		(25,674	)		(46,750	)
Other		(14	)		183			169
Balance at September 30, 2012	$	41,615		$	48,568		$	90,183

⁽¹⁾  Of the total impairment charges of $7,507 recorded for covered OREO, $1,501 was included in the Consolidated Statements of Income for the nine months ended September 30, 2012, while the remaining $6,006 increased the FDIC loss-share indemnification asset.

Components of the line item “Other real estate owned” in the Consolidated Statements of Income were as follows:

	Three Months  Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Carrying costs	$	1,325		$	619		$	3,116		$	2,938
Impairments		1,023			5,200			5,190			6,824
Net losses on OREO sales		202			578			1,852			2,414
Rental income		(110	)		(61	)		(349	)		(207	)
Total	$	2,440		$	6,336		$	9,809		$	11,969