OTHER REAL ESTATE OWNED

12 Months Ended

Dec. 31, 2011

OTHER REAL ESTATE OWNED

OTHER REAL ESTATE OWNED

NOTE 6 — OTHER REAL ESTATE OWNED

        Activity in the real estate owned assets, which are included in interest receivable and other assets in the consolidated balance sheets, was as follows:

	2011			2010			2009
Beginning Balance	$	11,453		$	10,363		$	5,814
Transfer to other real estate owned		23,093			11,115			11,915
Sale — Out of other real estate owned		(16,125	)		(9,246	)		(6,766	)
Write-down		(2,965	)		(779	)		(600	)
Ending Balance	$	15,456		$	11,453		$	10,363

        The value of the sale amount above is the carrying value of the property when it was sold.

        At December 31, 2011 and 2010, the balance in the valuation account was $4,003and $1,982 respectively.

        Expenses related to foreclosed assets include:

	2011			2010		2009
Write-downs	$	2,965		$	779	$	600
Losses/(gains)on sales		(221	)		318		(800	)
Net loss/(gain)	$	2,744		$	1,097	$	(200	)
Operating expenses		1,152			674		681