OTHER REAL ESTATE OWNED

12 Months Ended

Dec. 31, 2012

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:

	2012			2011			2010
Beginning Balance	$	15,456		$	11,453		$	10,363
Transfer to other real estate owned		5,286			23,093			11,115
Sale — Out of other real estate owned		(12,089	)		(16,125	)		(9,246	)
Write-down		(1,976	)		(2,965	)		(779	)
Ending Balance	$	6,677		$	15,456		$	11,453

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

        Activity in the valuation account for other real estate was as follows:

	2012			2011			2010
Beginning Balance — January 1	$	(2,279	)	$	(779	)	$	—
Impairments during year		(1,976	)		(2,965	)		(779	)
Recovery on impairments		—			—			—
Reductions		2,583			1,465			—
Ending Balance — December 31	$	(1,672	)	$	(2,279	)	$	(779	)

        Expenses related to foreclosed assets included in other expenses in the consolidated statements of income, were as follows:

	2012			2011			2010
Write-downs	$	1,976		$	2,965		$	779
Losses/(gains)on sales		(617	)		(221	)		318
Net loss	$	1,359		$	2,744		$	1,097
Operating expenses		624			1,152			674