OTHER REAL ESTATE OWNED

9 Months Ended

Sep. 30, 2011

OTHER REAL ESTATE OWNED

OTHER REAL ESTATE OWNED

NOTE 5 — OTHER REAL ESTATE OWNED

Other real estate owned is recorded in other assets on the balance sheet.  Activity in other real estate owned was as follows:

	2011			2010
Beginning Balance — January 1	$	11,453		$	10,363
Transfer to other real estate owned	21,158			6,698
Sales	(13,130		)	(7,429		)
Net loss and write-downs	(1,212		)	(611		)
Ending Balance — September 30	$	18,269		$	9,021

Expenses related to foreclosed assets include:

	Nine Months Ended
	September 30, 2011		September 30, 2010
Net loss and write-downs	$	1,212	$	611
Operating expenses	844		342