OTHER REAL ESTATE OWNED

6 Months Ended

Jun. 30, 2012

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:

	2012			2011
Beginning Balance – January 1	$	15,456		$	11,453
Transfer to other real estate owned	2,946			13,660
Sales – out of other real estate owned	(8,022		)	(10,228		)
Write-down	(643		)	(561		)
Ending Balance – June 30	$	9,737		$	14,324

Expenses related to foreclosed assets include:

	2012			2011
Write downs	$	643		$	737
Losses / (gains) on sales	(430		)	(176		)
Net loss / (gain)	$	213		$	561
Operating expenses	$	304		$	423

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

At June 30, 2012 and 2011, the balance in the valuation account was $2,657 and $1,716.