OTHER REAL ESTATE OWNED

9 Months Ended

Sep. 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	4,216			21,158
Sales — out of other real estate owned	(8,975		)	(12,725		)
Write-down	(1,020		)	(1,617		)
Ending Balance — September 30	$	9,677		$	18,269

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

	2012			2011
Beginning Balance — January 1	$	(4,003	)	$	(1,332	)
Impairments during year	(1,020		)	(1,617		)
Recovery on impairments	—			—
Reductions	2,486			281
Ending Balance — September 30	$	(2,537	)	$	(2,668	)

Expenses related to foreclosed assets include:

	2012			2011
Write downs	$	1,020		$	1,617
Losses / (gains) on sales	(635		)	(405		)
Net loss / (gain)	$	385		$	1,212
Operating expenses	$	383		$	844

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