OTHER REAL ESTATE OWNED

3 Months Ended

Mar. 31, 2013

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:

	2013			2012
Beginning Balance — January 1	$	6,677		$	15,456
Transfer to other real estate owned	967			1,831
Sales — out of other real estate owned	(1,370		)	(6,051		)
Write-down	(446		)	(562		)
Ending Balance — March 31	$	5,828		$	10,674

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:

	2013			2012
Beginning Balance — January 1	$	(1,672	)	$	(2,279	)
Impairments during year	(446		)	(562		)
Recovery on impairments	—			—
Reductions	405			756
Ending Balance — March 31	$	(1,713	)	$	(2,085	)

Expenses related to foreclosed assets for the period ending March 31 include:

	2013			2012
Write downs	$	446		$	562
Losses / (gains) on sales	(150		)	(310		)
Net loss / (gain)	$	296		$	252
Operating expenses	92			198