OTHER REAL ESTATE OWNED

6 Months Ended

Jun. 30, 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	2,088			2,856
Sales — out of other real estate owned	(3,035		)	(8,022		)
Write-down	(547		)	(553		)
Ending Balance — June 30	$	5,183		$	9,737

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	(547		)	(553		)
Recovery on impairments	—			—
Reductions	866			1,100
Ending Balance — June 30	$	(1,353	)	$	(1,732	)

Expenses related to foreclosed assets include:

	2013			2012
Write downs	$	547		$	553
Losses / (gains) on sales	(229		)	(340		)
Net loss / (gain)	$	318		$	213
Operating expenses	211			304

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