Foreclosed Assets (Tables)

12 Months Ended

Dec. 31, 2012

Analysis of the balance in foreclosed assets

The Company holds certain parcels of real estate due to completed foreclosure proceedings on defaulting loans. An analysis of the balance in foreclosed assets is as follows:

	Years Ended December 31,
	2012			2011
	(in thousands)
Balance at beginning of year	$	11,241		$	13,572
Foreclosed properties acquired		850			2,741
Other additions to foreclosed properties		85			0
Properties sold		(3,732	)		(5,072	)
Balance at end of year	$	8,444		$	11,241

Analysis of valuation allowance on foreclosed assets

Foreclosed assets are presented net of a valuation allowance for losses. An analysis of the valuation allowance on foreclosed assets is as follows:

	Years Ended December 31,
	2012			2011
	(in thousands)
Balance at beginning of year	$	1,851		$	2,124
Additions and write-downs		473			942
Reductions due to sales		(454	)		(1,215	)
Balance at end of year	$	1,870		$	1,851

Expenses applicable to foreclosed assets

Expenses applicable to foreclosed assets include the following:

	Years Ended December 31,
	2012		2011
	(in thousands)
Net loss (gain) on sales of real estate	$	304	$	471
Provision for losses (direct writedowns)		473		942
Operating expenses, net of income*		345		477
Total Expenses	$	1,122	$	1,890
* included in other operating income and other operating expense