Other Real Estate Owned ("OREO"), net

6 Months Ended

Jun. 30, 2011

Other Real Estate Owned ("OREO"), net

7. Other Real Estate Owned (“OREO”), net

The following table presents activity related to OREO for the periods shown (dollars in thousands):

	Six months ended June 30,
	2011			2010
Balance at beginning of year	$	39,536		$	28,860
Additions		6,850			32,433
Dispositions		(8,062	)		(3,340	)
Change in valuation allowance		(1,212	)		(2,377	)
Balances at end of period	$	37,112		$	55,576

The following table summarizes activity in the OREO valuation allowance for the periods shown (dollars in thousands):

	Six months ended June 30,
	2011			2010
Balance at beginning of year	$	16,849		$	6,230
Additions to the valuation allowance		2,269			3,661
Reductions due to sales of OREO		(1,057	)		(1,284	)
Balance at end of period	$	18,061		$	8,607

The following table summarizes OREO expenses for the periods shown (dollars in thousands):

	Three months ended June 30,					Six months ended June 30,
	2011			2010		2011		2010
Operating costs	$	243		$	1,025	$	442	$	222
Net (gains) losses on dispositions		(23	)		45		179		97
Increases in valuation allowance		1,082			2,426		2,269		3,661
Total	$	1,302		$	3,496	$	2,890	$	3,980