Foreclosed Real Estate

12 Months Ended

Dec. 31, 2012

Note 6 – Foreclosed Real Estate

As of December 31, 2012, Bancorp had foreclosed real estate consisting of 46 residential properties with a carrying value of $11,441,000. During the year ended December 31, 2012, Bancorp sold a total of 49 properties previously included in foreclosed real estate. The properties sold during 2012 had a combined net book value of $18,829,000 after total write-downs taken subsequent to their transfer from loans to foreclosed real estate of $5,927,000, and were sold at a combined net gain of $701,000. In addition, Bancorp incurred $1,222,000 in expenses related to the sale of the properties. The following table summarizes the changes in foreclosed real estate for the years ended December 31, 2012, 2011 and 2010 (dollars in thousands):

Foreclosed real estate at December 31, 2009	$	21,574
Transferred from impaired loans, net of specific reserves of $8,146		24,137
Property improvements		430
Additional write downs		(3,451	)
Property sold, including loss on sale		(21,735	)
Foreclosed real estate at December 31, 2010		20,955
Transferred from impaired loans, net of specific reserves of $3,584		16,295
Property improvements		502
Additional write downs		(3,562	)
Property sold, including loss on sale		(14,258	)
Foreclosed real estate at December 31, 2011		19,932
Transferred from impaired loans, net of specific reserves of $3,267		13,248
Property improvements		374
Additional write downs		(3,284	)
Property sold, including gain on sale		(18,829	)
Foreclosed real estate at December 31, 2012	$	11,441

- Definition

The entire disclosure for real estate owned (as defined). Generally, the largest component of real estate owned by lenders is assets taken in settlement of troubled loans through surrender or foreclosure. Real estate investments, real estate loans that qualify as investments in real estate, and premises that are no longer used in operations may also be included in real estate owned.

+ References

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