Real Estate Owned

12 Months Ended

Dec. 31, 2012

Real Estate Owned

Note 6 – Real Estate Owned

Real estate owned at December 31, 2012 and December 31, 2011 were as follows:

	December 31,
	2012			2011
	(In thousands)
One-to-four units	$	0		$	759
Commercial real estate		3,090			3,374
Church		5,619			2,913
Valuation allowance for unrealized losses		(546	)		(347	)
Real estate owned	$	8,163		$	6,699

Activity in the valuation allowance was as follows:

	2012			2011
	(In thousands)
Beginning valuation allowance	$	347		$	54
Additions charged to expense		1,218			2,654
Direct write-downs		(1,019	)		(2,361	)
Ending valuation allowance	$	546		$	347

Expenses related to foreclosed assets include:

	2012			2011
	(In thousands)
Net (gains) losses on sales	$	(292	)	$	35
Provision for unrealized losses		1,218			2,654
Operating expenses		592			499
Total	$	1,518		$	3,188