Loans Held-for-Sale

9 Months Ended

Sep. 30, 2013

6. LOANS HELD-FOR-SALE

Activity relating to our loans held-for-sale was ($ in thousands):


	Gross Book			Valuation			Net Book
	Value			Allowance			Value
December 31, 2012	$	—		$	—		$	—

Reclassification from loans receivable		6,601			(4,601	)		2,000
Valuation allowance on loans held-for-sale		—			1,200			1,200
Loans sold		(6,601	)		3,401			(3,200	)

September 30, 2013	$	—		$	—		$	—

During the first quarter of 2013, we reclassified a $6.6 million subordinate mortgage loan and its related $4.6 million provision for loan losses to loans held-for-sale. We subsequently sold this loan and recorded a $1.2 million valuation adjustment to reflect the position at its fair value based on the proceeds expected to be received from the sale.