Loans Held for Sale, Net

3 Months Ended

Sep. 30, 2011

Note 5. Loans Held-for-Sale, Net

Activity relating to our loans held-for-sale for the nine months ended September 30, 2011 was as follows (in thousands):

	Gross Book Value			Valuation Allowance			Net Book Value

December 31, 2010		$16,130			($10,380	)		$5,750

Satisfactions		(16,130	)		10,380			(5,750	)

September 30, 2011		$—			$—			$—

During the second quarter of 2010, we reclassified a $16.1 million mezzanine loan to loans held-for-sale, against which we have previously recorded a provision for loan losses of $10.6 million. During 2010, we increased the book value of this loan by $263,000 resulting in a net book value of $5.8 million as of December 31, 2010. The loan was subsequently sold in January 2011 for its net book value of $5.8 million.