NOTE 5 – FORECLOSED ASSETS

Foreclosed assets were as follows:


	September 30, 2012		December 31, 2011
Real estate:
Single-family residential	$	96	$	—
Commercial:
Non-owner occupied		1,029		1,161
Land		447		2,348

Subtotal		1,572		3,509
Valuation allowance		—		(1,139	)

Total	$	1,572	$	2,370

Activity in the valuation allowance was as follows:


	Three months ended September 30,					Nine months ended September 30,
	2012			2011		2012			2011
Beginning valuation allowance	$	1,139		$	1,139	$	1,139		$	—
Additions charged to expense		780			—		962			1,139
Direct write-downs		(1,919	)		—		(2,101	)		—

Ending valuation allowance	$	—		$	1,139	$	—		$	1,139

Expenses related to foreclosed assets include:


	Three months ended September 30,						Nine months ended September 30,
	2012			2011			2012			2011
Net loss (gain) on sales	$	(9	)	$	(8	)	$	(9	)	$	(8	)
Provision for unrealized losses		780			—			962			1,139
Operating expenses, net of rental income		5			8			29			54

	$	776		$	—		$	982		$	1,185

Foreclosed assets at September 30, 2012 included one single-family residential property, three commercial real estate properties and one parcel of undeveloped land. Foreclosed assets at December 31, 2011 included two commercial real estate properties and one parcel of undeveloped land. The valuation allowance was established in the second quarter of 2011 due to a decline in value of the parcel of undeveloped land, which is located in Columbus, Ohio.