FORECLOSED ASSETS (Tables)

9 Months Ended

Sep. 30, 2012

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

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

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