Non-Covered Other Real Estate Owned, Net

12 Months Ended

Dec. 31, 2012

Non-Covered Other Real Estate Owned, Net [Abstract]

Non-Covered Other Real Estate Owned, Net

NOTE 11. NON-COVERED OTHER REAL ESTATE OWNED, NET 

The following table presents the changes in non-covered other real estate owned (“OREO”) for the years ended December 31, 2012, 2011 and 2010: 

(in thousands)
	2012		2011		2010
Balance, beginning of period	$	34,175	$	32,791	$	24,566
Additions to OREO due to acquisition		1,602		-		-
Additions to OREO		17,699		47,414		41,491
Dispositions of OREO		(29,442)		(37,083)		(29,192)
Valuation adjustments in the period		(6,896)		(8,947)		(4,074)
Balance, end of period	$	17,138	$	34,175	$	32,791

OREO properties are recorded at the lower of the recorded investment in the loan (prior to foreclosure) or the fair market value of the property less expected selling costs.  The Company recognized valuation allowances of $1.8 million, $5.1 million, and $2.4 million on its non-covered OREO balances as of December 31, 2012, 2011 and 2010, respectively. Valuation allowances on non-covered OREO balances are based on updated appraisals of the underlying properties as received during a period or management's authorization to reduce the selling price of a property during the period.