Non-Covered Other Real Estate Owned, Net

12 Months Ended

Dec. 31, 2011

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 other real estate owned ("OREO"), net of valuation allowance, for the years ended December 31, 2011, 2010 and 2009:

(in thousands)
	2011			2010			2009
Balance, beginning of period	$	32,791		$	24,566		$	27,898
Additions to OREO		47,414			41,491			50,914
Dispositions of OREO		(37,083	)		(29,192	)		(41,999	)
Valuation adjustments in the period		(8,947	)		(4,074	)		(12,247	)
Balance, end of period	$	34,175		$	32,791		$	24,566

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 $5.1 million, $2.4 million, and $11.4 million on its non-covered OREO balances as of December 31, 2011, 2010 and 2009, 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.