OTHER REAL ESTATE OWNED

6 Months Ended

Jun. 30, 2013

Real Estate [Abstract]

OTHER REAL ESTATE OWNED ("OREO")

7. OTHER REAL ESTATE OWNED (“OREO”)

At the time of foreclosure, real estate is recorded at fair market value based on appraised value less estimated costs to sell, such as realtor, legal and recording fees and expenses. Subsequent to foreclosure, properties are appraised annually and adjusted to the lower of carrying amount or fair market value less estimated costs to sell. At June 30, 2013 and December 31, 2012, OREO totaled $2.9 million and $3.1 million, respectively.