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OTHER REAL ESTATE OWNED
 9 Months Ended
Sep. 30, 2012
OREO [Abstract]  
Real Estate Owned [Text Block]
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 and recording fees. Subsequent to foreclosure, properties are appraised annually and adjusted to the lower of carrying amount or fair market value less estimated costs to sell.

The following table shows the activity in OREO properties for the three months ended September 30, 2012.
(Dollars in thousands)
June 30, 2012
 
Sales (Cash)
 
Losses
 
Additions
 
September 30, 2012
Commercial real estate
$
2,447

 
$
(203
)
 
$
—

 
$
—

 
$
2,244

Faith-based non-profit
199

 
—

 
—

 
—

 
199

Residential
420

 
(56
)
 
(1
)
 
—

 
363

Land
307

 
(3
)
 
(38
)
 
—

 
266

Total
$
3,373

 
$
(262
)
 
$
(39
)
 
$
—

 
$
3,072

The following table shows the activity in OREO properties for the nine months ended September 30, 2012.

(Dollars in thousands)
December 31, 2011
 
Sales (Cash)
 
Losses
 
Additions
 
September 30, 2012
 
 
 
 
 
 
 
 
 
 
Commercial
$
2,481

 
$
(203
)
 
$
(33
)
 

 
$
2,245

Faith-based and non-profit
253

 
(52
)
 
(3
)
 

 
198

Residential
174

 
(142
)
 
(6
)
 
337

 
363

Land
307

 
(3
)
 
(38
)
 

 
266

Total
$
3,215

 
$
(400
)
 
$
(80
)
 
$
337

 
$
3,072





There were foreclosures related to two borrowers during the nine months ended September 30, 2012 and no foreclosures that were taken into OREO during the three months ended September 30, 2012. The losses recorded during the three months ended September 30, 2012 were related to three properties under contract for sale, the losses recorded during the nine months ended September 30, 2012, related to five properties under contract for sale.